Virgin Metals Releases Updated Los Verdes Resource Estimate



    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:

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

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