NEVADA IRON ANNOUNCES OUTSTANDING DRILL RESULTS INCLUDING 10.7 M...

NEVADA IRON ANNOUNCES OUTSTANDING DRILL RESULTS INCLUDING 10.7 M GRADING 53.0% TOTAL FE
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Perth, Western Australia: Emerging iron ore developer, Nevada Iron Ltd (“Nevada Iron” or the “Company”) (ASX: NVI) is pleased to announce the first drill results from its recent drill program at the Buena Vista Iron Project in Nevada, USA.

•      36.6 m grading 31.3% total Fe from 24.4 m including 10.7m grading 53.0% total Fe

•      70.1 m grading 30.1% total Fe from 117 m

Drilling at the Section 5 deposit has encountered magnetite mineralisation over a strike length of up to 450 m, maximum widths of 250 m and to depths of 200 m where several holes terminated in mineralisation.  Table 1 contains the full results for hole 3C.

Drill Program

The Company has recently completed a drill program of approximately 16,500 m at the Buena Vista Iron Project in Nevada, USA.

The potential to delineate additional shallow higher grade JORC resources is most evident at Section 5 where historical drilling has identified significant near surface high grade mineralisation.

The near surface grades of plus 50% total Fe from hole 3C are considered to be very encouraging and illustrate the potential to define higher grade near surface mineralisation that can be mined early in the project life.

These results are illustrated in Figure 1 along with the historical drilling results and interpreted magnetite mineralisation.

Figure 1 – Line 3 Section 5 Deposit

Drill hole 3C is the first batch of assays received from the recent drill program and has returned some outstanding near surface results including 10.7 m grading 53.0% total Fe within a broader envelope of 36.6 m grading 31.3% total Fe. There is also a larger intersection of 70.1 m grading 30.1% total Fe deeper in the hole.  

The Section 5 deposit is open across strike and at depth, and further drilling will be required to establish the full extent of the deposit. The Exploration Target1 for the Section 5 deposit is 12-18 Mt grading 18-26% total Fe.

The project’s currently identified JORC Exploration Targets1 provide for an additional 195 Mt to 268 Mt of exploration potential (Refer Table 2). Significant potential, therefore, exists to expand the scale of the project through additional exploration of, in particular, higher grade magnetite mineralisation at these prospects.

The drill program was designed to facilitate the project’s optimisation plan of:

·                increasing Phase 1 plant throughput from 4.8 Mtpa to a minimum of 6.0 Mtpa (and potentially higher);

·                scheduling the mining of other deposits, in addition to the West Deposit, in the initial years to increase concentrate production to levels of up to 2.4 Mtpa; and

·                investigating the potential to develop a Phase 2 project after a few years of operation, to produce in the order of 4 to 5 Mtpa of concentrate.
 
A large number of samples have been submitted for analysis and further results from the Section 5 drilling are expected in the near term.

For and on behalf of the Board

Mick McMullen

Mick McMullen
Executive Chairman

For further information please visit www.nv-iron.com or contact:

Mick McMullen                                                        Max Nind
Executive Chairman                                                 Managing Director
Nevada Iron                                                           Nevada Iron
Tel: +61(0)8 9481 0051                                           Tel: +61(0)8 9481 0051                      
Email: [email protected]                           Email: [email protected]

 

Table 1 –Drill Results – Hole 3C

N

E

Dip

Az

From (m)

To (m)

Interval (m)

% Total Fe

44258788

398565

-60°

188°

29.0

39.7

10.7

53.0

 

 

 

 

39.7

61.0

21.3

21.0

 

 

 

 

117.4

187.5

70.1

30.1

 

Table 2 – Exploration Targets 1

Prospect
Tonnes
% Total Fe
Section 5
12-18,000,000
18-26
Iron Point
10-15,000,000
18-23
Southwest
12-15,000,000
20-25
BV-D
10-18,000,000
19-24
A5-1 Anomaly
80-110,000,000
15-20
A-10 Anomaly
70-90,000,000
15-20
Iron Horse
1-2,000,000
59-68
Total
195-268,000,000
16-22

1. The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a JORC compliant Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

 
Competent Persons Statements
The information in this presentation that relates to, resources and resource potential is based on information compiled by Dr Vernon Stocklmayer who is a Member of the Australian Institute of Geoscientists. Dr Stocklmayer is an independent consultant to Nevada Iron Ltd. All other discussion is based on information compiled by Mr Max Nind; who is a Member of the Australian Institute of Geoscientists; and Mr Thomas Duckworth; who is a Fellow of both the Australasian Institute of Mining and Metallurgy and Institute of Materials, Minerals and Mining, London. Mr Nind, Managing Director, and Mr Duckworth, Director, are representatives of Nevada Iron Ltd. Dr Stocklmayer, Mr Nind and Mr Duckworth have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity to which they are undertaking to qualify as Competent persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Stocklmayer, Mr Nind and Mr Duckworth consent to the inclusion in the report of the matters based on the information in the form and context in which it appears