INV Metals Reports Q1/2013 Results And Provides Exploration Update For Loma Larga
TORONTO, ON – MAY 14, 2013 – INV Metals (“INV Metals” or “Company”) (TSX:INV) reports its financial results for the three month period ended March 31, 2013 (“Q1/2013”) and provides an exploration update on its 100 percent owned Loma Larga (formerly Quimsacocha) gold property (“Loma Larga” or “Project”), located in Ecuador.
The Company recorded a total loss of $7,054,650 or $0.01 per share for the three month period ended March 31, 2013, compared with a total loss of $300,013 or $0.01 per share for the corresponding period ended March 31, 2012. The Company’s cash balance as at March 31, 2013 was $23.8 million, compared to $25.3 million at December 31, 2012. The decrease in the Company’s treasury was mainly as a result of exploration at Loma Larga. For additional financial information please see INV Metals’ unaudited condensed interim consolidated financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company’s web site at www.invmetals.com.
The 2013 drill program at Loma Larga commenced in late March. The Company is utilizing one drill rig and plans to drill approximately 12 holes totalling 5,000 metres in two phases. Upon the completion of Phase 1, the results will be assessed and future plans developed and announced.
To-date a total of three holes (1,297 metres) has been completed, and a fourth hole is currently underway. The first hole was drilled as a step out approximately 175 metres north of the Loma Larga National Instrument 43-101 compliant resource and about 40 metres north of two historic drill intersections containing 4.8 g/t gold over 8.3 metres and 15.0 g/t gold over 3.9 metres which was not included in the resource estimate.
After completing the first hole, the drill rig was moved approximately 200 metres west of the Loma Larga deposit to initiate testing of the Loma Larga West target where three holes are planned. Two of these holes have been completed and drilling is on-going at the third hole. The Loma Larga West target is a 1.2 kilometre long north-west trending zone parallel to and west of the Loma Larga deposit. The magnetic-low signature of the target is similar to that over the Loma Larga deposit and positive drill indications in historic drilling are present at both ends of the magnetic anomaly.
The Company has not received analytical results to-date and plans to release such results after all assay results have been received for the initial phase of drilling.
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 gold, 22 g/t silver and 0.20% copper, with an Inferred Mineral Resource estimated at 0.2 million ounces gold within 2.3 million tonnes grading 2.2 g/t gold, 27 g/t silver and 0.22% copper, 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) its 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, 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.