Virgin Metals Files Technical Reports on Los Verdes and Cuatro Hermanos



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    TORONTO, Sept. 11 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals" or
the "Company") has filed technical reports on SEDAR on both of its 100% owned
molybdenum/copper projects in northern Mexico, Los Verdes and Cuatro Hermanos.
The reports may be accessed at www.sedar.com.
    The Los Verdes report, entitled Pre Feasibility Study, Los Verdes Project
reveals a project that demonstrates robust economics at metal prices well
below current prices. The reserve demonstrated in the study of 7.05 million
tonnes at grades of 0.137% molybdenum and 0.657% copper will support
production through a little more than 7 years averaging approximately
2 million pounds per year of molybdenum in concentrates and 12 million pounds
per year of copper in concentrates. The study indicates that average annual
pretax cash flows of between US$45 and US$50 million will lead to a life of
project undiscounted pretax cash flow of US$220.5 million after capital costs
of US$138.8 million. The project pre-tax net present value at an 8% discount
rate is US$96.9 million. The study does not address potential additional
revenues from the tungsten content of the ore.
    The Company also announces that an Environmental Impact Statement, Risk
Assessment and application for Land Use Change for the Los Verdes project has
been filed with the appropriate authorities in Mexico. These comprise the
applications for the principal permits required for mining operations in
Mexico.
    The Cuatro Hermanos report defines the first mineral resource calculated
to National Instrument 43-101 standards on the property. Drilling over a
relatively small part of the known porphyry mineralization to a maximum depth
of 300 meters defined a resource comprising 206.3 million tonnes of indicated
resource at a grade of 0.407% copper equivalent and 557.5 million tonnes of
inferred resource at a grade of 0.400% copper equivalent. Copper equivalents
were calculated at a price ratio between molybdenum and copper of 10:1. No
metallurgical testwork or economic estimates have yet been made for Cuatro
Hermanos.
    Virgin Metals CEO Chris Davie said; "The coincidence of these two reports
appearing nearly simultaneously enables us to highlight the complementary
nature of these two projects, which are only about 50 km apart in Sonora,
northern Mexico. Los Verdes is a small, low capital and low operating cost
project that can be implemented relatively quickly. Cuatro Hermanos, on the
other hand, is a porphyry of world class size whose dimensions are only just
beginning to be appreciated and whose total metal content is equally
significant; contained copper in the current indicated resource is
approximately 896 million pounds with approximately 2.141 billion pounds in
the inferred category with molybdenum content in addition to this copper
resource. We look forward to advancing our understanding of the Cuatro
Hermanos Project while developing the Los Verdes Project. Some additional
drill results from Cuatro Hermanos are expected to be available shortly, and
we are pursuing financing alternatives for both projects on a number of
fronts."
    The mineral Resources and Reserves in this release 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, taxation,
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 conversion
of Inferred Resources to Indicated or Measured Resources.

    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 applicable securities laws, including, but not limited to the
following: statements as to estimated reserves and resources of the Los Verdes
project; assumptions regarding development of a mine at Los Verdes; the timing
of mining and processing operations at Los Verdes; and, statements as to
estimated resources of the Cuatro Hermanos project. This 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 securities
commissions in Canada, the Toronto Stock Exchange and other regulatory
authorities. Important factors that could cause actual results to differ
materially from this forward-looking information include: the outcome of
assays and additional exploration sampling and drilling efforts; delays in
completing or less favorable than anticipated results of a feasibility study
on Los Verdes; increases in anticipated cash costs, operating costs, mining
costs, capital expenditures and other costs; decreases in anticipated plant
molybdenum and copper recoveries and molybdenum and copper prices; delays or
problems in construction, permitting and start-up; variations in ore grade,
mining, or processing problems or issues. 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: Kookie Miller, kmiller@virginmetals.com, (416)
364-9988; 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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