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| | Tue Jun 29, 2010
Virginia and Denison Discover Uranium Mineralization at Tuning Fork Grid, Hatchet Lake, Saskatchewan
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| | NR: 10-17
Virginia Energy Resources Inc. (the "Company") (TSX.V: VAE) is pleased to report promising results from an early Spring 2010 drilling program on its 50% owned Hatchet Lake Joint Venture, in the Athabasca Basin of Northern Saskatchewan. Project operator Denison Mines Corp. (TSX: DML) has provided the Company with results for the 11-hole, 2161.1-metre drill program in the Tuning Fork grid area.
Uranium mineralization has been discovered on the east side of the Tuning Fork grid, in association with strong alteration in a graphitic fault zone, approximately 50 m below the unconformity. Drill hole HL-10-01 (-75°) intersected 1.0 m grading 0.104% U3O8 at 183 m (down-hole depth; actual thicknesses are unknown) and 1.0 m grading 0.021% U3O8 at 186 m. Several other holes intersected broad intervals of faulting, sandstone de-silicification, and strong clay, chlorite, silica, hematite and graphite alteration, with scattered narrow zones of weak radioactivity in the basement. Sections with up to 10% pyrite and/or anomalous base metal and boron values are present in several holes, generally in the basement or directly above the unconformity. Three holes were lost due to unconsolidated sand (de-silicification) and structural disruption near the unconformity and had to be re-drilled. Additional analyses and clay mineralogical studies are underway. Selected results are highlighted below.
The 39,930-hectare property is subject to a joint venture agreement between Virginia and Denison, each holding a 50% interest with Denison as the operator. It is located 20 km north of Points North Landing, and 17 km north of the McClean Lake mill owned by AREVA-Denison-OURD. The target is an unconformity-type uranium deposit and/or a basement-hosted deposit at or near the contact between the Athabasca sandstones and underlying basement rocks. The Hatchet property includes faults and conductors similar to those that host nearby unconformity-related uranium deposits and prospects such as Jeb (Areva-Denison-OURD), Dawn Lake and La Rocque Lake (Cameco-Areva-JCU), Moonlight (Areva-Denison-JCU), Midwest (Areva-Denison-OURD) and Roughrider (Hathor-Terra). For additional background see Virginia's February 16, 2010 news release and property maps at www.virginiaenergyresources.com.
Hole HL-10-01, drilled at a -75°, intersected two zones of uranium mineralization in the basement approximately 50 m below the unconformity. The best intercepts included 0.104% U3O8 from 183 to 184 m, and 0.021% U3O8 from 186 to 187 m (down-hole depths). The upper zone also includes anomalous B and Cu and the lower zone also contains anomalous As, B, Co, Cu, Mo, Ni, and Pb. These mineralized intervals occur within a 9 m length of anomalous radioactivity from 180 to 189 m, within a broader 19 m intercept of graphitic faulting and chlorite and clay alteration. Two other zones of graphitic faulting were intersected in the basement above and below the radioactive zone (158.8 to 171.3 m, and 219.5 to 225.2 m), but these were not radioactive. The basement rocks are also pyritic and commonly contain blebs of chalcopyrite.
Holes HL-10-02 and -2B were drilled vertically and collared approximately 60 m north of HL-10-01 to cut the radioactive graphitic fault structure up-dip and closer to the unconformity. Unfortunately, Hole HL-10-02 had to be abandoned at 129 m depth due to unconsolidated sand, but was re-drilled to a depth of 192 m as hole HL-10-02B. It encountered pervasive bleaching in the sandstone at a depth of 79 m with bands of hematite and unconsolidated sand beginning 10 m above the unconformity (115.1 metres). The basement consists of bleached and chlorite-altered sillimanite-garnet pelite with bands of hematite, followed by graphitic garnet pelite at 142.4 m. A broad fault zone, was intersected from 142.4 to 158.9 m and includes graphitic gouge along with strong bleaching, clay, chlorite alteration, anomalous radioactivity and up to 55% core loss. Other graphitic fault zones were encountered deeper in the hole, including massive graphite for the last three m of the hole.
Hole HL-10-03 (-75°) was drilled approximately 600 m west of holes HL-10-01 to 02B, and approximately 200 m east of two historic holes (TUN-85-10 and 11) that contained evidence of graphitic faulting in the basement. Hole HL-10-03 intersected weak to moderate de-silicification and clay alteration of the sandstone above the unconformity at 103 m. The basement consists mainly of garnet and graphitic pelite and is strongly and pervasively altered (bleaching, chlorite, clay) to the end of the hole at 240 m. Two major fault zones were intersected: a 35.6-metre-wide fault zone with clay alteration beginning at 117.5 m; and an 18-metre-wide fault zone with strong graphite, clay, hematite and limonite beginning at 213 m. Despite the strong faulting and alteration, only a few short sections of anomalous radioactivity were encountered (200 to 220 counts per second).
Hole HL-10-08 (-75°) was drilled 60 m north of hole HL-10-03 in an attempt to intersect the fault zones in HL-10-03 up-dip and closer to the unconformity. Unfortunately, the basement lacked the strong alteration and faulting present in HL-10-03, although several zones of graphite were encountered. No anomalous radioactivity is present.
In the Richardson-Crooked Lake area to the north, the joint venture completed 20 km of ground HLEM and 25.4 km of VLF-magnetic surveying. Late winter ice conditions were not ideal and the entire grid could not be completed. The HLEM surveying will be finished in fall-winter 2010-2011. The geophysical work is designed to more precisely locate an historically described, six-kilometre-long conductor system with uranium and base-metal enrichment associated with sulphide mineralization and alteration in sandstone and basement rocks. Depth to the unconformity in this area varies between zero and 120 metres. A number of historic U, Co, Cu, Ni, Zn, As, and Au-enriched drill intercepts have been reported in this area of the Hatchet property, including SMDC Hole 61 which intersected "uraniferous sulphide breccia" which assayed 7.34% Co, 1.66% Ni and 16.07% As over 2.5 m (and 5.0 m of 73 ppm U), Hole 74 which intersected 2,112 ppm U, 256 ppm As and 202 ppm Co over 3.4 m, and Hole HT-96 which intersected 2,600 ppm U over 1.0 m plus adjacent sections which assayed 5.95% Cu over 2 m and 0.612% Co over 2.5 m. Despite these promising results, most of the holes in this area did not extend far below the unconformity, and therefore, did not adequately test for basement-style mineralization.
The joint venture partners are excited with the discovery of uranium mineralization at Tuning Fork, and the degree of faulting and clay, graphite and chlorite alteration in the 2010 drill holes. Over the summer and fall, pending clay mineralogy and geochemical information will be compiled. Follow-up drill programs will be considered for both the Tuning Fork and Crooked Lake-Richardson Lake grid areas in winter 2011.
The technical information has also been reviewed by Michael S. Cathro, P.Geo., Virginia's Vice-president of Exploration and a qualified person as defined by National Instrument 43-101.
About Virginia Energy
Virginia Energy is a mining exploration company focused primarily on the energy sector. Emphasis is being placed on uranium projects in the Athabasca Basin of Saskatchewan, the Otish Basin of Quebec and an equity interest in the large Coles Hill uranium deposit in south-central Virginia.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
"Norman Reynolds"
Norman Reynolds, Director
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release. |
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