International Nickel Ventures Corporation Reports Q2/2008 Results and Provides Exploration Update
TORONTO, ONTARIO – Aug. 12, 2008 – International Nickel Ventures Corporation (“INV” or “Corporation”) (TSX:INV)(TSX:INV.WT) reports its financial results for the period ended June 30, 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 June 30, 2008 and to provide an exploration update.
Robert Bell, President and CEO, stated, “We continue to have a strong balance sheet and a portfolio of exciting projects. Given the current market conditions, our focus will be to conserve cash while we continue to evaluate and prioritize our projects and look to acquire high-potential new opportunities.”
The Corporation’s mineral properties are in the early to advanced stages of exploration and are not in production. INV incurred a loss of $1,468,861 or $0.03 per share in the second quarter of 2008, compared to a loss of $532,670 or $0.01 per share in the second quarter of 2007. The second quarter 2008 loss includes $466,954 for general exploration expenses and general and administrative expenses of $606,167. Cash flow from operating activities was a net outflow of $549,291 compared to a net outflow of $101,243 for the same period last year. Interest income during the quarter of $183,390 decreased by $46,492 compared to the second quarter of 2007.
The cash balance as of June 30, 2008 was $21.6 million, compared to $24.5 million at December 31, 2007. Working capital at June 30, 2008 was $21.0 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 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 conducting a new scoping study on the deposits, which is expected to be completed by year end. The activities currently underway as part of the scoping study include preliminary mine planning, capital expenditure estimating, engineering design work and planning for an environmental study that will be necessary as part of a feasibility study.
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. INV is currently in the process of reviewing the exploration budget for 2008 to allocate additional funds where warranted. 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 initiated drill programs on several properties over the past few months and look forward to evaluating the results when available. At our Damolandia property in Brazil, we intersected disseminated nickel-copper sulphide mineralization with values up to 0.98% nickel and 0.58% copper. A follow-up four hole diamond drill program commenced at Damolandia in late June.”
Lansdowne House, Ontario
In June, the Corporation signed of a Letter of Comfort with the Neskantaga First Nation community, in whose traditional territory the Lansdowne House property is located. The Letter of Comfort includes exploration activities involved with drill target identification. INV has committed, where possible, to employ several members of the community to participate in exploration activities. Pending implementation of the Letter of Comfort, an exploration program comprised of line cutting, prospecting, geochemical sampling, geological surveys and ground geophysical surveys will be initiated.
At the Niquelandia property in Brazil, drilling of the extensive, coincidental geophysical and soil geochemical anomalies began in early June. The first phase drilling campaign is comprised of 6 holes totaling 1500 metres to evaluate the anomalies for a possible nickel-copper-precious metal sulphide source, along with 16 shallow holes to evaluate the nickel laterite potential of the property given its close proximity to two producing laterite operations.
At Taquaral, Brazil, a three-hole diamond drill program, totaling 722 metres, has been completed to evaluate a coincident copper-nickel soil geochemical anomaly and strong induced polarization geophysical anomaly. Assay results are pending.
The Itapora gold project, located in Para State is comprised of 6 granted claims. INV’s exploration to date has focused on two claims, NS-13 and NS-07. At claim NS-07, volcanic rocks and metasediments appear to be hydrothermally altered, including silicification, sericitization and amphibolitization, along a 2.2 kilometre long northwest-trending structure. Soil grid sampling (200 metres x 50 metres) has indicated two main anomalous zones (400 metres x 200 metres) defined by gold values above 65 ppb with values ranging up to 525ppb. An induced polarization (“IP”) geophysical survey is being carried out and drilling will follow pending results.
At claim NS-13 volcanic rocks and metasediments have been mapped along a northeast-southwest trending shear zone where two main zones of hydrothermally altered, folded and deformed rocks were identified (2.1 kilometres x 0.6 kilometres and 5 kilometres x 1 kilometres). Grid soil sampling (800 metres x 50 metres and 400 metres x 50 metres) is in progress and results are pending. Detailed soil sampling and an IP survey will follow.
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-precious metals properties located in the ‘Ring of Fire’ area in northern Ontario; (4) its nickel-copper sulphide properties, including Niquelandia, Damolandia, and Taquaral, located in Brazil and (5) an option/joint venture agreement with Votorantim Metais Niquel S.A. on all but two of INV’s nickel laterite exploration 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 August 12, 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 Damolandia, Lansdowne, Niquelandia, Taquaral or Itapora 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.