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  • Nevada Iron Notches 40% Increase In Contained Iron For Nevada Deposit 0 comments
    Feb 21, 2013 8:04 PM

    Nevada Iron (ASX: NVI) has upgraded contained iron resources at its East Deposit in Nevada by 40% to 5.7 million tonnes, adding additional near surface mineralisation with low waste to ore ratios.

    The expanded resource, along with recent increases in the West Deposit and Section 5 resources that bring total contained resources at the Buena Vista Iron Project to 33.4Mt, in turn supports the company's plans to develop a Phase 1 project producing 2.4 million tonnes per annum of high grade iron concentrate.

    AMC Consultants had provided an updated Inferred Resource estimate for the East Deposit of 28.8Mt at 19.7% iron for 5.7Mt of contained iron including a higher grade core of 12Mt at 25.9% iron for 3.1Mt of contained iron. Both are a 10% iron cut-off.

    Further drilling is planned to upgrade the resource to the Indicated category, and to determine if there is potential to expand the resource given the limited drilling on the East Deposit to date.

    NVI is also planning to drill the exploration targets at South West, Iron Point and BV-D in the second half of the year to underpin further expansion of the project. These have an exploration target of between 183Mt and 250Mt with a grade range of 16% to 21% iron.

    Conversion of the exploration targets to resources has been successful to date for the East and Section 5 Deposits.

    The East Deposit is located about 1 kilometre east of the proposed West Deposit pit.

    Growing resources

    The company has recently increased the Indicated Resource at the Section 5 deposit by about 50% to 16.1 million tonnes at 23.1% for contained iron of 3.7 million tonnes at a 15% cut off, as well as a lower grade halo of 16 million tonnes at 12.2% for contained iron of 2 million tonnes at a 10% cut off.

    This resource also has exploration upside as it remains open at depth and along strike to the northwest.

    Updated resource estimates are also being prepared for the combined West and South Central (now called West) deposits, which currently host an Indicated Resource of 100.2 million tonnes at 20.3% for 20.3 million tonnes of contained iron and an Inferred Resource of 18 million tonnes at 21.3% for 3.7 million tonnes of contained iron respectively.

    NVI executive chairman Mick McMullen had previously said that subject to drilling, he expected to be able to define an extra 200 million tonnes of resource.

    The company expects an updated economic study to be undertaken soon that would be mostly at a Feasibility Study level apart from a few smaller areas at a Pre-Feasibility Study level.

    Buena Vista

    Buena Vista demonstrates the attributes for a successful iron ore development.

    These include a near surface resource, low waste to ore ratios (<0.5:1); Easy metallurgy with a coarse grind producing a high grade (67.5-69% Fe) and clean concentrate.

    Other beneficial factors include:
    - Access to existing nearby transport infrastructure and no requirement to build a rail line;
    - Access to existing ports with a port deal in place with the Port of West Sacramento for the storage and loading of 2.4 million tonnes per annum of concentrate;
    - Manageable capital cost, currently estimated at about US$300 million;
    - Stable and mining friendly jurisdiction; and
    - No government royalty imposts.


    Nevada Iron continues to demonstrate the ability to define resources at its Buena Vista Iron Project that are roughly at the same grade as its exploration targets.

    This lends further support to the likelihood that the company will be able to discover an extra 200 million tonnes of resource.

    This would take the company well over the 20 year mine life for phase one of the project and start to build the resource base to support phase two (doubling capacity).

    There are significant catalysts and milestones ahead for Nevada Iron to move the current valuation, which currently stands at A$0.165 per share, or a market cap of 17.9 million.

    The company recently raised $1.72 million in a placement.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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