Nevado's Farrell at 101.72 mt of 0.33% V2O5 inferred
2012-05-23 07:25 ET - News Release
Mr. Michael Curtis reports
NEVADO ANNOUNCES OVER 100 MILLION TONNES OF HIGH-GRADE VANADIUM-TITANIUM-IRON MINERAL RESOURCES AT FARRELL-TAYLOR
Nevado Resources Corp. has released current mineral resource estimates (MRE) for its Farrell-Taylor vanadium-titanium-iron deposit at the La Blache project, located about 140 kilometres 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 Dupere, 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 CATEGORY
Cut-off grade % % % % %
(based on % TiO2Eq(1)) Tonnes Fe2O3 FeT TiO2 V2O5 TiO2Eq(1)
5 101,720,000 59.70 41.75 18.00 0.33 21.74
5.1(2) 101,700,000 59.70 41.76 18.00 0.33 21.75
6.7(3) 101,320,000 59.86 41.87 18.05 0.33 21.80
10 100,370,000 60.21 42.11 18.16 0.33 21.93
15 96,460,000 61.18 42.80 18.46 0.34 22.29
18.6(4) 88,650,000 62.27 43.55 18.83 0.34 22.75
20 81,860,000 62.90 43.99 19.06 0.35 23.03
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 TiO2Eq
0-200 60,900,000 60.40 42.25 18.48 0.34 22.32
200-400 40,380,000 58.67 41.04 17.32 0.31 20.92
400-600 410,000 57.58 40.27 15.44 0.17 18.24
0-300 90,550,000 59.96 41.94 18.11 0.34 21.93
0-350 98,900,000 59.77 41.80 18.04 0.33 21.81
0-400 101,290,000 59.71 41.77 18.01 0.33 21.76
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."
The technical information in this news release was reviewed and approved by Jean Lafleur, P. Geo., the La Blache Project Manager, and Maxime Dupere, P. Geo., of SGS-Geostat, both Qualified Persons under NI 43-101.
We seek Safe Harbor.
Paul Benwell
Consultant
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