News Release 11-07Virginia Energy Resources Inc. (TSX.V:
VAE) provides an update on drilling at its
Mustang Lake and
Bruce River uranium properties in the Central Mineral Belt of Labrador, which are part of a joint venture operated by Mega Uranium Ltd. (
TSX.V: MGA). Prior to the current work program, Virginia held a 33.31% interest in the JV with Mega holding the remainder. Virginia declined to contribute funding to the current program, and therefore, its interest in the JV will be reduced by an estimated 5 to 6%. Project operator Mega has provided the information presented below.
Mustang Lake PropertyA winter drilling program tested a structural zone containing Aillik Group volcanic stratigraphy interpreted to trend from Paladin's Michelin uranium deposit (located 8 km to the southwest) through the Mustang Lake property.
A total of 888.5 m of
Diamond drilling was completed in four holes on the property. In hole ML-11-02, a 46 m long zone of discontinuous anomalous radioactivity was intersected from 141 to 187 m depth. Analysis of samples from this zone yielded best results of 1 m of 0.08% U
3O
8 at 163 m and 1 m of 0.06% U
3O
8 at 187 m. Though the analytical results were low, the presence of Aillik Group volcanic stratigraphy, with Fe-oxide alteration and uranium mineralization in ML-11-02 validated the exploration model for the Mustang Lake Property.
Mega reports that sampling was conducted in accordance with NI 43-101 as well as the Mineral Exploration Standards implemented by the Nunatsiavut Government of Labrador. Mega includes regular standards, and locally obtained blanks in its sample submissions. All samples were analyzed for uranium using the Delayed Neutron Count (DNC) method by Actlabs of Ancaster, Ontario. Actlabs is an ISO/IEC17025 and CAN-P-1579 accredited laboratory. Comprehensive procedures are in place to ensure that no contamination of the environment occurs and strict protocols have been established to maintain the health and safety of all program participants.
Bruce River Property (Virginia-Mega JV)A
Diamond drill program of 600 m in five holes is scheduled to commence in early July on the Bruce River property in the Central Mineral Belt of Labrador. Drilling is designed to test the Noseman showing where a mineralized zone exposed over approximately 200 m long by 75 m wide occurs within a slightly larger hydrothermal alteration halo. A total of 16 grab samples of altered granite were collected during the 2009 prospecting program with assay results ranging from 0.001% to 0.241% U
3O
8. Four channel samples were taken from the areas of the best scintillometer response on the Noseman showing with a best result of 0.092% U
3O
8 over 2.0 m.
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 by National Instrument 43-101.
About Virginia Energy Resources Inc.Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds almost 30% 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.
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.