TSX Venture Exchange
Symbol: VGM
Shares Outstanding: 58,346,540
TORONTO, Nov. 27 /CNW Telbec/ - Virgin Metals Inc. (the "Company" or
"Virgin Metals") (TSX-V: VGM) has completed the drilling that will provide the
basis for a resource calculation at its 100% owned Los Verdes copper,
molybdenum, tungsten project in the State of Sonora, northern Mexico. Some
additional step out drilling has been performed and condemnation drilling is
currently being carried out.
As previously reported, the mineralization occurs in a prominent ridge
and consists of typical porphyry style mineralization which is modified by
leaching at surface and accompanied by re-concentration in a zone of secondary
enrichment. The dominant host rock is a quartz - tourmaline breccia that lies
above and to the west of the Buena Vista fault. The base of the mineralization
lies at the contact between the host breccia and a fine to medium grained
granodiorite. In the north, the mineralization is bounded by topography.
The results of holes 23 to 41 are now available. Of these, holes 33 to
36, 40 and 41 were drilled as step out or in fill holes in or proximal to the
previously established resource, while holes 23 to 32 and 37 to 39 were
drilled to investigate possible extensions to the recently discovered
mineralization in the area of the old open pit. Hole 29 was not drilled.
Holes 33 and 34 were drilled to test potential extension of the
mineralization to the north of hole 12; slightly anomalous but insignificant
copper and molybdenum values were found. Holes 35 and 36 were drilled behind
the face of the existing open pit to test available grades; high grade
mineralization was intersected in both holes (results given below) Hole 40 was
drilled to test the northern extension of the mineralization intersected in
hole 13. Due to local topography, it was drilled from the location of hole 13
at an angle of 70 degrees to the north and intersected significant molybdenum
and low copper values. Hole 41 was drilled as an infill between holes 5 and 6
and returned the high grades typical of this area.
Of the holes drilled to the east of known mineralization, none
intersected significant mineralization, though some did intersect quartz
tourmaline breccia with typically weakly elevated copper levels.
Significant results are reported below; hole locations may be found on
the attached map.
http://files.newswire.ca/357/Yecora.doc
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Cominco/ Total
VGM Penoles Inclination Azimuth Depth From To
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Drill Drill (degrees) (metres) (metres) (metres)
Hole Hole
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LVRC3506 DPC-7 vertical 91.44 27.43 56.39
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including 27.43 39.62
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LVRC3606 DPC-7 -70 125 91.44 25.91 44.20
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LVRC4006 C-12 -70 360 92.96 9.14 48.77
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LVRC4106 vertical 91.44 22.86 68.58
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including 30.48 60.96
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True Mo
VGM Width (Total) Cu W Ag
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Drill (metres) % % % g/t
Hole
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LVRC3506 28.96 0.24 0.45 0.12 1.8
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including 12.19 0.32 0.37 0.06 1.5
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LVRC3606 16.90 0.17 0.45 0.05 1.8
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LVRC4006 36.50 0.12 0.05 0.01 Nil
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LVRC4106 45.72 0.22 1.01 0.40 6.3
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including 30.48 0.28 1.33 0.47 8.1
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>>
Sampling practice at the project has been previously reported and has
continued unchanged through the drilling of these holes.
Now that the drilling of the known mineralization is complete, a resource
calculation is underway. Virgin Metals has engaged Chlumsky, Armbrust and
Meyer LLC, Denver, to prepare a technical report that conforms to National
Instrument 43-101 and which will include their estimate of mineral resources.
The qualified persons for this work will be Robert Sandefur and Fred Barnard.
Virgin Metals has also engaged Resource Development Inc of Denver to perform
metallurgical testwork, which is also in progress.
Pursuant to the Company's stock option plan, the Company has granted a
further 100,000 incentive stock options each to Mr. Shonnard and Mr.
Brogoitti. The stock options are exercisable to acquire one common share of
the Company at $0.32 per share and can be exercised until November 16, 2011.
This stock option grant is subject to regulatory approval.
This press release has been prepared by Mr. Gary Lohman, a registered
Professional Geologist and Qualified Person (QP) as defined by NI 43-101 of
the Canadian Securities Administrators. Mr. Lohman is the QP for the Los
Verdes exploration program.
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; its
projects include two copper/molybdenum porphyry properties in Sonora, northern
Mexico. One of these, Los Verdes, is expected to evolve rapidly towards
production while the other, Cuatro Hermanos, is expected to be the focus of
expanded exploration effort.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
