Virginia Gold Mines Inc.

Virginia Gold Mines Inc.

March 31, 2005 08:00 ET

Virginia Gold Mines Inc.: Eleonore Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VIRGINIA GOLD MINES INC.

TSX SYMBOL: VIA

MARCH 31, 2005 - 08:00 ET

Virginia Gold Mines Inc.: Eleonore Project

QUEBEC CITY, QUEBEC--(CCNMatthews - March 31, 2005) - Virginia Gold
Mines Inc. (TSX:VIA)

THE ROBERTO SYSTEM NOW CONFIRMED LATERALLY OVER MORE THAN 700 m

Virginia Gold Mines Inc. (Virginia) is pleased to announce new
developments concerning the exploration program currently in progress on
its Eleonore project (100% Virginia), located in the Opinaca Reservoir
area of James Bay. Drilling on ice has now confirmed the continuity of
the Roberto mineralized system over a true lateral distance of more than
700 m. In total, twelve (12) new holes have tested the Roberto
mineralized system (ELE-05-74 to ELE-05-84 and ELR-05-32).

Southeast Extension

Holes that tested the extension of the mineralized system south of line
65+50E (see surface plan) confirmed the continuity of the Roberto and
Roberto Est zones. The Roberto zone yielded many new high-grade
intersections including 15.91 g/t Au / 7.35 m (ELE-05-76), 14.64 g/t Au
/ 6.0 m (ELE-05-82), 15.37 g/t Au / 3.0 m (ELE-05-78), 25.84 g/t Au /
1.65 m and 10.87 g/t Au /1.9 m (ELE-05-84) (see longitudinal).

Many complementary analysis results were also received on some holes
previously announced. The Roberto zone, which was partially intersected
in hole ELE-05-67 (previously announced), graded 17.37 g/t Au / 1.9 m.
New data also allowed us to conclude that hole ELE-05-59 crosscuts the
Roberto zone with an intersection grading 3.64 g/t Au / 2.10 m. The
Roberto zone is not present in the underlying hole ELE-05-61 (pegmatite)
nor in holes ELE-05-63, 74 and 81, located further east.

The continuity of the Roberto Est zone was confirmed up to line 65+50E
by hole ELE-05-81, which crosscut an intersection grading 5.52 g/t Au /
20.8 m, including 7.94 g/t Au / 9.0 m as well as two other mineralized
lenses in the immediate hanging wall of the main lens, which graded 8.29
g/t Au / 2.25 m and 9,67 g/t Au / 1.25 m. The zone remains completely
open to the southeast and at depth. Two other holes intersected the
Roberto Est zone and yielded 12.88 g/t Au / 2.2 m and 8.79 g/t Au / 3.4
m (ELE-04-74) and 8.45 g/t Au / 3.0 m (ELE-05-84). Holes ELE-05-78 and
82 were not positioned to test the Roberto Est zone.

In brief, the Roberto Est zone is better developed to the east of line
64+50E and appears to take over the Roberto zone as the main lens of the
Roberto system.

North Extension

Some new holes tested the north extension of the Roberto and Roberto Est
zones between lines 31+75N and 33+00N. These holes confirmed the
continuity of the Roberto zone to a vertical depth of 240 m and yielded
results including 16.25 g/t Au / 2.1 m (ELE-05-75), 7.76 g/t Au / 2.55 m
(ELE-05-83) and 4.15 g/t Au / 0.5 m (ELR-05-32) (see longitudinal).
Hole ELE-05-77 overshot the Roberto zone, its collar being too much to
the west.

The Roberto Est zone was also confirmed to a vertical depth of 200 m
with results including 11.09 g/t Au / 2.75 m (ELE-05-75), 14.69 g/t Au /
3.0 m (ELE-05-79) and 4.06 g/t Au / 1.55 m (ELE-05-83) (longitudinal).
Furthermore, complementary results recently obtained also confirmed the
presence in hole ELE-05-58 (low values previously announced) of the
Roberto Est zone, which graded 7.56 g/t Au / 6.0 m.

The Roberto and Roberto Est zones remain totally open to the north and
at depth.

Depth Extension

Hole ELE-05-80 also confirmed the continuity of the Roberto zone to a
vertical depth of 370 m in section 30+00N, with an intersection grading
24.55 g/t Au / 3.25 m. Both the Roberto and Roberto Est zones remain
totally open at depth.

New Zone

Hole ELE-05-80 also intersected another mineralized zone, which graded
4.15 g/t Au / 4.0 m. This zone could be linked to the new zone
discovered by holes ELE-05-65 and 70, recently announced. The zone
curves gradually to the southeast as is the case for the Roberto and
Roberto Est zones.

These very significant results indicate that the auriferous Roberto
system is now followed over a true length of more than 700 m and to a
minimal depth of 400 m. The system remains open in all directions.

Virginia is extremely encouraged by these new developments and will very
actively pursue its work, using three drills.

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/via330.pdf

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

http://www2.ccnmatthews.com/database/fax/2000/via330a.jpg

http://www2.ccnmatthews.com/database/fax/2000/via330b.jpg

http://www2.ccnmatthews.com/database/fax/2000/via330c.jpg

-30-

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