INV Metals Announces 10.2 Million Tonne 1.12% Copper Inferred Resource at Kaoko
TORONTO, ON – June 22, 2011 – INV Metals Inc. (“INV Metals” or the “Company”) (TSX: INV) is pleased to announce its first resource estimate at one of the many sedimentary copper targets on the extensive Kaoko property, located in northwest Namibia. The initial inferred resource estimate at the Okohongo deposit totals 10.2 million tonnes grading 1.12% copper and 17.75 g/t silver, at a 0.3% copper cut-off grade, and contains 114,046 tonnes of copper and 5.8 million ounces of silver in situ. The inferred resource is compliant with National Instrument 43-101 (“NI 43-101”).
- Initial inferred resource estimate at the Okohongo deposit
- 10.2 million tonnes grading 1.12% Cu and 17.75 g/t Ag, at a 0.3% Cu cut-off grade
- Resource estimate contains 114,046 tonnes Cu and 5.8 million ounces Ag
- Resource estimate is based on 7,239 m of reverse circulation and diamond drilling
- Potential to increase resource estimate as deposit remains open down-dip and to the south
- Resource estimate does not include drilling from 2011 on-going Okohongo program estimated at 7,400 m
Mr. Robert Bell, CEO, stated, “The inferred resource at Okohongo demonstrates the Company’s ability to quickly convert a copper discovery into a mineral resource. The initial discovery at Okohongo was announced in September 2010, with follow up drilling reported in March 2011. The resource does not include results from the on-going 2011 drill program, which to-date totals 4,695 m, with an estimated 2,700 m remaining to be drilled. The current drill program is designed to further delineate the deposit which remains open along strike to the south and at depth and the Company is optimistic it will provide the basis to include additional tonnage in our initial resource. The resource at Okohongo confirms that the Kaoko property has great promise to host potentially mineable copper deposits with significant silver mineralization”. Mr. Bell added, “In addition to drilling at Okohongo, INV Metals is currently drilling two other targets and plans to drill up to an additional eight high-potential target areas. The very large Kaoko property contains approximately 200 km of the favourable horizon that hosts the Okohongo deposit. The discovery of additional copper resources could significantly enhance the property’s mineral economics and the possibility of bringing one or more copper deposits to commercial production.”
The Okohongo deposit is near surface and hosts copper-silver mineralization that is known to extend over 600 m in strike length and up to 400 m down dip, with a shallow dip of approximately 20 degrees. The Okohongo mineralization is variably oxidized to a depth of at least 200 m with chrysocolla and malachite being the principal oxide copper minerals and chalcocite the dominant copper sulphide mineral. The Company is in the process of selecting a service provider to perform preliminary metallurgical test work on the deposit.
The current drill program at Okohongo is focused on further delineating the deposit along strike and down-dip. A total of 1,685 m (12 reverse circulation holes) has been completed within the mineralized deposit, while a further 1,200 m of diamond drilling is planned to test the down dip extension of the deposit. A total of 3,010 m has been drilled to-date to test for extensions to the deposit with another 1,500 m planned to complete the program.
The Okohongo resource was estimated by Caracle Creek International Consulting (Pty) Ltd. (“CCIC”) (see attached Appendix 1 for parameters) based on the results of INV Metals’ 2010 reverse circulation drill program totalling 5,645 m and Teck Namibia Ltd.’s (“Teck”) previous diamond drill program totalling 1,594 metres. CCIC is an independent geological consulting firm with significant expertise and experience with African sedimentary copper deposits and has offices in Canada, South Africa and Zambia. CCIC determined that based on the geological data and information presented in their report there is sufficient information about the location, size, geological characteristics and continuity of the deposit to declare an inferred resource at the Okohongo deposit. An independent NI 43-101 Technical Report in support of this resource estimate will be prepared by CCIC and made available on the Company’s website and on SEDAR within 45 days. INV Metals prepared an updated technical report as of June 15, 2011, titled Technical Report on the Kaoko Copper-Silver Property in Northwest Namibia, which is available on the Company’s website or on SEDAR.
Mineral resources that are not mineral reserves have not demonstrated economic viability and there is no guarantee that the inferred resource can be upgraded to a mineral reserve. The viability of a mineral resource may be materially impacted by a number of risks, including environmental, permitting, legal, title, taxation, socio-political, and the overall health of capital markets at any given time.
The scientific and technical information contained in this press release relating to the inferred resource has been prepared and verified by Mr. John Hancox and/or Mr. Desmond Subramani of Caracle Creek International Consulting (Pty) Ltd., both “qualified persons” within the meaning of NI 43-101.
INV Metals is currently drilling at the Omatapati copper target. The Omatapati target is a late, hydrothermal stockwork in altered dolostone of the Upper Omao Formation. The zone of mineralization is exposed over 450 m along strike and up to 120 m in width. Copper oxides (malachite and minor azurite) and massive chalcocite are exposed in a few historic pits. The Company is currently diamond drilling the third of an initial four hole program estimated to total approximately 800 m. Additional drilling will be dependent on positive results.
Diamond drilling is also underway at the sandstone-hosted Oruvandjai target. The Company is completing the last of an initial five hole diamond drill program which totals approximately 560 metres. The primary target at Oruvandjai is disseminated copper oxide and/or sulphide mineralization. The program has been designed to test a number of Induced Polarization anomalies and significant copper occurrences, which include three discrete copper showings.
After the current drill programs are completed, drilling will then focus on the Okakuyu, Otjohorowara, Okozonduno, Okapanda, Okarivizo, Otjozongombe East, Oruwanye and Epunguwe targets. An extensive geochemical program, comprised of approximately 18,000 soil samples, is on-going which is expected to generate further targets.
INV Metals entered into agreements with a subsidiary of Teck Resources Limited which provide INV Metals the right to acquire an initial 50% interest in the large Kaoko property, located in northwest Namibia (see INV Metals’ press release dated August 4, 2009).
Mr. Scott Jennings, P. Geo, an employee of INV Metals, is INV Metals’ designated Qualified Person, as defined in NI 43-101 of the Canadian Securities Administrators, and is responsible for the scientific and technical information contained in this press release, with the exception of any information relating to the inferred resource.
About INVTM Metals
INVTM Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil, Namibia and Canada. Currently, INVTM Metals’ primary assets are: (1) its option to acquire 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its 100% owned Itaporã gold properties, located in Brazil and (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario. Please also refer to the INVTM Metals’ website at www.invmetals.com to view additional details relating to the properties.
This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond INV Metals’ ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals’ properties. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals 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, risks associated with mining and mineral exploration activities, uncertainty in the estimation of mineral resources, including, without limitation, the assumptions on which such estimates are based, changes in project parameters as plans continue to be refined, future prices of metals, economic and political stability in Canada, Namibia and Brazil, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form filed with Canadian securities regulators available on www.sedar.com.
ESTIMATION AND REPORTING OF OKOHONGO INFERRED MINERAL RESOURCE
- The inferred resource estimate for the Okohongo copper-silver deposit was completed in June 2011 by Caracle Creek International Consulting (Pty) Limited (“CCIC”) on behalf of INV Metals Inc. and is effective as at March 31, 2011.
- Mineralization at the Okohongo deposit is hosted in siltstones and dolostones of the Lower Omao Formation metasedimentary rocks. Mineralogy is predominantly copper oxides dominated by malachite and chrysocolla, with increasing sulphide minerals at depth, dominated by chalcocite.
- Database integrity was assessed by CCIC.
- The drillhole database used in the estimation was based on the results of INV Metals’ 2010 reverse circulation drill program totalling 5,645 m and Teck Namibia Ltd.’s (“Teck”) previous diamond drill program totalling 1,594 metres. Sample recovery was considered within industry norms for INV Metals’ drill programs. CCIC did not access recovery logs for the Teck drilling.
- Drilling was carried out in sections perpendicular to the strike of the mineralization with drill holes spaced variably along sections 100 m apart. The maximum depth of resource drilling is approximately 200 metres.
- Density was assigned as 2.45 g/dm3 (grams per cubic decimetre) based on CCIC’s extensive database of rock densities from similar deposits in the Central African Copperbelt and was benchmarked against other mining companies operating within similar geological settings.
- Wireframes were generated using Datamine StudioTM on cross-sectional interpretations based on geology and grade. The mineralised envelope was classified as low grade, between 0.3 and 0.5% copper, and high grade, above 0.5% copper.
- Ordinary kriging was selected as the method for estimation using the Datamine StudioTM Estima process. The parent cell size for the model construction was 25 m x 50 m x 5 m in the X (dip), Y (strike) and Z (across strike) directions, respectively. This was determined by considering the average drill spacing together with optimization of the kriging variance.
- The mineral resource has been classified and reported in accordance with NI 43-101. Resource classification is based on confidence in the geological continuity, drill spacing and geostatistical analysis.