Recent News
NR:13-06 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") is pleased to announce that they have retained the services of Mr. Tony Perri as an Investor Relations consultant
NR:13-05 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") has granted 3,029,700 stock options to directors, officers and consultants of the Company, subject to TSX Venture
NR:13-04 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") has learned that the Government of Q
NR:13-03 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") would like to provide an update on the status of efforts to lift the moratorium on uranium mining in the state of
NR:13-02 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") is pleased to announce that it has completed the non-brokered private placement financing announced in a news rel
NR:13-01 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy") wishes to report that the private placement financing announced on December 28, 2012, has been restructured to increase the cash portion
NR: 12-04 NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy<
NR:12-03 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia" or the "Company") is pleased to announce that it has commenced trading today on OTCQX International, a segment of the OTCQX marketplace reserved for high-quality non-
NR:12-02 Virginia Energy Resources Inc. (TSX.V: VUI) ("Virginia" or the "Company") is pleased that Governor McDonnell's Uranium Working Group (UWG) has completed its task by developing a framework of robust regulations for u
Status: Development
Commodity: Uranium
Ownership: 100% ownership
Operator: Virginia Energy Resources Inc.
Location: 10 kilometres northeast of Chatham, Virginia, USA
Mineral Rights: 2960 hectares
Anticipate that the state of Virginia will consider lifting moratorium during winter 2013 legislative session.
Coles Hill Snapshot
- World class uranium deposit
- 133 million pounds contained uranium oxide(3) (119.6 million tons @ 0.056% eU3O8 , indicated resources)
- Preliminary Economic Assessment (PEA) report(3) indicates attractive project economics:
- Initial production of 2 million lbs per year
- The PEA was based on a portion of the indicated resources of 32.9 million tons grading 0.098% eU3O8 (64.2 M lbs eU3O8 at a cutoff grade of 0.06%)
- 30.4 m lbs inferred resource (36.3 million tons @ 0.042% eU3O8 at a 0.025% cutoff) -- Initial Cash Cost (years 1-10) $30.72/lb
- NPV of US$427 M; IRR of 36.3% (at $64/lb)
- An increase of US$5 per pound in uranium selling prices causes the project NPV to rise by US$110 M
Virginia Energy's most important asset is the 100% ownership in the Coles Hill uranium deposit(1) in southern Virginia, USA, which is the largest untapped uranium resource in the USA and one of the largest in the world. Virginia Energy's ownership in Coles Hill is held through its subsidiary, Virginia Uranium, Inc. VUI controls the mineral rights, surface rights, and leasehold development and operating rights on the Coles Hill property.
Coles Hill comprises two adjacent mineralized bodies with an NI 43-101 compliant, measured and indicated resource of 119.6 million tons grading 0.056% eU3O8 indicated resources, for a total of 133 million pounds eU3O8 according to a NI 43-101 Report of updated PEA and resource calculation by Lyntek Inc. and BRS Inc. filed September, 2012.
Coles Hill is located on gently rolling hills in Pittsylvania County, southern Virginia, in close proximity to roads, rail, gas pipeline, water, electricity, and skilled labor. Virginia is a leader in the nuclear industry, home to four high-performing nuclear power plants, commercial nuclear fuel production and engineering services, and significant naval nuclear infrastructure.
Between 1982-1983, a subsidiary of Union Carbide completed a feasibility study to put the deposit into production, but the project was shelved due to the drop in the price of uranium. At that time, a 5000 ton per day open pit mine and mill was envisioned. The project lay dormant until 2007 when Virginia Uranium, Inc. drilled 12 holes in 2007, to confirm the historic grades as part of the NI 43-101 technical report and resource calculation.The deposit was initially explored between 1980-1982, when Marline and Union Carbide drilled 210 holes (190,000 feet) to define the deposits. Norm Reynolds, past President and CEO of Virginia Energy Resources, was directly responsible for uranium exploration efforts in the Eastern United States which lead to the discovery of the Coles Hill Property in Virginia.
The potential for resource expansion exists along strike and at depth. Higher-grade zones near surface provide for many development options.
Deposit Characteristics
- Uranium discovered on fault line between Triassic basin and hard rock
- Similar to Athabasca unconformity style deposits
- Potential for resource expansion along strike, laterally and at depth
- Consider adding open pits to enhance project economics
Opportunities highlighted by the PEA
- Metallurgical studies for possible increase in recovery rates
- Continue environmental baseline studies
- More drilling to expand resources
PEA study was conducted by Lyntek Inc. and BRS Inc., two independent engineering consultants:
- Lyntek evaluated the ore metallurgy and conducted processing evaluation of acid and alkaline leaching options to select the preferable processing design
- BRS was responsible for the mine design, as well as environmental and permitting considerations
- $147 million of up front capital investment with 2.5 year pay back period (includes 25% contingency)
- Avg annual projected revenue of $140 million @ $64/lb uranium selling price for years 1-20
Valuation Leverage to Uranium Prices
- At a uranium contract price of $64/lb and using a discount rate of 7%, the NPV of the Coles Hill project is more than $400 million
- Price sensitivity: a $5 change in uranium selling prices impacts NPV by approximately $110 million
1 Uranium mining is currently under a moratorium in the State of Virginia, however we anticipate that the state of Virginia will consider lifting moratorium during winter 2013 legislative session.
2 The socio-economic study by the State of Virginia was based on the NI 43-101 PEA Report by Lyntek Inc. and BRS Inc. - filed Dec. 2010
3 Please see www.sedar.com for NI 43-101 Report of updated PEA and resource calculation by Lyntek Inc. and BRS Inc. - filed Sept. 2012