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May 28 2009
Virginia
and Odyssey Resources Limited to Enter Into a CA$4 M Agreement on the FCI
Project and a CA$5 M Agreement on the Auclair Project
QUEBEC CITY, QUEBEC - Virginia Mines Inc.
("Virginia") (TSX:VGQ) is pleased to announce the signing of two
agreements with Odyssey Resources Limited ("Odyssey") on the FCI
and Auclair
properties, located in the James Bay region of Quebec.
FCI Property
The FCI property consists of one block of 412 claims totalling 21,105
hectares. As per the agreement, Odyssey has the option to acquire a 50%
participating interest in the FCI property in consideration of $4 million in
exploration work, to be carried out during the next 6 years, and cash
payments totalling $130,000 to be paid by the 3rd anniversary of the
agreement. Under the agreement, Virginia will be the operator and will be
conducting the exploration work under programs and budgets approved by both
parties.
The FCI project covers 35 km of favourable geology within the Guyer
greenstone belt. To date, several gold showing have been discovered across
the entire length of the property, associated with a major lithological
contact between volcanic rocks and sediments. Based on field work undertaken
by Virginia between 1998 and 2007, these showings yielded values of up to
108.9 g/t Au in grab samples and up to 14.3 g/t Au over 2m in channel
sampling. Limited diamond drilling of the Golden Gap showing has returned one
interesting intersection grading 10.48 g/t Au over 7m and several other
strongly anomalous intersections varying from 1.77 g/t Au over 3m to 0.93 g/t
Au over 7.85m. A significant gold-in-till anomaly (up to 123 gold grains)
remains unexplained along this fertile volcano-sedimentary contact. Moreover,
polymetallic
showings associated with QFP intrusions and sericite schists
were also discovered at both ends of the property. The Felicie showing
yielded values of up to 5.54 g/t Au, 100 g/t Ag, 1.86% Cu, 1.56% Pb,
4.94% Zn in grab samples, in the western portion of the property. The Sericite
showing returned values of up to 150 g/t Ag, 0.3 g/t Au, 1.89% Cu, 1.45% Zn
in grab samples, in the eastern portion of the property. Complete results
have been previously disclosed in a technical report filed on SEDAR by
Virginia .These targets will be tested this summer by a major program that
will consist of prospecting, mapping and sampling.
Auclair Property
The Auclair
property consists of 318 claims totalling 16,783 hectares. As per the
agreement, Odyssey has the option to acquire a 50% participating interest in
the property in consideration of $5 million in exploration work, to be
carried out over the next 6 years, and cash payments totalling $150,000 to be
paid by the 3rd anniversary of the agreement.
The Auclair
project covers a 20-km-long, folded BIF (banded iron formation) at the
eastern tip of the Eastmain greenstone belt, in a geological setting similar
to the one hosting the large Musselwhite gold mine in northern
Ontario. Several gold showings were discovered so far on the property in the
BIF and in the enclosing sediments (wackes). These
showings returned values of up to 0.79 g/t Au over 24m in channel samples.
Diamond drilling yielded one intersection grading 5.4 g/t Au over 7m on the
Arianne showing, in the eastern part of the property, and another one grading
5.2 g/t Au over 4m on the Golden Butterfly showing, in the west portion of
the property (see Virginia's press releases of June 11, 1997, June 26, 1997
and October 9, 2002).
A systematic till sampling program covering the entire property has defined
two significant gold dispersion trains with probable sources in overburden
covered areas. A work program consisting of prospecting and detailed mapping
is scheduled for the summer of 2009 and should be followed by a major diamond
drill program to begin in late fall of 2009.
Virginia is pleased to team with a company managed by Messrs. David Fennell
and James Crombie
who are well known in the mining industry. Over the last ten years, they have
been instrumental in identifying, acquiring and exploring the projects that
were behind the success of Ariane
Gold Corp., Hope Bay Gold Corporation and Palmarejo Silver and
Gold Corporation. Mr. Fennell is also the founder and former president and
CEO of Golden Star Resources Ltd., which during his 15-year tenure became a
TSX 300 company and one of the most important mineral exploration companies
in the world, with a very significant portfolio of exploration properties in
the Guyana Shield. Mr. Fennell was instrumental in the discovery and
development of the Omai
mine in Guyana and the Gross Rosebel mine in Suriname.
Qualified Person
The technical information contained in this news release was reviewed and
approved by Paul Archer, Virginia's Vice President Exploration and
Acquisition who is a qualified person under National Instrument 43-101.
About Odyssey Resources
Odyssey Resources Limited is a well-funded Canadian-based junior exploration
company whose shares trade on the TSX Venture Exchange under the symbol
"ODX". Odyssey's activities in recent years were focused in Morocco
and Turkey.
About Virginia
Virginia is among the most active mining exploration companies in Quebec with
a working capital of $38.5 million as at February 28, 2009, and 29,201,776
shares issued and outstanding as at April 30, 2009. Virginia trades on the
Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia
concentrates its activities on its numerous properties that are spread over
the vast, unexplored regions of northern Quebec.
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