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Nevada Iron Continues To Extend High Grade Iron Mineralisation At Buena Vista

Nevada Iron's (ASX: NVI) drilling program continues to confirm extensions to the higher grade magnetite mineralisation along the Section 5 magnetic anomaly at the Buena Vista Iron Project in Nevada.

This would seem to enhance the potential of the zone to be mined early in the project's life.

A point perhaps not entirely grasped is that the Buena Vista mineralisation has proven to be significantly different to other magnetite mineralisation.

That is, the iron readily upgrades without the need for expensive fine grinding like a BIF magnetite, to produce a high quality clean concentrate grading 67.5-69% Fe at lower cost.

One hole encountered an iron interval of 35.0 metres at 30.2% total Fe from 22.9 metres. This would tend to confirm the lateral extension of the shallow, higher grade magnetite mineralisation.

Assays have been received for drill holes over an additional 200 metres in length of the Section 5 magnetic anomaly.

Other highlights from drilling included 30.6 metres at 28% iron from 119.8 metres.

An extensive 16,655 metre drilling program to test the Section 5 and West Extension magnetic anomalies has recently been completed, with Section 5 showing the most potential to delineate additional shallow higher grade resources.

Very thick magnetite mineralisation was discovered in an oval shaped area of some 600 metres east to west by 50 to 400 metres north to south and to depths of 200 metres, where several holes terminated in strong mineralisation.

The prominent Section 5 magnetic anomaly was drilled with 47 reverse circulation and 12 diamond holes. Assays have been received and reported for just nine of the 47 holes drilled.

Section 5 is shaping up to be a major deposit, with initial indications from recent drilling suggesting the mineralisation is much larger than the defined exploration target of 12 to 18 million tonnes at 18 to 26% total iron.

The delineation of higher grade exploration targets and prospects is expected to lead to a revision of the existing mine plan and definition of a larger project.

Highlighting the size potential of the Buena Vista Project, currently identified exploration targets provide for an additional 195 to 268 million tonnes of exploration potential.

A large number of assays are still pending for Section 5 and further results from the drill program are expected in the near term.

Optimisation plan

Buena Vista has an Indicated Resource on the West deposit of 100.2 million tonnes at 20.3% total iron, based on true density values.

In addition to the West deposit, the broader Buena Vista Project area contains other magnetic JORC Resources, totalling 37 million tonnes at 21.4% iron for 7.7 million tonnes of contained iron.

Nevada Iron is undertaking a review to assess increasing the scope of the Buena Vista Project and optimising it where possible.

The recent extensive drilling program was designed to facilitate the optimisation process.

Initial findings from the review show that increasing the Phase 1 plant throughput from 4.8 million tonnes per annum to a minimum of 6 million tonnes per annum will be beneficial for project economics.

Also, scheduling higher grade mineralisation in the initial years of the project has been deemed possible, with substantial economic benefits.

Further upside stems from the development of a Phase 2 project to produce around 4 to 5 million tonnes per annum of concentrate, which will enhance the economics and make the project more attractive to offtake financing partners.

The optimisation process is designed to realign the processing throughput rate more closely to the ore mining rate, which on the current schedule is between 10 and 12 million tonnes per annum.

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