WEST PERTH, Western Australia, Feb. 3, 2014 /CNW/ -
Non-brokered private placements completed raising a total of $8.1
TSX listing achieved;
Four new directors appointed and two directors retire;
1 for 6 consolidation completed;
Strategic land holding acquisition completed, increasing land owned and
leased by 163%;
Engineering services contract for permitting support awarded to Samuels
Significant progress on data collection for permitting;
Ground mapping over the newly acquired Section 27 area has identified an
area 800m long by an average width of 180m wide, with extensive
magnetite surface float coincident with strong magnetic anomaly.
Nevada Iron Ltd (ASX Code: NVI, TSX Code: NVR) is a resource company
focused on the development of the Buena Vista Iron Project located in
northern Nevada, USA. This project demonstrates the attributes for a
successful iron ore development, namely:
Near surface resource;
Very low waste to ore ratio (0.5:1);
Easy metallurgy with a coarse grind producing a high grade (67.5-69% Fe)
and clean concentrate;
Close to existing nearby transport infrastructure and no requirement to
build significant infrastructure, e.g. a rail line;
Access to existing ports;
Manageable capital cost;
Stable and mining friendly jurisdiction;
No government royalty imposts;
Phase 1 project on private land, making permitting less onerous.
On 17 October 2013, shareholder approval was obtained for the following
The acquisition, from New Nevada Resources LLC, of a large strategic
land package for a total consideration of $2,841,044 (Acquisition);
The consolidation of the Company's share capital on a 1 for 6 basis (Consolidation);
The placement of 3,571,429 shares and warrants (on a pre-Consolidation
basis) to raise $500,000 in working capital (Private Placement);
The placement of 53,571,429 shares and 17,857,143 warrants (on a
pre-Consolidation basis) to raise $7,500,000 and to facilitate the
listing of the Company's securities on the Toronto Stock Exchange (Listing Private Placement).
Following the receipt of shareholder approval on 17 October 2013, the 1
for 6 Consolidation became effective as of 28 October 2013.
On 21 October 2013, the non-brokered Private Placement was completed
Listing Private Placement
On 7 November 2013 the Company completed the non-brokered Listing
Private Placement, raising $7,612,269 by the issue of 9,062,225 shares
at an issue price of $0.84 per share (on a post Consolidation basis)
and the grant of 3,020,764 free attaching warrants each exercisable at
$1.68 and expiring 31 December 2015 (on a post Consolidation basis).
Upon completion of the Listing Private Placement and the securing of the
listing of the Company's securities on the Toronto Stock Exchange
(TSX), the following Board changes took effect on 7 November 2013;
Messrs AB Morrow, D Pattalock, HA Rushing and AS Peck were appointed as
Messrs L Jelenich and T Duckworth retired as Directors.
On Monday 11 November 2013, the Company's ordinary fully paid shares
were admitted for trading on the TSX.
Grant of Incentive Options
Following the receipt of shareholder approval at the Company's Annual
General Meeting, on 24 December 2013 the following incentive options
(each exercisable at $1.20 and expiring 31 October 2016) were granted
to the following parties (or their nominees):
Number of Options
Chief Operating Officer
Buena Vista Iron Project, USA (100%)
On 31 October 2013, the Company completed the acquisition of a large
strategic land package for a total consideration of $2,841,044 through
a combination of outright purchase and long term lease, resulting in a
163% increase in the total footprint of the Company's tenure in the
Buena Vista area.
The combination of these assets with the Company's existing assets has
resulted in the Company being the dominant player in the Buena Vista
iron province with:
The largest land holding in the province;
The largest mineral resource and mineral reserve position in the
The most advanced development project in the province;
The best access to infrastructure, water and easements in the province;
Access to a dedicated multiuser rail siding;
An agreement for a port allocation sufficient for all Phase 1 tonnage.
The freehold land package acquired is contiguous with the Company's
existing tenure and contains some very strong magnetic anomalies that
host magnetite mineralisation within a distance of 3km of the planned
process plant site.
The vendors of the land package also hold substantial royalty interests
over nearby claims that host magnetite mineralisation. The Company has
also purchased several of these royalty interests.
This acquisition is expected to result in the Company benefitting from
mining developments that may arise on those nearby claims.
In addition, the Company has been granted access easements over all of
its required infrastructure corridors and is acquiring additional land
at the Company's recently purchased Huxley rail siding to augment the
rail siding. This will materially simplify the permitting process and
the construction of the infrastructure required to operate the project
and for potential expansions.
The total asset package acquired consists of:
A long term lease (subject to a 2% Net Smelter Royalty) of 5,205 acres
of private mineral land;
A long term lease (subject to a 2% Net Smelter Royalty) of 256 Bureau of
Land Management (BLM) mining claims;
A 2.5% 30 year term royalty on Section 9, Township 24 North, Range 34
East (Histed) (immediately adjoining the West Deposit);
A 30 year term royalty on the following sections owned by Zephyr
2.5% NSR on Section 15, Township 25 North, Range 34 East
1.25% NSR on Section 9, Township 25 North, Range 34 East
2.5% NSR on Section 29, Township 26 North, Range 34 East;
A rail siding, of the Company's, choice along the main rail line within
the vendors' land holding (which will increase the Huxley siding
referred to above);
A first right of refusal to lease the vendors Buena Vista Iron District
assets covering a further 6,353 acres of private mineral land and 101
BLM mining claims;
certain water rights;
Historical data, recent airborne magnetic surveys and logistical studies
and arrangements concerning shipment of iron ore from the area;
Easements over all infrastructure corridors including power line, water
line, roads and future concentrate pipeline within the vendors' land
The total consideration of $2,841,044 was settled by:
the issuance of 3,181,756 shares (post Consolidation), at the deemed
issue price per share of $0.84 and 5,952,386 warrants each exercisable
at $1.68 and expiring 31 December 2015; and
$168,369 in cash.
As a result of the Acquisition, New Nevada Resources, LLC emerged with
13.13% interest in the Company, prior to completion of the Listing
The vendors of the land package were New Nevada Resources, LLC, a
Florida limited liability company and New Nevada Lands, LLC, a
Mississippi limited liability company. Both companies are wholly-owned
subsidiaries of Conduit, LLC, a Florida limited liability
company. Conduit, LLC, is a closely held private company engaged in
resource land ownership and investment, minerals, oil and gas
exploration and development and conservation finance. Conduit, LLC,
through its wholly-owned subsidiaries, owns, controls and manages over
1.2 million acres of fee mineral rights and royalty interests in Nevada
as well as approximately 500,000 acres of fee surface ownership in
Nevada, making it the largest private land owner in the state of
The Company currently leases several areas of the Buena Vista Iron
Project from the vendors and upon commencement of production has
certain royalty obligations.
NI-43101 Pre-Feasibility Study Technical Report
The NI 43-101 Pre-Feasibility Study Technical Report is a key
requirement for the TSX listing, as well as for North American
The Technical Report was lodged in November 2013 and is available on the
Company's website. The results of the Technical Report indicate a
robust project at conservative iron ore prices.
The Company tendered and awarded a Master Services Agreement to Samuel
Engineering Inc, out of Denver Colorado, to advance the facility design
to a Feasibility Level and to provide engineering support for the
permitting effort. Samuel Engineering has had previous experience on
the Buena Vista Iron Project and has EPCM experience on similar iron
ore processing facilities in the Western United States.
A drilling contract was awarded to National Drilling for development of
site characterisation wells for the Section 5 and West Deposit pits.
These wells will provide critical information on the site
hydro-geologic conditions needed to calibrate the ground water model
and develop additional base line data for the Water Pollution Control
Permit. Drilling commenced on 13 December 2013 and is expected to be
completed by early February 2014.
The results of 26 week Humidity Cell Tests were submitted to Nevada
Department of Environmental Protection (NDEP), Bureau of Mining
Regulation and Reclamation (BMRR) and approval to complete the testing
was granted. NDEP and BMRR acknowledged that all 14 tests were
non-Potentially Acid Generating. The highly net neutralising nature of
the deposit mitigates the need for any special handling of the waste
and tailings material.
A large amount of historic core was located, cleaned and moved to the
Company's core storage facility from its previous temporary location.
The core is currently being organised and catalogued for future use.
Ground mapping over the new acquired Section 27 area (3km to the north
east of the West Deposit) has identified an area 800m long by an
average width of 180m wide with extensive magnetite surface float
(Figures 1 and 2).
No mineral resources have been defined for the Section 27 target but the
mapping indicates the presence of a large area of strong magnetite
mineralisation. Following the encouraging surface mapping results, the
Company moved quickly to cover the area with ground magnetics and the
resulting anomaly is shown in Figure 3.
The magnetic anomaly measures 1.6km long by 1km wide and appears to have
a stronger intensity than the anomaly that covers the existing mineral
resources at the West, Section 5 and East Deposits.
Drilling of the Section 27 target is planned during the upcoming field
season and results will be released as available. The presence of
extensive high-grade magnetite on surface and a large strong intensity
magnetic anomaly provide excellent indicators for the targeting of
See "Figure 3 - Ground magnetics showing new anomalies at Section 27
Acquisition of new mineral rights
The Company also entered into an agreement for the acquisition of 278.61
acres of free hold land (including mineral rights) adjacent to the
existing West Deposit (covering the western ½ of section 9 T24N R34E in
Churchill County, Nevada). This acquisition was settled in January.
The acquisition of this land accomplishes several objectives:
Adding an estimated 1.6 million metric tonnes of ore grading 13.5% Fe in
the southern portion of the West Deposit Pit. This additional ore was
sterilised due to the position of the final pit wall, which abutted the
property boundary. Acquisition of land in this area allows the
repositioning of final pit walls to better and more efficiently exploit
the mineral resource;
Providing additional exploration potential for mineral resource
extension across the acquired property. The current mineral resource
estimate was terminated at the previous property boundary;
Expanding options for the location of key infrastructure;
Increasing the buffer zone around the proposed plant, tailings disposal
facility and West Deposit Pit, which:
reduces the impact on the neighbouring land owners,
improves access to the proposed facility,
reduces capital and operating costs by simplifying dust control
simplifies the permitting procedure.
The consideration paid was US$400,000 in cash and a 2% NSR on production
from the area purchased.
Latin Gold Limited is the operator of the Narracoota joint venture.
Under the terms of this joint venture Latin Gold can earn a 90% equity
interest in the project through the expenditure of $500,000.
No work, apart from annual report preparation, was carried out over the
Narracoota project during the quarter.
Competent Persons Statements
Information in this report to which this statement is attached that
relates to Exploration Results is based on information compiled by Mick
McMullen, who is a Member of the Australian Institute of Mining and
Metallurgy. Mr McMullen is an officer of the Company, is self-employed
and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity to which he is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the "Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves". Mr McMullen
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The information in the report that relates to the Mineral Reserves of
West Deposit is based on information compiled by Declan Franzmann, who
is a Chartered Professional Fellow of The Australasian Institute of
Mining and Metallurgy. Mr Franzmann is employed by Citraen Pty Ltd and
has sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking, to qualify as a Competent Person as
defined in the 2012 Edition of the "Australasian Code for Reporting of
Mineral Resources and Ore Reserves" and to qualify as a "Qualified
Person" under NI 43-101. Mr Franzmann consents to the inclusion in the
news release of the matters based on his information in the form and
context in which it appears.
The Company has determined, in accordance with the 2012 JORC Code, that
the increase in mineral reserves is not material (being a 1% increase
in contained metal) and that Table 1 is not required.
Image with caption: "Figure 1 - Extensive magnetite surface float (CNW Group/Nevada Iron Ltd)". Image available at: http://photos.newswire.ca/images/download/20140203_C7018_PHOTO_EN_36155.jpg
Image with caption: "Figure 2 - Close up of high grade magnetite float (CNW Group/Nevada Iron Ltd)". Image available at: http://photos.newswire.ca/images/download/20140203_C7018_PHOTO_EN_36156.jpg
Image with caption: "Figure 3 - Ground magnetics showing new anomalies at Section 27 target (CNW Group/Nevada Iron Ltd)". Image available at: http://photos.newswire.ca/images/download/20140203_C7018_PHOTO_EN_36154.jpg
PDF available at: http://stream1.newswire.ca/media/2014/02/03/20140203_C7018_DOC_EN_36157.pdf
PDF available at: http://stream1.newswire.ca/media/2014/02/03/20140203_C7018_DOC_EN_36158.pdf
PDF available at: http://stream1.newswire.ca/media/2014/02/03/20140203_C7018_DOC_EN_36159.pdf
SOURCE: Nevada Iron Ltd
For further information:
on the Company visit www.nv-iron.com or contact
Nevada Iron Limited
Tel: +61(0)8 9481 2006