VANCOUVER, Feb. 19 /CNW/ - Novawest Resources Inc. (TSXV - "NVE";
Frankfurt - "NWN"), and its Board of Directors are very pleased to announce
that the company has acquired its third Canadian Vanadium-Titanium-Iron
Project. The newly acquired Iron-T Project, comprised of 17 mining claims, is
situated in central Quebec west of the mining centre of Matagami. The
acquisition of the Iron-T Vanadium-Titanium-Iron Project, coupled with the
earlier acquisition of the SideLine Vanadium-Titanium-Iron Project (adjoining
the well known Lac Dore Deposit) and the pending claim application covering
the 5.5 billion pound Lac Dore Deposit firmly place Novawest at the forefront
of North American Vanadium exploration and development. All three of these key
projects are located in central Quebec, Canada. Novawest is committed to a
strategic goal of creating, through acquisition and development, North
America's only primary source of ferrovanadium; and is confident it has the
assets and resources with which to achieve that goal.
By way of a Purchase Agreement, Novawest has acquired a 100-per-cent
interest in the Iron-T Vanadium-Titanium-Iron Project by paying the vendors
$250,000.00 and 900,000 common shares of Novawest. The shares being issued
will be subject to a hold period per the policies of the TSX Venture Exchange.
The purchase is also subject to approval by the TSX Venture Exchange. The
Vendors will receive a 3% Net Smelter Return ("NSR"), of which Novawest may
purchase, at its discretion, 1 1/2% (one half) of the NSR for $500,000.
Novawest also retains a First Right of Refusal on the balance of the NSR.
Novawest has also committed to carry out a minimum of $500,000 in exploration
within the first 2 years of ownership to move the project forward.
Novawest and the Vendors have also entered into an Area of Influence
Agreement whereby any mineral claims, acquired by either Novawest or the
Vendors, within 2 miles of the boundaries of the initial 17 claims will
automatically be included in the Iron-T Project. Since the Agreement was
executed, both Novawest and the Vendors have applied for all the available
claims of immediate interest, adjoining or nearby the Iron-T project. The new
claims will all be added to the Iron-T Project.
The Iron-T Fe-Ti-V Project consists of two groups of claims. One is
located in Comporté-Lozeau Township (the Lorte property); the other in
Isle-Dieu Township, west of the town of Matagami (the Lalanne group of
The properties cover parts of the Bell River Complex which is a large,
layered Archean intrusion occurring in the Matagami mining district. The
Complex consists of western and eastern lobs separated by the Olga
granodiorite pluton. The Complex is poorly documented despite the fact that it
played an important role as a heat source for the mineralization of several
massive sulphide deposits in the Matagami mining camp.
The Bell River complex has been divided into three main zones: a basal
anorthosite zone; a layered gabbro zone and a zone consisting of apophyses,
subsidiary intrusions and border zone. The layered gabbro zone consists of
distinctly layered Fe-Ti-oxide-rich gabbro, more or less leucogabbro, minor
anorthosite and pyroxenite. Vanadium mineralization within the Bell River
Complex occurs within Fe-Ti-oxide -rich horizons in the layered ferrogabbro
zone of the upper part of the Complex. The horizon is well defined on the
ground and in aeromagnetic survey maps by its high magnetic susceptibility.
Oxide-rich gabbro horizons are about 10 m to 150 m wide with a
subvertical dip. The gabbro is a mineralized cumulate with homogeneously
disseminated oxide mineral contents of 20 to 60 modal % or homogeneous,
massive bands with widths of several centimetres to tens of centimetres, with
oxide mineral contents of 50 to 90 modal %. These mineralized bands form
60-80% of the layered gabbro zones. There is a sharp contact between
mineralized oxide-rich gabbro and host gabbro- anorthosite sequences in the
Bell River Complex.
Vanadium mineralization occurs in oxide-rich horizons within the upper
parts of layered complexes such as the Bushveld. The distribution and
geological relationships of these oxide-rich layers clearly indicate that they
are magmatic ore deposits and that their genesis is directly related to
processes that were operating during the late stages of fractional
Previous exploration work carried out by Noranda Inc. during the 1990's
delineated and confirmed the presence of iron, titanium and vanadium
mineralizations over a distance of about 20 km. Channel sampling made on
stripped outcrops as well as a limited diamond drilling campaign (4 ddh) have
returned economic titanium and vanadium values. Chemical assays were confirmed
by a microprobe analysis made by Lakefield Research (1998). Vanadium values
obtained vary from 0.02% to 1.25% V(2)O(5), Titanium values vary from 0.35 %
to 51.84 % TiO(2) and Iron values vary from 17% to 57% Fe(2)O(3), being quite
similar to the nearby 5.5 billion pound Lac Dore Project, the second largest
Vanadium deposit in the world.
Several assays made on channel samples were also assayed for gold,
platinum and palladium. Some low values in platinum and palladium were
obtained (up to 44 ppb) in samples showing higher chromium and cobalt grades
in addition to higher vanadium and titanium values.
Vanadium is a strategic metal. Most vanadium is consumed as ferrovanadium
(FeV) and used in the production of high-quality and high-strength steel
(piping in the oil industry, tools) and metal alloys
(titanium-vanadium-aluminum alloys) which is used in the aerospace industry.
Vanadium foil is used as a bonding agent in cladding titanium to steel and
generally by the aerospace industry. Medical implants often contain vanadium
alloys because of their excellent stability. It is also used for production of
catalysts, ceramics, glasses, pigments electronics and batteries. New uses are
continuously being discovered for this metal. Japan, Canada and Australia are
currently developing the next generation of vanadium redox batteries to power
electric vehicles. China, Russia and South Africa are the leading
vanadium-producing nations, where the mining and processing of
magnetite-bearing ores make up the predominant source of vanadium production.
Novawest cautions that all of the numbers in this News Release pertaining
to previous work on this property are historical and pre NI 43-101 in nature
and derived from sources outside of Novawest.
The qualified person for the purposes of this news release is Dr.
Christian G. Derosier, MSc, DSc, geology.
Novawest invites the public to visit its NEW website at
http://www.Novawest.com or e-mail us at Novawest@Novawest.com to be added to
the Company's e-mail list for press releases and updates.
ON BEHALF OF THE BOARD OF DIRECTORS OF NOVAWEST RE
"Patrick D. O'Brien"
Patrick D. O'Brien - Chairman
Novawest invites the public to visit its "NEW" website at
http://www.novawest.com or e-mail the company at email@example.com to be
added to the company's e-mail list for press releases and updates.
S.E.C.Exemption12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun
& Bradstreet Listed.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS RELEASE
SHALL NOT CONSTITUITE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY
SECURITIES IN ANY JURISDICTION. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995: THIS NEWS RELEASE CONTAINS FORWARD
LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS AND ARE SUBJECT TO RISKS AND
UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
SET FORTH IN OR IMPLIED HEREIN
For further information:
For further information: Suite 1600, The Bower Building, 543 Granville
Street, Vancouver, British Columbia, Canada, V6C 1X8, Tel: (604) 683-8990,
Toll-Free: 1-800-663-8990, Fax: (604) 683-8903, www.novawest.com,