Virgin Metals Inc.

Virgin Metals Inc.

November 07, 2007 09:38 ET

Virgin Metals Provides Update on Mexico Projects

TORONTO, ONTARIO--(Marketwire - Nov 7, 2007) - Virgin Metals Inc. (TSX:VGM) ("Virgin Metals" or the "Company") provides the following update on its molybdenum and copper projects in Sonora, northern Mexico.

At Los Verdes, engineering work for the feasibility study is approaching completion with conceptual plant and associated earth works design essentially complete. Capital and operating cost estimates are currently being prepared. The Company is presently working on an interim resource model, based on reverse circulation drilling only and including mineralization located on the Bacanora claim, which was excluded from the previous resource estimate and on which drilling has now been completed. A total of 75 reverse circulation holes and 25 diamond drill holes have now been drilled on the property. However, the model will not be NI 43-101 compliant until diamond drill data and historical data from 1970's is incorporated into the model. Assays from diamond drill data are still awaited and a final resource model is not expected until January 2008, after which a mining schedule will be prepared for inclusion in the final feasibility study report.

It should be noted that the coarse nature of the molybdenite mineralization and the rubbly nature of much of the drill core dictated that whole core sampling be employed. Exhaustive geologic logging, geotechnical analysis and density data were obtained from the core before submittal for analysis. Core from three holes has been retained for visual and geologic reference.

At Cuatro Hermanos, assay results for the current reverse circulation drill program are starting to trickle in, but the Company faces the same problem as all exploration firms, of massive delays at commercial assay laboratories. It is currently taking up to nine weeks from submittal of samples until assay certificates are received. The company hopes to release assays from holes CHRC05-07 to CHRC11-07 within the next few weeks.

Drilling is currently in progress on hole CHRC16-07, after major delays due to stuck rods in CHRC15-07. A total of 22 drill holes are planned for the Sulfate and Main zones, which lie on the northeast and east side of the porphyry system, respectively. One of the goals of the present exploration campaign is to demonstrate that copper-molybdenite mineralization is contiguous between the two zones, and in so doing the Company will ultimately produce NI 43-101 compliant mineral resources for the areas. Hole CHRC16-07 is planned to step out from the high grade molybdenum values recorded in hole CHRC04-07. The Company then plans to move the drill to the west end of the property, to evaluate high grade molybdenum values noted at surface there, before returning to the Main and Sulfate zones for completion of the 22 hole program in the light of additional assay results.

The Company also announces the appointment of Mr. Patrick Gorman to the Board of Directors. Patrick is a mining engineer with qualifications from both the Royal School of Mines and Colorado School of Mines. He currently practices as a consultant and has recently worked on numerous due diligence assignments. His consulting background includes work at Micon and MRDI and his career experience includes appointments at Cluff Resources, BHP and Anglo American. Patrick has extensive experience of working in Latin America, where he has held senior project responsibility, including preparing the feasibility study for the Escondida project.

About Virgin Metals

Virgin Metals is a junior exploration and development company; its projects include two copper-molybdenum porphyry properties in Sonora, northern Mexico. One of these, Los Verdes, is undergoing a feasibility study and is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is presently the focus of an intense exploration effort.


This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Virgin Metals documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Virgin Metals. The forward-looking information contained herein is Virgin Metal's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.

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