Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

June 23, 2010 08:00 ET

NEVADO Starts Summer Exploration Program Along the 7.5 Kilometre Iron-Titanium-Vanadium Corridor on the La Blache Property, Baie-Comeau (Quebec)

MONTREAL, QUEBEC--(Marketwire - June 23, 2010) - NEVADO VENTURE CAPITAL INC. (TSX VENTURE:VDO)(FRANKFURT:NSV) -  

Editor's note: A map accompanying this release is available on the Marketwire website.

  • Average of 51.6% Iron oxide and 18.6% Titanium oxide in surface samples; assay results part of 15 kilometre Iron-Titanium-Vanadium corridor of which 7.5 km is owned by Nevado
  • Iron-Titanium-Vanadium corridor already hosts a pre-NI 43-101 mineral resources of 71.67 million tonnes grading 48% Iron (Fe2O3) and 20.5% Titanium (TiO2), where Argex Silver Capital Inc., intersected significant widths of massive Iron-Titanium bearing rocks, containing up to 161.25 m grading 60.93% Fe2O3, 18.29% TiO2 and 0.48% V2O5, in ongoing drilling along strike and wedged between Nevado's East and West Hervieux Claim Blocks
  • Nevado prepares detailed surface sampling program followed by 2,500 m drill campaign at La Blache #1  

NEVADO VENTURE CAPITAL INC. (TSX VENTURE:VDO)(FRANKFURT:NSV) (the "Company" or "Nevado) is pleased to announce the start of the summer 2010 exploration program on the Company's wholly-owned 25 claim La Blache #1 Iron-Titanium Property ("La Blache #1" or the "Property"). The 13.6 km2 Property is located 145 km north of Baie-Comeau along Quebec's North Shore region and is also situated near Hydro-Quebec's Manic 3 and Outardes River Hydro-electric Reservoirs.

The NEVADO exploration team under Bertrand Brassard, P. Geo., Technical Director of the Company, will seek to establish continuity and grades of the magnetite-ilmenite lenses with detailed prospecting, geological mapping and grab/channel sampling, followed by 2,500 metres of diamond drilling. The objective is to eventually prove up in the near-term the iron-titanium mineral resources.

Previous reconnaissance work in Q4-2009 encountered a number of magnetite-ilmenite lenses. Grab samples taken from a known historical showing, the Hervieux East Occurrence, gave an average of 51.6% Fe2O3 (Iron oxide), 18.6% TiO2 (Titanium oxide) (refer to the table below and the Nevado news release dated March 30, 2010). The previously reported Schmoo Lake grab sample (sample #5) was removed from the results table (60.0% Iron oxide and 19.6% Titanium oxide), since the sample was likely taken just outside the Schmoo Lake Claim Block.

Grab Sample # % Fe2O3 % TiO2 % V2O5 Occurrence
BB-2A 53.7 18.1 0.093 East Hervieux
BB-2B 50.2 17.8 0.058
BB-2C 44.1 17.1 0.060
BB-2D 58.5 21.2 0.060
AVERAGE 51.6 18.6 0.068  

Note: Grab samples averaging 4 kg each were taken by a Qualified Geologist. Samples were bagged, sealed, numbered and delivered to the ALS Laboratory Group facility in Val-d'Or (Quebec) for Whole-Rock Analysis using the ME-S81 Method. At the laboratory facility, samples were inventoried, weighed and dried; crushed 70% to under 2 millimetres; riffled split with a 250 gram sub-sample pulverized 85% to under 75 μm; then followed by analysis.

Assay results now include the element Vanadium as shown as %V2O5 (Vanadium oxide) averaging 0.068% V2O5. Approximately 85% of Vanadium produced is used as ferro-vanadium or as a steel additive. It is mainly used to produce specialty steel alloys such as high speed tool steels. Vanadium is a soft and ductile metal. It has good resistance to corrosion and it is stable against most acids.

The grab samples were essentially composed of magmatic iron-titanium bearing magnetite-ilmenite masses generally associated with a particular type of large intrusive complexes, in this case the La Blache Anorthositic Complex (the "LBAC"). The LBAC extends 35 km in a northeast-southwest direction by 15 km across, hosting a series of magnetite-ilmenite rich lenses some 10's to 100's metres in size along a 15 km long mineralization corridor, of which Nevado owns outright 7.5 km of the total trend length with the remaining corridor being held by Argex Silver Capital Inc., which completed 110 drill holes to date for over 6,000 metres, and has reported diamond drilling intervals assay results up to 161.25 m grading 60.93% Fe2O3, 18.29% TiO2 and 0.48% V2O5 (drill hole HW-10-001) (www.argex.com).

According to the Ministère des ressources naturelles et de la faune Québec Deposit File 22K/04-0001 the La Blache iron-titanium mineralization was originally discovered in 1952 and subsequently explored in the 1960's by the Bersimis Mining Company which used airborne magnetic techniques to identify a series of surface iron-titanium lenses over the 15 km trend covering several occurrences (refer to the appended map for details). Historic work evaluated mineral resources of 71.67 million tonnes grading 48% Iron (Fe2O3) and 20.5% Titanium (TiO2). The historical resource quoted is strictly historical in nature and is non-compliant to NI 43-101 Mineral Resource standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to classify the historical resource as current NI 43-101 compliant Mineral Resources. There is no guarantee that any future exploration would upgrade the historical Mineral Resources into current Mineral Resources. At this time it is not known if any or part of the historical mineral resources occurs on Nevado's La Blache #1 Property.

The technical information in this news release was prepared, reviewed and approved by Mr. Jean Lafleur, M. Sc., P. Geo., Senior Technical Consultant to NEVADO, and Bertrand Brassard, M. Sc., P. Geo. Both individuals are Qualified Persons under NI 43-101 regulations.

The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

A map accompanying this release is available on the Marketwire website at the following address: http://media3.marketwire.com/docs/nevadomap.pdf.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • NEVADO
    Mr. Guy Girard
    President and CEO
    514-798-1290
    or
    NEVADO
    Bertrand Brassard
    Vice-President and Technical Director
    819-856-3811
    www.NEVADO.ca