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Virginia Mines Inc.(« Virginia ») is pleased to release this update of the drilling that took place during winter 2012 on the Coulon and Gayot base-metal projects, as well as on the Lac Pau and La Grande Sud gold projects, all located in James Bay.
LINK TO FIGURES AND TABLES
https://media3.marketwire.com/docs/Figures_Tables_Virginia_0530.pdf
COULON PROJECT
During winter 2012, Virginia drilled 27 holes totalling 18,055 metres on the Coulon project (100% Virginia), situated 15 kilometres north of the Fontanges airport, in the Middle-North of Quebec. The program mainly tested the extensions of lenses 223, Spirit and 201 as well as many other geological or geophysical targets on the property.
The 2012 winter work revealed anewvery promising sectorin the extension to the northeast ofthefertilevolcanic sequencehosting Lens 43. This little-known sectorcovered withoverburden had been the object previously of only two boreholes at 300metresand 800 metresrespectively to the northeast of Lens43. These holesdid notintersect significant mineralizationbut thegeophysical surveyscarried outsubsequentlyin bothholes identified two"off-hole" EM conductors. During the winter 2012 campaign, five holeswere drilled totest theEM conductor located 800 metresnortheastof Lens43. HolesCN-12-257, 262 and 263were drilledon the same sectionwhile holesCN-12-264B and 265 were drilled60 metreson both sidesnorthand south ofthis section. Theseholes intersectedavery fertilevolcanic sequenceconsisting of twodistinct horizonscharacterizedby stronghydrothermal alterationandzonesofdisseminated to massive sulphidesof metricto decametric thickness. Themainmineralized horizonis associated with amajor contactbetweenmafic and felsic volcanic rockswhile the other horizon is locatedwithinmafic rocks. To datethe best intersectionscome fromthemain horizonincluding resultsof11.06% Zn, 1.87% Cu, 26.45g/tAgand 0.16g/tAu over11metres in holeCN-12-257, 6.19% Zn, 1.49% Cuand24.86g/t Ag over8.4metres in holeCN-12-263, 1.6% Zn, 1.39% Cu, 126.98g/t Ag and2.12g/tAu over9.35metres in holeCN-12-265 and 7.17g/t Au, 370 g/tAgand 0.37% Cu over3metres in holeCN-12-262. This latter intersectionis distinguished fromprevious ones by amuch more intensesilica alterationcontaining1-3%disseminated pyrrhotiteandchalcopyrite. The lengthof these intersectionsis very close tothe actual thicknessof the mineralization. These resultspoint to the emergenceof a newmineralized lensof economic interest,tracedfor nowover a strike lengthof 135 metresto a vertical depthof 550 to 650metres below surface. This new lens, calledlens257, is distinguishable from already knownlensesfor its markedly higher gold content. It remains openinalmostall directions, being only partiallyrestrictedon the north byhole CN-12-264B, which intersectedanalteration zonewith a mineralized intervalgrading1.03% Cu, 22.33g/tAgand 0.41g/tAu over1.25metres(see figure 1: longitudinallens 257 andfigure 2: cross section 1700N).
The second mineralized horizon, hosted by mafic volcanics, also yielded some interesting results including 4.2% Cu, 59.7 g/t Ag and 1.38 g/t Au over 1.4 metres in hole CN-12-257 as well as 2.29% Zn, 44 g/t Ag and 0.22 g/t Au over 10.8 metres in hole CN-12-262. This horizon is also distinguishable from already known lenses for its higher gold content.
At 400metres southof this new discovery, all fourdrill holestesting the otherEM conductor crosscut thesamefertilevolcanic sequenceand intersected the same mainmineralized horizon host to the new Lens257. Hole CN-12-242 intersecteddisseminated to semi-massive sulphidesgrading2.05% Cu, 0.72% Zn, 20.8g/tAgand 0.19g/tAu over11.2metres. This intersectionis locatedat a vertical depthof 400metres and is over 400metres southof Lens257. Two of the three other drill holes(CN-12-248 and260)cross-cut metric-wide intersections with veryanomalousbase metal values.
Elsewhere on the property, the extensions of Lens 201 were tested by four new drill holes (CN-12-252, 254, 255 and 256). The continuity of the mineralization was confirmed by holeCN-12-254 that crosscut a sulphide zonegrading0.78% Zn, 2.9% Cu, 31.17g/tAgand 0.96g/tAu over4.9metres to a vertical depth of425metres, extending Lens201by 75metresto the north. The other holestesting zone 201crosscutintensealteration zonesfrequently containingdisseminated sulphides(pyrite-pyrrhotite-chalcopyrite ±sphalerite), andreportedsub-economicvalues over metric widths.
Five holes (CN-12-238, 240, 241, 243 and 245) were drilledin the areaof Lens223.They allintersected zonesof hydrothermal alterationand disseminated sulphidesbutdid not confirmany significantexpansionofeconomic mineralization.
Five otherholes(CN-12-246, 247, 253, 259 and261)weredrilled in the vicinityof theSpirit Lensand intersectedalteration zoneswithdisseminated tosemi-massive sulphidesthat returned sub-economic values over metric widths.
Finallyfourholes testedvariousgeophysical and geologicaltargetson the propertybuthave not producedencouraging results. The full results ofthe campaignare availablein Table 1includedin the Appendix.
Virginiaisvery satisfied with itsdrilling programatCoulon, whichled tothe discovery of aninthmineralized lensof economic interest onthe property, Lens257. This markedly more auriferous lensremains openinpracticallyall directionsandan intersection grading2.05% Cu, 0.72% Zn, 20.8g/tAgand 0.19g/tAu over11.2metres wascrosscutover400metres southalong thesamestratigraphic contact. North ofLens257, the samefertilestratigraphycontinues on for at least 500metres and remainstotally virgin, neverbeing testedby drilling. This newpromising areaof over1 kilometrein lengthoccupiesthe western limbof a complex fold,withthe opposite limbto the east being geologicallyidentical and already containingthreemajorlenses(08, 9-25 and44)totalling more than 12 milliontonnes (see April 14, 2009 press release).
LA GRANDE SUD
Over winter 2012 Virginiaalso conducteda drilling programonitsLa Grande Sud propertylocatedalong theTrans-Taiga roadin theLG-2 reservoir, James Bay. The property is100% ownedby Virginia, but is subjectto a fee of1% NSRin favourofOrezoneGold Corporation. Virginiahas the option toredeem this fee at any timefor the amount of$ 500,000. The La Grande Sud propertyis host toZone32(mineral inventory of 6.5Mt@1.5g/t Aufor320,000 ouncesas disclosedin a press releaseissued by Virginia on March 11, 1999) as well as severalothersignificant auriferous areas and showings.
The program included five holes totalling 3,000 metres. Three of them (LGS-12-223 to 225) tested Zone 32 at depth and its extension to the east-northeast while two shorter holes (LGS-12-226 and 227) tested the extension of the Mico-Milan zone to the southwest.
HolesLGS-12-223 and 224 have confirmedthe depth extensionto the east-northeast of the mineralized envelopeof Zone32.This envelopeischaracterized by intensesilicaandsericitealterationsaccompaniedby weakdisseminationsof pyriteandchalcopyritewithin atonalitic intrusive. Gold intersections were reportedgrading1.63 g/tAu over15metres in holeLGS-12-223 and 1.93 g/tAu over37metres in holeLGS-12-224. These intersections areat a vertical depthof 600metresand arelocated oneither sideand belowan intersectionthat hadreported4.7 g/tAu over7.4metres in holeLGS-02-198 (seefigure 3: longitudinal sectionZone 32). Thegold mineralizedenveloperemainsfully openin this area. For its part, holeLGS-12-225 tested thecontinuationof the mineralizationat depthdirectlybelowZone 32. Itcrosscutat a vertical depthof 525metres the samealteration-bearing corridoras Zone 32butvirtually nomineralizationand consequentlynosignificantgoldvaluewas obtainedin this interval. In addition to theZone 32 corridor, the threedeep drill holesalsocrosscut comparable mineralized zones that reportedover metric widths sub-economic gold valuesin general, with somehigher resultsbetween9.32and 25.46g/t Au. Amore interestingintersectiongrading3.04 g/tAu over8metres was also obtained inholeLGS-12-223. This intersectionmay representthe eastern extension ofthe zone Veine, located a fewhundred metresnorth ofZone 32. In the area of the Mico-Milan zone, hole LGS-12-226 drilleddirectly intothesouthwest extensionof the showing, crosscut twomineralized intervalsgrading9.12g/tAu over2metresand9.02g/tAu over2.3 metres. HoleLGS-12-227, located 100metressouthwestof the previous hole, did notinterceptany significant mineralization. The full results ofthe La Grande Sud drilling campaigncan be foundin Table 2 of the Appendix.
LAC PAU
A campaignof15holes totalling2,970metreswas conducted byVirginiaduringthe winter of2012onLac Pau, (100% Virginia), located in the northern partof the Caniapiscau reservoir in James Bay. Underan agreement reachedJune 22, 2011, IAMGOLD Corporationhasthe option to acquireanundivided 50% interest in LacPauin return forpayments totalling$130,000and $6 million in exploration work over a seven-year period. The property covers the Lac Pau gold corridor, a major structure followed over 12 kilometres separating intrusive rocks of the Beausac Suite from paragneisses of the Grosbois Suite. Thisfertilegold structureis home toseveralsignificantgold showings, includingtheTricorne showing (up to9.02g/tAu over5metresin channeland3.43 g/tAu over6metresindrilling), the Jedi showing(up to 2.17 g/tAu over8.5 metresindrilling), theHope showing (up to13.04g/tAu over 3metresin channel and 69.78 g/t Au(24.15cut) over 1.2 metresindrilling), theBeausac-2 showing (14.43 g/tAu over 2 metresin channel), and the Obiwan showing (2.1 g/tAu over5metresin channel).
Drilling conductedduringwinter 2012testedin further detail theareas of the Hope, JediandJediExtension showings (see figure 4: surface location map). Themost interesting resultscome from the Jedi area. Hole PAU-12-058crosscutat a 180-metrevertical depth a large alteration zonewith disseminated sulphidesgrading1.74g/tAu over31.5metreswithin awider intervalgrading 0.97 g/tAu over69metres. This intersectionislocated approximately 100metres belowholePAU-11-032 which hadreported1.64 g/tAu over11.6metres. The Jedi Zoneseems tothickensignificantly at depthin this section. At 200metres to the north, holePAU-12-057 reportedin the same zonean intervalgrading0.53 g/tAu over23 metresat a vertical depthof 130 metres.At about2 kilometresfurther north, in theJediExtension, holePAU-12-055 alsointersected a stronglyanomalous interval grading0.52 g/tAu over16.5metres. Most otherholesdrilledin 2012alsointersected zonesof alteration anddisseminated sulphidesbut theydid not yieldlargeanomalous goldhalos. The full results ofthe Lac Pau drilling campaignof winter2012are availablein Table 3of the Appendix.
The Jediareahas generated severalverylargeanomalous goldintersectionsthat remainopenlaterally and vertically, which may require additional drilling. Furthermore, severalkilometric extensionsof the Lac Pau corridoralso remainvirtuallyunexploredandprospecting, mapping and till samplingisplanned forthe summer of 2012.
LAC GAYOT
A campaignof20holes totalling4,263metreswascompleted duringthe winter onthe Lac Gayot project, located115 kilometresnorth ofthe Fontanges airportin James Bay. The project is owned 100% by Virginia but under an agreement reached in June 2011, KGHM International (formerly Quadra FNX Mining Ltd.) has the option to acquire an undivided 50% interest in the property in consideration of $10 million in exploration work over a nine-year period and cash payments totalling $100,000 over two years. This agreement is subject to a 1% NSR in favour of Billiton Resources Canada. The Lac Gayot property covers the entire Archaean greenstone belt of Venus, which contains mainly MgO-rich ultramafic sills and lavas. The ultramafic sequence hosts twelve mineralized zones rich in nickel-platinum-palladium spread over a lateral distance of 25 kilometres. Historical values of 0.5 to 15% Ni and grades up to 17.2 g/t Pd-Pt were obtained on the surface while drill intersections graded up to 9.03% Ni, 0.6% Cu, 9 g/t Pd-Pt over 2.55 metres and 2.2% Ni, 1.41% Cu, 2.29 g/t Pd-Pt over 11.4 metres.
Drilling conductedduringthe wintermainlytestedtheNancy and Gagnon showings, andto a lesser extenttheMIA, DeChamplain and Gayot showings (see figure 5: surface location map). Themost interesting resultscome from the Nancy area, where a fewholes intersected within ultramafic rocksweaklymineralizedintervals with 1-2% offinely disseminated sulphidesthat returnedresultsstronglyanomalous in nickel, copperandPGEover plurimetricto decametric thicknesses. HoleGA-12-085, locatedimmediately eastof the NancyEast showing, intersectednear the surface a mineralizedintervalgrading0.74% Ni, 0.12% Cu, 0.66 g/t Pd+Pt over14 metres including1.04% Ni, 0.18% Cu, 0.97 g/tPt+Pdover 8metres. This veryanomalousintersectionisimmediately followedby a secondmineralized intervalgrading0.89% Ni, 0.21% Cu, 1.03 g/tPt+Pdover 4 metres. It is interestingto note that theseintersectionsare locatedatthe northern borderof afertile ultramafic unit, which also contains,atitssouthern contact, the Nancy Est showing that has alreadyreported surface results of1.1% Ni, 0.28% Cuand 1.32Pd+Pt over19.9metres. On a sectionlocated 50metres westof holeGA-12-085, holesGA-12-083 and 084also intercept at this samenorthern contacttwo mineralized intervals, reporting respectively 0.71% Ni, , 0.11% Cuand 0.59g/tPt+Pdover 10.7metresand 0.61% Ni, 0.11% Cuand 0.72g/tPt+Pdover 10metres. Otherholesdrilled in the areahavecrosscutmineralizationof no interest.
An interesting mineralizedintersectionwas also obtainedin theGagnon area. Hole GA-12-094intersected azone ofdisseminated sulphideswhich yielded1.36% Ni and1.73 g/tPt+Pdover3.05metres includingathinintervalofsemi-massive sulphidesgrading9.57% Ni, 0.55% Cuand11.56g/tPt+Pdover 0.3 metres. These results demonstrateonce againthe highlyfertile character of the ultramaficunitsof theVenus Belt, distinguished byvery high nickelandPGE tenors in the magmatic sulphidespresent.
The full results ofdrillingonthe Lac Gayot projectare availablein Table 4 of the Appendix.
OTHER CURRENT OR FUTURE CAMPAIGNS
Virginiahas just begun 1,500metres of drilling on its Poste Lemoyne Extension project. The propertyis owned 100% by Virginiabutthe112 claimsacquired before October2005 are subjectto a royalty onnet smelter return(NSR) of1% toGlobestarMining Corporation. Virginiahas the option toredeem at any time0.5% of this royaltyfor $500,000. The propertyis host to the Orfée zone that contains resourcestotalling88,588tonnes grading9.44g/t Au in themeasured categoryand114,895tonnes grading18.4 g/t Auin the inferred category(National Instrument 43-101-publishedApril 8, 2003).
Planneddrillingwill mainly testthe new Charlie showing discoveredin summer 2011. The Charlieshowingconsists of a networkofveinsandquartz veinlets withtraces ofsulphides, hostedin apyroxeniticintrusive. Veinsranging in thickness from5 to 50centimetresareoriented betweenN20°and N80°. Despitethe small amount ofsulfidefound intheseveins,grab samplescollectedto characterize them graded between1.2 g/t Auand 40g/t Au. Thechannels made onthe entire networkofveinsalsoyielded encouraging results. Best results include3.68 g/tAu over5metres, 3.59 g/tAu over 4metres, 14.55g/tAu over 1 metre, 7.64 g/tAu over0.85 metresand6.95g/tAu over 1 metre. The other four channel resultsrangedbetween1.34 g/tAu over 1 metreand 3.93g/t Auover 1.4 metres.
Finallyadrilling programtotaling approximately3,000metreswill begin atthe endof Mayon the Nichicun property. The property, owned 100% by Virginia, is located 54 kilometressoutheast ofMirage Outfittersand 100 kilometresfrom the LG-4 airport. The work will beconcentrated in the Portageur and Petit Pas areaswhere severalgold showingshave been discovered since2009.The Portageurareaand its northeastextensionform agold corridorfollowedover 600metreslaterallyinaltered sediments. Thisgold corridor reported severalchannelvaluesranging from1.17 g/tAu over6metres to1.22 g/tAu over 8metres (including3.44 g/tAu over 2metres) and remains openat both ends. The Petit Pas showing reported up to52.87g/tAu over 2metresinchannelin a stronglyaltered and deformed basaltand andesitesequence.
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Work was carried out by the personnel of Virginia Mines Inc. and Services Techniques Geonordic Inc., under the supervision of Geological Engineer, Paul Archer who is a Qualified Person (as defined by National Instrument 43-101) and has cumulated more than 30 years of experience in exploration.He has read and approved the contents of this press release.
QUALITY CONTROL
In 2004, Virginia set up an Analytical Quality Assurance Program to control and assure the analytical quality of its exploration results. This program includes the systematic addition of blank samples and certified standards to each batch sample sent for analysis at commercial laboratories. Blank samples are used to check for possible contamination in laboratories while certified standards determine the analytical accuracy and precision.
Samples have been assayed at the ALS Chemex in Val-d’Or for the Coulon, Lac Pau and Lac Gayot projects and at Laboratoire Expert Inc. in Rouyn-Noranda for the La Grande Sud project.
For gold projects, samples are analyzed by fire-assay followed by atomic absorption according to industry standards. Repeats are carried out by fire-assay followed by gravimetry on each sample containing 500 ppb gold or more.
ABOUT VIRGINIA
(VGQ: TSX) Virginia conducts its exploration activities over the vast, unexplored territories of Northern Quebec in order to create value for its shareholders while protecting the quality of life for both present and future generations. With a working capital position of $44.8 million as at February 29, 2012, Virginia is among the most active mining exploration companies in Québec.
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