Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

October 28, 2009 09:54 ET

Virginia Energy Delineates Radioactive Zone in Bedrock, Otish Mountains, Quebec

VANCOUVER, BRITISH 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 unconformity.

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 exploration targets.

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 program.

Sample Security & Quality Control

A strict program of sample security and quality control has been implemented, including the use of blanks and certified standards.

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.

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