INV Metals Reports 2011 Outlook
TORONTO, ON – JANUARY 25, 2011 – INV Metals Inc. (“INV Metals” or “Company”) (TSX:INV) is pleased to provide guidance on the Company’s 2011 operating budget and exploration program. INV Metal’s unaudited cash balance as at December 31, 2010 was approximately $21 million. The Company’s 2011 exploration and operating budget is estimated at $9.3 million, including planned exploration expenditures of $3 million at the Rio Novo copper-gold property (“Rio Novo”), $3 million at the Kaoko copper property (“Kaoko”) and $600,000 at the Itaporã gold property. INV Metals’ anticipates the initial and follow-up 2011 drill programs at all the Company’s properties will total approximately 23,000 metres.
Kaoko Property, Namibia
The extensive Kaoko copper property is located in northwest Namibia. The primary target at Kaoko is sediment hosted open-pit copper and silver deposits similar to those in the African Copper Belt. The planned 2011 exploration program at Kaoko consists of a diamond and reverse circulation drill program totalling approximately 10,000 metres to test the Okohongo, Epungwe, Omatapati, Okakuyu, Oruwanye, Otjohorowara and Oruvandjai targets.
Regional mapping is planned in prospective areas to further evaluate the approximately 8,000 km2 property for additional targets and to follow up strong stream sediment copper anomalies in the northwestern portion of the property. INV Metals expects to complete induced polarization (“IP”) surveys at Oruwanye and possibly other targets if warranted. Various geochemical survey methods may also be utilized to evaluate specific targets.
Rio Novo Property, Carajás, Brazil
At the Rio Novo property, located in the Carajás district, Brazil, a 10,000 metre diamond drill program is scheduled to commence after the rainy season ends in April or May.
At the Rio Novo North target, which is contiguous and along strike to the Serra Pelada precious metals deposit, a 3,000 metre drill program will further test the potential for high grade precious metals mineralization. In the southern portion of the property, a 7,000 metre drill program is planned to assess approximately seven target areas for copper-gold potential. Additional soil sampling and IP geophysical surveys over selected areas are also planned.
Given the large number of highly prospective targets at both the Kaoko and Rio Novo properties, management will continually assess the priority of each target as exploration results are evaluated and the programs may be amended accordingly.
A second phase 3,000 metre diamond drill program will be conducted at the Company’s 100% owned Itaporã property to expand on the 2009 initial drill program which returned promising results with gold values up to 14.4 g/t gold over 0.75 metres (see Company’s press release dated September 17, 2009). The initial seven hole drill program totalled 1,114 meters and successfully confirmed the presence of hydrothermally altered, gold-bearing rocks.
Potential quantity and grade are conceptual in nature. There has been insufficient exploration to-date to define a mineral resource on the Itaporã property and it is uncertain if further exploration will result in such property being delineated as a mineral resource.
INV Metals’ wholly owned subsidiaries are currently earning a 50% interest in the Rio Novo and Kaoko properties from Teck Resources Limited’s wholly owned Brazilian and Namibian subsidiaries (“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. INV Metals may earn an initial 50% interest in the Kaoko property by funding exploration expenditures of $7 million over 4 years with guaranteed expenditures of $3 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.
About INV™ Metals
INV™ 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, INV™ 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.
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, 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 with Canadian securities regulators available on www.sedar.com or INV Metals’ website at www.invmetals.com.