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Virginia Mines Inc. ("Virginia") (TSX:VGQ) is pleased to announce a
National Instrument 43-101 compliant, initial mineral resource estimate for
its 100%-owned Coulon property, located in James Bay, province of Quebec. The
Coulon property consists of 3,035 mineral titles covering a surface area of
1,507 square kilometres (150,737 ha) and is situated approximately 15
kilometres north of the Fontanges airport. The property and the mineralized
lenses are accessible all year long by a road linked to the Trans-Taiga
Highway. A hydroelectric power dam is also located less than 10 kilometres
south of the main camp.
The Coulon property is host to seven (7) mineralized lenses (of which 5 are
closely spaced) of Cu-Zn-Ag mineralization grading up to 12.5% Zn, 0.5% Cu,
74 g/t Ag over 15.7m (Lens 44), 2% Zn, 4.4% Cu, 73 g/t Ag over 10.15m (Lens
9-25), 7% Zn, 1.9% Cu, 30 g/t Ag over 3.8m (Lens 43), 11.5% Zn, 1.2% Cu, 99
g/t Ag over 9.5m (Lens 08), 10.8% Zn, 1% Cu, 169 g/t Ag over 18m (Lens
16-17), 4.2% Zn, 2.7% Cu, 31 g/t Ag over 2.3m (Lens 201), and 14% Zn, 1% Cu,
113 g/t Ag over 3.25m (Lens Spirit). Historical expenditures on the property
total over CA$33M.
P&E Mining Consultants inc. of Brampton, Ontario ("P&E"),
independent resource estimate consultants for Virginia, has authorized the
release of the following estimates. P&E has estimated an Indicated
resource of 3,675,000 tonnes at an average grade of 3.61% Zn, 1.27% Cu, 0.40%
Pb, 37.2 g/t Ag and 0.25 g/t Au and an Inferred resource of 10,058,000 tonnes
at an average grade of 3.92% Zn, 1.33% Cu, 0.19% Pb, 34.5 g/t Ag and 0.18 g/t
Au. Table 1 below summarizes the Coulon resource estimate:
Table 1- 2009 P&E Coulon Mineral Resource Estimate
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Au Ag Cu Zn Pb
LENS Tonnes g/t g/t % % %
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INDICATED RESOURCE
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44 3,450,000 0.26 35.1 1.30 3.49 0.39
----------------------------------------------------------------------
16-17 225, 000 0.13 68.8 0.85 5.37 0.62
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TOTAL 3,675,000 0.25 37.2 1.27 3.61 0.40
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INFERRED RESOURCE
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08 5,383,000 0.21 37.0 1.15 3.65 0.26
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9-25 3,266,000 0.15 33.7 1.69 4.18 0.07
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44 314,000 0.21 29.1 1.37 3.30 0.25
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16-17 103,000 0.09 53.2 0.45 5.56 0.64
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43 555,000 0.14 18.5 1.56 2.80 0.14
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Spirit 330,000 0.01 32.2 0.78 7.94 0.08
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201 107,000 0.19 19.2 1.02 3.52 0.04
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TOTAL 10,058,000 0.18 34.5 1.33 3.92 0.19
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- The mineral resources are estimated with a base case NSR cut-off of
CA$75/tonne based on metal prices assumptions of US$ 3.12/lb. Cu, US$
1.25/lb. Zn, US$ 0.90/lb. Pb, US$ 13.50/oz Ag, US$ 744/oz Au and an
exchange rate of 1.096 $US/$CA (Feb 28/09 36 month Trailing Average Metal
Prices and US$ Exchange).
Sensitivity
to NSR Cut-off
The mineral resource estimate has been subjected to different NSR cut-off
scenarios and results are summarized in Table 2 below:
Table 2- NSR Cut-off Sensitivity: Coulon Project
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NSR Cut Off Mineral Resources Au Ag Cu Zn Pb
CA$/tonne Category Tonnes g/t g/t % % %
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$150 Indicated 1,460,000 0.29 48.0 1.36 5.94 0.64
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Inferred 4,767,000 0.19 39.3 1.59 5.24 0.20
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$125 Indicated 2,110,000 0.28 44.2 1.35 4.99 0.54
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Inferred 6,993,000 0.18 36.7 1.49 4.56 0.19
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$100 Indicated 2,935,000 0.26 40.4 1.31 4.16 0.46
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Inferred 8,909,000 0.18 35.7 1.39 4.15 0.19
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$90 Indicated 3,275,000 0.26 38.9 1.29 3.89 0.43
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Inferred 9,562,000 0.18 35.0 1.36 4.02 0.19
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$75 Indicated 3,675,000 0.25 37.2 1.27 3.61 0.40
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Inferred 10,058,000 0.18 34.5 1.33 3.92 0.19
----------------------------------------------------------------------
$65 Indicated 3,818,000 0.25 36.6 1.26 3.51 0.39
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Inferred 10,231,000 0.18 34.3 1.32 3.88 0.19
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$55 Indicated 3,901,000 0.25 36.3 1.25 3.45 0.39
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Inferred 10,393,000 0.18 34.1 1.31 3.85 0.19
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- Based on metal prices assumptions of US$ 3.12/lb. Cu, US$ 1.25/lb. Zn,
US$ 0.90/lb. Pb, US$ 13.50/oz Ag, US$ 744/oz Au and an exchange rate of
1.096 $US/$CA (Feb 28/09 36 month Trailing Average Metal Prices and US$
Exchange).
Sensitivity to metal prices
The CA$75/tonne NSR cut-off base case resource estimate has also been
subjected to a sensitivity analysis to metal prices. Table 3 below summarizes
the results obtained for 4 different scenarios:
Table 3: Metal Prices Sensitivity - Coulon Project
------------------------------------------------------------------------
Trailing Average
Metal Prices
and US$ Mineral Resources Au Ag Cu Zn Pb
Exchange Used Category Tonnes g/t g/t % % %
------------------------------------------------------------------------
36 month av'g.(1) Indicated 3,675,000 0.25 37.2 1.27 3.61 0.40
------------------------------------------------------------------------
Inferred 10,058,000 0.18 34.5 1.33 3.92 0.19
------------------------------------------------------------------------
24 month av'g.(2) Indicated 3,569,000 0.26 37.6 1.28 3.66 0.41
------------------------------------------------------------------------
Inferred 9,860,000 0.18 34.7 1,35 3.96 0.19
------------------------------------------------------------------------
12 month av'g.(3) Indicated 3,210,000 0.27 39.2 1.32 3.85 0.43
------------------------------------------------------------------------
Inferred 9,137,000 0.18 35.5 1.39 4.07 0.19
------------------------------------------------------------------------
6 month av'g (4) Indicated 2,018,000 0.28 45.0 1.38 4.96 0.54
------------------------------------------------------------------------
Inferred 6,290,000 0.19 38.0 1.55 4.63 0.20
------------------------------------------------------------------------
(1) metal prices assumptions of US$ 3.12/lb. Cu, US$ 1.25/lb. Zn, US$
0.90/lb. Pb, US$ 13.50/oz Ag, US$ 744/oz Au and an exchange rate of
1.096 $US/$CA
(2) metal prices assumptions of US$ 3.13/lb. Cu, US$ 1.07/lb. Zn, US$
1.05/lb. Pb, US$ 14.12/oz Ag, US$ 805/oz Au and an exchange rate of
1.076 $US/$CA
(3) metal prices assumptions of US$ 2.87/lb. Cu, US$ 0.76/lb. Zn, US$
0.82/lb. Pb, US$ 14.29/oz Ag, US$ 871/oz Au and an exchange rate of
1.106 $US/$CA
(4) metal prices assumptions of US$ 1.96/lb. Cu, US$ 0.58/lb. Zn, US$
0.59/lb. Pb, US$ 11.28/oz Ag, US$ 836/oz Au and an exchange rate of
1.195 $US/$CA
Details on Parameters used in the Resource Estimate
The Coulon drilling database contains 241 diamond drill holes (104,400 meters
of drilling from all Virginia drilling campaigns conducted from 2004 to 2008)
on sectional spacings that average approximately 50 metres. A Gemcom 5m x 5m
x 5m inverse distance squared block model was constructed utilizing
conventional geostatistics and grade modeling techniques to estimate the
resource.
Virginia instituted a quality assurance/quality control (QA/QC) program for
drilling at Coulon in 2007 (prior to 2007, Virginia relied on the internal
lab QC). Certified reference materials (Au, Ag, Cu, Pb and Zn) were
purchased, and sterile landscaping rocks were purchased and used as blank
material. Field, coarse reject and pulp duplicates were also taken as part of
the QC program. All data included in this resource estimate have passed the
QC.
Eugene Puritch, P.Eng.,Tracy Armstrong, P. Geo and Antoine Yassa, P. Geo of
P&E will be the author of an NI 43-101 compliant Resource Estimate
Technical Report on Coulon to be filed within 45 days of this news release.
They are Qualified Persons in accordance with NI 43-101, and are responsible
for the information presented in this news release.
Cautionary Notes Concerning Estimates of Mineral Resources
1) The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by the
CIM Standing Committee on Reserve Definitions and adopted by CIM Council
December 11, 2005.
2) Mineral resources which are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues.
3) The quantity and grade of reported inferred resources in this estimation
are uncertain in nature and there has been insufficient exploration to define
these inferred resources as an indicated or measured mineral resource and it
is uncertain if further exploration will result in upgrading them to an
indicated or measured mineral resource category.
Virginia is pleased that its exploration work at Coulon over the last four
years has defined a substantial mineral resource with an excellent potential
for further expansion. Five of the seven mineralized lenses discovered so far
still remain open at depth (lenses 08, 43, 16-17, 201 and Spirit) and several
geophysical EM conductors remain untested in the fertile volcanic sequence.
About Virginia
Virginia is among the most active mining exploration companies in Quebec with
a working capital of CA$38.6 million as at November 30, 2008, and 29,201,776
shares issued and outstanding as at March 31, 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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