Nevado Resources Corporation
TSX VENTURE : VDO
FRANKFURT : NSV

Nevado Resources Corporation

March 21, 2011 08:58 ET

NEVADO Drills Significant Oxides Over a 300 m Length at the Farrell-Taylor Occurrence From the La Blache Iron-Titanium-Vanadium Property (Quebec)

- 8 of 10 drill holes completed to date intersected massive oxides, covering approximate surface dimensions of 300 m by 200 m within a conductive corridor open to the east

- Massive oxides intersected vary from 33 m to 122 m, averaging 62.5 m in core length

MONTREAL, QUEBEC--(Marketwire - March 21, 2011) - NEVADO RESOURCES CORPORATION (TSX VENTURE:VDO) (the "Company" or "NEVADO") is pleased to update shareholders and stakeholders on the progress of the fully permitted, helicopter-supported 2011 diamond drilling campaign at the Company's wholly-owned La Blache Iron-Titanium-Vanadium Property (the "Property").

NEVADO has completed 10 drill holes for 2,710 m on the western most extension of the Farrell-Taylor Iron-Titanium-Vanadium Occurrence (refer to the appended drill hole location map), roughly 1 km west of the original showing where a surface grab sample from the minimum 25 m long and 5 m wide magnetite-ilmenite lens yielded 63.5% Fe2O3 (44.4% FeT), 18.7% TiO2 and 0.10% V2O5.

The following table summarizes key statistics from these first 10 drill holes from the western segment of the Farrell-Taylor Occurrence:

DDH # AZIMUTH ( /
DIP (°) /
LENGTH (m)
MASSIVE
 OXIDES (m)
(1)
ASSAY RESULTS
SECTION A-A' (1.27 km west of showing)
FT-10-01 180 / -70 / 223 33 64.5% Fe2O3(45.1% FeT)
17.7% TiO
2, 0.07% V2O5(2)
FT-10-02 180 / -70 / 192 23 Pending
FT-10-03 180 / -70 / 289 n/a(3) n/a
FT-10-06 000 / -55 / 205 20 Pending
FT-10-08 000 / -55 / 316 75 Pending
SECTION B-B' (1.15 km west of showing)
FT-10-04 180 / -70 / 291 81 Pending
FT-10-05 180 / -70 / 233 63 Pending
FT-10-07 000 / -55 / 307 50 Pending
FT-10-10 180 / -75 / 296 n/a n/a
SECTION C-C' (0.97 km west of showing
FT-10-09 000 / -55 / 359 122 Pending
 
Notes:
(1) Core lengths in metres of the massive oxide mineralization.
(2) Previously announced on February 3, 2011.
(3) n/a – not applicable, since drilled outside the limits of the oxide mineralization.

The interval grades in Iron, Titanium and Vanadium from drill hole FT-10-01 are similar to the magnetite-ilmenite surface channel and grab samples taken during the 2010 prospecting program on the Property from the new occurrences at Hervieux East Extension, Farrell-Taylor, Hervieux North Extension, Leduc-Farrell, E. Girard and Leduc as previously announced. The Farrell-Taylor Occurrence occurs 3 km east of the initial Hervieux East Extension Occurrence at Km 3 (in a clockwise direction) along the 45 km ellipse or La Blache Ring of Iron-Titanium-Vanadium.

Highlights from drilling to date are:

  • 8 of the 10 drill holes completed to date from the western segment intersected massive oxides, covering approximate surface dimensions of 300 m by 200 m within a conductive corridor, open to the east;
  • The oxides appear to be electromagnetically conductive which NEVADO believes it is due to the presence of metallic iron, since there is only trace sulphides in the core to explain the anomaly;
  • The conductive anomaly extends east-west for 2 km and has a folded eastern extremity (refer to the appended drill hole location map) and more than half of the eastern segment is covered by a 1 km by 1 km positive magnetic anomaly;
  • The massive oxides are visually distinct from the surrounding hard, less dense and mauve coloured host rocks; they consist of softer, dense mixed magnetite-ilmenite having metallic brown and dark grey to black colours;
  • Drill holes are averaging 270 metres in length instead of the planned 175 metres to 200 metres, since massive oxides have been intersected over greater core lengths and therefore to deeper levels from surface;
  • Core lengths of the massive oxides intersected vary from a current minimum of 33 m to a current maximum of 122 m, averaging 58.5 m in core length;
  • The massive oxides are surrounded by a zone of 5% to 25% disseminated oxides ranging from a few metres to more than 100 m in core length; 
  • NEVADO has already received full assays for the first hole with the oxides interval in FT-10-01 yielded 32.9 m grading 64.5% Fe2O3 (45.1% FeT or Total Iron), 17.7% TiO2 and 0.07% V2O5 (refer to the NEVADO news release dated February 2, 2011); and
  • Assay results of drill holes FT-10-02 and FT-10-04 to FT-10-09 are pending. Drill holes FT-10-03 and 10 were drilled outside the limits of the oxides mineralization and are not expected to grade in Iron, Titanium and Vanadium.

At this point in the diamond drilling campaign, NEVADO believes the massive oxides mineralization are part of a series of sub-vertical, inclined and sub-horizontal dykes, sills, veins and vein stockworks emplaced along multi-kilometric circular and elliptical configurations within the 35 km by 12 km La Blache Anorthositic Complex (refer to further explanations below on the Ring of Iron-Titanium-Vanadium). The drilling would test six of seven discovered occurrences to evaluate the potential size of each lens and outline National Instrument ("NI") 43-101 Inferred Mineral Resources.

NEVADO's 2011 Drilling Program

The 10,000 metres diamond drilling program is planned for six (6) of the seven (7) recently discovered disseminated, semi-massive and massive iron and titanium oxides (magnetite-ilmenite) lenses found during the summer-fall 2010 surface exploration program. The findings will be used to evaluate the potential size of each lens and outline National Instrument ("NI") 43-101 Inferred Mineral Resource.

In 2010, NEVADO discovered six (6) massive and one (1) disseminated magnetite-ilmenite lens. The massive magnetite-ilmenite lenses range from a range of 1 metre to 25 metres in width and 25 metres to 450 metres in length. Average grades for the massive lenses are in the range of 60% to 63% Fe2O3 (42.0% to 44.1% FeT), 16.5% to 19.5% TiO2 and 0.07% to 0.17% V2O5 as outlined in the following table:

OCCURRENCE NAME DISTANCE   AVERAGE GRADES SAMPLE TYPE
% Fe2O3 % FeT % TiO2 % V2O5
  MASSIVE MAGNETITE-ILMENITE LENSES
HERVIEUX EAST EXTENSION Km 01 63.1 44.1 19.4 0.112 2 channels,
32 channel grabs,
2 grabs
HERVIEUX NORTH EXTENSION 1 km NE of
Hervieux East
Extension
61.9 43.3 16.7 0.17 1 grab
FARRELL-TAYLOR Km 3 63.5 44.4 18.7 0.10 1 grab
LEDUC Km 18 63.5 44.4 17.4 0.11 4 grabs
LEDUC-FARRELL Km 21 60.0 42.0 19.6 0.07 25 channel
grab samples
E. GIRARD Km 27 61.9 43.3 16.5 0.11 21 channel grabs
  DISSEMINATED MAGNETITE-ILMENITE (5% TO 50%)
LAC LA BLACHE WEST Km 11 13.5 9.4 3.6 0.08 19 grabs
 
1 Distance is the distance measured from the Hervieux East Extension Occurrence on the 45 kilometres magnetite-ilmenite ellipse or Ring of Iron-Titanium-Vanadium
2 V2O5 average grade based on 32 channel grab and strictly grab samples only, no channel samples.

The occurrences are located along the La Blache Ring of Iron-Titanium-Vanadium (the "Ring"), a 45 kilometres long prospective target of iron, titanium and vanadium mineralization. The target Ring forms an 18 km by 10 m encompassing a number of massive magnetite-ilmenite lenses within the La Blache Anorthositic Complex located 160 km to 180 km north of Baie-Comeau (Quebec).

The Ring is located entirely within the La Blache #1 and #2 claim blocks of NEVADO's La Blache 646 claims / 355 km2 Property. It currently hosts nine (9) massive magnetite-ilmenite lenses of various lengths, depths and widths; two (2) of which are historical, discovered and explored in the 1950's and 1960's (Hervieux East and Hervieux West), and seven (7) are new discoveries made by NEVADO in 2010 (Hervieux East Extension, Hervieux Extension North, Farrell-Taylor, Lac La Blache West, Leduc, Leduc-Farrell and E. Girard Occurrences).

The Hervieux East and Hervieux West Ocurrences host mineral resources of 79 million tonnes grading 68.7% Fe2O3, 20.5% TiO2 and 0.36% V2O5 situated outside NEVADO's ground but along the Ring some 2 km and 5 km west-southwest of NEVADO's Hervieux East Extension Occurrence, and demonstrate the upside tonnage and grade potential of individual lenses on the Property. The mineral resources estimate is historical in nature and should not be relied upon. A Qualified Person has not done sufficient work to qualify the estimate as current and compliant National Instrument 43-101 Mineral Resources. There are no guarantees, even with future work, that the estimate will ever be converted to current and compliant mineral resources.

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 Iron-Titanium-Vanadium Property. Both Qualified Persons under NI 43-101 regulations.

Please visit our website at www.NEVADO.ca

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.

To view the Diamond drill location map of the 2011 diamond drilling campaign from the Farrell-Taylor Iron-Titanium-Vanadium Occurrence: http://media3.marketwire.com/docs/vdoa0321.pdf

Contact Information

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