Virginia Energy Intersects 6.5 metres grading 0.13% U3O8 in Sandstone on the Otish Basin Property, Quebec
|Nov 22, 2011 ||
Virginia Energy Resources Inc. (TSX.V:VAE; OTCQX:VAERF) ("Virginia" or "the Company") is pleased to announce results of drilling and prospecting from its 100%-owned Otish Basin uranium project, Quebec. A total of 1959.8 m of drilling was completed in 13 diamond drill holes, along with the collection of 62 prospecting rock samples, 6 channel samples, 2232 soil samples and 27 silt samples from several targets.
Of significance is hole 2011-04 at the Lac du Castor prospect on the Peribonka claim block, which intersected 9.0 m grading 0.10% U3O8 beginning at a depth of 75.8 metres, including higher grade intervals of 6.5 m grading 0.13% U3O8 or 3.0 m grading 0.188% U3O8. The mineralization is hosted in a flat lying sandstone unit directly beneath a gabbro sill, and is located 25 m southwest of historic hole OELV-290, drilled by SERU Nucleaire (now AREVA), that is reported to have intersected 5.0 m grading 0.16% U3O8. Hole 2011-04 was drilled vertically and the intercept is thought to be approximately true thickness.
Two of four adjacent holes at Lac du Castor also intersected weakly anomalous uranium values. Hole 2011-01, drilled vertically and 25 m to the NE of hole 2011-04, intersected 2.05 m grading 0.011% U3O8 beginning at 72.2 m, including 0.6 m grading 0.018% U3O8. Hole 2011-05, drilled to the southeast at -65 degrees from the same set-up as hole 2011-04, intersected three short, weakly mineralized intervals beneath the gabbro sill, the best of which was 0.4 m grading 0.054% U3O8. The mineralization in hole 2011-04 is open to the west and south (see drill plan map on Virginia's website).
The geological setting of the Lac du Castor prospect is similar to the Lavoie uranium-gold deposit of Abitex -- AREVA -- SOQUEM, which is located six km to the SW along the same gabbro dyke/sill complex. Abitex reports the Lavoie deposit has a 43-101 compliant resource of 3.9 million pounds eU3O8 in the indicated category and 9.26 million pounds eU3O8 in the inferred category (Reference: Abitex website).
Eight other drill holes targeted newly developed geochemical, geophysical and geological targets north of Lac du Castor (2 holes), on the Lavoie East trend (3 holes) and at the Red Green boulder field on the Trident property (3 holes). No mineralization was encountered, although the holes will provide important structural and stratigraphic information that will help guide future drilling. At Red Green, prospecting in 2011 discovered several new boulders including a 1.1 m diameter, sub-angular sandstone boulder grading 0.83% U3O8 and 3.3 g/t Au, the best result to date from this field.
The Company also reports the discovery of the new "Blair boulder field", located 3.5 km along strike to the west of the Lavoie deposit. Six angular sandstone boulders up to 80 by 60 by 60 cm in size were located in two sub-clusters over an area of 300 by 50 m, and averaging 0.377% U3O8 and 1.71 g/t Au. The richest boulder is 50 cm by 50 cm by 30 cm in size and assayed 1.31% U3O8 and 5.71 g/t Au. Mineralization consists of sooty black pitchblende(?) and yellow oxides on fractures in sandstone. U-Au values are associated with anomalous values of Ag, B, Bi, Cu, Pb, Se, Te, and V. This prospect has not been previously drilled, with the nearest historic SERU drill hole located two km to the east, on Virginia's property near the boundary with the Lavoie property of Abitex.
Update on Other Projects
Virginia also reports that limited rock and soil sampling programs were recently completed on the Anomaly 7 uranium property in Labrador, and the Fir Island and Webb River uranium properties in Saskatchewan. A decision was made to relinquish the Bow River Coal property in Saskatchewan due to prevailing market conditions. The Company continues to consider options for its Hawk Ridge Cu-Ni-PGM property in Quebec, including possible outright sale or a spin-out.
Sample Security & Quality Control
A strict program of sample security and quality control has been implemented, including the use of blanks and certified standards. Rock samples were analyzed at SRC Geoanalytical Laboratory of Saskatoon, Saskatchewan by optical emission spectrometry (ICP-OES) after aqua regia digestion for 16 trace elements including soluble uranium, and by mass spectrometry (ICP-MS) after multi-acid near-total digestion for 46 elements, including uranium and thorium. Assay grade uranium was conducted by ICP-OES following aqua-regia digestion for samples above 0.02% U3O8. Gold was determined by 30 g fire assay with atomic absorption spectrometry (AAS) finish following an aqua regia digestion.
Mr. Rejéan Girard, P.Geo. of IOS Services Geoscientifiques Inc. based in Chicoutimi, Quebec, is the qualified person responsible for the drilling program and has verified the data reported above. Mr. Antoine Cloutier, P.Geo, Consultant, based in Gatineau, Quebec, is the qualified person responsible for the prospecting and soil sampling program reported above. 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 in National Instrument 43-101.
About Virginia Energy Resources Inc.
Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds a 29.4% 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 Lake and Hatchet Lake 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 and on the OTCQX under the symbol VAERF.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
Walter Coles Jr., President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.