Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

August 23, 2011 07:00 ET

NEVADO Drills 71 Metres Grading 65.2% Fe2O3 and 19.7% Tio2 (FT-10-25) at Farrell-Taylor Occurrence

- All assay results of Winter 2011 drill campaign now available

- La Blache #2 prospecting program finds 18 new discoveries of surface massive oxides mineralization at Company's Iron-Titanium-Vanadium Property

- Second phase of metallurgical testing underway: results expected by the end of Q3-2011

-NI 43-101 Mineral Resources estimates at Farrell-Taylor Occurrence to be completed in Q4-2011

- New 15,000 metres drilling campaign to begin in September

MONTREAL, QUEBEC--(Marketwire - Aug. 23, 2011) - NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO) (the "Company" or "NEVADO") today released the sixth batch of drill assay results from the Winter 2011 diamond drilling campaign on the Company's wholly-owned La Blache Iron-Titanium-Vanadium Property (the "Project").

The Company also announced new prospecting discoveries at La Blache #2 along with the expected timing of metallurgical testing results and the completion of Mineral Resources estimates for the Farrell-Taylor Occurrence oxides mineralization.

New assay results from the Winter 2011 drilling campaign

New assay results from the Winter 2011 helicopter-assisted drilling campaign at the Farrell-Taylor Occurrence include the following highlights:

  • 71.1 metres grading 65.2% Fe2O3 and 19.7% TiO2 (FT-10-25)
  • 94.9 metres grading 56.9% Fe2O3 and 16.9% TiO2 (FT-10-25)
  • 110.5 metres grading 44.4% Fe2O3 and 13.1% TiO2 (FT-10-29)
  • 66.5 metres grading 56.2% Fe2O3 and 17.2% TiO2 (FT-10-21)

Full results of the new assay intervals (FT-10-21 to FT-10-32) along with a complete record of other, previously reported intervals (FT-10-01 to FT-10-20) from the Winter 2011 drilling campaign are reported in the table accompanying this news release.

Overall summary of the drilling campaign and geophysical modelling

  • Massive and semi-massive to vein-type oxide mineralization extends 1.5 km in down-dip length, 350 m to 750 m across and averages 102 m in vertical width

Massive, semi-massive, vein-type and disseminated (>10%) oxides mineralization was intersected in 25 of 32 drill holes, while 7 drill holes were either drilled outside the zone on purpose to define the oxides corridor or were drilled too shallow and above the mineralization.

Based on the drilling and the concurrent geophysical modelling, the massive and semi-massive to vein-type oxide mineralization now extends 1.5 kilometres in down-dip length, 350 metre to 750 metres across and now averages 115 metres in vertical width based on drill core lengths representing a significant volume of mineralized material which is visually distinct from the surrounding hard, less dense and white to mauve coloured host anorthosites, since they consist of softer, dense mixed magnetite-ilmenite having metallic brown and dark grey to black colours. The massive oxides mineralization is believed to be part of a series of sub-vertical, inclined and sub-horizontal dykes, sills, veins, stockworks and disseminations emplaced along multi-kilometric circular and elliptical configurations within the 35 km by 12 km La Blache Anorthositic Complex, such as the La Blache Ring of Iron-Titanium-Vanadium.

All released drill hole and field sample assay results from 2010 and 2011 have shown similar grades for the massive and semi-massive to vein-type oxide Iron, Titanium and Vanadium over the entire 45 km long La Blache Ring of Iron-Titanium-Vanadium of which NEVADO owns directly more than 37 km. Grades in the massive oxides range in the 59% to 70% Fe2O3, 17% to 22% TiO2 and 0.05 to 0.15% V2O5. The higher grades are situated in the more massive oxides that are surrounded by anorthosites containing 5% to 25% disseminated and vein-type oxides ranging from a few metres to more than 100 m in core length which gave lower grades in the ranges of 15% to 45% Fe2O3, 5% to 15% TiO2 and 0.03% to 0.10% V2O5.

La Blache #2 Property prospecting program

The La Blache #2 Property prospecting program, ongoing since June 2011 and just completed, found 18 new discoveries of surface massive oxides mineralization. This included a 20 metre by 500 metre-long massive oxides occurrence. The field observations will be reported shortly once all the data has been compiled.

NEOMET metallurgical testing

NEOMET Technologies Inc. of Montreal, Quebec, has initiated the second phase of mini-plant metallurgical test work. Synthesized results are expected in September 2011 following a minimum 10-day testing run which will process about 400 kilograms of oxides to determine optimal Iron, Titanium and Vanadium recoveries, as well as other metals of commercial interest. This phase will build on the initial orientation metallurgical test work completed earlier this year.

NI 43-101 Mineral Resources Estimates

The 43-101 Mineral Resources estimates at the Farrell-Taylor Occurrence are expected to be complete in Q4.

Next stage drilling program

NEVADO's next diamond drilling program is slated to start in mid-September with a minimum 15,000 metres in drilling, split between in-fill drilling at the Farrell-Taylor Occurrence (7,500 metres) and delineation drilling (7,500 metres) at the other massive oxides occurrences at the La Blache #1 and #2 properties.

The technical information in this news release was prepared, reviewed and approved by Mr. Nabil Tarbouche, P. Geo., and Mr. Jean Lafleur, M.Sc., P. Geo., Project Geologist and Project Manager, respectively, of NEVADO's La Blache Property. Both individuals are Qualified Persons under NI 43-101 regulations.

NEVADO's website is being revamped and is expected to be available in the very near future.

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.

Winter 2011 Drill Campaign at the Farrell-Taylor Oxides Occurrence - Complete Table of Interval Assay Results

DDH # AZIMUTH/
DIP (degrees)/
LENGTH(m)
MASSIVE
OXIDES
(m)
(1)
%
Fe2o3
%
Fe(T)
%
TiO2
%
V2
O5(2)
SECTION A-A' (1,270 m west of Farrell-Taylor showing)
FT-10-01 180 / -70 / 223 33 64.5 45.1 17.7 0.07
116.2(3) 32.7 25.5 9.7 0.09
FT-10-02 180 / -70 / 192 23 58.9 41.1 17.5 0.12
37.9(3) 48.0 33.6 13.4 0.09
FT-10-03 180 / -70 / 289 n/a
FT-10-06 000 / -55 / 205 19.9 59.7 41.7 17.5 0.11
32.6(3) 41.6 29.1 12.0 0.08
FT-10-08 000 / -55 / 316 89.7 58.9 41.2 17.9 0.08
130.5(3) 44.9 31.4 13.6 0.06
SECTION B-B' (1,150 metres west of Farrell-Taylor showing)
FT-10-04 180 / -70 / 291 81 59.2 41.4 18.1 0.09
96.5(3) 50.2 35.1 15.4 0.08
FT-10-05 180 / -70 / 233 62.6 59.8 41.8 17.9 0.08
153.2(3) 36.0 25.2 10.8 0.06
FT-10-07 000 / -55 / 307 48.1 62.0 43.3 19.1 0.09
116.5(3) 37.1 25.9 11.3 0.06
FT-10-10 180 / -75 / 296 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
4.1 63.5 44.4 18.6 0.14
2.5 64.3 45.0 18.2 0.15
28.5 59.4 41.5 18.4 0.10
220.5(3) 29.8 20.9 8.8 0.06
FT-10-11 000 / -55 / 271.0 2.4(3) 23.0 16.1 5.9 0.09
FT-10-13 000 / -75 / 322.0 37.5 63.0 44.1 18.8 0.08
59.4(3) 44.5 31.2 13.3 0.07
FT-10-15 000 / -55 / 348.0 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
66.5(3) 56.2 39.3 17.2 0.04
FT-10-22 330 / -55 / 350.0 118.9(3) 16.1 11.3 4.8 0.02
FT-10-23 330 / -75 / 342.0 7.8 20.4 14.3 5.5 0.03
FT-10-24 330 / -75 / 344.0 12.1(3) 19.8 13.3 4.3 0.03
55.0 63.7 44.6 19.1 0.03
155.5(3) 38.0 26.6 11.3 0.03
FT-10-27 330 / -75 / 306.0 52.5 61.3 42.9 18.2 0.02
106.7(3) 39.2 27.5 11.4 0.01
FT-10-29 330 / -60 / 379.0 29.1(3) 16.8 11.7 5.0 0.02
56.3 62.7 43.9 18.4 0.04
110.5(3) 44.4 31.0 13.1 0.03
FT-10-31 330 / -60 / 235.0 n/a
SECTION E-E' (530 metres west of Farrell-Taylor Showing
FT-10-12 330 / -55 / 287.2 n/a
FT-10-14 330 / -55 / 320.0 1.2 63.5 44.4 17.6 0.06
5.9(3) 41.1 28.7 10.6 0.07
40.9(3) 15.3 10.7 4.68 0.04
FT-10-16 330 / -55 / 340.5 n/a
FT-10-18 330 / -55 / 297.0 n/a
SECTION F-F' (125 metres northwest of Farrell-Taylor Showing)
FT-10-26 000 / -75 / 251.0 n/a
FT-10-28 360 / -75 / 235.0 n/a
FT-10-30 330 / -75 / 235.0 3.3 63.1 44.1 21.2 0.05
7.6(3) 35.7 25.0 11.7 0.04
FT-10-32 330 / -75 / 196.0 n/a
SECTION G-G' (750 m west of Farrell-Taylor Showing)
FT-10-17 330 / -75 / 318.0 24.1 54.9 38.4 15.8 0.06
175.6(3) 23.4 16.3 6.6 0.04
FT-10-19 330 / -75 / 314.0 56.6 58.1 40.6 17.2 0.09
73.2(3) 50.6 35.4 14.9 0.08
FT-10-20 330 / -75 / 322.0 53.1 62.8 44.0 17.8 0.09
157.0(3) 34.3 24.0 9.8 0.06
FT-10-25 330 / -75 / 378.7 71.1 65.2 45.6 19.7 0.04
94.9(3) 56.9 39.8 16.9 0.04
Notes:
(1) Core lengths in metres of massive oxides.
(2) V2O5 assay results reported here used the ME-MS81 preparation (Lithium Borate Fusion) and assay method.
(3) Wider intervals include disseminated (>10%), vein and semi-massive oxides mineralization surrounding the massive oxides.
n/a – purposely drilled outside the limits of the known mineralization to define the oxides corridor or drilled above the oxides

The drilling campaign comprised 32 drill holes totalling 9,618 metres.

The Vanadium assay results are known to be understated, as reported in the June 22, 2011 NEVADO news release. The new Vanadium assay results using the ME-MS61 Four Acids Near-Total Digestion sample preparation (instead of the Lithium Borate Fusion) and ICP-MS / ICP-AES Analytical Method will be reported at a later date.

Three sectors defined by drilling campaign at the Farrell-Taylor Oxides Occurrence

The Winter 2011 drilling campaign defined three sectors, which are summarized as follows:

Farrell-Taylor Occurrence West Massive Sector:

  • 24 diamond drill holes
  • 3 outside the known limits of the oxide mineralization
  • Intersected semi-massive, vein-type and disseminated oxide mineralization in 21 holes
  • Intersected massive oxide mineralization in 16 holes
  • Massive oxide mineralization averages 55 metres wide
  • Semi-massive, vein-type and disseminated oxide mineralization averages 60 metres wide

Farrell-Taylor Occurrence North Central Sector:

  • 4 diamond drill holes
  • 3 holes drilled above massive oxide mineralization
  • 1 hole intersected nearly 150 metres of semi-massive, vein-type and disseminated oxide mineralization

East Dyke Sector:

  • 4 diamond drill holes
  • 2 holes intersected dyke (up to 7.7 metres wide) with main oxide mineralization likely at depth

Diamond drill core Quality Assurance / Quality Control ("QA/QC")

The core from diamond drill holes is transported by helicopter from the drill sites to the NEVADO core logging facility located 25 km to the west of the Farrell-Taylor Showing. There, geologists and technicians from PJLEXPL Inc., a full-service exploration contractor from Laval, Quebec under the supervision of Jean Lafleur, M.Sc., P. Geo., the La Blache Property Project Manager, log, sample tag and half-split the core in 0.25 m to 1.0 m lengths using a hydraulic splitter. The individual sampled intervals of half-split core are 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 are inserted in the sample stream on-site at every 20 core samples.

Once at the assay laboratory, samples are inventoried using the bar code tracking system, dried, finely crushed to 70% at <2 mm, pulverized and 85% split to <75 μm, with a further riffle split of a 250 gram fraction for the various assays using the Whole Rock Package (ICP-AES) for Al2O3, BaO, CaO, Cr2O3, Fe2O3, K2O, MgO, MnO, Na2O, P2O5, SiO2, SrO and TiO2; 38 Element Fusion ICP-MS 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 ("LOI") at 1000°C; and Total Calculation for ICP-06.

Contact Information

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