Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

November 01, 2011 07:00 ET

NEVADO Announces Positive Metallurgical Test Work on NEOMET Technologies Stage 2 Mini-Plant Campaign From the Farrell-Taylor Oxides Mineralization of the La Blache Iron-Titanium-Vanadium Project

- NEOMET advances Stage 2 Mini-Plant campaign under a continuous operation scenario comprising the leach and Titanium hydrolysis with Iron oxidation and Vanadium extraction

- Titanium is easily and effectively recovered as TiO2 (Titanium dioxide) with an initial purity exceeding 98% and easily upgraded to a product of greater than 99.9% purity in a second step

- NEVADO is on track to completing NI 43-101 Mineral Resources and Preliminary Economic Assessment study at Farrell-Taylor once the mini-pilot plant campaign is completed by year-end

MONTREAL, QUEBEC--(Marketwire - Nov. 1, 2011) - NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO)(FRANKFURT:NSV) (the "Company" or "NEVADO") is pleased to announce metallurgical test work results on NEOMET Technologies Inc. ("NEOMET") ongoing Stage 2 mini-plant campaign from the Farrell-Taylor oxides mineralization of NEVADO's wholly owned La Blache Iron-Titanium-Vanadium Project (the "Project") near Baie Comeau, Quebec.

The Stage 1 metallurgical testing (refer to the Company news release dated April 18, 2011) of the NEVADO oxides mineralization by NEOMET's patented NEOMET Process had indicated greater than 90% recovery of Iron and greater than 95% recovery of Vanadium from the oxide mineralization into a final high purity product. Ammonium Metavanadate ("AMV"), the precursor to V2O5 (Vanadium pentoxide), was recovered from the leach solution at a purity of 99.9%. NEOMET had also demonstrated that Titanium could be 100% recovered from the leach solution into a TiO2 (titanium dioxide) product suitable for further processing to pigment grade TiO2.

The heart of the NEVADO's planned metallurgy campaign is NEOMET's unique and patented Acid Recovery and Regeneration Process, which based on third party evaluations, operates at a fraction of the cost compared to more conventional and energy consuming technologies such as pyrohydrolysis, especially when the latter is coupled with solvent extraction for Iron and/or Titanium. Simultaneously, the NEOMET Process produces higher grade hematite of greater than 99% purity (Iron oxide), which is a premium product suitable for the pigment market or for processing into higher quality steels.

Highlights to date of the Stage 2 mini-plant campaign are summarized as follow:

  • The mini-plant circuit was conceived and set up as a continuous operation process;
  • High extractions of greater than 90% Titanium and Vanadium were achieved;
  • Titanium was easily and effectively precipitated directly from the leach liquor as TiO2 of purity greater than 98%;
  • TiO2 was easily upgraded to a product of greater than 99.9% purity in a second step, offering the option of marketing two product grades;
  • High purity Vanadium (greater than 99.9% pure as ammonium metavanadate or AMV) was also recovered;
  • The dissolution of the minor elements present in oxides mineralization (Aluminum, Magnesium, Calcium and Manganese) are not a cause for concern in the NEOMET process and may be opportunities for value‐added by‐products;

Dr. Bryn Harris, Ph.D., President and Chief Science Officer of NEOMET added "We have now d shown the ability of the NEOMET patented process to treat the NEVADO oxides mineralization, and to generate a suite, rather just one, of valuable products to take to market. Further process optimization for Iron and Vanadium specific to NEVADO's oxide minerals are ongoing at the present time as part of the Stage 2 mini-pilot plant campaign scheduled to be completed before year-end. With a small amount of additional work we could potentially proceed to the running of a second, more integrated circuit, such as the one tonne per day pilot plant at NEOMET's facilities during 2012."

Dr. Harris also stated "Leaching is a simple, rapid and effective process method, requiring no heat input, and able to operate at high solids loading, all of which minimize both the capital and operating costs of the leaching circuit. Sufficient information has now generated to allow for a rigorous process model to be compiled, which will enable both capital and operating costs to be estimated at the Preliminary Economic Assessment level."

About Nevado Resources Corporation

NEVADO is a Canadian junior resource company trading under the symbols VDO on the TSX Venture Exchange and BIZ on the Frankfurt Stock Exchange. NEVADO owns 1,906 mineral claims or an equivalent of 995 km2 in the Baie-Comeau, Fermont and Eastern Townships regions of Quebec. The Company is currently focused on advancing the La Blache Iron-Titanium-Vanadium Project in the Baie-Comeau region towards National Instrument 43-101 mineral resources and development.

About NEOMET Technologies

NEOMET develops, owns and markets high-performance proprietary metals processes and technologies and owns a comprehensive portfolio of process and industrial design patents and revolutionary, commercially sustainable systems for recovering high grade value metals from crushed ore to compound concentrates and refractory deposits, and all without any detriment to the environment. Please visit the NEOMET website at www.neomet.com.

The technical information in this news release was prepared by Mr. Jean Lafleur, M.Sc., P. Geo., Project Manager of NEVADO's La Blache Project, and a Qualified Person under NI 43-101 regulations.

Please visit the NEVADO website at www.nevadoresources.com

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. 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.

Contact Information