TSX Symbol: VGM
TORONTO, July 20 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or the "Company") is pleased to present an update for its Los Verdes project located in Sonora, northern Mexico. Although the focus of work during the past two years has been directed largely at development of the Los Verdes molybdenum-copper ore body, recent reconnaissance rock chip sampling and geologic mapping over outlying portions of the 66.90 square kilometer property have identified areas containing significant gold mineralization, particularly on the western portion of its land over the Hilda Fraction 2 license. Here Cretaceous andesitic volcanic rocks are intruded by Tertiary granodiorite, diorite, and aplite. The plutonic rocks are locally cut by late-stage quartz-tourmaline plugs and breccias. Tourmaline alteration is also present to varying degrees in the overlying volcanic stratigraphy. The rock units lie within an extensive zone of and quartz-sericite-pyrite-illite alteration and hematite staining/oxidation which encompasses large portions of the Los Verdes property. Recent exploration over these alteration zones and surficial color anomalies has identified significant gold mineralization at Cerro La Cobriza and Cerro La Turena on the Company's Hilda Fraction 2 license (Fig. 1).
At Cerro La Cobriza anomalous gold mineralization is centered over a hill of weathered quartz-sericite-illite-pyrite altered granodiorite which is cut by a stockwork of quartz and quartz-tourmaline veinlets. Veinlets of varying orientation and size are noted over the prospect, yet overall the zone of veining and stockwork development strikes northwest, and has been traced intermittently in outcrop for nearly 300 meters. Nine rock chip samples collected in June over an approximately 300 m x 100 m area on the prospect returned gold values ranging from 0.02 to 3.16 g/t, with an average grade of 0.529 g/t gold. Locally the mineralization also contains anomalously high concentrations of Pb, Zn, Ag, As, Sb, and Hg. Notably Mo and Cu are values are low in the mineralizing system at Cerro La Cobriza, with 10 and 60 ppm the respective high values for the sample set.
Approximately two kilometers south-southwest of Cerro La Cobriza (CLC), on the opposite side of a major west-draining canyon, but also on Hilda Fraction 2, Virgin Metals has identified a second area of gold mineralization at Cerro La Turena. Corex Gold Corporation previously announced a gold discovery at Cerro La Turena earlier this year (in a January 28, 2009 news release), while exploring their Santana property. When Virgin Metals recently visited the area, they found that Corex Gold had drilled four reverse circulation angle holes along their northern property boundary, adjacent to Virgin Metals' land, and an additional RC hole might, in fact, have been completed inside Virgin Metals' property. Virgin Metals controls the northern portion of Cerro La Turena (CLT), where 14 rock chip samples collected last month returned gold values ranging from 0.17 to 1.19 g/t. The average gold grade for the rock chips is 0.54 g/t with sampling highlighted by a 16 m chip, collected in a recently constructed drill road on Hilda Fraction 2, that averaged of 0.81 g /t Au. This sample is comprised of 8 individual 2-meter intervals, containing gold values ranging from 0.27 to 1.19 g/t gold. Five additional samples returned gold values ranging from 0.47 to 0.93 g/t. As at CLC, the mineralization is of an oxide nature (in outcrop), and is characterized by quartz veinlet stockworks and veinlet swarms which lie within a broad zone of hematite-stained, moderately to strongly quartz-sericite-pyrite-illite altered igneous rock. The geochemical signature for the CLT mineralization is also similar to CLC, yet at CLT gold values occur higher in the "stratigraphy" primarily within andesitic volcanic rocks. The CLT veinlet stockwork and alteration zone has been traced intermittently in outcrop for a strike length of over 400 meters. Gold mineralization identified on Virgin Metals' land projects southeastwardly onto Corex Gold's Santana property where drilling has demonstrated that it continues in the subsurface.
At Cerro La Cobriza and Cerro La Turena the occurrence of abundant open-space fillings, quartz druse, comb-textured quartz, a quartz-sericite-illite-pyrite alteration assemblage (or its oxidation products), pathfinder elements which include As-Sb-Hg, and rare lattice-textured silica are consistent with a low to intermediate sulfidation, epithermal gold system. The presence of tourmaline in some of the veins at Cerro La Cobriza, and of tourmaline-specularite alteration in the deeper (lower elevation) levels of Cerro La Turena suggest that the epithermal system overprints an earlier higher temperature alteration assemblage. Mineralization at Cerro La Turena is localized along the southwest projection of a structural corridor containing at least three distinct quartz-tourmaline plugs and breccias, which can be traced for more than 5 kilometers across Hilda Fraction 2 and into adjacent lands. Indeed the Los Verdes Mo-Cu ore body, located 6.5 kilometers east of Hilda Fraction 2, lies proximal to and beneath a ridge of quartz-tourmaline. The Company is optimistic that further exploration over its large land holding will yield additional discoveries both as Mo-Cu ore, and as epithermal Au mineralization. Given that extensive portions of the Los Verdes property are underlain by sericite-pyrite dominant phyllic alteration, the Company also considers the possibility that the two styles of mineralization represent zonation over a concealed Cu-Mo porphyry deposit which is postulated to underpin the mining district.
A geologic map of the discovery area will be posted on the company's web site (www.virginmetals.com) as soon as the web site is restored to operating status. The company apologizes for the recent loss of the web site, caused by substantial problems on the host's server.
Additional zones of quartz veining, and favorable hydrothermal alteration have been identified at other localities over the Los Verdes licenses, and a modest reconnaissance mapping and sampling program is underway over the property. After this first-pass reconnaissance effort is complete, Company geologists will prioritize prospects for additional field work and possible drill testing. The exploration program at Los Verdes is being supervised by Consulting Geologist, John C. Spurney, M.Sc. Mr. Spurney, a qualified person as defined under the terms of National Instrument 43-101, has reviewed the contents of this press release. Rock chip samples collected for this field program are being sent to Inspectorate American Inc. for analysis. Inspectorate is an ISO 9002 accredited laboratory with a sample preparation facility in Hermosillo, Mexico and laboratory in Reno, U.S.
About Virgin Metals
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, has been the subject of a pre- feasibility study and is expected to evolve rapidly towards production while the other, Cuatro Hermanos, has been the focus of an intense exploration effort.
FORWARDLOOKING STATEMENTS
This press release includes certain "forwardlooking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to: development of the Los Verdes project; future exploration of the Cuatro Hermanos project; timing and extent of exploration programs; and, the availability of exploration results. As such, forwardlooking 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 forwardlooking information contained herein is Virgin Metals reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.