Virginia Mines Inc.
TSX : VGQ

Virginia Mines Inc.

November 07, 2006 08:00 ET

Virginia Mines Inc. : Drilling at Corvet Est, Up to 10.10 g/t Au /5.2 m in West Extension of Marco Zone

QUEBEC CITY, QUEBEC--(CCNMatthews - Nov. 7, 2006) - Virginia Mines Inc. ("Virginia") (TSX:VGQ) and partner Goldcorp Inc. ("Goldcorp") wish to report the results from the most recent drilling program carried out on the Corvet Est property (100% Virginia), located south of LG-4, Quebec Middle North. The Corvet Est property is subject to an agreement by which Goldcorp may acquire a 50% interest in the property in return for payments totalling CA$90,000 and $4 million in exploration work over a 5-year period. As of today Goldcorp has met or exceeded all its annual contractual commitments.

The two-phase drilling program included 17 holes for a total of 4,325 metres. Most of the drilling was aimed at testing the Marco zone, a plurimetric to decametric gold structure comprising several zones of finely disseminated sulphides (up to 10% arsenopyrite-pyrite-pyrrhotite), associated with microcline-tourmaline-garnet-biotite-magnetite alteration within felsic volcanics. Drilling confirmed the extension towards the west of the Marco zone where many economic intersections were obtained by drilling down to a vertical depth of 350 metres. Best results include 10.10 g/t Au over 5.2 m (CE-05-44), 3.96 g/t Au over 7.75 m (CE-06-52), 4.78 g/t Au over 5.0 m (CE-06-53), 14.73 g/t Au over 1.9 m (CE-06-54) and 3.17 g/t Au over 2.8 m (CE-06-47). Driling also produced many other anomalous to sub-economic intersections over metric widths within the Marco zone. These results are very promising as a new lens of economic interest seems to take shape in the west extension of the Marco zone. This lens is confirmed to a vertical depth of 350 metres and remains open laterally and at depth. The Marco zone currently generates drilling gold values over a lateral distance of more than 1400 metres.

Virginia and partner Goldcorp are very pleased with these results. They plan to continue the evaluation of the Marco zone by drilling during the winter of 2007.

Complete results from the drilling program are reported in the annexed table. A longitudinal section of the Marco zone as well as a surface plan are also available on the company's website (www.virginia.qc.ca)

Work is carried out by the personnel of Services Techniques Geonordic, under the supervision of Geological Engineer, Paul Archer. He is a qualified person (as defined by National Instrument 43-101) and cumulates 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 every 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.

Assay samples, coming from core halves varying in length from 0.5 to 1.5 meter are sent for assaying to Laboratoire Expert Inc. in Rouyn-Noranda. Samples are assayed by fire-assay followed by atomic absorption according to industry standards. Repeats are carried out by fire-assay followed by gravimetry on each sample containing 500 ppb gold or more.

About Goldcorp

Goldcorp is North America's third largest gold producer and is one of the world's lowest cost and fastest growing multi-million ounce gold producers with mining operations throughout the Americas and Australia. Second quarter earnings in 2006 nearly doubled to US$190 million from the previous year with operating cash flows of $240 million. Cash flows are expected to increase as the company includes the results of operations from its four recently acquired operating mines in Canada and Chile, and its recently completed acquisition of Glamis Gold Ltd. Goldcorp does not hedge its gold production.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $44,634,698 as of August 31, 2006, and 26,373,198 shares issued and outstanding as of October 31, 2006. Virginia trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast unexplored regions of northern Quebec.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in Virginia's periodic reports including the annual report on Form 40-F filed with the U.S. Securities and Exchange Commission. Virginia undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events

A table of Corvet Est Property - Drill Results is available at the following address: http://www.ccnmatthews.com/docs/tableau.pdf

A map of Corvet Est Property - Marco Zone Longitudinal is available at the following address: http://www.ccnmatthews.com/docs/Longitudinal.jpg

A map of Corvet Est Property - Surface Plan is available at the following address: http://www.ccnmatthews.com/docs/Plan.jpg

Contact Information

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