Status: Development Commodity: Uranium Ownership: 100% ownership Operator: Virginia Energy Resources Inc. Location: 10 kilometres northeast of Chatham, Virginia, USA Mineral Rights: 2960 hectares
Virginia Energy's most important asset is the 100% ownership in the Coles Hill uranium deposit(1) in southern Virginia, USA, which is the largest untapped uranium resource in the USA and one of the largest in the world. Virginia Energy's ownership in Coles Hill is held through its subsidiary, Virginia Uranium, Inc. VUI controls the mineral rights, surface rights, and leasehold development and operating rights on the Coles Hill property.
Coles Hill comprises two adjacent mineralized bodies with an NI 43-101 compliant, measured and indicated resource of 119.6 million tons grading 0.056% eU3O8 indicated resources, for a total of 133 million pounds eU3O8 according to a NI 43-101 Report of updated PEA and resource calculation by Lyntek Inc. and BRS Inc. filed September, 2012.
Coles Hill is located on gently rolling hills in Pittsylvania County, southern Virginia, in close proximity to roads, rail, gas pipeline, water, electricity, and skilled labor. Virginia is a leader in the nuclear industry, home to four high-performing nuclear power plants, commercial nuclear fuel production and engineering services, and significant naval nuclear infrastructure.
Between 1982-1983, a subsidiary of Union Carbide completed a feasibility study to put the deposit into production, but the project was shelved due to the drop in the price of uranium. At that time, a 5000 ton per day open pit mine and mill was envisioned. The project lay dormant until 2007 when Virginia Uranium, Inc. drilled 12 holes in 2007, to confirm the historic grades as part of the NI 43-101 technical report and resource calculation.The deposit was initially explored between 1980-1982, when Marline and Union Carbide drilled 210 holes (190,000 feet) to define the deposits. Norm Reynolds, past President and CEO of Virginia Energy Resources, was directly responsible for uranium exploration efforts in the Eastern United States which lead to the discovery of the Coles Hill Property in Virginia.
The potential for resource expansion exists along strike and at depth. Higher-grade zones near surface provide for many development options.
Opportunities highlighted by the PEA
PEA study was conducted by Lyntek Inc. and BRS Inc., two independent engineering consultants:
1 Uranium mining is currently under a moratorium in the State of Virginia, however we anticipate that the state of Virginia will consider lifting moratorium during winter 2013 legislative session. 2 The socio-economic study by the State of Virginia was based on the NI 43-101 PEA Report by Lyntek Inc. and BRS Inc. - filed Dec. 2010 3 Please see www.sedar.com for NI 43-101 Report of updated PEA and resource calculation by Lyntek Inc. and BRS Inc. - filed Sept. 2012 ..........................................................................................................................................................................................................................................................................................
Virginia Energy Resources Inc. has an exploration program in the emerging Proterozoic Otish Basin located in central Quebec. The Virginia properties have numerous high-grade uranium prospects similar to the nearby Matoush deposit of Strateco Resources Inc. with 7.78 million pounds U3O8 in the indicated category, and 19.22 million pounds U3O8 in the inferred category (Reference: Strateco website), the Seru L zone (or Lavoie) deposit of Abitex/Soquem/Areva with 3.9 million pounds eU3O8 in the indicated category and 9.26 million pounds eU3O8 in the inferred category (Reference: Abitex website), and Cameco's South Otish (Camie River) property.
Virginia holds 100% interest in 9 properties including Beaver Lake, Otish West, Strategis, Lorenz, Marc-Andre, Trident, Cigare, Peribonca and Otish East.
Our work since 2007 has brought several targets to the drilling stage, including:
Lac du Castor: located on the Peribonka property, 5 km northeast of and on the same structure as the Seru L zone. Hole 2011-04 drilled by Virginia in 2011, intersected 9.0 m grading 0.10% U3O8 beginning at a depth of 75.8 metres, including higher grade intervals of 6.5 m grading 0.13% U3O8 or 3.0 m grading 0.188% U3O8. The mineralized zone occurs in a flat-lying sandstone unit beneath a gabbro sill, a similar setting to the L zone.
L-Zone Extensions: Little drilling has been done along strike to the east and west of the main Seru L zone, which is on a small Abitex claim block, completely surrounded by Virginia's Peribonka property. In 2011, a new boulder discovery was made 3.5 km along strike to the west of the Seru L zone. At the Blair boulder train, discovered in 2011, six angular sandstone boulders averaged 0.377% U3O8 and 1.71 g/t Au. The richest boulder assayed 1.31% U3O8 and 5.71 g/t Au. There has been no drilling in the area.
Lorenz Gully: This zone is located about 300 to 500 m from the unconformity on the northern basin margin. Drilling by Uranerz in 1978-78 cut narrow basement-hosted intersections such as 0.5 m grading 1.87% U3O8 and 3.0 m grading 1171 ppm U3O8. Stripping and prospecting by Virginia in 2009 extended the mineralized trend to an area of more than 900 m by 120 m. Grab samples on this trend range from about 0.1 to 1% U3O8. The mineralization occurs on a low ridge with minimal soil and moss cover. Additional stripping and channel sampling is recommended prior to drilling. There is potential here for both bulk-tonnage and high-grade mineralization.
Lac Tion: Two boulder trains contain small gabbro boulders grading up to 5.47% U3O8. A historic Winkie hole by Seru cut 1.5 m grading 0.555% U3O8 in gabbro, beginning at 4.75 m depth. 2009 work has defined new magnetic structures and soil anomalies for drill testing. The target is a high-grade Matoush-type structure.
Red-Green: A total of about 20 strongly altered, radioactive boulders up to 2 m in diameter are present on Virginia's Trident property. The boulders grade up to 0.83% U3O8and 3.3 g/t Au and are thought to be close to their bedrock source. Three holes holes were drilled in 2011 but were not successful in locating mineralization in place. Additional field studies are required to define new targets.
Marc-Andre: A Matoush-type gabbro dike has been traced for nearly four kilometres. At the Marc-André prospect, overburden stripping has exposed a 10 x 25 metre mineralized area along the faulted contact between gabbro and sandstone. The best 2008 channel sample cut 1.5 metres grading 0.146 % U3O8 and some samples were also anomalous in Au. Limited past drilling has cut weakly mineralized alteration beneath the trench and more drilling is warranted.
Access to the Virginia properties is currently by floatplane or helicopter, however, Quebec has announced a project to upgrade the existing Eastmain winter road to all-weather status. This road, to be called the Route 167 Extension, will provide access for several mining projects in the region and will pass within a few kilometres of Virginia's claims. Construction is underway.
Maps and Photos