INV Metals Provides Exploration Update At Rio Novo North
TORONTO, ON – November 21, 2011 – INV Metals Inc. (“INV Metals” or “Company”) (TSX:INV) provides an update on its exploration activities at the Rio Novo North precious metals target, located in the Carajás district of Brazil.
INV Metals is currently conducting a diamond drill program focused on testing for the possible strike extension of the Serra Pelada high grade platinum-palladium-gold mineralization. The Rio Novo property is contiguous to the historic Serra Pelada mine currently being developed by Colossus Minerals Inc. To-date the Company has drilled eight holes totalling 2,490 m to test for extensions to the Serra Pelada type mineralization. A total of 1,775 m has been drilled within the localized area interpreted to potentially host the nose of a fold structure, where high grade precious metals, if present, would concentrate.
INV Metals intersected a sequence of altered sedimentary rocks similar to those hosting the Serra Pelada deposit, which management believes is encouraging and supports the Company’s geological model. The drilling intersected up to 47 m of anomalous gold, platinum and palladium within graphitic, carbon-rich mudstones, which normally do not contain any detectable precious metal values. The locations of the Company’s most recently completed drill holes are plotted along a cross-section of the interpreted fold, noting the intersections where the graphitic mudstones occur (see Figure 1). Based on the structural information obtained from the drilling, it is interpreted that the fold nose of the structure may occur 300 m to 400 m to the south of drillhole 69. Hole 72 is currently in progress to continue to test this interpretation.
INV Metals has experienced challenging drilling conditions on the Rio Novo project which are the result of slow production, sharply increased costs and a structurally complex geological environment. As a result of the challenging conditions, the Company now estimates it will drill up to 5,000 m on the Rio Novo North claim in 2011, compared with the original estimate of 10,000 metres.
The Company has initiated the development of all weather access roads to enable the drill program to continue throughout the rainy season which typically begins in November or December. The Company will assess the program based on the on-going results of the drilling to locate the nose of the fold.
A drill program, totalling 715 m, to the north of the current drilling was completed to test various geophysical conductors, as the Serra Pelada host graphitic sediments are typically conductive. The conductors were explained by sulphide-rich ultramafic breccias with precious metal values ranging from weakly anomalous to a best intercept of 1.5 g/t palladium plus platinum over 1 metre. No further work is planned in this area as it is not underlain by the Serra Pelada host rocks.
Five holes totalling 1,295 m were drilled at the JJ and Serginho targets in order to test various gold and palladium-in-soil geochemical anomalies and geophysical conductors. At Serginho, broad widths of sulphide-rich graphitic mudstones were intersected but only weakly anomalous precious metals were encountered. At the JJ target, gold values ranging from weakly anomalous to 2.48 g/t over 1 m were intersected in an altered sandstone. No further work is planned at these targets.
There has been insufficient drilling to determine the true width of the intervals reported.
Figure 1 – Interpreted Cross Section of Rio Novo North Drilling (Looking to the Northeast)
INV Metals’ wholly owned Brazilian subsidiary is currently earning a 50% interest in the Rio Novo property from Teck Resources Limited’s wholly owned Brazilian subsidiary (“Teck”). INV Metals may earn an initial 50% interest in the Rio Novo property by funding exploration expenditures of $7 million over 3 years with guaranteed expenditures of $4 million over 2 years, after which a joint venture will be formed on a 50% basis, subject to certain back-in rights by Teck and INV Metals.
The Company is currently drilling at its 100% owned Itaporã gold property. Two holes, totalling 443 m have been drilled to-date. While the Company is awaiting assay results, the undercut hole of INV Metals’ previous hole ITNS13-03 (0.75 m grading 14.4 g/t gold, see INV Metals’ press release dated September 17, 2009) intersected 4 m of similar looking mineralization and alteration. An additional five holes totalling approximately 1,200 m are planned at the target.
There has been insufficient exploration to-date to define a mineral resource on either the Rio Novo or Itaporã properties and it is uncertain if further exploration will result in such properties being delineated as a mineral resource.
Scott Jennings, P. Geo, an employee of INV Metals, is the designated Qualified Person as defined in NI 43-101 of the Canadian Securities Administrators and is responsible for the technical content of this news release.
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 an initial 50% of the Rio Novo property, located in Brazil, (2) its option to acquire an initial 50% of the Kaoko property, located in Namibia and (3) its 100% owned Itaporã gold properties, located in Brazil. Please also refer to the INVTM Metals’ website at www.invmetals.com to view additional details relating to the properties.
INV Metals filed a Technical Report with securities regulators entitled “Technical Report on Recent Exploration at the Rio Novo Copper-Iron-Gold-Platinum-Palladium Property in the Carajás District, Pará, Brazil” dated October 27, 2010. See the Company’s latest Management Discussion and Analysis for a full description of the Quality Control — Quality Assurance procedures utilized by INV Metals, available on SEDAR at www.sedar.com.
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 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. 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.