TSX Venture Exchange
Symbol: VGM
Shares Outstanding: 56,006,090
TORONTO, Aug. 22 /CNW Telbec/ - Virgin Metals Inc. (the "Company" or
"Virgin Metals") (VGM TSX-V) announces that it has received assay results for
the first three holes of its drill program currently under way at its
Los Verdes copper, molybdenum, tungsten project in the state of Sonora,
northern Mexico.
The drill program, designed to replicate the drill pattern completed by
Cominco Ltd and Industriales Penoles some thirty five years ago, is now well
in hand and some 10 reverse circulation drill holes totaling 1375 m. in length
have been completed. The holes were, where possible, collared adjacent to the
historic Cominco / Penoles drill holes. Most holes will, like the historic
holes, be vertical but two drill sites are inaccessible and angle holes will
be used.
The assay results for molybdenum, copper, tungsten and silver for drill
holes LVRC0106 through LVRC0306 are as follows:
<<
Table 1. Summary of Drill results
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Cominco/ Total
VGM Penoles Inclination Depth From To
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Drill Drill
Hole Hole (metres) (metres) (metres)
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LVRC0106 C-10 vertical 172.26 25.91 99.08
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including 25.91 60.96
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and 64.02 76.23
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LVRC0206 C-31 vertical 160.06 16.77 147.69
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including 88.41 143.29
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LVRC0306 C-20 vertical 153.96 19.82 129.57
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including 35.06 70.12
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and 76.22 91.46
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and 96.05 128.05
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Mo
VGM Intercept (Total) Cu W Ag
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Drill
Hole (metres) % % % g/t
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LVRC0106 73.17 0.24 1.08 0.08 5.6
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including 35.05 0.29 1.54 0.09 9.1
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and 12.21 0.44 1.45 0.09 3.5
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LVRC0206 130.92 0.15 0.67 0.09 3.4
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including 54.88 0.26 0.83 0.12 2.7
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LVRC0306 109.76 0.10 1.08 0.06 6.4
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including 35.06 0.05 1.53 0.06 4.4
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and 15.25 0.67 1.61 0.14 15.2
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and 32.00 0.23 1.15 0.05 6.5
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Note: Old workings, where intersected, are included as intercepts
of 0 grade
No high values have been cut
>>
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. Drill hole
intersections to date confirm the presence of a leached cap within an
overlying hydrothermal (quartz-tourmaline) breccia, a secondary enrichment
zone identified by the presence of elevated copper mineralization (above),
and an underlying granodiorite. It is believed that the reported intercepts
represent the true width of the secondary enrichment zone.
The samples, each representing 1.52 linear meters, were riffle split at
the drill with approximately 12% of the recovered material (5 - 10 kg.) placed
in a plastic bag and immediately fastened with a security tag. Little moisture
has been encountered in drill holes to date resulting in free flowing material
of all size fractions. Where moisture was present, a sampling cyclone was
utilized with drill cuttings collected in buckets then placed in a large
porous bag and immediately fastened with a security tag. The reject material
for all samples have also been secured and stored for future use.
The samples were securely stored locally then collected by ALS Chemex
personnel and transported to the ALS Chemex laboratory in Hermosillo where
sample preparation was performed. All assay work was carried out at the ALS
Chemex laboratory in Vancouver, BC.
In addition to the routine quality control work carried out by
ALS Chemex, the Company has established a quality control protocol consisting
of the routine use of sample duplicates, blank samples and certified sample
assay standards obtained from WCM Sales Ltd., Burnaby B.C.
The Company has recently increased its land position surrounding the
known mineralization to a total of 5,176.22 hectares and has commenced a
regional stream sediment sampling program as a first step in identifying
additional exploration targets.
Chris Davie, President and CEO of Virgin Metals, said: "The average
grades shown in these few holes are consistent with the historical resource
estimates (see 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). However the
extent of some of the higher grade intersections is quite startling and
indicates the potential for early significant cash flow from the planned pilot
scale operation." A feasibility study has not been completed for the Los
Verdes property, and thus, there is no certainty that the Company's plans will
be realized.
This report 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, the availability
of exploration results, the possibility of future production from the Los
Verdes property and the cash flow to result from such production. 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, delays in completing exploration activities,
results of exploration activities if and when completed and the price of
molybdenum and copper changing from current levels, 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.
