Virgin Metals Announces Mineral Resource at Cuatro Hermanos



    TSX
    Symbol: VGM
    Shares Outstanding: 84,881,246

    TORONTO, July 10 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or
the "Company") announces that its consultants, Chlumsky Armbrust and Meyer,
LLC ("CAM") have completed a NI 43-101 compliant resource estimate for the
contiguous areas known as the Main and Sulfate zones at the company's
100%-owned Cuatro Hermanos porphyry copper-molybdenum project located in
Sonora, northern Mexico.
    The Resource calculation is based on the results of 22 reverse
circulation holes (CHRC 01 to 16 and CHRC 21 to 26) drilled by Virgin Metals
during 2007 and early 2008, together with 6 historic holes drilled by various
previous operators that explored the property, including Occidental Minerals
and Amoco Minerals. The historic drilling results have been validated by CAM
using statistical methods. The holes used in the resource calculation cover an
area of 1,650 m in a north-south direction by 1,100 m in an east-west
direction. Virgin Metals RC holes were targeted to depths of 300 m, but not
all holes reached this depth due to mechanical, water or geotechnical issues.
A map showing the location of the drill holes, along with other information
about the Company and its projects is available at: www.virginmetals.com.
    The area is underlain by a quartz diorite porphyry and diorite porphyry
exhibiting moderate to strong phyllic alteration with local intervals of
potassic alteration at depth. Mineralization appears to be associated with
both disseminated and veinlet sulfides containing concentrations of copper and
molybdenum. Many of the drill holes end in mineralization, and some of these
indicate that grade is increasing at depth; consequently the vertical range of
the mineralizing system is largely undefined. The area of porphyry style
mineralization defined by drilling appears to be open to the east and to the
west in the southern part of the zone.
    The following tabulation reports Mineral Resources at a cut off grade of
0.25% copper equivalent, where copper equivalent is based on a 10:1 value
ratio between molybdenum and copper.

    
    -------------------------------------------------------------------------
                                         % Cu               Con-         Con-
                                         Equi-   Ag      tained       tained
                 Tonnes   % Cu   % Mo     va- (g/t)     Cu (lbs)     Mo (lbs)
                                         lent
    -------------------------------------------------------------------------
    Indicated
     Resour-
     ces    206,262,000  0.197  0.021  0.407  1.5    896,008,000   95,660,000
    -------------------------------------------------------------------------
    Inferred
     Resour-
     ces    557,510,000  0.174  0.022  0.400  1.1  2,141,553,000  277,993,000
    -------------------------------------------------------------------------
    

    The Mineral Resources in this estimate were calculated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council on
Dec 11, 2005.
    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, socio-political,
marketing or other relevant issues.
    The quantity and grade of reported Inferred Resources are conceptual in
nature, and it is uncertain if further exploration will result in the
conversion of Inferred Resources to Indicated or Measured Mineral Resources.
    The estimates above were prepared by Qualified Person Robert Sandefur,
P.E., of Chlumsky Armbrust and Meyer, LLC. The contents of this press release
have been reviewed and approved by the Company's Qualified Person, Mr. John
Spurney.
    Virgin Metals CEO Chris Davie commented: "These results demonstrate the
enormous size of this system. Previous drilling indicated that this might be
the case, but drill spacing was too great to calculate a Resource. The area
underlain by this Resource is a relatively small part of the area known to be
underlain by porphyry-style mineralization, which has been noted over an area
of about 4.5 km x 2.5 km. In addition to the area in which the Resource was
estimated, four holes were drilled about 1.8 kilometers to the west,
encountering similar mineralization; historic holes between the two areas also
show similar mineralization under the topographic high of Cerro San Felipe."
    Samples of drill cuttings at Cuatro Hermanos were collected at 1.52 m
(5 ft.) intervals, and reduced in size whenever necessary to 3 to 4 kg using a
Jones riffle splitter. Plastic sample bags were immediately sealed on-site
using pre-numbered security tags. The samples were stored securely for a short
time at the Company's field office near the project, until they could be
transported by Company personnel to ALS Chemex's sample preparation facility
in Hermosillo. A duplicate pulp and the reject material for all samples are
being stored securely for possible future use. Assays were carried out at ALS
Chemex's ISO 9001-2000 certified laboratory in Vancouver, Canada. Virgin
Metals has incorporated quality control measures for the analytical work
including the insertion of standards, blanks, and duplicate samples. Check
assays were performed at Skyline Laboratories of Tucson.
    The Resource model was composed of 15 m cubic blocks and is based on 15 m
bench composites. The Resource was calculated using an inverse distance
squared methodology. Search radii derived from variograms were 200 m in a
north-south direction and vertically and 300 m in an east-west direction. A
maximum of 12 composites and a minimum of 2 were required for estimation.
Indicated Resources were limited to within 50 m and 100 m of a composite.
    A Technical Report on this resource estimate will be available within
45 days.
    The Company also announces that it has mobilized a diamond drill to
Cuatro Hermanos. The objective of drilling will be to obtain geologic
information not provided by reverse circulation drilling, to obtain data from
a greater depth than possible by reverse circulation drilling, and to step out
from the currently drilled areas.
    In other news, the pre-feasibility study of the Los Verdes Molybdenum
Copper project in Sonora is approaching completion and the Company expects to
be able to announce results within the next two to three weeks.

    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.

    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:

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, (514) 939-3989, Fax: (514) 939-3717;
www.renmarkfinancial.com

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VIRGIN METALS INC.

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