TORONTO, Sept. 28, 2011 /CNW/ - Virgin Metals Inc. (the "Company" or
"Virgin Metals") (TSX-V:VGM) is pleased to announce that it has
acquired, at auction from the General Mines Direction of Mexico, a 100%
title to the Potreritos deposit concessions in Sonora Mexico. The
Potreritos deposit neighbors the Company's Los Verdes copper/molybdenum
reserves and has the potential to significantly enhance the economics
of that project.
"Since the new management group became involved with Virgin Metals one
of our primary goals has been to increase the size of the reserves
available for the development of the Los Verdes project." said Chris
Frostad, President and Chief Executive Officer. "The proximity,
mineralogy and composition of the Potreritos deposit will allow for its
incorporation into to the development of the Los Verdes operation with
minimal adjustments to the engineering plans or expected capital
costs. We now have a second source of mineralized rock that
potentially can feed the common processing facility being planned for
The 1,070 h Potreritos property sits to the north of, and adjacent to,
the Los Verdes concessions;
The concessions were purchased at a public auction in Mexico City on
September 27, 2011 for CDN $1,590,000. The purchase price will be
largely financed through a debt to the General Mines Direction of
Mexico, terms to be determined pending certain conditions;
Historically mineralized rock from both the Los Verdes and Potreritos
deposits was mined simultaneously and processed at a common plant
facility located at the Potreritos site;
Virgin Metals is now undertaking to confirm the historic estimates
provided by the General Mines Direction of Mexico. These figures will
be released once our Qualified Person has reviewed the data including
sampling, analytical and test data underlying information and opinions
stated, how data was verified and any limitations on the verification
process as well as an explanation of any failure to verify the data;
Virgin Metals is also currently reviewing the Los Verdes development
schedule so as to allow for the inclusion of Potreritos in the economic
analysis of the project. That revised schedule will be released
The Potreritos zone hosts the historic Buenavista mine and Provindencia
mines. The pegmatitic bodies with higher grade disseminated
mineralization are located in the north-central portion of the
property. An additional zone, El Moro-Los Tajos, is topographically
represented by a large circular protuberance where an alteration halo
coincides with a copper geochemical anomaly, suggesting the possible
existence of a copper porphyry body below the surface.
Recent sampling has been undertaken of 780 metres of old underground
mine workings in the Buenavista mine and 78 metres of drifting in La
Provindencia mine (898 channel samples); a systematic geochemical chip
sampling program (343 samples collected); and 2,360 metres of core
drilling distributed in 13 drill holes.
The Buenavista zone is constituted by a 200 metre by 250 metre ovoid
shaped area with at least 50 metres of depth, conformed by fine grained
granodiorite stock, traversed by numerous pegmatitic quartz K-feldspar
dikes. Drilling has demonstrated the potential for this mineralized
zone to extend at depth. The ore is composed by foliated masses of
molybdenite, associated with black coloured acicular tourmaline.
Within the area, several outcrops of breccias pipes bodies (2 km
diameter), rich in tourmaline and quartz have been located.
South of Buenavista, a broad extended oxidized zone is exposed (El
Moro-Los Tajos), characterized by quartz-pyrite-sericite alteration
zones, upper imposed to a copper geochemical anomaly, linked to a high
intensity IP anomaly that can be interpreted as the outer portion of
the copper ore shell of the Lowell and Gilbert porphyry copper deposit
The Los Verdes property is a historic molybdenum producer, which was
extensively drilled in the 1970s. Repetition and expansion of that
drilling by Virgin Metals in 2006 and 2007 resulted in the completion
of a pre-feasibility study in 2008. That pre-feasibility study
demonstrated, in considerable detail, a robust project based on
molybdenum and copper recovery only; upside exists in tungsten and
silver recovery as well as in improved molybdenum recovery.
The Los Verdes project is made up of 15 contiguous titled exploration
concessions, covering 5,559 hectares. It lies within what could be
considered the southerly extension of the Basin and Range province of
the southwestern USA, near the boundary with the Sierra Madre
The Los Verdes reserve comprises a modest sized, compact zone of
molybdenum, copper and tungsten mineralization located at the crest of
a steep ridge. The geometry of the deposit is ideal for low cost open
pit mining. During 2007, the Company consolidated the mineral rights
of the deposit by acquiring a single isolated claim known as the
Bacanora claim. Until this point, the Company's drilling and
subsequent resource estimation had been limited to the area east of the
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 currently the subject of
a pre-feasibility study while the other, Cuatro Hermanos, is the focus
of ongoing exploration efforts.
Darren Koningen, P. Eng., is the Qualified Person responsible for
technical content of this release.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Virgin Metals Inc.
For further information:
Virgin Metals Inc.