The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

NEVADO Announces Over 100 Million Tonnes of High-Grade Vanadium-Titanium-Iron Mineral Resources at Farrell-Taylor

- Inferred mineral resource of 101.7 million tonnes grading 0.33% V2O5, 18% TiO2 and 59.7% Fe2O3 (or 41.8% FeT), at a 5.1% TiO2 Equivalent cut-off grade - Company plans to start testing with a one-tonne-per-day pilot plant in Q3-2012 to confirm the excellent V2O5 (99.9%), TiO2 (98.5% and 99.5%) and Fe2O3 (62.5%) recoveries obtained from the mini-plant campaign

Wednesday, May 23, 2012

NEVADO Announces Over 100 Million Tonnes of High-Grade Vanadium-Titanium-Iron Mineral Resources at Farrell-Taylor06:00 EDT Wednesday, May 23, 2012MONTREAL, QUEBEC--(Marketwire - May 23, 2012) -Editors' note: A map is associated with this press release.NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO)(FRANKFURT:NSV) ("NEVADO" or the "Company") is pleased to announce current Mineral Resource Estimates ("MRE") for its Farrell-Taylor Vanadium-Titanium-Iron Deposit ("Farrell-Taylor") at the La Blache Project, located some 140 km northwest of Baie-Comeau in the Upper North Shore region of Quebec. Results from the 45-hole / 16,467-metre helicopter-supported diamond drilling campaign carried out by NEVADO in 2011 were used to model the Farrell-Taylor massive oxide mineralization. The MRE for Farrell-Taylor were estimated by Maxime Dupéré, P. Geo., from SGS Canada Inc.-Geostat ("SGS-Geostat") of Blainville, Quebec. Using a base case cut-off grade of 5.1% TiO2 Equivalent ("TiO2 Eq"), the MRE for Farrell-Taylor totals 101,700,000 tonnes grading 0.33% V2O5, 18% TiO2 and 59.7% Fe2O3 (41.76% FeT) in the Inferred category. The following table summarizes the MRE of Farrell-Taylor at other cut-off grades:MINERAL RESOURCE ESTIMATES - INFERRED CATEGORYCut-off grade (based on % TiO2Eq(1))Tonnes% Fe2O3% FeT% TiO2% V2O5% TiO2Eq(1)5101,720,00059.7041.7518.000.3321.745.1(2)101,700,00059.7041.7618.000.3321.756.7(3)101,320,00059.8641.8718.050.3321.8010100,370,00060.2142.1118.160.3321.931596,460,00061.1842.8018.460.3422.2918.6(4)88,650,00062.2743.5518.830.3422.752081,860,00062.9043.9919.060.3523.03Notes: The NEOMET process recovery is estimated to be 90% for both titanium and vanadium, and 62% for iron. The estimates were based on an iron ore price of US $120/tonne as Fe2O3, a titanium ore price of US $2,500/tonne as TiO2, and a vanadium ore price of US $13,500/tonne as V2O5. Block model parameters are appended.(1)% TiO2 Eq denotes % TiO2 equivalent grade calculated as follows: % TiO2 Eq = % TiO2 + ((% Fe2O3 x 62% x $120/tonne) / (90% x $2,500/tonne) + (% V2O5 x 90% x $13,500/tonne) / 90% x $2,500/tonne).(2)SGS-Geostat utilized a US $115/tonne mining-NEOMET-processing cost as the base case: US $50/tonne mining + US $65/tonne processing cost, including estimated G&A costs.(3)US $150/tonne mining - NEOMET processing cost.(4)US $420/tonne mining - NEOMET processing cost.The MRE were performed in accordance with NI 43-101, Standards of Disclosure for Mineral Projects, and the "CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines" developed by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council on December 11, 2005. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The MRE may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The quantity and grade of the estimated Inferred resource reported herein are uncertain, and there has been insufficient exploration to categorize them as an Indicated or Measured resource. Further exploration may result (after validation and resource update) in the reclassification of the Inferred mineral resource as Indicated or Measured.The mineralization consists mostly of magnetite (iron oxide) and ilmenite (iron titanium oxide), with lesser amounts of iron-magnesium aluminum-silicate minerals, all part of a series of sub-vertical, inclined and sub-horizontal dykes, sills, veins, stockworks and disseminations emplaced along multi-kilometric circular and elliptical configurations within the 35 km by 12 km La Blache Anorthositic Complex, such as the 45 km La Blache Ring of Vanadium-Titanium-Iron. The geological interpretations on section were linked together into a 3D mesh by NEVADO. SGS-Geostat reviewed and validated the model and added some minor modifications. The 3D mesh covers over 1,150 metres on the east-northeast direction with an average width of 470 metres. The mineralization starts at 200 metres wide on the west-southwest and widens at depth to approximately 715 metres to the east-northeast. It dips 20 degrees towards the east-northeast, and has a thickness of 70 metres on average, but ranging from 40 metres to as high as 100 metres in the deeper portions. The technical parameters of the block model are detailed below. The database used for the resources estimation used a total of 45 diamond drill holes totalling 16,467 metres (2010-2011 drill programs) and a total of 121,902 assays were considered in the validated database. The assay method used was XRF for Iron and TiO2 and ICP AES with 4 acid digestion especially for Vanadium in Val-d'Or at ALS Minerals of Vancouver.Based on discussions among SGS-Geostat, the consultants and NEVADO, a mining-processing cost of US $115 per tonne was used, which includes an estimated US $50 per tonne for open pit mining and an estimated US $65 per tonne for NEOMET (hydrometallurgical) processing (including G&A). Considering the local resource potential and proximity to the nearby town of Baie-Comeau but also the relatively large distance to smelters and larger mining communities, SGS-Geostat considers the estimated mining and hydrometallurgical processing costs to be adequate and conservative. The overall % TiO2 Eq grade is defined as a temporary grade, which, when used with the TiO2 recovery and TiO2 price, gives the correct net smelter return royalty for a tonne of ore. This equivalent grade combined with TiO2 recovery and TiO2 price can be used to calculate a marginal-processing cut-off grade for resource modeling purposes. SGS-Geostat set the cut-off grade at 5.1% TiO2 Eq. A sensitivity table was also prepared for several benches. All of the Inferred mineral resource occurs between 0 and 600 metres vertical depth. A cut-off grade of 5.1% TiO2 Eq was used for this table. No pit optimization (Whittle) was done for the mineralization.Bench (metres)Tonnage(1)% Fe2O3% FeT% TiO2% V2O5% TiO2Eq0-20060,900,00060.4042.2518.480.3422.32200-40040,380,00058.6741.0417.320.3120.92400-600410,00057.5840.2715.440.1718.240-30090,550,00059.9641.9418.110.3421.930-35098,900,00059.7741.8018.040.3321.810-400101,290,00059.7141.7718.010.3321.76(1)Tonnage numbers are rounded to the nearest 10,000 as per National Instrument 43-101 Standards and Policies.SGS-Geostat is expected to submit a National Instrument 43-101 technical report for the Farrell-Taylor mineral resource within 45 days. Michael Curtis, NEVADO's President and CEO, stated that: "NEVADO has achieved a very significant milestone in the advancement of the La Blache Project by identifying a 100+ million tonne massive oxide mineral resource at the Farrell-Taylor Deposit with grade of 0.33% vanadium pentoxide, 18% titanium oxide and 60% iron oxide, in one of the 18 major massive oxide lenses found at La Blache since the first prospecting campaign in mid-2010. It is important to add that several other occurrences have also returned strong results, which further enhances the project's exploration potential. The Farrell-Taylor Mineral Resources Estimates, now supported by the Stage 1 and Stage 2 metallurgical test work, will enable NEVADO to begin one-tonne-per-day pilot plant testing in Q3-2012." Click on the following link to view a map of the property: http://www.marketwire.com/library/20120522-vdo-map-hi.jpgThe technical information in this news release was reviewed and approved by Jean Lafleur, P. Geo., the La Blache Project Manager, and Maxime Dupéré, P. Geo., of SGS-Geostat, both Qualified Persons under NI 43-101. About Nevado Resources Corporation NEVADO is a Canadian junior resource company trading under the symbols VDO on the TSX Venture Exchange and NSV on the Frankfurt Stock Exchange. NEVADO owns 1,906 mineral claims or the equivalent of 995 km2 in the Baie-Comeau, Fermont and Eastern Townships regions of Quebec. The Company is currently focused on advancing the La Blache Vanadium-Titanium-Iron project in the Baie-Comeau region towards National Instrument 43-101 mineral resources and development.Please visit our website at www.nevadoresources.comNeither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.Farrell-Taylor Block Model ParametersBlock modelling was done on the IO Solid and modified on the deeper east-northeast portion by SGS-Geostat. SGS-Geostat used composites of a regular length of 1.5 metres with a minimum length of 0.75 metres. The 1.5-metre length was based on the average length of the samples and the selected size of blocks. The block model is entirely within NEVADO's mineral claims. The geological model is open on all sides and can easily be extrapolated to nearby western claims not owned by NEVADO. The mineral claims are considered to be in good standing. Coordinates used are in UTM NAD83 Zone 19. The massive oxide mineralization was not cut by the topography. There is no overburden contact surface; however, the block model was designed according to overburden information from the diamond drill hole core logs. A specific gravity of 4.6 was used based on the weighted average of more than 100 specific gravity measurements. Inverse squared distance (1/d2) was used for the estimation. The estimated resources were classified in accordance with National Instrument 43-101 Standards and Policies, namely as Measured, Indicated or Inferred resources, as applicable. Classification was done according to drilling density, the continuity of the available data and level of confidence in the data. Currently, there are no Indicated or Measured resources. SGS-Geostat modelled the massive oxide mineralization based on downhole mineralized intersections within the mineralized solid. Open pit mining was selected as the mining method, which influenced the minimum mining and processing costs directly linked to the cut-off grade. FOR FURTHER INFORMATION PLEASE CONTACT: President and CEOMichael Curtis(514) 793-1915