Novicourt Inc.
TSX : NOV

Novicourt Inc.

June 01, 2005 16:15 ET

Novicourt Provides Additional Information About Its Carajas, Brazil JV with NorandaFalconbridge

TORONTO, ONTARIO--(CCNMatthews - June 1, 2005) - Novicourt Inc. ("Novicourt") (TSX:NOV) is pleased to report that exploration activities have commenced on its previously announced (March 22, 2005) Carajas Property JV with Noranda Exploracao Mineral Ltda. Inc. ("NorandaFalconbridge").

Novicourt and NorandaFalconbridge have entered into an exploration option agreement which will allow Novicourt to earn a 30% JV interest in any properties contained within the large joint venture area ("Canaa dos Carajas JV area") totaling 3,216km(2) located in the southwest area of the Carajas region of northern Brazil.

Within the Canaa dos Carajas JV area are eight separate mineral properties covering a combined area of 578.1km(2) which are either permitted; have permit extensions in process; or represent priority mineral rights applications. Applications have also been made for a further 13 mineral concessions.

The Carajas Mineral Province in Northern Brazil is well known for its large reserves and production of iron ore, manganese, nickel, bauxite and more recently copper. Within the last ten years, it has seen the discovery and development of world-class copper-gold deposits classified as Iron Oxide Copper Gold type (IOCG). In mid-2004 CVRD completed development of its first world scale copper mine called Sossego and more recently Codelco has announced its first discovery within the region.



Reported IOCG resources within the Carajas include:

Salobo 946 million tonnes of 0.75% copper, 0.46 g/t gold
Cristalino 270 million tonnes of 0.7% copper, 0.12 g/t gold
Sossego 450 million tonnes of 1.0% copper, 0.3 g/t gold
Igarape Bahia/Alemao 219 million tonnes of 1.4% copper, 0.86 g/t gold


In addition to the demonstrated prospectivity of the Carajas region for copper and gold, the area enjoys favorable road and rail networks and regional hydroelectric developments. A hospitable climate allows year-round exploration and there is ready access to labor from the rapidly growing communities at Parauapebas and Canaa dos Carajas.

Mr. George Jones, Novicourt's President stated, "Participation in the Canaa dos Carajas Project represents a significant opportunity for Novicourt to partner with NorandaFalconbridge to explore a highly attractive mineral region which has demonstrated potential to host IOCG resources."

To earn a 30% interest in the project, Novicourt must pay NorandaFalconbridge US$200,000 within 30 days of closing and contribute exploration funds totaling US$4.8 Million (US$1.2 million of which are firm commitments of Novicourt) before March 2008, as follows:

- US$200,000 within 30 days of the Agreement

- US$1,000,000 on or before March 15, 2006

- US$1,500,000 on or before March 15, 2007

- US$1,500,000 on or before March 15, 2008

Noranda has no bump-up rights after the completion of the Earn-In phase and formation of the JV Company. NorandaFalconbridge will be the operator of the project. Novicourt will participate in the Technical Committee overseeing the exploration program.

Previous regional exploration by NorandaFalconbridge has been comprised of airborne geophysics, ground geophysics and geochemistry, geological mapping and limited drilling of a single anomaly at a prospect named Pedra Branca located within the Canaa SW property. Preliminary drilling at Pedra Branca by NorandaFalconbridge intercepted anomalous copper and gold at shallow depths as summarized in Table 1. Highlights of that drilling included Hole NCN-03/01 (24.77 meters grading 1.94% copper, 0.65 g/t gold, including 8.67 meters grading 4.47% copper, 1.60 g/t gold) and Hole NCN-03/04 ( 26.77 meters grading 0.90% copper, 0.17 g/t gold, including 5.3 meters grading 3.05% copper and 0.44 g/t gold).

Novicourt and NorandaFalconbridge have agreed to a US$1.5 Million exploration program over the next 12 months; the principal elements of which will include:

- A 3,400 line kilometer helicopter VTEM geophysical survey;

- Additional airborne magnetic and radiometric geophysics, ground TEM surveys, and geochemical surveys;

- Approximately 4,000 meters of diamond drilling on priority targets.

The initial focus will be on the Canaa, Nova Esperanca and Pium properties within the Canaa dos Carajas JV area. The VTEM survey is planned to be completed by August, 2005, after which additional ground geophysics will continue and priority drill targets will be selected.

The analytical results cited in this news release are from previously unreported data provided by NorandaFalconbridge. Half-sawn drill core samples were submitted to ALS Chemex Laboratories (ISO 9001:2000) for analysis at their Vancouver facility. A combination of Fire Assay with AA or ICP-AES, and ICP-AES methods were used to determine Au and Cu concentrations. Data quality was assured by the routine analysis of blank and standard samples during the program. Analytical error was determined to be +/- 0.03 g/t for Au and +/- 0.01% for Cu. Christopher Wright (P.Geo.), of NorandaFalconbridge, is the qualified person according to NI 43-101 and is responsible for the technical information in this news release.

This news release contains "forward-looking statements". These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements.

NOTE: Table 1: NorandaFalconbridge Preliminary Drilling Summary - Pedra Branca Prospect is available on CCNMatthews' website at: http://www2.ccnmatthews.com/database/fax/2000/drillsummary.pdf

NOTE: A map is also available on CCNMatthews' website at:
http://www2.ccnmatthews.com/database/fax/2000/map601.doc


Contact Information

  • Novicourt Inc.
    David Sandison
    Vice President
    416 982-7023