Coles Hill, Virginia (Uranium)

Recent News

May 26, 2020

Virginia Energy Resources Inc. (TSX.V: VUI) ("Virginia Energy" or the "Company") is pleased to announce the appointment of Mr. Andrew MacRitchie as Virginia Energy's Chief Financial Officer. Mr. MacRitchi
Jun 18, 2019

NR: 19-01 Virginia Energy Resources Inc. (TSX.V: VUI) ("Virginia Energy" or the "Company") is reviewing the ruling made on Monday, June 17, 2019 by the U.S. Supreme Court, that the federal Atomic Energy Act does not preempt
Aug 24, 2017

NR:17-01 Virginia Energy Resources Inc. (TSX.V: VUI) ("Virginia Energy" or the "Company") has granted - 3,940,000 stock options to directors, officers and consultants of the Company, subject to TSX Venture Exchange approval.
Nov 25, 2015

NR:15-03 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") reports that its subsidiary, Virginia Uranium, Inc., the Chatham, Virginia-based company that owns one of the wor
Aug 05, 2015

NR: 15-02 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") has filed a lawsuit in federal court against the Commonwealth of Virgini
Jan 09, 2015

NR: 15-01 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" and "the Company") reports that it has executed a Settlement Agreement to transfer full ownership of the Otish Minerals Ltd. ("
Dec 03, 2014

NR: 14-02 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") is pleased to welcome Harold R. Roberts, Executive Vice President and COO of Energy Fuels Inc. ("Energy Fuels
Oct 22, 2014

NR:14-01 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") is pleased to welcome Stephen Antony, CEO of Energy Fuels Inc.
Dec 20, 2013

NR: 13-08 Virginia Energy Resources Inc. (TSX.V: VUI; OTCQX: VEGYF) ("Virginia Energy" or the "Company") wishes to update shareholders on the most recent political developments in the state of Virginia. The company su
Coles Hill Site Map

Status: Development
Commodity: Uranium
Ownership: 100% ownership
Operator: Virginia Energy Resources Inc.
Location: 10 kilometres northeast of Chatham, Virginia, USA
Mineral Rights: 2960 hectares

Virginia Energy's most important asset is the 100% interest in the Coles Hill deposit in southern Virginia, USA, which is the largest undeveloped uranium deposit 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., which controls the mineral rights, surface rights, and leasehold development and operating rights on the Coles Hill property.

The Coles Hill project is the subject of a National Instrument 43-101 Updated Preliminary Economic Analysis Update (Revised) by Lyntek Inc. and BRS Inc., ("NI 43-101" or the "Technical Report" or the "PEA") that contained an updated PEA and resource calculation. The report is effective June 30, 2012, was revised and restated August 19, 2013 and is available on SEDAR and at and here NI 43-101 Technical Report for the Coles Hill Uranium Deposit. According to the NI 43-101 Technical Report, resources are estimated as follows:

Total Indicated Mineral Resources

Total North and South Coles Hill



Long Tons (million)

wt %eU308

lbs (million)






Total Inferred Mineral Resources

Total North and South Coles Hill



Long Tons (million)

wt %eU308

lbs (million)






Reference: NI 43-101 Preliminary Economic Assessment Update (Revised) of Coles Hill Uranium Property, effective June 30, 2012, and dated August 19, 2013 by Lyntek Inc. and BRS Engineering.

It should be noted that mineral resources are not mineral reserves and do not have demonstrated economic viability.

Deposit Characteristics

Coles Hill Potential Coles Hill Long Section

The PEA indicates the project has the potential for attractive economics based on an assumed U3O8 price of $64 per lb. as summarized below:

  • Initial production of 2 million lbs per year and a 35 year mine life;
  • Underground mining of 3,000 tonnes per day, to extract a portion of the indicated resource totaling 64.2 M lbs U3O8 with an average grade of 0.098% at a cutoff grade of 0.06%;
  • Capital cost of $147 million prior to construction, including a 25% contingency;
  • Cash cost of $30.72 per lb. U3O8 for the first ten years of production;
  • Net Present Value of $427 million at a discount rate of 7%;
  • IRR of 36.3% based on a uranium price of $64 per lb. U3O8;
  • A change in the price of uranium of $5.00 per pound results in a potential change in the project NPV of $110.0 million.

In terms of project risks, the updated PEA noted the following:

"The technical risks related to the project are low as the mining and recovery methods are proven. The mining methods recommended have been employed successfully at similar projects in the past. The mineral processing methods employed are typical of those used in the industry for decades and are supported by metallurgical tests done to date and are available.

Primary risks related to permitting are rescinding the moratorium to allow mining in Virginia and gaining the confidence of the local community that the mining and milling can be safely conducted to protect human health and the environment. The remainder of the permitting issues is tied to obtaining the necessary permits to operate the mine and mill.

The authors are not aware of any other specific risks or uncertainties that might significantly affect the mineral resource estimates or the consequent economic analysis.

Estimation of costs and uranium price for the purposes of the economic analysis over the life of mine is by its nature forward-looking and subject to various risks and uncertainties. No forward-looking statement can be guaranteed and actual future results may vary materially."

Coles Hill is located on gently rolling hills in Pittsylvania County, southern Virginia, in close proximity to established infrastructure and skilled labor. Virginia is one of the leaders in the U.S. nuclear industry, home to four high-performing nuclear power plants, commercial nuclear fuel production and engineering services, and significant naval nuclear infrastructure.The deposit was initially explored between 1980 and 1982, when Marline and Union Carbide drilled 210 holes (190,000 feet) to define the deposits. Between 1982 and 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 5,000-ton per day open pit mine and mill was envisioned. The project lay dormant until 2007 when Virginia Uranium, Inc. drilled 12 holes to confirm the historic grades as part of the initial NI 43-101 technical report and resource calculation.

The potential for resource expansion exists along strike and at depth. Higher-grade zones near surface provide for many development options and potential to improve the project economics.

On November 30, 2011, a state-sponsored economic study by Chmura Economics & Analytics concluded that the Coles Hill uranium project would bring much needed jobs, tax revenue and investment to an area of Virginia that remains economically depressed. The Chmura study said that the mining operation Virginia Uranium Inc. has proposed for Coles Hill would support a total of more than 1,000 direct and indirect jobs and have an annual net positive economic impact of approximately $135 million. The study predicts that over the 35-year life of the operation, the Coles Hill site could generate almost $5 billion in net accumulated economic revenue for Virginia firms. The reader is cautioned that this economic study was completed by another organization independent of Virginia Energy. A NI43-101 compliant feasibility study has not been completed and there is no guarantee the proposed operation would be economically viable given the uncertainty of future uranium prices in combination with permitting risk related to the current moratorium on uranium mining.

In January 2012, Virginia Governor Bob McDonnell announced his decision to create an interagency task force to analyze the state's ability to adopt and enforce uranium mine regulations. The governor's decision was an important milestone toward advancing a regulatory framework that could potentially enable the construction and operation of one of the safest uranium mines in the world at the Coles Hill site. Legislation to lift the moratorium on uranium mining in Virginia was scheduled for debate in the Virginia State Legislature during the 2013 winter session. The Company was hopeful that the necessary votes existed in the State House of Delegates to pass such a bill. However, due to a shortfall of votes in the Virginia state Senate, legislation to lift the moratorium was withdrawn by its chief patron, Senator John Watkins in February 2013 prior to debate.

Senator Watkins has since requested that the Governor of Virginia direct his agencies to proceed under the state's Administrative Process Act to draft and begin the public hearings on potential regulations for uranium mining. Some opposing legislators have argued that the moratorium should not be lifted before final regulations are available for review. Senator Watkins' proposal to Governor McDonnell is part of an effort to ensure that members of the General Assembly have the benefit of all possible information on this issue, which is likely to be debated in future legislative sessions.