Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

December 20, 2011 07:00 ET

NEVADO Drill Core Samples From the Farrell-Taylor Occurrence of the Winter 2011 Drilling Campaign Now Re-Assay Higher Vanadium Grades

- 27 of 32 drill holes re-assayed to date average more than 6 times more Vanadium using a better sample preparation protocol than was previously used

MONTREAL, QUEBEC--(Marketwire - Dec. 20, 2011) - NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO)(FRANKFURT:NSV)(the "Company" or "NEVADO") is pleased to issue new Vanadium assay results from 27 of 32 diamond drill holes completed during the winter 2011 drilling campaign on the Farrell-Taylor Occurrence at the Company's wholly-owned La Blache Iron-Titanium-Vanadium Project (the "Project") north of Baie-Comeau (Quebec). New but selected Vanadium assay interval results as either V2O5 or Vanadium Pentoxide or Vanadium Pentoxide Equivalent or V2O5EQ are outlined in the table below for each section drilled. The complete-to-date Vanadium assay interval results are appended.

DDH # AZIMUTH ( /
DIP (°) /
LENGTH (m)
MASSIVE
OXIDES
(m)
(1)
%
Fe
2O3
%
Fe
T
%
TiO
2
%
V
2O5(2)
(ME-MS81)
%
V
2O5(3)
(ME-MS61)
%
V
2O5EQ(4)
SECTION A-A' (1,270 metres west of Farrell-Taylor Showing)
FT-10-06 000/-55/205.0 19.9 59.7 41.7 17.5 0.11 0.35 0.91
32.6(5) 41.6 29.1 12.0 0.08 0.17 0.56
SECTION B-B' (1,150 metres west of Farrell-Taylor Showing)
FT-10-05 180/-70/233.0 62.6 59.8 41.8 17.9 0.08 0.37 0.94
153.2(5) 36.0 25.2 10.8 0.06 0.19 0.53
SECTION C-C' (970 metres west of Farrell-Taylor Showing)
FT-10-13 000/-75/322.0 37.5 63.0 44.1 18.8 0.08 0.37 0.97
59.4(5) 44.5 31.2 13.3 0.07 0.26 0.68
SECTION D-D' (675 metres west of Farrell-Taylor Showing)
FT-10-22 330/-55/350.0 118.9(5) 16.1 11.3 4.8 0.02 0.02 0.17
FT-10-24 330/-75/344.0 55.0 63.7 44.6 19.1 0.03 0.38 0.99
155.5(5) 38.0 26.6 11.3 0.03 0.17 0.53
SECTION E-E' (530 metres west of Farrell-Taylor Showing)
FT-10-14 330/-55/320.0 1.2 63.5 44.4 17.6 0.06 0.35 0.94
5.9(5) 41.1 28.7 10.6 0.07 0.16 0.54
40.9(5) 15.3 10.7 4.68 0.04 0.04 0.19
SECTION F-F' (125 metres northwest of Farrell-Taylor Showing)
FT-10-30 330/-75/235.0 3.3 63.1 44.1 21.2 0.05 0.39 1.00
7.6(5) 35.7 25.0 11.7 0.04 0.20 0.55
SECTION G-G' (750 metres west of Farrell-Taylor Showing)
FT-10-25 330/-75/378.7 71.1 65.2 45.6 19.7 0.04 0.40 1.02
94.9(5) 56.9 39.8 16.9 0.04 0.33 0.87
Notes:
(1) Core lengths in metres of massive oxides.
(2) V2O5 assay results reported used the Lithium Borate Fusion Sample Preparation Protocol and MS81 Analytical Method.
(3) V2O5 assay results reported used the ME-MS61 Four Acids Near-Total Digestion Sample Preparation Protocol and ICP-MS / ICP-AES Analytical Method.
(4)%V2O5EQ =%V2O5 (from ME-MS61) + (0.011 x%Fe) + (0.006 x%TiO2), based on an Iron price of US$182 per tonne, a Titanium price of US$90 per tonne and a Vanadium price of US$14,000 per tonne as per Q2/2011.
(5) Wider intervals include disseminated (>10%), vein and semi-massive oxides mineralization surrounding the massive oxides.

The re-assaying was primarily done after Quality Assurance and Quality Control ("QA/QC") work on drill cores by Neomet Technologies Inc. ("NEOMET") which indicated the possibility of a significant upgrade in Vanadium assay results from the massive oxides mineralization (refer to the Company news release dated June 22, 2011). The QA/QC work was conducted on hole FT-10-09 and revealed individual and interval assay grades almost four times higher than reported by NEVADO. A 27.6 metre interval from drill hole FT-10-09 had originally yielded 0.10% V2O5 (using the Lithium Borate Fusion Sample Preparation Protocol and MS81 Analytical Method), whereas control testing using a different sample preparation protocol and assay method (using the Four Acid Near-Total Digestion Preparation Protocol and MS61 Assay Method) found 0.37% V2O5 in the same interval.

Michael Curtis, President and CEO of NEVADO, stated "Now that we have confirmed a significant six times upgrade in Vanadium concentration of the oxide mineralization at Farrell-Taylor this should potentially have an impact on any future mineral resources and development scenarios at the La Blache Project."

"Vanadium assay grades of the massive oxides range above 0.35% V2O5, which is comparable to the mineral resources and mineral reserves grades of a number of well known worldwide Vanadium deposits and occurrences. These include American Vanadium's Nevada-based Gibellini Vanadium Project with NI 43-101 compliant mineral reserves (of 18.154 million tonnes) at 0.30% V2O5 (www.americanvanadium.com); and Apella Resources Quebec-based Iron-T Vanadium-Titanium-Iron Project (near Chibougamau) with NI 43-101 compliant Inferred mineral resources (of 14.376 million tonnes) grading 0.42% V2O5 (www.apellaresources.com)."

NEVADO aims having a National Instrument 43-101 compliant technical report on the mineral resources of the Farrell-Taylor Occurrence in the near term.

Farrell-Taylor Occurrence diamond drilling, core logging and sampling, sample preparation and assay protocols and QA/QC process

The drill cores from BTW-core sized diamond drill holes were transported by helicopter from the drill sites to the NEVADO core logging facility located some 25 km to the west of the Farrell-Taylor drill sites. There, geologists and technicians, under the supervision of Jean Lafleur, M.Sc., P. Geo., the La Blache Property Project Manager, logged, sample tagged and half-splitted core in 0.25 metre to 1.5 metre lengths using a hydraulic splitter. The individual sampled intervals of half-split core were then inserted in tagged plastic bags, sealed and inserted in large nylon bags readied for shipment to the ALS Laboratory Group facility in Val-d'Or (Quebec). Blanks and duplicates were inserted in the sample stream on-site at every 20 core samples.

Once at the assay laboratory, samples were inventoried using the bar code tracking system, dried, finely crushed to 70% at <2 mm, pulverized split to 85% at <75 μm, and a 250 gram fraction was riffle-split for the various assays using the Whole Rock Package (the ICP-AES Analytical Method) for Al2O3, BaO, CaO, Cr2O3, Fe2O3, K2O, MgO, MnO, Na2O, P2O5, SiO2, SrO and TiO2; 38 Element Fusion ICP-MS (MS81 Analytical Method using a Lithium Borate Fusion of samples prior to acid dissolution and ICP-MS Analysis) for Ag, Ba, Ce, Co, Cr, Cs, Cu, Dy, Er, Eu, Ga, Gd, Hf, Ho, La, Lu, Mo, Nb, Nd, Ni, Pb, Pr, Rb, Sm, Sn, Sr, Ta, Tb, Th, Tl, Tm, U, V, W, Y, Yb, Zn and Zr; Loss on Ignition at 1000°C; and the ICP-06 Package for Total Calculation.

Part of the Quality Control and Quality Assurance program consisted of taking one massive oxide interval and re-assaying using a different preparation and analytical protocol to ensure precision and accuracy of assays. The preparation protocol used here consisted of the Four Acids Near-Total Digestion to quantitatively dissolve all elements in each sample, then assayed using the MS61 Analytical Method.

About Nevado Resources Corporation

NEVADO is a Canadian junior resource company trading under the symbols VDO on the TSX Venture Exchange and NSV 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.

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

Complete-to-date Vanadium assay interval results as V2O5 or Vanadium Pentoxide or Vanadium Pentoxide Equivalent or V2O5EQ are outlined in the table below for each section drilled (n/a – mineralization not significant)

DDH # AZIMUTH ( /
DIP (°) /
LENGTH (m)
MASSIVE
OXIDES
(m)
(1)
%
Fe
2O3
%
Fe
T
%
TiO
2
%
V
2O5(2)
(ME-MS81)
%
V
2O5(3)
(ME-MS61)
%
V
2O5EQ(4)
SECTION A-A' (1,270 metres west of Farrell-Taylor Showing)
FT-10-01 180 / -70 / 223 33.0 64.5 45.1 17.7 0.07 pending pending
116.2(5) 32.7 25.5 9.7 0.09 pending pending
FT-10-02 180 / -70 / 192 23.0 58.9 41.1 17.5 0.12 pending pending
37.9(5) 48.0 33.6 13.4 0.09 pending pending
FT-10-03 180 / -70 / 289 n/a n/a n/a
FT-10-06 000 / -55 / 205 19.9 59.7 41.7 17.5 0.11 0.35 0.91
32.6(5) 41.6 29.1 12.0 0.08 0.17 0.56
FT-10-08 000 / -55 / 316 89.7 58.9 41.2 17.9 0.08 pending pending
130.5(5) 44.9 31.4 13.6 0.06 pending pending
SECTION B-B' (1,150 metres west of Farrell-Taylor Showing)
FT-10-04 180 / -70 / 291 81.0 59.2 41.4 18.1 0.09 0.37 0.93
96.5(5) 50.2 35.1 15.4 0.08 0.33 0.81
FT-10-05 180 / -70 / 233 62.6 59.8 41.8 17.9 0.08 0.37 0.94
153.2(5) 36.0 25.2 10.8 0.06 0.19 0.53
FT-10-07 000 / -55 / 307 48.1 62.0 43.3 19.1 0.09 0.37 0.96
116.5(5) 37.1 25.9 11.3 0.06 0.18 0.53
FT-10-10 180 / -75 / 296 n/a n/a n/a
SECTION C-C' (970 metres west of Farrell-Taylor Showing)
FT-10-09 000 / -55 / 359 10.2 63.4 44.3 18.9 0.09 0.37 0.97
4.1 63.5 44.4 18.6 0.14 0.37 0.97
2.5 64.3 45.0 18.2 0.15 0.37 0.97
28.5 59.4 41.5 18.4 0.10 0.37 0.94
220.5(5) 29.8 20.9 8.8 0.06 0.12 0.40
FT-10-11 000 / -55 / 271.0 2.4(5) 23.0 16.1 5.9 0.09 0.11 0.32
FT-10-13 000 / -75 / 322.0 37.5 63.0 44.1 18.8 0.08 0.37 0.97
59.4(5) 44.5 31.2 13.3 0.07 0.26 0.68
FT-10-15 000 / -55 / 348.0 n/a n/a n/a
SECTION D-D' (675 metres west of Farrell-Taylor Showing)
FT-10-21 330 / -75 / 375.0 47.0 63.6 44.5 19.8 0.03 0.36 0.97
66.5(5) 56.2 39.3 17.2 0.04 0.29 0.83
FT-10-22 330 / -55 / 350.0 118.9(5) 16.1 11.3 4.8 0.02 0.02 0.17
FT-10-23 330 / -75 / 342.0 7.8 20.4 14.3 5.5 0.03 0.05 0.24
FT-10-24 330 / -75 / 344.0 55.0 63.7 44.6 19.1 0.03 0.38 0.99
155.5(5) 38.0 26.6 11.3 0.03 0.17 0.53
FT-10-27 330 / -75 / 306.0 52.5 61.3 42.9 18.2 0.02 0.38 0.96
106.7(5) 39.2 27.5 11.4 0.01 0.19 0.56
FT-10-29 330 / -60 / 379.0 56.3 62.7 43.9 18.4 0.04 0.36 0.95
110.5(5) 44.4 31.0 13.1 0.03 0.21 0.63
FT-10-31 330 / -60 / 235.0 n/a n/a n/a
SECTION E-E' (530 metres west of Farrell-Taylor Showing)
FT-10-12 330 / -55 / 287.2 n/a n/a n/a
FT-10-14 330 / -55 / 320.0 1.2 63.5 44.4 17.6 0.06 0.35 0.94
5.9(5) 41.1 28.7 10.6 0.07 0.16 0.54
40.9(5) 15.3 10.7 4.68 0.04 0.04 0.19
FT-10-16 330 / -55 / 340.5 n/a n/a n/a
FT-10-18 330 / -55 / 297.0 n/a n/a n/a
SECTION F-F' (125 metres northwest of Farrell-Taylor Showing)
FT-10-26 000 / -75 / 251.0 n/a n/a n/a
FT-10-28 360 / -75 / 235.0 n/a n/a n/a
FT-10-30 330 / -75 / 235.0 3.3 63.1 44.1 21.2 0.05 0.39 1.00
7.6(5) 35.7 25.0 11.7 0.04 0.20 0.55
FT-10-32 330 / -75 / 196.0 n/a n/a n/a
SECTION G-G' (750 metres west of Farrell-Taylor Showing)
FT-10-17 330 / -75 / 318.0 24.1 54.9 38.4 15.8 0.06 pending pending
175.6(5) 23.4 16.3 6.6 0.04 pending pending
FT-10-19 330 / -75 / 314.0 56.6 58.1 40.6 17.2 0.09 0.37 0.92
73.2(5) 50.6 35.4 14.9 0.08 0.32 0.80
FT-10-20 330 / -75 / 322.0 53.1 62.8 44.0 17.8 0.09 pending pending
157.0(5) 34.3 24.0 9.8 0.06 pending pending
FT-10-25 330 / -75 / 378.7 71.1 65.2 45.6 19.7 0.04 0.40 1.02
94.9(5) 56.9 39.8 16.9 0.04 0.33 0.87
Notes:
(1) Core lengths in metres of massive oxides.
(2) V2O5 assay results reported used the Lithium Borate Fusion Sample Preparation Protocol and MS81 Analytical Method.
(3) V2O5 assay results reported used the ME-MS61 Four Acids Near-Total Digestion Sample Preparation Protocol and ICP-MS / ICP-AES Analytical Method.
(4)%V2O5EQ =%V2O5 (from ME-MS61) + (0.011 x%Fe) + (0.006 x%TiO2), based on an Iron price of US$182 per tonne, a Titanium price of US$90 per tonne and a Vanadium price of US$14,000 per tonne as per Q2/2011.
(5) Wider intervals include disseminated (>10%), vein and semi-massive oxides mineralization surrounding the massive oxides.

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

  • Mr. Michael Curtis
    President and CEO
    (514) 793-1915