Virginia Energy Resources Inc. (CVE:VAE) Invites Convention Attendees To Visit Booth 2148 at PDAC International Convention, Toronto, Canada
Virginia Energy Resources Inc. (CVE:VAE) Invites Convention Attendees To Visit Booth 2148 at PDAC International Convention, Toronto, Canada
Vancouver, Mar 3, 2011 AEST (ABN Newswire) - Virginia Energy Resources Inc. (CVE:VAE) (PINK:VAERF) is pleased to be an Exhibitor at the 2011 PDAC International Convention, Trade Show & Investors Exchange in Toronto, and invite convention attendees to visit us at Booth #2148.

Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds a 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 (CVE:BPU).

On July 21, 2009, Virginia Uranium Ltd. merged with Santoy Resources Ltd. to form Virginia Energy Resources Inc (VAE). The management team behind the new company is comprised of highly experienced technical and financial professionals with a history of success in the discovery, development and operation of gold and uranium mines in North America, including the Eskay Creek, Snip and Brewery Creek gold mines in British Columbia and several uranium producers in Saskatchewan and the western USA.

Virginia's most important asset is an approximate 30% stake in the giant Coles Hill, Virginia uranium deposit. Through a first right of refusal on future financings, Virginia has the option to increase this investment as the project advances. As a major shareholder of TSX-listed Boss Power Corporation, Virginia also holds a 37% interest in the high-grade Blizzard uranium deposit in British Columbia. This asset has been damaged through a ban on uranium mining imposed by the Government of British Columbia, and Boss is seeking compensation for damages through a court action.

The Company's most important and active exploration projects are its uranium properties in the Otish Basin of Quebec, and its Murphy Lake and Hatchet Lake uranium properties in the Athabasca basin which are held in a 50-50 Joint Venture with Denison Mines Ltd.

The company recently completed a 43-101 compliant Preliminary Economic Assessment (PEA) undertaken by Virginia Uranium Inc. on its Coles Hill Uranium Project. The results clearly demonstrate the technical and economic viability of the project.

The overall economics on the Coles Hill Uranium Project are favorable. Based on a US$65 per pound long term selling price for uranium, the project provides an Internal Rate of Return (IRR) of 36.3%; and at a 7% discount rate the Net Present Value (NPV) of the project is US$404 million.
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COLES HILL URANIUM PROJECT NPV MATRIX (US$000'S)
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                     Discount Rate
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Uranium    5%         7%         8%        10%
US$/lb 
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$55     $278,041   $213,962   $187,573   $143,560
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$65     $511,797   $404,133   $360,549   $288,763
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$75     $745,553   $594,304   $533,525   $433,966
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$85     $979,308   $784,475   $706,501   $579,169
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An increase of US$5 per pound in uranium selling prices causes the project NPV (at 7% discount rate) to rise by US$95 million from US$404 million to US$499 million. The depreciation of the US dollar relative to currencies of major uranium producing countries such as Kazakhstan, Australia, Canada, Niger and Namibia, may contribute to upward pressure on uranium prices.

For full details of the company please refer to the Company website
http://www.virginiaenergyresources.com

For more information on PDAC International Convention, please visit:
http://www.pdac.ca


About Virginia Energy Resources Inc.

Virginia Energy Resources Inc. is a uranium development and exploration company.

 


Contact

Walt Coles Jr. - President & CEO
Or Tony Perri - IR Manager
Tel: +604-669-4799
Fax: +604-669-2543
http://www.virginiaenergyresources.com


Related Companies

Virginia Energy Resources Inc.
PDAC   
Denison Mines Corp     
Boss Power Corporation

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