TSX Venture Exchange
Symbol: VGM
Shares Outstanding: 55,231,090
OTTAWA, July 26 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals") (VGM
TSX-V) announces that drilling is under way at its 100% controlled Los Verdes
project in Sonora State, northern Mexico. The objective of the drill program
is to replicate drilling carried out some thirty five years ago by a joint
venture of Cominco Ltd and Industriales Penoles. That drilling led to the
conclusion by Penoles that mineralization (described by Penoles as "reserves")
totalling 7.1 million tons (6.44 million tonnes) exists at a grade of 0.86%
copper, 0.16% molybdenum and 0.135% tungsten oxide. Such calculations do not
conform to the current criteria of National Instrument 43-101 ("NI 43-101")
and it is anticipated that by replicating the drilling under modern quality
and security assurance criteria a resource fully compliant with NI 43-101
criteria can be established.
The mineralization occurs in a prominent ridge and consists of typical
porphyry style mineralization which is modified by leaching at the surface and
accompanied by re-concentration in a zone of secondary enrichment. A drill
program totalling some 6,000 meters of reverse circulation drilling is
planned. With one or two minor exceptions, the drill program will use the same
drill roads and drill sites as the historical drilling and will consist of
between 25 and 30 holes of between 100 and 250 m in depth. Secondary
enrichment was reported by Penoles to be between 50 and 190 m in thickness.
Underlying hypogene (primary, unaltered) mineralization was barely tested.
In addition to drilling, an adit, some 280 meters in length, was driven
into the mineralization by Penoles/Cominco. This adit is currently being
rehabilitated for the purpose of systematic sampling for grade and for
extraction of a bulk sample which will be used for metallurgical test-work.
Prior to the drilling that established the Penoles estimate, production
from a small open pit on the property occurred during the mid 20th century.
The resulting open pit face allows an exposure of the mineralization and will
be the focus of the establishment of early production at pilot plant (200 to
300 tonnes per day) scale; design work leading to the application for permits
for such an operation is also in hand.
Mr. G. Lohman, a Registered Professional Geologist, is the Qualified
Person, as defined by NI 43-101 of the Canadian Securities Administrators, for
the Los Verdes exploration program.
A summary of the Los Verdes project, including work performed by the
previous owners of the property, is reported within Virgin Metal's Technical
Report titled "Report on the Los-Verdes Molybdenum-Copper Project, Sonora,
Mexico" dated November 14, 2005, as amended June 17, 2006, which was filed at
www.sedar.com on June 28, 2006.
Virgin Metals also announces that it has retained Renmark Financial
Communications Inc. ("Renmark") of Montreal, Quebec as an investor relations
consultant. The agreement with Renmark has a term of 12 months unless
terminated by Renmark on 30 days notice or by Virgin Metals after January 31,
2007 on 30 days notice. Renmark will be paid $6,000 per month for the first
six months and $7,500 per month for the last six months. Renmark is at arm's
length to Virgin Metals and holds no securities of Virgin Metals.
FORWARD-LOOKING STATEMENTS
This press release includes certain "forward-looking information" within
the meaning of the Securities Act (Ontario), including, but not limited to,
statements as to timing and extent of exploration programs and the
availability of exploration results. As such, forward-looking information
addresses future events and conditions and so involves inherent risks and
uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in
Virgin Metals documents filed from time to time with the Ontario Securities
Commission and other regulatory authorities. Actual results could differ
significantly from those currently projected as a result of, among those
factors, adverse weather, regulatory changes, delays in receiving permits,
accidents and delays in completing exploration activities not all of which are
in the control of Virgin Metals. The forward-looking information contained
herein is Virgin Metal's reasonable estimate today of future events and
conditions, but no assurance can be given that such events or conditions will
occur.
About Virgin Metals Inc.:
Virgin Metals is a junior exploration and development company rapidly
evolving to production status. It has two advanced exploration stage
molybdenum - copper porphyry properties in Sonora State, northern Mexico.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
