International Nickel Ventures Corporation Reports Q1/2008 Results and Provides Exploration Update
TORONTO, ONTARIO – (Marketwire – May 15, 2008) – International Nickel Ventures Corporation (“INV” or “Corporation”) (TSX:INV)(TSX:INV.WT) reports its financial results for the period ended March 31, 2008 (see INV’s interim consolidated financial statements and MD&A filed on SEDAR at www.sedar.com and on the Corporation’s web site at www.nickelventures.com).
The Corporation is pleased to announce its results of operations for the period ended March 31, 2008 and to provide an exploration update. Robert Bell, President and CEO, stated, “We continue to have a strong balance sheet and the ability to fund all of our 2008 projects plus aggressively look for new high value base and precious metal opportunities. INV has assembled a highly qualified team of professionals in Canada and Brazil to execute our aggressive growth strategies. We are very encouraged with the exploration success and progress achieved to-date this year and are beginning to see the positive results of our efforts as we continue to explore our highly prospective projects.”
The Corporation’s mineral properties are in the early to advanced stages of exploration and are not in production. INV incurred a loss of $1,018,642 or $0.02 per share in the first quarter of 2008, compared to a loss of $718,603 or $0.02 per share in the first quarter of 2007. The first quarter 2008 loss includes $323,909 for general exploration expenses and general and administrative expenses of $587,032. Cash flow from operating activities was a net outflow of $822,785 compared to a net outflow of $386,519 for the same period last year. Interest income during the quarter of $224,988 increased by $99,621 from Q1/2007, as a result of INV’s higher cash balance.
The cash balance as of March 31, 2008 was $24.8 million, compared to $24.5 million at December 31, 2007. Working capital at March 31, 2008 was $24.4 million, compared to working capital of $23.8 million at December 31, 2007. The Corporation believes that the funds on hand are sufficient to conduct all of its currently planned business activities in 2008.
Exploration Update and 2008 Outlook
INV owns an indirect 20.25% interest in the Santa Fe and Ipora nickel laterite deposits located in Goias State, Brazil. The Santa Fe/Ipora deposits have an indicated mineral resource of 35.7 million tonnes grading 1.14% nickel and an inferred mineral resource of 104.3 million tonnes grading 1.03% nickel (see INV’s January 17, 2008 press release for details). The 2008 program and budget for the Santa Fe/Ipora projects for the first six months of 2008 totals approximately $1.7 million (INV’s share is approximately $383,000). Teck Cominco Ltd. has an indirect 54.75% interest in the Santa Fe/Ipora properties and as the project operator is currently conducting a new scoping study on the deposits, which is expected to be completed by year end.
The Corporation’s 2008 budget for its 100%-owned exploration projects in Canada and Brazil is $5.2 million. 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. In addition, INV is aggressively seeking new exploration and business opportunities.
Robert Bell also noted, “We have made great progress in advancing our nickel sulphide properties in Canada and Brazil. We have identified multiple drill targets on a number of our projects and anticipate initiating drill programs on several of them over the next few months. Drilling has already commenced at Taquaral on a promising copper-nickel sulphide target and at Niquelandia we have identified high priority, coincident geophysical and geochemical anomalies ranging up to 1.4 kilometres in length. At Montcalm our geophysical survey has identified numerous conductors which are currently being prioritized for drilling.”
At the Montcalm property, INV has completed line cutting, ground electromagnetic (“UTEM”) and magnetometer surveys over the four kilometres of interpreted strike extension of Xstrata Nickel’s Montcalm nickel mine host rocks. The UTEM survey, completed by Lamontagne Geophysics Ltd., detected numerous highly prospective conductors. Diamond drilling is anticipated to begin in the second quarter following the compilation and interpretation of the positive results of the UTEM survey.
An access agreement has been reached with the Marten Falls First Nation, in whose traditional territory the Fishtrap property is located. Linecutting and a magnetic survey have been initiated over the northern portion of the property where a number of conductive zones were detected by an airborne electromagnetic survey carried out by FNX Mining Company Inc. in 2006. A ground electromagnetic survey will commence following spring breakup. Drilling is anticipated to begin in the fall 2008.
At the Niquelandia property, the soil geochemical survey carried out by INV has identified two highly anomalous trends ranging from 700 metres to 1,300 metres long by 100 metres to 400 metres wide. Copper in soil values range from 250 ppm to a high of 4,000 ppm, nickel from 2,086 ppm to a high of 15,000 ppm (1.5%), platinum from 49 ppb to a high of 476 ppb, and palladium in soil values range from 109 ppb to a high of 655 ppb. The very high metal assays in soil may be a result in part from lateritic enrichment. The induced polarization (“IP”) survey outlined 14 anomalous trends, suggesting a potential copper-nickel sulphide bedrock source. Combining the IP, geological and geochemical data has indicated three high priority coincident anomalies ranging up to 1.4 kilometres in length. Mapping and sampling by INV in and near these anomalous areas located a number of rock samples containing up to 3% disseminated sulphide minerals, indicating nickel-copper sulphide targets rather than nickel laterite targets.
Analytical results of bedrock grab sample assays range from anomalous to 0.5% nickel, with one sample assaying 1.4% nickel. Drilling of these high priority coincident geological, geophysical and geochemical targets will follow receipt of the required approvals and permits and is expected to be initiated in the second quarter.
At the Taquaral West property, line cutting, a soil geochemical survey, and an IP survey were carried out over a coincidental 600 metre long strong copper-nickel soil anomaly and airborne electromagnetic (“VTEM”) anomaly. A 1,400 metre long, strong, well-defined IP anomaly was identified, coincident with the 600 metre long copper soil geochemical anomaly, and parallel to the nickel soil geochemical anomaly, with peak nickel soil values 50 metres to the east of the IP anomaly. Bedrock geology in this area consists of peridotites, pyroxenites, and gneissic rocks. The combination of a strong soil geochemical anomaly with both VTEM and IP geophysical anomalies within favourable host rocks is considered highly prospective for a potential bedrock copper-nickel sulphide source. A two-hole diamond drill program to test this target began in late April, 2008.
Annual and Special Meeting of Shareholders
Please note the Corporation’s Annual and Special Meeting of Shareholders will be held on Wednesday, June 4, 2008, at 4:30 pm (Toronto time). The meeting will take place at the National Club, Tudor Room, 303 Bay Street, Toronto, Ontario.
INV is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil and Canada. Currently, INV’s primary assets are: (1) the advanced-stage Santa Fe-Ipora nickel laterite deposits located in Goias State, Brazil; (2) the Montcalm nickel-copper property located contiguous to Xstrata Nickel’s operating nickel mine in the Timmins, Ontario area; (3) its nickel-copper-gold properties located in the ‘Ring of Fire’ area in northern Ontario and (4) it nickel-copper sulphide properties located in Brazil. For further information on the Santa Fe-Ipora properties, please refer to the Technical Report of March 10, 2008, entitled “43-101F1 Technical Report On The Santa Fe And Ipora Nickel Laterite Properties In Brazil for International Nickel Ventures Corp.” 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. Please also refer to INV’s Management’s Discussion and Analysis dated May 14, 2008 and other technical reports on INV’s website at www.nickelventures.com to view additional details relating to the properties.
All scientific and technical disclosure contained in this press release has been prepared and verified by R. Mohan Srivastava of FSS Canada Consultants Inc., Paul Golightly, President of Golightly Geoscience Ltd. (Brazil projects), and by Garry Clark, President of Clark Expl. Consulting Inc. (Ontario projects), all independent consultants to INV and Qualified Persons as defined under NI 43-101 of the Canadian Securities Administrators. 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.
Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource on any of the Montcalm, Fishtrap, Niquelandia or Taquaral properties and it is uncertain if further exploration will result in any such targets being delineated as a mineral resource.
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. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of nickel and other minerals, economic and political stability in Canada and Brazil, environmental risks and hazards, increased infrastructure and/or operating costs, labour and employment matters, and government regulation. For a more detailed discussion of such risks and other factors, refer to INV’s most recent annual information form with Canadian securities regulators available on www.sedar.com or INV’s website at www.nickelventures.com.