Virginia Mines Inc.
TSX : VGQ

Virginia Mines Inc.

May 11, 2009 08:00 ET

Virginia Mines Inc.: Signing of a CA$2,500,000 Agreement With MacDonald Mines Exploration

QUEBEC CITY, QUEBEC--(Marketwire - May 11, 2009) - Virginia Mines Inc. ("Virginia")(TSX:VGQ) announces the signing of an agreement with MacDonald Mines Exploration Ltd. ("MacDonald Mines") on the Assinica property, located in the James Bay region, province of Quebec. The property consists of one block of 79 claims totalling 4,072.9 hectares.

As per the agreement and subject to Exchange approval, MacDonald Mines has the option to acquire a 50% interest in the Assinica property, in consideration of CA$2.5 million in exploration work to be carried out during the next 4 years, and cash payments totalling $130,000. Virginia will be the operator.

The Assinica property is located in the central segment of the Frotet-Evans Achaean volcano-sedimentary belt. It straddles a major lithological contact between the basalts of the Assinica Group and the sediments of the Broadback Group. The property covers many arsenic anomalies in bottom lake sediments as well as a kilometric cluster of gold anomalies in till (up to 67 gold grains, including 50 delicate gold grains). Several IP anomalies remain unexplained within this favourable auriferous context. These anomalies will be tested this summer by prospecting and mechanical stripping.

About MacDonald Mines

MacDonald Mines is is a mineral exploration company with an established history in the exploration of gold and base metals. MacDonald has set upon a strategic direction of exploration in the Canadian Northlands, with particular focus in Ontario, Saskatchewan and Quebec.

In 2008, MacDonald Mines was ranked second in the TSX Venture 50's Annual Ranking of Top Canadian Mining Companies and trades under the symbol BMK.

About Virginia

Virginia is among the most active mining exploration companies in Quebec with a working capital of $38.6 million as at November 30, 2008, and 29,201,776 shares issued and outstanding as at April 30, 2009. 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

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