COLUMBIA--(Marketwire - Oct. 28, 2009) - Virginia Energy Resources Inc. (TSX VENTURE:VAE)
and Big Red Diamond Corporation (TSX VENTURE:DIA) are pleased to
announce the identification of a highly radioactive, uranium-mineralized zone
in basement bedrock on the Strategis property, located on the margin of the
Otish Basin in central Quebec.
Twenty-one radioactive rock samples
(18 from bedrock and 3 boulders) were collected over a 425 m long by 85 m
wide area. The sample sites averaged 19,738 counts per second (range
of 5000 to 49,500 cps) using a hand-held RS-125 spectrometer. The radioactivity
is thought to be primarily caused by uranium mineralization as indicated by
semi-quantitative spectrometer analyses and the presence of yellow secondary
uranium minerals. The mineralized zone is the extension of the Lorenz Gully
southwest zone on the adjacent Lorenz property, where Virginia is earning up to
100% from Xemplar Energy Corp. (see Virginia News Releases of May 11 and
September 21, 2009). The mineralized trend has now been traced for
approximately 900 m strike length on the two properties, and is located 300 to
500 m laterally from outcropping sandstones sitting above the Otish basin
Big Red's field consultant, IOS Services Geoscientifiques Inc. completed a two-week
field program consisting of prospecting, 405 soil samples and a 25 line-km
ground magnetic survey. The program was hampered by very poor early winter
weather conditions that restricted the fieldwork to only one of the three prime
Mineralization is hosted in intensely
hematite-altered basement granitoid, and consists of fractures and veins
carrying hematite, yellow secondary uranium minerals, pyrite, copper sulphides
and an unidentified barium mineral, as indicated by portable XRF analyzer.
Additional petrographic studies are planned. Rock samples have been sent to SRC
Geoanalytical Laboratory for uranium and gold assays and multi-element ICP
analyses; soil samples will be sent to ALS Chemex for analyses.
In 1979, Uranerz Exploration and
Mining Ltd. drilled two drill holes from a single set-up within the Strategis
portion of the mineralized trend. Hole LG-34 is reported to have intersected
2.0 metres grading 1260.7 ppm U3O8, including 0.5 m grading 3440 ppm U3O8 (Quebec assessment report GM36332).
Big Red completed an airborne radiometric-magnetic survey in 2007, which
identified several promising anomalies for follow-up, including the area
covered by this program.
Under the terms of an option agreement
signed on September 15, 2009, Virginia can earn a 100% interest in the
5100-hectare Strategis property from Big Red, subject to a 2% Net Smelter
Royalty interest in favour of Big Red and certain underlying vendors, of which
1.5% can be bought back at any time by payment of $1.5 million. To earn its
interest, Virginia paid $50,000 on signing and must issue $180,000 in shares
within four months after signing. Big Red is financing the current work
Sample Security & Quality Control
A strict program of sample security
and quality control has been implemented, including the use of blanks and
Mr. Rejean Girard, P.Geo., of IOS Services
Geoscientifiques Inc. based in Chicoutimi, Quebec, is the qualified person
responsible for the current exploration program at Strategis and has verified
the data reported above. The
technical information in this news release has been reviewed 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.