Virginia Gold Mines Inc.

Virginia Gold Mines Inc.

March 16, 2005 08:00 ET

Virginia Gold Mines Inc.: Eleonore Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIRGINIA GOLD MINES INC.

TSX SYMBOL: VIA

MARCH 16, 2005 - 08:00 ET

Virginia Gold Mines Inc.: Eleonore Project

QUEBEC CITY, QUEBEC--(CCNMatthews - March 16, 2005) - Virginia Gold
Mines Inc. (TSX:VIA)

THE ROBERTO SYSTEM NOW CONFIRMED LATERALLY

OVER MORE THAN 500 m AND TO A DEPTH OF 400 m

Virginia Gold Mines Inc. ("Virginia") is pleased to announce new
developments concerning the exploration program currently in progress on
the Eleonore property (100% Virginia), situated in the Opinaca reservoir
area of James Bay. Drilling on ice has now confirmed the continuity of
the Roberto mineralized system over a lateral distance of more than 500
m and to a depth of 400 m. Furthermore, a new significant mineralized
zone was discovered by drilling, over 200 m east of the Roberto zone,
with grades of up to 3.81 g/t Au / 27 m, including 8.44 g/t Au / 8 m.
In total, sixteen (16) new holes were drilled (ELE-05-58 a ELE-05-73).

South Extension

Holes that tested the extension of the mineralized system south of line
28+50N confirmed the continuity of the Roberto and Roberto Est zones and
allowed better definition of their geometry. The two zones curve
gradually to the ESE and can be traced in this direction over a lateral
distance of more than 100 m up to line 27+50N, where they remain totally
open (see surface map). Holes ELE-05-69, 71 and 73, drilled to the
west, all crosscut the Roberto zone, with intersections of 19.24 g/t Au
/ 13.0 m (ELE-05-69), 16.8 g/t Au / 9.9 m (ELE-05-71) and 10.08 g/t Au /
1.35 m (ELE-05-73) (see longitudinal). Drillhole ELE-05-67, also
drilled to the west, almost completely overshot the Roberto zone. There
recent results also demonstrate that the intersection grading 3.34 g/t
Au / 3.0 m recently announced in hole ELE-05-57 (line 27+50N) is not
part of the Roberto zone but rather represents a satellite zone
(Mid-Roberto ?). The mineralized zone that really corresponds to the
Roberto zone in this hole is almost totally crosscut by a pegmatite.

Drillholes ELE-05-59, 61 and 63 drilled to the south intersected the
Roberto Est zone, which graded 9.40 g/t Au / 20.25 m (ELE-05-63), 11.2
g/t Au / 1.9 m (ELE-05-61) and 3.51 g/t Au / 2.0 m (ELE-05-59) (see
longitudinal). With data currently available, it appears that these
three drillholes are too short to test the extension of the Roberto zone
southeast of line 27+50N.

North Extension

Many new drillholes have confirmed the northern extension of the Roberto
zone between lines 31+50N and 32+50N and to a depth of 185 m, including
results of 15.86 g/t Au / 5.6 m (ELE-05-68), 11.11 g/t Au / 3.0 m
(ELE-05-60), 15.55 g/t Au / 2.0 m (ELE-05-62) and 6.42 g/t Au / 3.35 m
(ELE-05-64). The Roberto zone remains totally open to the north and in
depth (see longitudinal).

Depth Extension

At the same time, drillhole ELE-05-65, the deepest one drilled to date
on the Roberto zone, confirmed the zone's continuity to a vertical depth
of 400 m, with an intersection grading 14.72 g/t Au / 2 m. Furthermore,
drillhole ELE-05-70 also crosscut the Roberto zone with an intersection
grading 10.05 g/t Au / 4.3 m to a vertical depth of 300 m.

These very interesting results indicate that the Roberto auriferous
system is now followed to a length of over 500 m and to a minimal depth
of 400 m. The system remains open in all directions.

New zone

A new significant mineralized zone was discovered just over 200 m east
of the Roberto zone. This new zone was intersected by two holes
targetting the Roberto zone at depth and graded 3.81 g/t Au / 27 m,
including 8.44 g/t Au / 8 m (ELE-05-70) as well as 3.99 g/t Au / 9 m
(ELE-05-65).

Virginia is extremely encouraged by these new developments and will very
actively pursue its work, using three drills in order to accelerate the
evaluation of the Roberto and Roberto Est zones and the discovery of new
zones.

Work is carried out by the personnel of Services Techniques Geonordic
Inc., under the supervision of Geological Engineer, Paul Archer. He is a
qualified person (as defined by National Instrument 43-101) and has more
than 20 years of experience in exploration.

In 2004 Virginia has set up an Analytical Quality Assurance Program to
control and assure the analytical quality of assays in its gold
exploration. This program includes the systematic addition of blank
samples and certified standards to each batch samples sent for analysis
at commercial laboratories. Blank samples are used to check for possible
contamination in laboratories while certified standards determine the
analytical accuracy and precision.

Samples are sent for assaying to Laboratoire Expert Inc. in
Rouyn-Noranda. Samples are assayed by fire-assay followed by atomic
absorption or gravimetry according to industry standards. For each
significant mineralized intersection, 10% of the samples (1 to 2 per
intersection) are quarter split and the core is sent to a second
certified laboratory. Furthermore, each pulp from the quarter split is
returned to the first laboratory for a second gold analysis in order to
cross check the analytical reproducibility.

Virginia Gold Mines Inc. is among the most active mining exploration
companies in Quebec with a working capital of over $31 million, debt
free, and with approximately 43 million shares issued and outstanding.
Virginia's shares trade on the Toronto Stock Exchange (TSX) under the
symbol VIA. Virginia concentrates its activities on its numerous
properties that are spread over the vast unexplored regions of northern
Quebec.

Tables of drilling results are available on CCNMatthews' website at the
following address:

http://www2.ccnmatthews.com/database/fax/2000/via316.pdf

Maps related to the Eleonore Project are available on CCNMatthews'
website at the following addresses:

http://www2.ccnmatthews.com/database/fax/2000/via316a.jpg

http://www2.ccnmatthews.com/database/fax/2000/via316b.jpg

http://www2.ccnmatthews.com/database/fax/2000/via316c.jpg

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Virginia Gold Mines Inc.
    Andre Gaumond
    President
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    or
    Virginia Gold Mines Inc.
    Paul Archer
    V.P. Exploration (QP)
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    or
    Virginia Gold Mines Inc.
    Amelie Laliberte
    Investor Relations
    (800) 476-1853 or (418) 694-9832
    (418) 694-9120 (FAX)
    mines@virginia.qc.ca
    www.virginia.qc.ca