INV Metals Initiates Drilling at Loma Larga Project in Ecuador (aka Quimsacocha)
TORONTO, ON – APRIL 10, 2013 – INV Metals (“INV Metals” or “Company”) (TSX:INV) is pleased to announce that it has initiated its first drill program at the Quimsacocha gold project located in Ecuador and that it has re-named its Quimsacocha project, acquired from IAMGOLD Corporation in 2012 (see INV Metal’s November 14, 2012 press release), the Loma Larga gold project (“Loma Larga”, the “Project” or the “Property”).
Mr. Robert Bell commented, “We are pleased to announce that the Company commenced drilling at Loma Larga in late March following a lengthy and detailed review of all available data from previous work on the Project. The data review was very successful in identifying numerous high priority targets on the Property that have potential to significantly add to Loma Larga’s global gold resource and to discover new gold deposits on the Property. The Company plans to drill an initial program of 6,000 metres exploring for extensions and possible stacked gold lenses above and below the known gold mineralization and for new discoveries elsewhere on the Property. In addition, a limited amount of drilling will be conducted to obtain core samples for additional metallurgical testing.”
The Company believes that the known resource remains open in several directions and has identified a number of potential extensions to the current Indicated Mineral Resource estimate of 3.3 million ounces gold within 32.6 million tonnes grading 3.2 g/t gold, 22 g/t silver and 0.20% copper (see below for more details). The deposit appears to be open to the north where several historic intersections, approximately 150 metres to the north of the resource, could represent a continuation of the deposit. These intersections are not included in the current resource estimates and include 4.8 g/t gold over 8.3 metres, 15.0 g/t gold over 3.9 metres, 7.4 g/t gold over 1.5 metres, and 4.6 g/t gold over 3.3 metres1.
A crosscutting northwest-southeast structure has been identified on surface by geological mapping. This structure hosts intense silica alteration in outcrop over a 450 metre strike length, beginning about 200 metres northwest of the Loma Larga deposit. In addition to the positive surface indications, there are several mineralized drill intersections not included in the current resource estimates, including 5.6 g/t gold over 11.2 metres, and 5.7 g/t gold over 38.1 metres, including 31.3 g/t gold over 3.7 metres1.
In addition, the data review indicated a potential for multiple stacked lenses above and below the known resource. The concept of stacked lenses is supported by the presence of a number of high-grade intersections above the defined resource including 8.4 g/t gold over 30.7 metres and 12.9 g/t gold over 13.6 metres and mineralized intersections approximately 75 metres below the known deposit, including 16.8 g/t gold over 9.1 metres and 3.0 g/t gold over 4.1 metres1, separated by a horizontal gap of 375 metres with no previous drilling.
The Company’s highest priority target that could represent a new deposit on the Property is Loma Larga West, a 1.2 kilometre long north-northwest trending zone parallel to and west of the known resource. It has a magnetic-low signature similar to that over the Loma Larga deposit and positive drill indications at both ends of the magnetic anomaly.
1 Drill intersections range from negligible g/t gold to those shown in this press release. The potential quantity and grade of the drill intersections is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Please go to the Company’s web site www.invmetals.com for pertinent figures and diagrams relating to this press release.
Loma Larga Property, Ecuador
In November 2012, INV Metals successfully completed the purchase of a 100% interest in IAMGOLD Ecuador S.A., which holds a 100% interest in the Loma Larga Property, from IAMGOLD Corporation and various subsidiaries.
The Loma Larga deposit is a high sulphidation epithermal gold-copper-silver deposit with a high grade core of 2.1 million ounces grading 6.3 g/t gold, surrounded by a lower grade shell hosted by volcanic flows and volcaniclastics for a total Indicated Mineral Resource estimated at 3.3 million ounces gold within 32.6 million tonnes grading 3.2 g/t Au, 22 g/t Ag and 0.20% Cu, with an Inferred Mineral Resource estimated at 0.2 million ounces gold within 2.3 million tonnes grading 2.2 g/t Au, 27 g/t Ag and 0.22% Cu, both at an NSR cut-off value of US$22/tonne, equivalent to approximately a 0.4 g/t gold cut-off. The deposit is a flat lying, north-south striking, cigar shaped body, which is considered to be amenable to both open pit and underground mining scenarios. The mineralized zone hosting the resource has a strike length of approximately 1,600 m north-south by 120 m to 400 m east-west and up to 60 m thick beginning approximately 120 m below surface. (See the Company’s National Instrument 43-101 Technical Report titled “Technical Report on the Quimsacocha Project, Azuay Province, Ecuador”, dated July 18, 2012, by Wayne W. Valiant, Katharine M. Masun, and John T. Postle, all Qualified Persons as defined under National Instrument 43-101, which is available on the Company’s website at www.invmetals.com and the Company’s profile on www.sedar.com.)
Mr. Robert Bell, P. Geo, of INV Metals is a “qualified person” as such term is defined in NI 43-101 and has reviewed and approved the technical information and data related to the Project included above.
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 Ecuador, Brazil and Namibia. Currently, INVTM Metals’ primary assets are: (1) it’s 100% interest in the Loma Larga (formerly Quimsacocha) gold property in Ecuador, (2) its 35% interest in the Kaoko property, located in Namibia and (3) its 50% interest in the Rio Novo southern claims, located in Brazil.
This press release contains certain forward-looking statements. 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 Ecuador and Canada, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals’ properties. 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.