Ivernia Inc.

Ivernia Inc.

January 20, 2011 10:45 ET

Ivernia Intersects New High-Grade Zinc-Lead-Silver Zone at the Prairie Downs Base Metal Project

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Ivernia Inc. ("Ivernia" or the "Company") (TSX:IVW) is pleased to announce the results of a phase one drill program ("Phase One") at the Prairie Downs Base Metal Project ("Prairie Downs" or the "Project"), located near Newman in Western Australia. Phase One intersected a new high-grade mineralized zone, at the Wolf prospect, where hole PDP379 returned 11.1% zinc ("Zn"), 8.0% lead ("Pb") and 73 grams of silver per tonne ("g/t Ag") over 8 meters ("m") within a broad low-grade Zn halo.

Phase One is now complete, with 3,258 m drilled in 30 reverse circulation ("RC") holes and all assay results received by the Company. The focus of Phase One was to test prospective target areas outside of a previously defined mineral resource, known as the Prairie Deposit (the "PD").

A total of six prospects were drill tested, with significant results returned from the Wolf prospect, located 2 kilometers ("km") northwest of the PD. Highlights from the Wolf prospect include:

  • 11.1% Zn, 8.0% Pb and 73 g/t Ag over 8 m in PDP379 from 97m downhole, within a broad zone of anomalous Zn which returned 0.9% Zn, 0.7% Pb over 162 m
  • Additional holes drilled 40 m up dip and along-strike of the high-grade intercept in hole PDP379 also hit high-grade Zn mineralization within a broader low-grade halo. This includes 4.5% Zn over 10 m along-strike to the southeast in hole PDP401 and 3.5% Zn over 6 m up dip to the southwest in hole PDP392
  • The high-grade mineralization in these holes is open to depth
  • 500 m along strike to the southeast, hole PDP386 intersected 3.3% Zn over 7 m within a low-grade zone which returned 0.8% Zn over 215 m
  • The broad low-grade Zn halo that surrounds the high-grade mineralization has been intersected over a 1 km strike length at the Wolf prospect

Bruce Hooper, Vice President of Corporate Development and Exploration for Ivernia commented: "We are very encouraged by the discovery of high-grade polymetallic mineralization in our first drill program at Prairie Downs. Although likely part of the same large mineralized system, the Wolf prospect is distinct from the Prairie Deposit in terms of grade, style of mineralization and alteration. We look forward to our next phase of drilling at Prairie Downs to continue to test this and other targets in the coming months."

A total of 16 RC holes were drilled at the Wolf prospect in Phase One; these results are discussed in more detail below and summarized in Table 1. A total of 14 RC holes were drilled in five other target areas, namely the Camp Lead, Prairie South, Prairie East, Prairie Chert and Hyena prospects. Although strong alteration was noted in a number of holes in these five areas, no anomalous results were reported and no further work is planned in these other areas at present.

As discussed in the Company's news release of October 18, 2010, a soil geochemical survey using a hand-held x-ray fluorescence device ("XRF") is continuing at Prairie Downs, with more than 11,000 samples analyzed to date. The primary focus of the XRF soil survey is to delineate base metal anomalies along the main trend and splays of the Prairie Downs Fault System, a regional-scale structure associated with base metal mineralization on the Project.

A new high-priority target area identified by surface work is the West Hyena prospect, located 7 km southeast of the Wolf prospect. At West Hyena, the XRF survey has identified a 3 km long Zn in soil anomaly. Work will continue with mapping, soil sampling and rock chip traverse sampling to define initial drill targets for the next drill program. 

Wolf prospect

The Wolf prospect has a minimum strike extent of 1 km, as defined by strong hematite-chlorite alteration, highly anomalous Zn in soil geochemistry, geophysics, and Phase One drilling.

Phase One includes 16 RC holes drilled over a 1,000 m by 400 m area at the Wolf prospect, including hole PDP379 at the northwestern end of the drill-tested area. As noted above, this hole intersected a broad zone of mineralization grading 0.9% Zn, 0.7% Pb and 9 g/t Ag over 162 m, starting at a depth of 12 m downhole, characterized by strong hematite-chlorite alteration within a silicified volcaniclastic sedimentary package. A high-grade zone with coarse sphalerite and galena returned 11.1% Zn, 8% Pb and 73 g/t Ag over 8 m, starting at a depth of 97 m downhole (Table 1). This hole is one in a fence of three holes (PDP377, PDP378 and PDP379) drilled to the southwest across the northwestern end of a strong geochemical and geophysical anomaly. Hole PDP378 was drilled 80 m southwest of hole PDP379 and returned 0.4% Zn over 70 m, starting at 69 m downhole. 

Three follow-up holes (PDP392, PDP400 and PDP401) were drilled around the high-grade intercept in hole PDP379; these holes were 40 m step-outs up dip and along strike in both directions. All three of the follow-up holes intersected the broad zone of low-grade Zn mineralization and two of the three returned high-grade intercepts, with 4.5% Zn over 10 m along-strike to the northeast in hole PDP401 and 3.5% Zn over 6 m up dip to the southwest in hole PDP392 (Table 1). 

Drilling 500 m to the southeast along the Prairie Downs Fault System, hole PDP386 also intersected high-grade mineralization within a broad lower-grade halo. Hole PDP386 returned 3.3% Zn over 7 m, within a zone averaging 0.8% Zn over 215 m that starts at 1 m downhole. A further 500 m to the southeast, near the southeastern end of the prospect, hole PDP387 returned 0.5 % Zn over 84 m.

The low-grade Zn mineralization at the Wolf prospect has now been intersected in both Ivernia's Phase One and previous drilling over a 100 m wide zone in a 1 km strike extent, from hole PDP400 in the northwest to hole PDP387 in the southeast, and is open in both directions and to depth. Drilling indicates the high grade mineralization is associated with vertical silicified structures in a large hydrothermal alteration system with increased potential at depth.

Follow-up drilling, including both RC and diamond drill holes, is planned to better understand the style of mineralization, test the strike extent and potential for broader zones of high-grade mineralization with depth as suggested by the results from Phase One drilling, and to complete downhole electromagnetic surveys to potentially target thicker sulphide zones.

Joint Venture

Under the terms of a joint venture agreement announced by the Company on June 14, 2010, a wholly-owned subsidiary of Ivernia may acquire up to 80% interest in the Project from ASX-listed Prairie Downs Metals Limited ("PDML").

The key features of Ivernia's Joint Venture arrangement with PDML include:

  • An option in favour of Ivernia to purchase a 60% interest in the Project for A$10 million in cash or its shares (at Ivernia's election) exercisable by Ivernia after expenditure by it of A$3 million in 18 months (subject to the condition that a minimum expenditure of A$2 million must be spent in the first 12 months) or A$5 million within 36 months.
  • Upon the purchase by Ivernia of a 60% interest in the Project, the formation of an unincorporated Joint Venture between it and PDML with respect to the Project.
  • The ability for Ivernia to increase its 60% interest to 80% by spending a further A$5 million on exploration within two years of earning the initial 60% interest.
  • If either party fails to contribute its proportion of costs, its interest in the joint venture will dilute proportionally until it is 2.5%, at which point the joint venture interest will convert to a free carried interest.
  • If the diluting party's interest falls to 5%, the other joint venture participant has a right to acquire that interest at fair market value.

Qualified Person and Quality Assurance/Quality Control

The technical information in this news release is based upon information compiled by Bruce Hooper, who is a member of the Australian Institute of Geologists. Mr. Hooper is an employee of Ivernia, a Qualified Person within the meaning of National Instrument 43-101 and has visited the Project. Mr. Hooper has verified the Phase One data, including the sampling, analytical and test data underlying the information and has consented to the inclusion in this news release of the matters discussed.

The drill holes reported in this release were drilled by RC methods. The majority of samples were collected dry; occasional deeper zones could not be kept dry and samples were collected and recorded as being wet. Samples were split by a riffle splitter on a cyclone, with both a 1 m sample and an approximately 5 kilogram split collected. Subsequently, 5 m composite samples were collected over the length of the holes by spearing.

All 1 m samples were tested by XRF at the drill sites; 1 m samples that returned over 0.1% Zn by XRF were submitted to Genalysis Ltd ("Genalysis") for laboratory analysis. Perth, Australia-based Genalysis is an ISO 9001:2000 and ISO 17025 accredited laboratory and member of the Intertek Group. Genalysis is independent of Ivernia. The 1 m samples submitted to Genalysis were prepared with a four acid digest and assayed by atomic absorption spectroscopy ("AAS") for ore grade analysis of copper, Pb, Zn and Ag. All 5 m composite samples were analyzed by Genalysis for 34 elements, including Zn, Pb, and Ag, with a four acid digestion and inductively coupled plasma optical emission spectrometry ("ICP-OES"), and for gold by fire assay/atomic absorption ("FA/AA") using a 25 gram aliquot. All 1 m and 5 m samples submitted to Genalysis were transported by road using couriers.

Quality Assurance/Quality Control procedures include the submission by Ivernia of systematic duplicate and blank samples within the sample batches submitted to Genalysis. In addition, Genalysis inserts its own blanks and standards into each sample batch. The results from these control samples indicate acceptable consistency of analysis. Selected representative pulverized sample duplicates are submitted for referee analyses.

About Ivernia:

Ivernia is an international base metals mining, exploration and development company. 

Ivernia trades under the symbol "IVW" on the Toronto Stock Exchange. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.

Table 1. Phase One drill results.
Drill Hole Prospect Easting Northing Dip Azimuth Total Depth From To Interval Zinc Lead Silver
            (m) (m) (m) (m) (%) (%) (g/t)
PDP 374 Wolf 731668 7375880 60 225 156 81 92 11 0.3 0.01 <5
PDP 375 Wolf 731716 7375930 60 225 150 80 127 47 0.4 0.03 <5
PDP 376 Wolf 731766 7375982 60 225 162 0 21 21 0.3 0.3 8
              55 162 107 0.8 0.2 6
            including 82 87 5 0.8 2.2 19
PDP 377 Wolf 731463 7376043 60 225 90 NSV          
PDP 378 Wolf 731521 7376094 60 225 150 69 139 70 0.4 0.03 <5
PDP 379 Wolf 731560 7376159 60 225 174 12 174 162 0.9 0.7 9
            including 97 105 8 11.1 8.0 73
PDP 380 Wolf 731650 7376073 60 225 90 26 45 19 0.1 0.8 22
              63 90 27 0.2 0.6 8
PDP 381 Wolf 731904 7375678 60 225 126 75 84 9 0.5 0.03 5
PDP 382 Wolf 731952 7375714 60 225 150 65 72 7 0.4 0.03 <5
PDP 383 Wolf 732003 7375756 60 225 162 20 33 13 0.4 0.03 <5
PDP 384 Camp Lead 732005 7376099 60 225 78 NSV          
PDP 385 Wolf 731863 7375856 60 225 138 16 40 24 0.4 0.03 <5
              59 65 6 0.7 0.04 <5
              90 102 12 0.5 0.1 <5
PDP 386 Wolf 731918 7375907 60 225 216 1 216 215 0.8 0.1 6
            including 198 205 7 3.3 0.1 7
PDP 387 Wolf 732239 7375599 60 225 150 1 85 84 0.5 0.03 <5
              92 99 7 0.3 0.04 <5
              107 121 14 0.5 0.04 <5
              140 150 10 0.5 0.04 <5
PDP 388 Prairie South 733064 7374750 60 225 150 NSV          
PDP 389 Hyena 739728 7372795 60 225 48 NSV          
PDP 390 Hyena 739722 7372746 60 225 96 NSV          
PDP 391 Hyena 739608 7372699 60 225 72 NSV          
PDP 392 Wolf 731538 7376133 60 225 120 5 120 115 1.1 0.2 15
            including 100 106 6 3.5 0.1 8
PDP 393 Prairie South 733172 7374514 60 225 102 NSV          
PDP 394 Prairie South 733339 7374439 60 225 102 NSV          
PDP 395 Prairie Chert 733499 7374290 60 225 114 NSV          
PDP 396 Prairie Chert 733618 7374246 60 225 78 NSV          
PDP 397 Prairie Chert 733585 7374207 60 225 96 NSV          
PDP 398 Prairie Chert 733696 7374189 60 225 102 NSV          
PDP 399 Prairie Chert 733661 7374152 60 225 102 NSV          
PDP 400 Wolf 731520 7376186 60 225 180 58 180 122 0.6 0.2 7
PDP 401 Wolf 731599 7376123 60 225 180 31 180 149 0.9 0.2 <5
            including 99 109 10 4.5 0.1 <5
PDP 402 Prairie South 733308 7374409 60 225 120 NSV          
PDP 403 Prairie East 733903 7374239 60 225 72 NSV          
Main intercept calculated using a 0.2 % Zn+Pb cut-off       
Higher grade intercept calculated using a 3 % Zn+Pb cut-off       
Intercepts contain up to 6m consecutive waste downhole       
NSV = no significant values          
Intervals presented in this table are drill indicated and not true thicknesses     

Note: there are figures and a table associated with his news release; they can be viewed at http://www.ivernia.com/news/pdf/1202011-1.pdf

Forward-Looking Statements

Certain statements contained in this release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: information with respect to future exploration, drilling and development plans concerning the Project, including expected timing for the next phase of drilling at Prairie Downs, any acquisition of an interest in the Project by Ivernia's subsidiary, , and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions, such as the duration of the suspension of the transportation of lead carbonate from the Magellan mine, the temporary shutdown in operations at the Magellan mine, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceeding and litigation, single mineral property, Resources and Ore Reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, refinancing risk, dependence on key personnel, constraints on cash flow and nature of mineral exploration and development. Additional factors and considerations are described in the Company's 2010 AIF under "Description of the Business of the Company – Doing Business in Australia" and elsewhere in this release and in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.

Contact Information

  • Ivernia Inc.
    Fiona Childe
    Vice President Investor Relations and Communications
    (416) 867-9298
    (416) 867-9384 (FAX)