Virgin Metals Releases Updated Los Verdes Resource Estimate
Thursday February 28, 8:10 am ET
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TSX Symbol: VGM Shares Outstanding: 78,951,885
TORONTO, Feb. 28 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or the "Company") reports that as a result of extensive additional drilling and as part of its ongoing Feasibility Study, it is able to report an updated resource estimate for its Los Verdes molybdenum/copper project in northern Mexico. Previous estimates were limited by the boundary of a claim that has subsequently been acquired.
The Los Verdes mineralization is located below the summit of a prominent ridge and consists largely of altered and mineralized granodiorite interspersed with breccia zones in a porphyry setting. The uppermost part of the mineralization is leached and oxidized, with much reduced copper levels and molybdenite largely oxidized to ferrimolybdite. Below this is a zone of sulfide mineralization with zones of secondary copper enrichment, breccia and mixed mineralization. A small amount of hypogene ore is encountered at depth, above a fairly distinct lithology change which generally indicates a base to the mineralization. Mineralization below the oxide zone is referred to here as "non-oxide". Non-oxide mineralization is generally amenable to conventional concentration methods while oxide mineralization may be expected to be generally refractory to such methods. Testwork will be initiated on possible recovery routes for oxide mineralization.
In estimating this resource, close attention has been paid to the definition of the shape of the non-oxide mineralization which generally exhibits sharp boundaries. Data used in the resource estimation include Virgin's own reverse circulation drilling and diamond drilling and inclusion of the historic drilling and adit sampling data generated by previous owners in the 1970's. Data generated from Virgin's own core drilling included detailed geologic logging, geotechnical logging and specific gravity determination. Specific gravity was determined to be somewhat lower than previously indicated for the deposit, indicative of numerous voids in the mineralization. Because of the rubbly nature of many of the sections and the coarse and variable nature of molybdenum mineralization, core was submitted whole for grade determination. Tungsten grades will be reported at a later stage after full incorporation of historical data into the project data base; some difficulties were encountered due to differences in units employed and in verifying data.
Chlumsky Armbrust & Meyer LLC of Denver verified the data base, provided direction in deriving geologic shapes and performed the modeling that led to these estimates; a technical report consistent with the provisions of NI 43-101 will be filed in due course.
Resources were calculated at cut off grades that assumed an approximate value equivalence between copper and molybdenum of 10:1. Thus a reported cut off grade of 0.03% molybdenum or 0.3% copper is calculated by the criterion of Mo + Cu grade/10 being greater than 0.03% and is considered molybdenum equivalent (MoEq).
The following tabulation is reported at a cut off grade of 0.03% Mo or 0.30% Cu:
------------------------------------------------------------------------
Tonnes % Mo % Cu Contained Contained
lbs Mo lbs Cu
------------------------------------------------------------------------
Non-Oxide
Minerali-
zation
------------------------------------------------------------------------
Measured
Resources 4,396,000 0.133 0.684 12,897,000 66,277,000
------------------------------------------------------------------------
Indicated
Resources 4,269,000 0.128 0.516 12,015,000 48,529,000
------------------------------------------------------------------------
Total 8,665,000 0.130 0.601 24,912,000 114,806,000
------------------------------------------------------------------------
------------------------------------------------------------------------
Oxide
Minerali-
zation
------------------------------------------------------------------------
Measured
Resources 2,692,000 0.071 0.089 4,206,000 5,280,000
------------------------------------------------------------------------
Indicated
Resources 1,717,000 0.087 0.099 3,300,000 3,759,000
------------------------------------------------------------------------
Total 4,409,000 0.077 0.093 7,506,000 9,038,000
------------------------------------------------------------------------
------------------------------------------------------------------------
Oxide and
Non-Oxide
Minerali-
zation
------------------------------------------------------------------------
Total
Measured
Resources 7,088,000 0.110 0.458 17,103,000 71,556,000
------------------------------------------------------------------------
Total
Indicated
Resources 5,986,000 0.116 0.396 15,315,000 52,288,000
------------------------------------------------------------------------
Total
Measured
and Indi-
cated
Resour-
ces 13,074,000 0.113 0.430 32,418,000 123,844,000
-------------------------------------------------------------------------
-----------------------------------------------------------------------
Total
Inferred
Resources 4,392,000 0.063 0.073 6,062,000 7,058,000
------------------------------------------------------------------------
Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues. The quantity and grade
of reported inferred resources in this estimation are conceptual in nature and
there has been insufficient exploration to define an indicated mineral
resource within this inferred tonnage, and it is uncertain if further
exploration will result in discovery of an indicated or measured mineral
resource within this inferred tonnage.
Note: some totals may not be consistent due to rounding
The relationship between cut off grade, average grade and tonnes within
the defined non-oxide mineralization indicates little variability over a range
of cut off grades from 0 to 0.05% Mo equivalent as demonstrated in the
following table:
Non-Oxide mineralization, measured and indicated resources
Cut Off Grade Tonnes %Mo %Cu
0.00%MoEq 8,762,000 0.129 0.596
0.03%MoEq 8,665,000 0.130 0.601
0.05%MoEq 8,360,000 0.134 0.617
It should be noted that inferred resources largely comprise oxide
material.
Virgin Metals president Chris Davie said: "Although the total measured and indicated resources have increased as expected, the significant data here relates to the distinction between oxide and non-oxide material, between which we have been able to distinguish for the first time. The non-oxide material, generally higher in grade, amenable to conventional metallurgical processes and occurring in a homogeneous, sharply bounded and well defined shape contains the bulk of the metal content of the deposit. With this definition, mine planning can now be finalized and the results integrated with other aspects of the feasibility study to generate an economic analysis of the project based on the non-oxide mineralization. Potential additional production from oxide will be examined at a later stage."
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, is undergoing a feasibility study and is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is presently the focus of an intense exploration effort.
This press release has been reviewed by Mr. R Sandefur, P.E. and Dr F Barnard, Calif Prof. Geol., of Chlumsky Armbrust and Meyer LLC, qualified persons in the estimation of these resources.
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.
For further information
Valerie Kimball, Investor Relations, vkimball@virginmetals.com, (303) 703 1210
Renmark Financial Communications Inc.: Barbara Komorowski, bkomorowski@renmarkfinancial.com
Neil Murray-Lyon, nmurraylyon@renmarkfinancial.com
Media - Vanessa Napoli, vnapoli@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com
Source: VIRGIN METALS INC. |
