Virginia adds to Coulon JV after positive summer exploration (September 11, 2007)

Breakwater Resources (BWR-T) shares were among the busiest in Toronto today with more than 13 million traded following news about the companys Coulon joint-venture with Virginia Mines (VGQ-T) in Quebec Middle North.

Breakwater shares were up 8, or 3.32%, to $2.49 apiece while Virginia shares rose 3.9%, or 22 to $6.45 on a trading volume of 62,000.

After news of extended zones and a new discovery last week, the joint venture has been altered to include the Fontanges Sud and Coulon Pitaval properties, located north and south of the original Coulon property, respectively.

The new surface area of the property is 1,600 sq. km, with 1,981 additional claims, bringing the total to 3,250 claims, covering the Coulon volcanic belt over a span of 90 km.

Under the new agreement, Breakwater still has the option to acquire a 50% interest in the project but must spend $7.5 million over a 9 years instead of $6.5 million over 8 years. Breakwater must also make payments totalling $180,000 over four years, as in the original agreement.

Over the summer exploration season, prospecting and geological mapping lead to the discovery of Spirit, a semi-massive to massive sulphide mineralization rich in chalcopyrite and sphalerite with some galena. The mineralization was followed over 80 metres in a north-south direction between widths of 4 to 7 metres with a beepmat conductor and appears to be open laterally as it disappears at both ends under thick overburden.

Seven grab samples collected in small trenches over 30 metres yielded results between 0.82% to 7.22% copper, 0.28 to 12.95% zinc, 36.6 grams to 200 grams silver per tonne and up to 1.24% lead.

Virginia plans to continue channel sampling and ground geophysics followed by drilling.

Another area was also discovered on the Ishikawa grid where several rusty boulders discovered in a 2-sq.-km area returned values reaching 6.14% copper, 4.08% zinc, 2,000 grams silver per tonne and 20.7% lead.

The company drilled 3 new holes on lens 44, two of which returned significant values.

Hole CN-07-77B returned a 10.5-metre intersection grading 8.39% zinc, 0.95% copper and 47.83 grams sliver per tonne. A 3-metre intersection from the same hole yielded 5.08% zinc, 0.99% copper and 32.57 grams silver per tonne. Intersections were located at vertical depths of 360-370 metres.

Located at a depth of 400 metres, hole CN-07-83 intersected 23 metres grading 2.28% zinc, 1.63% copper and 26.64 grams silver per tonne, including 5 metres grading 8.66% zinc, 1.21% copper and 18.82 grams silver per tonne.

Lens 43 has been extended by 240 metres towards the southwest with hole CN-07-79 yielding a 9.65-metre intersection grading 2.22% zinc, 2.8% copper and 22.06 grams silver per tonne at a depth of 380 metres.

The company also drilled two holes to test the extensions of lens 9-25 and some regional targets. One hole returned insignificant mineralization while the results of the other have not come in yet.

Exploration work continues and a third drill will be operating on the property shortly.