QUEBEC CITY, QUEBEC -- (Marketwired) -- 06/06/13 -- Mines Virginia Inc. ("Virginia") (TSX: VGQ) wishes to inform its shareholders and the financing community that several exploration programs are currently in progress or will begin shortly on different projects all located in Quebec.
Including work of $5.5 million already completed in the winter and spring of 2013, Virginia will have spent, either alone or with partners, over $15 million in exploration work on its projects during the current year. Work will be carried out mostly on the James Bay territory, in the Opinaca-Eastmain, Caniapiscau, La Grande and Coulon regions, on the Baie Payne and Kuujjuaq projects in the Nunavik Territory and in the vast territory of the Grenville geological province.
Virginia will invest $1.5 million in the greater Eastmain River and Opinaca Reservoir region, a very fertile area that is home to the world-class Eleonore deposit and the Eau Claire and Reservoir deposits, as well as many other interesting gold showings. The Anatacau-Wabamisk project, located 30 kilometres to the southwest of the Opinaca Reservoir, will benefit from a $1 million global budget to carry out a vast campaign of mechanical stripping, geological mapping and prospecting. Virginia holds a 100% interest in the Wabamisk portion of the project and has the option of acquiring IAMGOLD Inc.'s 100% participating interest in the Anatacau portion in consideration of $3 million exploration work to be carried out before December 31, 2015. Prospecting and mechanical stripping conducted in 2012 and the winter 2013 drilling program outlined a very interesting new field of gold-bearing quartz veins in the east portion of the Wabamisk property. This field of veins, which is characterized by the frequent presence of visible gold, is of a plurikilometric extension and hosts the Mustang Vein that is traced at surface over 425 metres laterally, thus confirming the potential of the auriferous system to contain good-sized veins. This quartz vein network yielded up to 23.28 uncut (11.14 cut) g/t Au over 4.6 metres in channel and up to 22.65 g/t Au over 2.25 metres in drilling. This year's summer work will test the lateral extensions of this network of veins as well as many other targets on the vast Anatacau-Wabamisk property. Virginia is also planning to conduct prospecting, stripping and geochemical surveys on its 100%-owned Eleonore Regional project in the Opinaca Reservoir area. Virginia will also carry out regional reconnaissance in the Opinaca-Eastmain sector.
This summer, a $1 million budget will be allocated to the Ashuanipi project located in the southern portion of the Caniapiscau Reservoir, about 180 kilometres to the northwest of the mining town of Fermont. Virginia is the sole owner of the property but, as per an agreement entered into in 2012, Virginia transferred to Anglo American Exploration (Canada) Ltd. ("AAEC") a 50% interest in all mining titles forming the Ashuanipi property. To retain its participation in the property, AAEC must fund an aggregate of $5 million in exploration expenditures over a five-year period. AAEC may, at its sole discretion, accelerate this funding. Exploration carried out by Virginia in previous years led to the discovery of a corridor of mineralized showings followed over more than eight kilometres within volcanics and a granodioritic intrusion. These polymetallic showings yielded, in selected samples, results varying from 0.15% to 3.92% Cu, 0.27% to 8.94% Zn and 0.13 g/t to 6.29 g/t Au in volcanics, and values varying from 0.4 to 3.8 g/t Au, 0.3% to 8.6% Cu, 0.1% to 1.3% Mo and 10.2 to 49.6 g/t Ag in the granodiorite intrusion. Locally, manual stripping has enabled channel sampling and values of 1.93 g/t Au, 11.3 g/t Ag and 1.56% Cu over 3 metres including 4.36 g/t Au, 20.1 g/t Ag and 3% Cu over 1 metre were obtained. Summer 2013 work will mainly include 1,200 metres of drilling to test the best mineralized showings and geophysical anomalies on the main grid. Prospecting will also be conducted on the least known areas of this vast property.
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