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*****Major mining Article on Virgina***

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Eleonore Still Glowing Bright Yellow After Further Drilling By Craig Stanley 15 Aug 2005 at 01:41 PM EDT TORONTO (ResourceInvestor.com) -- Recent drill results continue to confirm Virginia Gold Mines’ [TSX:VIA] 100%-owned Eleonore project as one of Canada’s most promising grassroots gold plays. Last week, VIA reported results from seven holes drilled on the property located in the James Bay area of Quebec, in the Opanica Reservoir. These results extend Eleonore’s strike length to at least 1.3 kilometres, with the system remaining open in all directions and at depth. High-grade intercepts occur as deep as 620 metres, though much of the deposit has yet to be thoroughly tested below 250 metres. Furthermore, recently discovered sections have yet to be extensively tested. VIA is among the most active mining exploration companies in Quebec, and has been led by President André Gaumond since 1993. Though mineralisation was discovered at Eleonore over 30 years ago, it wasn’t until last year that significant work was initiated, following favourable outcrop stripping and sampling results. Since then, VIA’s stock has climbed from the C$1.50 level to over C$8. The shares are currently trading around C$7.70. Four holes drilled to test the continuity of the Roberto zone have extended its depth from 600 metres to 620 metres, with hole ELE-05-119 grading 10.13 grams of gold per tonne (g/t Au) over 5.7 metres. This drill also intersected the Roberto Est zone at a vertical depth of 555 metres, the deepest intersection on this zone to date, with 5.0 metres grading 4.98 g/t Au. Eleonore is a steeply dipping, gold-bearing mineralised system currently known to contain five parallel zones: Roberto, Mid-Roberto, Roberto Est, Nouvelle and Biotite. Mineralisation is hosted in metamorphosed sandstone characterised by potassic and silica alternation, and gradually bends to the east in an area known as the Southeast Extension. Individual zones predominate at different places along the deposit, with two or more zones usually present. The two main zones, Roberto and Roberto Est, are about 50 metres apart, which allows both zones to be intersected with the same drill hole. In July, trenching at the northern end of the Roberto zone expanded its strike length to more than 1,300 metres. Of the three holes drilled in the latest round to test this area, two holes confirmed mineralisation to a vertical depth of over 150 metres: ELR-05-52 grading 15.17 g/t Au over 6.0 metres, and ELR-05-53 grading 19.94 g/t Au over 4.35 metres. Roberto remains open at depth and to the east; ELR-05-54 did not intersect any mineralisation, which could indicate the system has been subjected to faulting in the area. In a report dated August 11, 2005, Graeme Currie of Canaccord Capital wrote that the current drilled extent of the Roberto system is now nearing the potential to contain 2.0 to 2.25 million ounces of gold VIA’s management says three rigs will continue drilling throughout the summer and autumn. Earlier this month the company closed a private placement of 350,000 flow-through common shares at C$9.25 a piece, representing a 22.5% premium to the pre-announcement closing price. In an August 11 report, Trevor Turnbull at Wellington West Capital Markets estimated that Virginia has approximately C$33.7 million in cash. Eleonore’s mineralisation and geological setting - disseminated sulphides in metamorphosed sediments with high levels of antimony, arsenic and mercury, and close proximity to a porphyritic intrusive - have led some to draw comparisons to the 22 million ounce Hemlo gold deposit in Ontario. Though both systems share some similarities, such a comparison is still too premature, especially considering that Hemlo is still somewhat of a geological enigma itself. In his July 29, 2005 Gold Mining Stock Report, Bob Bishop wrote that he feels VIA will sell Eleonore while retaining a royalty on the project, and that either Placer Dome [NYSE:PDG; TSX:PDG] or Newmont [NYSE:NEM] is the most likely purchaser. Canaccord’s Currie rates Virginia’s shares a “speculative buy” while Turnbull at Wellington West has a “strong buy” rating with a C$9 target. As of August 9, the stock had a short position of 143,100 shares, down considerably from 982,900 shares on June 30. < Back Respond to this story > Please wait while generating PDF.....xPlease wait while generating PDF..... increase font size decrease font size toggle typeface e-mail this page print this page Generate PDF of this article company hub search for related news view all comments (0) bookmark this page make this my homepage view TOP 10 most popular articles Comment on this story (0) Conflicts and Disclosure Policy | General Terms of Use | Privacy Policy | © Copyright 2005, Resource Investor. Designed and Developed by Absol Internet Business Solutions | Powered by AbsolPublisher.