INV Metals Inc. (TSX:INV) has announced that it has intersected highly anomalous precious metal values in both auger and diamond drilling on its Rio Novo North claim, located in the prolific Carajás district of Brazil.
Mr. Robert Bell, CEO, stated, "The Rio Novo property is contiguous to the historic Serra Pelada mine currently being developed by Colossus Minerals Inc. and the encouraging results of the 2010 auger and diamond drill programs corroborate the potential for the Rio Novo North property to host the possible strike extension of the Serra Pelada high grade platinum- palladium-gold mineralization. To further test the potential of Rio Novo North, the Company has planned an additional 3,000 metre diamond drill program to commence in April or May, immediately after the rainy season."
The bonanza-grade precious metal values at Serra Pelada occur in carbon-rich sediments at the nose of a fold structure and the Company interprets that the anomalous precious metal values being reported today occur in a similar sequence of sediments but on the limb of such a fold structure. Additional drilling is required to trace the anomalous mineralization from the limb of the fold to the nose of the fold, where high grade precious metals, if present, would concentrate. The fold structure is interpreted to occur as a blind target to the south of INV Metals' previous drilling where hole 56, while not intersecting anomalous precious metal values, did intersect similar host rocks to those hosting the Serra Pelada deposit. Further drilling will be focused in the immediate area to locate a prospective fold nose structure with potential to host significant precious metal values.
INV Metals completed 5 initial diamond drill holes totalling 1,260 metres and 41 auger drill holes totalling 372 metres. The diamond drilling intersected favourable host rocks containing highly anomalous precious metal values including: 0.91 grams per tonne (g/t) combined gold- palladium-platinum (Au-Pd-Pt) over 4.4 metres, 0.96 g/t Au-Pd-Pt over 2 metres, and 1.1 g/t Au- Pd-Pt over 1 metre. The auger drilling confirmed a number of gold-palladium-platinum soil anomalies located on the western portion of the Rio Novo North claim with highly anomalous values including intervals of 4.0 metres of 39 parts per billion (ppb) Au, 78 ppb Pd, 14 ppb Pt and 20 metres of 42 ppb Pd. The auger drilling targeted a number of precious metals soil anomalies and verified five discrete soil anomalies that warrant diamond drill testing in 2011.
The Company approved a 2011 exploration budget of $3 million for the Rio Novo property. The exploration program anticipates a diamond drill program of 10,000 metres, including 3,000 metres at the Rio Novo North target to evaluate the potential for a similar deposit to Serra Pelada and 7,000 metres at the southern claims to evaluate copper-gold targets. The 2011 exploration program also includes the development of new targets and further geochemical and geophysical work on various known targets on the property.
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.
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. Please see the Company's most recent technical report titled Technical Report on Recent Exploration at the Rio Novo Copper-Iron-Gold-Platinum- Palladium Property in the Carajas District, Para, Brazil (dated and filed on SEDAR on October 27, 2010) for further details regarding the Rio Novo property.
There has been insufficient drilling to determine the true width of the intervals reported. Potential quantity and grade is conceptual in nature. There has been insufficient exploration to-date to define a mineral resource on the Rio Novo property and it is uncertain if further exploration will result in such property being delineated as a mineral resource.
Source: INV Metals Inc.