ETLos Verdes Molybdenum Resource Estimated toBack to Recent News
December 18, 2006 6:11 AM ETLos Verdes Molybdenum Resource Estimated to be 28.5 Million Pounds
TORONTO, Dec. 18 /CNW Telbec/ - Virgin Metals Inc. ("Virgin Metals") (TSX-V: VGM) announces they have received from Chlumsky Armbrust and Meyer LLC an updated resource calculation for Virgin Metals' wholly owned Los Verdes property in Sonora, northern Mexico. The report in which this estimate is contained, which has been prepared to the standards of National Instrument 43-101, will be filed on Sedar. The qualified persons responsible for the report are Robert Sandefur, geostatistician and Fred Barnard, geologist, of Chlumsky, Armbrust and Meyer, LLC in Lakewood, Colorado.
The resource is based entirely on the results of Virgin Metal's recent 40 hole drill program, of which 30 were drilled within the previously-defined mineralized zone. It was modeled by both inverse distance squared and kriging methodologies and at a range of molybdenum, copper and combined cut off grades. Both methodologies produced similar results. A block size of 5mx5mx5m was used and a search radius of 100m, as indicated by both copper and molybdenum variograms. Resources are classified Measured if they fall within 20 metres of a sample point and Indicated if they lie within 65 metres of a sample point; these distances were derived from the omnidirectional variogram of all molybdenum composites.
The following tabulation represents the resource as calculated by the kriging method at a cut off grade of either 0.04% molybdenum or its approximate economic equivalent, 0.32 % copper. The tungsten values calculated are the contained tungsten using the reported molybdenum or copper cutoff; no tungsten cutoff was applied to blocks.
-------------------------------------------------------------------------Molyb- Tung- Contained ContainedResource denum Copper sten Molybdenum CopperCategory Tonnes % Mo % Cu % W (lb) (lb)-------------------------------------------------------------------------MeasuredResources 4,641,000 0.129 0.49 0.088 13,158,000 50,575,000-------------------------------------------------------------------------IndicatedResources 5,861,000 0.120 0.43 0.083 15,480,000 54,917,000-------------------------------------------------------------------------TotalMeasured&Indicated 10,502,000 0.124 0.46 0.085 28,638,000 105,492,000-------------------------------------------------------------------------InferredResources 1,089,500 0.120 0.16 0.024 2,880,000 3,898,000-------------------------------------------------------------------------Note: Derived values in the above table have been rounded.The mineralization occurs in a prominent ridge and consists of a quartz-tourmaline breccia in a porphyry- style setting, modified by leaching at surface and accompanied by reconcentration in a supergene zone of secondary enrichment. The quartz-tourmaline breccia lies above and to the west of the Buena Vista fault. The base of the mineralization generally lies at or below the contact between the breccia and a granodiorite.
Virgin Metals CEO Chris Davie said: "The tonnage of resource and total contained metal reported is somewhat larger than expected from review of historical estimates prepared by previous operators of the project. These gave resources of 7.1 million tons (or tonnes) at 0.16% Mo, 0.86% Cu and 0.135% WO3. We think this difference is because previous estimates have focused on copper resources at the expense of molybdenum resources. Our drilling showed that copper and molybdenum values are not necessarily coincident and previous estimates may have ignored areas of high molybdenum but low copper values. The result is a model that shows greater tonnage of overall mineralized material with slightly lower molybdenum grades and increased total molybdenum content. Similarly, the previously reported copper grade appears to have been diluted by material that has molybdenum values above the molybdenum cut off grade but low copper values, resulting in an overall reduction of copper grade but a total copper content that is comparable to previous estimates.
We are thrilled with these results. We shall continue with our plans to place the project into production as quickly as possible, initially at a pilot plant scale, while performing a feasibility study for an appropriate scale of production. The current price of molybdenum is between $25 and $28/lb."
FORWARD-LOOKING STATEMENTS
This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Virgin Metals documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Virgin Metals. The forward-looking information contained herein is Virgin Metal's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.
About Virgin Metals Inc.:
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 expected to evolve rapidly towards production while the other, Cuatro Hermanos, is expected to be the focus of expanded exploration effort.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
© 2006 The Canadian Press - Stockgroup
Back to Recent News
Terms of UseAdvertisePrivacy StatementFeedback