TORONTO, ONTARIO -- (Marketwire) -- 09/29/10 -- Virgin Metals Inc. (TSX VENTURE: VGM) announced today their plan and schedule for the completion and re-issuance of a pre-feasibility study for the company's Los Verdes project.
The Los Verdes property is a historic molybdenum producer and was extensively drilled in the 1970s. Repetition and expansion of that drilling by Virgin in 2006 and 2007 resulted in the completion of a pre-feasibility study. The pre-feasibility study demonstrated in considerable detail a robust project based on molybdenum and copper recovery with reserve of 7.05 million tonnes at 0.137% Mo and 0.657% Cu.
The 2008 pre-feasibility study noted that the Los Verdes 'deposit contains silver and tungsten at grades that may be of economic interest as byproducts' and recommended that 'both tungsten and silver be included in future Resource estimates'. Virgin Metals is now working to complete an updated NI 43-101 compliant resource estimate to include both the silver and tungsten.
'Severely declining molybdenum prices in 2008 eliminated a portion of the value outlined in the original pre-feasibility study' said Chris Frostad, President and CEO, Virgin Metals Inc. 'Our internal analysis, however, indicates that the inclusion of tungsten and silver and a re-engineering of the proposed mining process will produce an economic return exceeding that outlined in the original report'.
Los Verdes Milestones
1. Q1 2011 - release of new National Instruments 43-101 compliant resource
estimates;
2. Q2 2011 - release of internal scoping and economics study;
3. Q3 2011 - phase 2 engineering complete for pre-feasibility study;
4. Q4 2011 - publish National Instruments 43-101 compliant pre-feasibility
study
The Company is also currently engaged in negotiations with the local community to establish more permanent surface rights to the lands hosting the Los Verdes deposit as well as the surrounding area. It is hoped that a new agreement will be established early in the new year.
Excellent potential for additional mineralization remains within the Company's extensive land position at Los Verdes. Recently discovered oxidized outcrops will be mapped and sampled by company geologists. A new exploration program is being planned for the property and will prioritize target areas for prospecting, soil sampling and/or induced polarization geophysical surveys.
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 currently the subject of a pre-feasibility study while the other, Cuatro Hermanos, is the focus of ongoing exploration efforts.
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Contacts:
Virgin Metals Inc.
Chris Frostad
(416) 603-8368
www.virginmetals.com
