Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

October 05, 2009 13:52 ET

Virginia Energy Re-Samples Historic Drill Core, Peribonka Uranium Property, Otish Basin, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) is pleased to announce the results of re-sampling of historic drill core, drilled in the early 1980s, from three prospects on its Péribonka property in the Otish Basin of north-central Québec. The results confirm the presence of significant sandstone and gabbro-hosted uranium mineralization in geological settings analogous to the Matoush deposit of Strateco Resources Inc., and the nearby Seru L zone deposit and Epsilon discovery of Abitex Resources Inc.

The best hole, from the Lac du Castor target, yielded 5.5 m grading 0.131% U3O8, including 1.5 m grading 0.352% U3O8. The mineralization is hosted by sandstone below a gabbro sill, occurs at a relatively shallow depth (72-77 m) and is open along strike for 400 m to both the northwest and southeast.

The majority of Virginia's 2009 Otish program was directed towards defining drill targets on four properties under option from Xemplar Energy Corporation (see property map on Virginia website: http://www.santoy.ca/s/OtishBasin.asp). In addition to the drill core re-sampling reported here, Virginia completed outcrop stripping and sampling, prospecting and detailed ground surveys over several targets. Initial positive results from sampling of the high-grade Lac Tion and Lorenz Gully prospects were reported in the Company's September 21, 2009 news release. Additional results will be released as they become available, including channel samples collected at Lorenz Gully.

Péribonka drill core re-sampling

An estimated 112 historic drill holes were drilled on Virginia's Péribonka property between 1981 and 1985 by Seru Nucléaire Canada Ltée, and Cogema Canada (predecessors of AREVA Canada Inc.) The drill core has been stored in steel racks at a former Seru camp and is in generally good condition and usable. In order to confirm the historic assays, test for mineralization in core not previously split, and collect samples for petrological studies, Virginia geologists examined and re-sampled core from 14 drill holes from the Lac du Castor, Lac Tion and Lac Tête target areas. The samples were mainly ¼-split BQ core; however, a few samples of ½ split BQ core and ¼ split Winkie core were also included. Where possible, sampling intervals were kept the same as previous Seru intervals; however, some adjustments were necessary due to missing core and/or geological considerations. Virginia's assay values are in some cases slightly lower than Seru's, and the discrepancy is thought to be due to difficulty in sampling the broken, narrow-diameter core. Nevertheless, the re-sampling results confirm our belief that the results from the 1980s are reliable and that significant uranium mineralization is present.

Lac du Castor

The Lac du Castor prospect is located 6 km northeast of Abitex's L Zone deposit. The best Virginia sampling results were from hole OELV-290 which yielded 5.5 m grading 0.131% U3O8, including 1.5 m grading 0.352% U3O8 (see table below). All the holes in this area were drilled vertically and the intersection is interpreted to be approximately true width. Mineralization is hosted in a flat-lying, altered sandstone unit beneath a sill-like projection of gabbro, and also carries anomalous Au, Ba, Bi and Pb. Seru reported an intersection from this hole of 5 m grading 0.162% U3O8 (from 71.6 to 76.6 m), including 1.0 m grading 0.555% U3O8. The Seru drilling in the area was on fences 400 m apart. Adjacent holes on this fence 40 m to the northwest and southeast and also yielded anomalous values.

Holes OELV-298 and 283 are located some 600 metres and 900 m southwest of hole 290, respectively. They also assayed anomalous uranium values as shown in the table below.

Given the thickness and grade of the intersection in OELV-290, the wide drill spacing in the area, and the striking similarity of the OELV-290 alteration and mineralization to the L zone and other important deposits in the area, additional tight-spaced drilling is certainly warranted in this area.

Lac du Castor Drill Hole Re-Sampling Results (Virginia Energy assays)

Hole #From (m)To (m)Width (m)% U3O8Rock type
      
OELV-29071.5077.005.500.131sandstone
including72.5077.004.500.158sandstone
including75.5077.001.500.352sandstone
      
OELV-29855.3056.301.000.026sandstone
and85.7586.751.000.033sandstone
      
OELV-28394.4895.981.500.016diabase, sandstone
including94.4894.980.500.031sandstone

Lac Tion

In its September 21 News Release, the Company reported results of high-grade float samples (up to 5.47% U3O8) collected from two boulder trains in the Lac Tion area. Seru drilled five BQ holes and 14 short "Winkie" holes in this area in 1983 and 1984 to try to locate the source of the high-grade boulders. The best, Winkie hole OEWY-209 is reported to have yielded 1.5 m grading 0.555% U3O8 beginning at 4.75 m below surface. The hole was drilled at -45 to the north and encountered mineralization on the margin of a narrow gabbro / dolerite dyke cutting sandstones. Re-sampling by Virginia was hampered by the small amount and highly broken condition of the remaining core. Nevertheless, one sample of 0.5 m assayed 0.514% U3O8, in line with the grade of the previous Seru results, but over a narrower interval.

Seru also reported an intersection of 0.5 m grading 0.077% U3O8 beginning at 6.75 m in Winkie hole OEWY-218, located approximately 10 m to the northeast. Results from the Virginia sampling of this hole were anomalous in uranium and gold, but considerably lower than the Seru results. Again re-sampling was hampered by the poor core condition.

The 1983-1984 Seru drilling may not have located the source of the high-grade boulders. Virginia completed detailed magnetometer and soil surveys over this target in 2009 to help choose new drill targets.

Lac Tion Drill Hole Re-Sampling Results (Virginia Energy assays)

Hole #From (m)To (m)Width (m)% U3O8g/t AuRock type
       
OEWY-2095.305.800.500.5140.447gabbro
       
OEWY-2186.757.250.500.0240.171gabbro
And15.7616.761.000.0110.115gabbro

Lac Tête target

Several Seru drill holes from the Lac Tête area were re-sampled by Virginia. Seru logs and radiometric probe values are available for these holes; however no chemical assays are available. The best hole in this area is reported to have returned anomalous uranium over approximately half a metre by down-hole probe. Sampling of previously split core from this interval by Virginia yielded 0.6 m grading 0.15% U3O8 and 1.354 g/t Au (see table below). The mineralization is hosted in altered gabbro and may have been cut at a shallow angle by the hole. Other holes in this area encountered weakly anomalous gold. Again, drilling is very wide-spaced in this area with the nearest adjacent fences being 500 m to the north and 200 m to the south. Tight-spaced offsets to hole OELU-229 may be warranted.

Lac Tête Drill Hole Re-Sampling Results (Virginia Energy assays)

Hole #From (m)To (m)Width (m)% U3O8g/t AuRock type
       
OELU-229105.2106.81.60.0640.665gabbro
including106.2106.80.60.1501.354gabbro

Sample Security & Quality Control

Virginia employs a strict program of sample security and quality control, including the use of blanks, certified standards and duplicates. Loring Laboratories Ltd. of Calgary, Alberta completed all analyses reported here. Rock and core samples are analyzed for a multi-element suite of elements by the ICP-MS method following aqua regia digestion. Uranium assays are completed by the fluorimetric method following a four-acid digestion. Rock and core samples are also assayed for gold by 30-gram fire assay with atomic absorption finish.

The technical information in this news release has been reviewed and prepared by Michael S. Cathro, P.Geo., Virginia's Vice President of Exploration and a Qualified Person as defined in National Instrument 43-101.

On Behalf of the Board of Directors

VIRGINIA ENERGY RESOURCES INC.

Norman Reynolds, President & CEO

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Virginia Energy Resources Inc.
    Norman Reynolds
    President
    (604) 669-4799
    or
    Virginia Energy Resources Inc.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    www.virginiaenergyresources.com