International Nickel Ventures Corporation Reports 2007 Results
TORONTO, ON – March 28, 2008 – International Nickel Ventures Corporation (“INV” or “Company”) (TSX: INV, INV.WT) reports its financial results for the year ended December 31, 2007 (see INV’s audited 2007 financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company’s web site at www.nickelventures.com).
INV is an international mineral resource company focused on the acquisition, exploration and development of base metal projects in Brazil and Canada.
The Company’s mineral properties are in the preliminary to advanced stages of exploration and are not in production, therefore INV has no revenues and incurred a loss of $3,343,209 or $0.08 per share in 2007, compared to a loss of $3,762,001 or $0.13 per share in 2006. The 2007 loss includes $800,382 for general exploration expenses, a write off of mineral properties and deferred exploration of $1,783,266 and general and administrative expenses of $1,982,280. Cash flow from operating activities was a net outflow of $1,495,373 compared to a net outflow of $1,595,011 last year.
The cash balance at year end was $24.5 million, compared to $13.8 million at year end 2006; the increase was due to funds received as a result of the May 2007 financing. Working capital at the end of 2007 was $23.8 million, compared to working capital of $13.5 million at December 31, 2006.
The Company’s most advanced project is a 20.25% interest, through its 27% ownership of International Nickel Ventures Inc. (“INVI”), in two advanced stage nickel laterite deposits, Santa Fé and Iporá, located in Goiás State, Brazil. Partner and operator, Teck Cominco Limited (“Teck Cominco”) holds a 54.75% interest, through its 73% ownership of INVI, and a private Brazilian group holds the remaining 25% interest. On January 17, 2008, INV announced a significant increase in mineral resources for the Santa Fé/Iporá properties, using data available to October 15, 2007. The mineral resource estimates, using a cut-off grade of 0.8% nickel and a minimum ore thickness of 2 metres, consist of 35.7 million tonnes of indicated mineral resources grading 1.14% nickel, and 104.3 million tonnes of inferred mineral resources grading 1.03% nickel. The details and supporting technical information for these new estimates are contained in the 43-101 Technical Report filed on SEDAR.
INV accounts for its 27% interest in INVI under the equity basis. In the fourth quarter and year 2007, INV funded $3.0 million and $6.8 million, respectively, related to the Santa Fé/Iporá properties for its 27% pro rata share of exploration expenditures and option payments.
INV continued its aggressive growth plan with the acquisition of the three high-potential copper-nickel sulphide properties in Ontario and the acquisition of the Niquelândia nickel property situated in Goiás State, Brazil, in November 2007. The three Ontario properties were purchased on December 27, 2007 from the wholly-owned subsidiary of FNX Mining Company Inc. (“FNX”), Aurora Platinum Corp., in exchange for INV issuing 2.9 million common shares to FNX. In addition, INV also owns an extensive portfolio of 100%-owned laterite and sulphide nickel properties in Para, Tocantins and Goiás State.
A program and budget for the Santa Fé/Iporá advanced nickel laterite project has been prepared in conjunction with the Company’s partner and project operator Teck Cominco, for the first six months of 2008. The total budget of approximately $1.7 million (INV’s share approximately $383,000) is dedicated to completing a new scoping study.
The Company’s 2008 budget is $5.2 million for its 100%-owned exploration projects in Canada and Brazil. The exploration budget for programs at the Montcalm, Lansdowne and Fishtrap properties in Ontario is $1.5 million, with additional funds to be allocated pending identification of drill targets. The exploration budget for Brazil has been set at $3.7 million. Ground surveys to identify drill targets are underway on a number of the properties (see press release of February 7, 2008).
In addition, INV is aggressively seeking new exploration opportunities.
The Company believes that, in conjunction with the funds on hand, it will have sufficient funds to conduct all of its currently planned business activities in 2008.
INV is an international mineral resource company focused on the acquisition, exploration and development of base metal projects in Brazil and Canada. Currently, INV’s primary asset is its indirect 20.25% interest in the advanced-stage Santa Fé-Iporá nickel laterite deposits located in Goiás State, Brazil. For further information on these properties, please refer to the Technical Report of March 10, 2008, which details all QA/QC procedures and interpretation of the exploration data and a summary description of the geology and is available on SEDAR at www.sedar.com.
INV holds a 100% interest in three prospective projects in northern Ontario. Two projects are located in the James Bay Lowlands area near the McFaulds Lake high grade nickel-copper-precious metals discovery. The third property is contiguous with Xstrata Nickel’s operating Montcalm nickel mine in the Timmins area (see press release November 12, 2007).
The Company is currently carrying out exploration programs on its Niquelândia and Damolândia properties in Brazil (see press releases of November 27, 2007 and October 17, 2007). As well, INV has a 100% ownership in an extensive land package, which now totals 270,477 hectares in Goiás, Pará and Tocantins States considered prospective for both lateritic and sulphide nickel deposits. Within this land package, INV is currently carrying out exploration activity to identify possible drill targets on the Taquaral property.
Please visit INV’s website at www.nickelventures.com to view technical details relating to the properties.
All scientific and technical disclosure contained in this press release has been prepared by R. Mohan Srivastava of FSS Canada Consultants Inc., a “qualified person” within the meaning of National Instrument 43-101, and a consultant independent of INV. All drill hole assay data have been gathered under a quality assurance and quality control (QA/QC) program that conforms to international mining industry best practices. The assays have been done by SGS Geosol Laboratórios Ltda., Brazil, an ISO-certified commercial assay laboratory. The drill hole and assay data bases have been verified by the QP. Details of the QA/QC program, the analytical procedures, and the data base compilation and verification can all be found in the 43-101 Technical Report filed on SEDAR.
This press release contains certain forward-looking statements. These forward-looking statements are subject to variety of risks and uncertainties beyond INV’s ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release there is no guarantee that any drill targets or economic mineral deposits will be found on INV’s properties. For a more detailed discussion of such risks and other factors, refer to INV’s filing with Canadian securities regulators available on www.sedar.com or INV’s website at www.nickelventures.com.