News Releases

 

Update on Exploration Program in Otish Basin, Quebec

Jan 21, 2011      |
NR: 11-01

Virginia Energy Resources Inc. (TSX.V: VAE) is pleased to report trenching and soil geochemical results for the 2010 field program on its 100% owned uranium property in the Otish basin of Quebec. The Otish property currently comprises nine properties totaling over 1024 square kilometres. To follow up on the promising results, Virginia will implement a drill program to test selected targets in 2011.

The 2010 field program was successful in moving several targets to the drill-ready stage. Excavator trenching, geological mapping, soil sampling and channel sampling were completed on the Lorenz Gully target. Soil sampling and prospecting were completed on four other grids including Lac du Castor, Lac Tete, Lavoie West and Lavoie East. The latter two grids cover the on-strike projections of the Lavoie (L-Zone) structure directly east and west of the Lavoie deposit of Abitex Resources Inc., which contains a 43-101 compliant resource of 3.91 million pounds U3O8 in the indicated category and 9.26 million pounds U3O8 in the inferred category (see Abitex news release of March 2, 2010).

At Lorenz Gully, excavator trenching successfully uncovered several new exposures of mineralized bedrock along the 1300 m long trend. This mineralized zone is aligned along a prominent magnetic break interpreted to be a major geological contact or fault, which is sub-parallel to, and 300 m laterally from the Otish basin unconformity. Mineralization is hosted in fractured and altered metavolcanics and in hematite-barite-sulphide veins and shears with values up to 1.5% U3O8 in grab samples and 7.13% U3O8 across 0.3 m in channel samples. Hundreds of mineralized boulders, some grading up to 1% U3O8, are also present along this trend. (please see Virginia News Releases of September 21, 2009, January 15, 2010 and March 4 and 5, 2010).

Trenching
Five trenches and four outcrops at Lorenz Gully were mechanically stripped for a total of 155 m of linear trenching. The program was hampered by deep overburden and wet ground. Nevertheless, three of the trenches reached bedrock which locally consists of foliated mafic metavolcanic rock showing generally weak but variable fracturing, shearing, silicification, hematite alteration, sulphides and radioactivity. The bedrock mineralization encountered in these trenches was weaker than that in the nearby, mineralized boulder trains, suggesting that the best mineralization has yet to be found in place. The trenching has resulted in a much better understanding of the structural controls on mineralization, which should allow for optimum drill orientation upcoming drill program.

Highlight 2010 trench channel sample results include:

Trench and Channel #

Length

U3O8 (ppm)

LG 2, Channel A

3.0

695

LG 2, Channel B

4.0

225

LG 2, Channel C

2.0

119

LG 3, Channel A

2.0

193

LG 3, Channel B

3.0

109

LG 5

 

No significant values

LG 7

7.0

53

LG 33-34A, Channel A

1.0

206

LG 33-34A, Channel B

2.0

205

LG 33-34B, Channel A

4.0

53

Peter's Creek

7.0

330


Soil Sampling
The Company collected a total of 2532 soil samples on five grids. The soil sampling methodology was based on new protocols developed by the Canadian Mining Industry Research Organization (CAMIRO) as part of a three-year collaborative industry project on "Multi-Media Techniques for Direct Detection of Covered Unconformity Uranium Deposits in the Athabasca Basin". Case studies from Saskatchewan suggest that this method can identify uranium and pathfinder anomalies over deeply buried uranium deposits. Given the presence of locally thick till and sandstone cover in the Otish Basin, Virginia chose to apply the method on a large scale in 2010, after completing test surveys in 2009. Grids were selected based on the presence of known mineralization and magnetic or radiometric anomalies.

On the Lorenz Gully grid, nine promising soil anomalies have been defined with values varying up to 368 ppm U. Several of the anomalies occur in covered areas with no previous drilling and in conjunction with topographic and magnetic lineaments indicative of major faults.

On the Peribonca property, directly to the east and west of the claim boundaries with Abitex's Lavoie property, the Lavoie East and Lavoie West grids were established to cover the extensions of a pronounced magnetic and structural feature which hosts the Lavoie (L-Zone) uranium-gold deposit. On the Lavoie East grid, a strong, continuous soil anomaly was outlined over an area of 900 by 150 m with maximum values reaching 332 ppm U. The anomaly is partially coincident with a magnetic signature that trends westerly to the Lavoie deposit, located some 1.5 km away. There are only three historic holes in this area, none of which tested the new uranium-in-soil anomaly. Several other weaker soil anomalies are present elsewhere on the Lavoie East and West grids and are worthy of follow-up.

On the Lac du Castor grid located 5 to 7 km northeast of the Lavoie deposit, historic drilling intersected 5 m grading 0.16% U3O8 in hole OELV-290, in a geological setting identical to the Lavoie deposit. The 2010 soil grid was laid out to cover the extent of a large gabbro dyke-sill complex that is associated with the mineralization. The survey was successful in identifying a weak anomaly near hole OELV-29. More importantly, several stronger soil anomalies were located nearby, in areas with no previous drilling.

The Company is pleased with the 2010 results and is currently planning a 2011 drill program to test these anomalies and other targets developed over the last two years.

The technical information in this news release has been reviewed by Michael S. Cathro, P.Geo., Virginia's Vice President of Exploration and a Qualified Person as defined by National Instrument 43-101.

About Virginia Energy Resources Inc.
Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds a 29% stake in the advanced stage Coles Hill uranium project in Virginia. Additionally, the Company is pursuing active exploration programs in the Athabasca Basin on its Murphy River and Hatchet River uranium properties, which are held in a 50-50 Joint Venture with Denison Mines Ltd., and its 100% owned uranium properties in the Otish Basin of Quebec. The Company is also a 37% shareholder of Boss Power Corporation. Virginia Energy Resources Inc. trades on the TSX Venture Exchange under the symbol VAE.

On Behalf of the Board of Directors of
VIRGINIA ENERGY RESOURCES INC.

Walter Coles Jr.
President & CEO





Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 
 

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