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| |  Status: Development Commodity: Uranium Ownership: 24% equity interest Operator: Virginia Uranium, Inc. Location: 10 kilometres northeast of Chatham, Virginia, USA Mineral Rights: 2960 hectares Virginia Energy's most important asset is an indirect 24% equity ownership of the giant Coles Hill uranium deposit in southern Virginia, USA, which is the largest untapped uranium resource in the USA and one of the largest in the world. Virginia Energy's ownership in Coles Hill is held through shares in VA Uranium Holdings, Inc., a private company, which in turn owns 100% of Virginia Uranium, Inc. (VUI). VUI controls the mineral rights, surface rights, and leasehold development and operating rights on the Coles Hill property. Virginia Energy Resources Inc. also holds a first right of refusal on future financings of VA Uranium Holdings, Inc. This gives VAE the opportunity, but not the obligation, to finance the project and gradually increase its ownership of VUI and the deposit. Coles Hill comprises two adjacent mineralized bodies with an NI 43-101 compliant, measured and indicated resource of 98.7 million tons grading 0.060% U3O8 at a cut-off grade of 0.025%, for a total of 119 million pounds U3O8 according to a NI 43-101 technical report completed on April 29, 2009 (see table below and LINK to the technical report).
The deposit was initially explored between 1980-1982, when Marline and Union Carbide drilled 210 holes (190,000 feet) to define the deposits. Norm Reynolds, President and CEO of Virginia Energy Resources, was directly responsible for uranium exploration efforts in the Eastern United States which lead to the discovery of the Coles Hill Property in Virginia. Between 1982-1983, a subsidiary of Union Carbide completed a feasibility study to put the deposit into production, but the project was shelved due to the drop in the price of uranium. At that time, a 5000 ton per day open pit mine and mill was envisioned. The project lay dormant until 2007 when Virginia Uranium, Inc. drilled 12 holes in 2007, to confirm the historic grades as part of the NI 43-101 technical report and resource calculation. The potential for resource expansion exists along strike and at depth. Higher-grade zones near surface provide for many development options. Scoping and environmental studies are currently underway while the State of Virginia studies the safety of uranium mining. Virginia does not currently have laws governing the mining of uranium, however, in May 2009 the Virginia Coal and Energy Commission requested the prestigious National Academy of Sciences to complete an independent study on the health, safety and environmental impact of uranium mining in Virginia. This study is expected to take 18 months and would assist the General Assembly in deciding whether to allow uranium mining, and allow it to draft appropriate legislation and regulations. Coles Hill Progress Spring 2010 Coles Hill Progress Fall/Winter 2009 For more details on Coles Hill, Virginia see the following news releases:
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