🕐30.05.11 - 21:27 Uhr
VIRGINIA TO PROCEED WITH DRILL PROGRAM FOR OTISH BASIN, QC
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Virginia to Proceed with Drill Program for Otish Basin, QC
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News Release 11-06
Virginia Energy Resources Inc.
(TSX.V:VAE) will proceed with a minimum
2000-metre drill program for the companys 100% owned Otish Basin
uranium property in Quebec.
The drilling will commence in mid-July and
results should be available in the early fall.
A budget of $1.1 million
was established for the summer program, which will also include ground
surveys.
IOS Services Geosientifiques Inc.
of Chicoutimi, Quebec was
selected to manage the drill program.
The drilling will be conducted on the Lac du Castor, Lavoie East
(L-Zone extension) and Red Green prospects, and will target
sandstone-hosted uranium-gold mineralization similar to the nearby
Lavoie (L-zone) deposit of Abitex Resources Inc.
and the Matoush
deposit of Strateco Resources Inc.
The targets are relatively shallow
(less than 100 metres depth) and defined by historic drill intercepts
(e.g.
5 metres grading 0.16 per cent U3O8 in hole OELV-290 at Lac du
Castor), mineralized boulders as well as geophysical and geochemical
anomalies in areas with prospective geology.
In addition, Virginia
crews will complete ground surveys to refine future targets.
Funding for this 2011 Otish field program is provided by a $2 million
flow-through financing completed in December, 2010.
These funds must be
expended in Canada by December 2011.
Expenditures on the Companys
Quebec projects are eligible for a 50% Quebec refundable tax credit,
meaning that over $550,000 is expected to be refunded to the Company
after the current program.
Virginia is encouraged by the Quebec Governments recent announcement
of the "Plan Nord", which outlines $2.1 billion investment in northern
Quebec over the next 5 years, including the construction of the $278
million "Route 167 Extension" all-weather highway to the Otish
Mountains.
This road will pass within five kilometres of Virginias
land package, and will improve access, facilitate exploration and
development, and increase the value of the Companys properties.
According to the Fraser Institute Annual Survey of Mining Companies,
Quebec is consistently one of the top-ranked jurisdictions worldwide
for mining policies and investment.
On May 30, 2011, the Company determined it was necessary to restate the
financial results for the years ended June 30, 2010 and 2009.
The
purpose of the restatements is to recognize an impairment in the equity
accounted investment in Boss Power Corp.
The restatement resulted in
an adjustment in investments, opening deficit and future income tax
liability for the years ended June 30, 2010 and 2009.
The Company remains well financed to pursue its corporate goals with
$3.2 million of cash and a stock portfolio with a current market value
of $ 7.2 million.
Virginia Energy Resources owns approximately 30% of
VA Uranium Holdings, Inc.
and has a pre-emptive right to provide
ongoing financing for the Coles Hill uranium project.
As of March 31,
2011, VA Uranium Holdings held US$10.5 million of cash and equivalents.
As a result, VA Uranium Holdings is also considered well financed to
advance the Coles Hill uranium project both from a political and
technical perspective.
The technical information in this news release has been reviewed by
Michael S.
Cathro, P.Geo., Virginias Vice President of Exploration and
a Qualified Person as defined by National Instrument 43-101.
About Virginia Energy Resources Inc.
Virginia Energy Resources Inc.
is a uranium development and exploration
company.
The Company holds almost 30% stake in the advanced stage Coles
Hill uranium project in Virginia.
Additionally, the Company is pursuing
active exploration programs in the Athabasca Basin on its Murphy Lake
and Hatchet Lake uranium properties, which are held in a 50-50 Joint
Venture with Denison Mines Ltd., and its 100% owned uranium properties
in the Otish Basin of Quebec.
The Company is also a 37% shareholder of
Boss Power Corporation.
Virginia Energy Resources Inc.
trades on the
TSX Venture Exchange under the symbol VAE.
On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.
Walter Coles Jr., President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
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Copyright (c) 2011 VIRGINIA ENERGY RESOURCES INC.
(VAE) All rights
reserved.
For more information visit our website at
http://www.santoy.ca/ or send mailto:
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