Update on Virgin Metals' Cuatro Hermanos Property



    Shares Outstanding: 78,401,885

    TORONTO, Aug. 8 /CNW Telbec/ - Virgin Metals Inc. (TSX: VGM) ("Virgin
Metals" or the "Company") gives the following update on activities and
objectives at its 100% owned Cuatro Hermanos property in Sonora, northern
Mexico.
    Reverse circulation drilling is now under way at Cuatro Hermanos and,
although first results are still some weeks away, the Company would like to
provide for shareholders a geologic and historical context in which to view
past and current mapping, drilling and surface sampling activities and a basis
for our objectives and priorities. More details may be gained from the
Technical Report on Cuatro Hermanos dated February 1st, 2006 by ACA Howe
International Ltd. and posted on Sedar.

    Historical Context:

    An intermittent series of exploration campaigns over a period of nearly
forty years, from which varying amounts of detail survive, has provided
sufficient data to outline a porphyry system of substantial size, at least
4.5 square kilometers in extent, and open in most directions. Topography over
most of this area is steep, comprising a significant ridge known as Cerro San
Felipe, but flattens to the north. Overall drill spacing in the past has been
of the order of 500m, but at least two campaigns have aimed at intensive
drilling of potential shallow mineralization with limited success.
    Two other areas of mineralization have been noted; surficial
conglomerates both north and south of the ridge which contain oxide copper
minerals and a surface expression of high grade molybdenite mineralization at
the west end of the ridge.
    The majority of holes drilled on the property have encountered ubiquitous
hypogene copper and molybdenum mineralization with occasional intervals of
higher grades and minor supergene enrichment. The higher grade intervals have
typically been reported in the past but it should be noted that these are
rarely isolated intercepts; typically, they represent highlights of longer
intercepts. For example, hole OXY 4 has been reported in historical reports as
having three short intercepts: 22 to 30 m depth at 0.512% Cu and 0.033%Mo, 58
to 76 m depth at 0.477% Cu and 0.032% Mo and 112 to 136 m depth at 0.693% Cu
and 0.015% Mo. In fact, this hole provided mineralized intercepts throughout
its length of 162.7 meters, bottomed at a grade of 0.21% Cu and averaged from
6m to 162.7 m 0.30% Cu and 0.028% Mo.
    Most past operators concentrated on drilling but a subsidiary of Phelps
Dodge that investigated the property in the late nineties focused on intensive
mapping of geology, mineralization and alteration. The resulting work is
invaluable, but it is ironic that that company abandoned the property before
drilling a hole due to low copper prices. The alteration mapping indicates a
ring like feature of phyllic alteration with more widely dispersed argillic
alteration and silicification; potassic alteration is not noted at the
surface, indicating that the current surface is, perhaps, high in the system.
These are classic alteration zones that are typically found in copper porphyry
systems.

    Exploration Objectives:

    The Company's immediate objectives at Cuatro Hermanos are defined in four
phases:
    Phase 1: Quantify total mineralization over a small but typical part of
the property; this will give a first indication of tonnage and average grade
potential without specifically seeking higher grade intervals. The area chosen
for this is the area north of hole OXY 4 to a point north of hole CHM 4 and
roughly between holes CHSM 14 and OXY 2. (see attached compilation map:
http://files.newswire.ca/357/Hermanos.pdf). This will encompass part of the
Main Zone, most of the Sulphate Zone and its northerly extension and will
provide data over an area of approximately 1.1 km by 400m. A total of 15 to 18
reverse circulation holes are expected to be drilled, to give a spacing of 150
m to 200m.
    In the northern part of this area, hole CHM 4, drilled by BHP in 1997,
intersected 38.6 m of 0.2% Cu and 0.106% Mo starting at a depth of 179 m. The
Company's surface reconnaissance has revealed molybdenite in outcrop in the
arroyo to the north of and at much lower elevation than the collar of CHM 4.
The program will therefore include at least one hole collared in that arroyo
and angled to intersect the same general area as that intersected by CHM4.
    Phase 2: Investigate the depth potential of the system. It is possible to
conclude that the current surface represents a point high in a very large
porphyry system. It is possible that higher grade mineralization exists at
depth. The Company is currently planning a deep drilling program, the
parameters of which will depend to a certain extent on the capability of
available equipment, but it is hoped that depths of 600 to 800 meters can be
achieved.
    Phase 3: Investigate the apparently shallow but high grade molybdenite
occurrence at the western end of the ridge. As reported in the Technical
Report, surface values up to 3.3% Mo over 4.0 m have been reported in an area
corresponding with a geochemical molybdenum in soils anomaly. Deeper holes in
this area reported little molybdenum so it is expected to be of limited
vertical extent.
    Phase 4: Investigate the various surficial conglomerate bodies on the
property with a view to determining whether small scale production from such
bodies is feasible.

    Current Activities:

    The first 4 holes of Phase 1 have now been completed. Ground conditions
are difficult and progress slow due to highly silicified rock and broken
ground. A depth of 300m has been targeted for each hole but most have stopped
somewhat short of this due to ground problems. It may be some weeks before the
results of a meaningful group of holes can be reported.

    Conclusions:

    Virgin Metals CEO Chris Davie said that: "It is clear that Cuatro
Hermanos is a major, possibly world class, porphyry system. As we review the
historical data, it is clear that the total metal inventory in the system is
enormous. The key will be finding either grades or economies of scale that
will permit the full potential of this system to be realized."
    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 expected to evolve rapidly towards
production while the other, Cuatro Hermanos, is the focus of expanded
exploration effort.
    Gary Lohman, Consulting Geologist to the Company, is the qualified person
as defined by National Instrument 43-101 and has reviewed the content of this
press release.

    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; John Boidman,
jboidman@renmarkfinancial.com; Media - Vanessa Napoli:
vnapoli@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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VIRGIN METALS INC.

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