Novawest stakes important Vanadium-Titanium-Iron claims near Chibougamau



    VANCOUVER, Oct. 23 /CNW/ - Novawest Resources Inc. (TSXV - "NVE";
Frankfurt - "NWN"), is pleased to announce the Company has staked 57 very
important mineral claims located approximately 70 kms east-southeast of
Chibougamau, Quebec. A number of the staked claims cover the Lac Dore
Vanadium-Titanium (Fe-Ti) Deposit, the second largest vanadium deposit in the
world, reported to contain approximately 2.27 million metric tons (MT)
(5 billion pounds) of reserves.
    Novawest cautions that all of the numbers and quotes pertaining to
reserves, grades and other data contained in this news release regarding the
Lac Dore deposit are historical and pre NI 43-101 in nature and are derived
from sources outside of Novawest. They are presented to provide the reader
with as much information as possible about this endeavour. These quotes and
figures presented in this release are from sources thought to be reliable, but
the reader must be cautioned that each and every one of these details will
have to checked and verified by Novawest once the Ministry of Mines for the
Province of Quebec confirms Novawest's title to these mineral claims. Once
this confirmation has been received by Novawest the Company will set out a
series of milestones for further development, production and sales contracts
for the exploitation of the vanadium products derived from operations.
    Novawest is not aware of any reason why these key claims came open; but
had been aware of the possibility for some time and had been carefully
monitoring the situation for several months. It appears that at one point the
previous owner had been in some form of an agreement with SOQUEM INC, a
division of SGF Mineral Inc, which is a subsidiary of Societe generale de
financement du Quebec "SGF" (Ministry of Finance, province of Quebec) whereby
SOQUEM INC had a 20% interest. It is understood that SOQUEM subsequently
converted its interest into a share equity position in the recent owner's
common shares. From public 10Q documents filed in 2002 on EDGAR in the United
States, Novawest has learned that the previous owner received a Feasibility
Study prepared by engineering firm SNC-Lavalin Group, Inc. ("SNC")
recommending continued development of a mine, refinery and product
manufacturing facility for the Lac Dore Deposit. The documentation filed
states: "the Study indicates Lac Dore is capable of producing large quantities
of high purity Vanadium products. Capital investment is estimated at
US$229 ($364 Cdn.) million including all equipment, infrastructure costs and
C$39 million for contingencies proving for initial production capacity of
25 million pounds for all Vanadium products combined. Total employment is
estimated at 300." At the time of the report, SNC's financial analysis
indicated a very good Internal Rate of Return of 29.6% based on 30% Equity. It
further states that "a new process technology is expected to enable Lac Dore
to become the lowest cost producer in the world of various high purity
Vanadium oxides." Novawest will look into all of these assertions prior to
making its own decisions on how to proceed with the Lac Dore operations on a
go-forward basis. First and foremost, Novawest will undertake to bring all
details regarding the Lac Dore deposit up to NI 43-101 specifications.
    The Lac Dore Vanadium-Titanium Deposit is hosted in the Lac Dore Complex
(Allard, 1776; Girard & Allard, 1998) located about 250 km east of Matagami,
Quebec. The Deposit area is sixteen (16) kilometers (10 miles) long, fifty to
two hundred (50-200) meters (165-660 feet) wide, extending Northeast to the
Southwest located in Rinfret and Lemoine Townships, approximately twenty-six
(26) kilometers (16 miles) east-southeast of Chibougamau, Quebec.
    According to Allard (1976) the Lac Dore Complex is a Bushveld-type
layered complex, folded like the enclosing volcanic rocks, with which it is
coeval and comagmatic. From top to bottom, the Complex has been divided into
the following zones: Anorthosite Zone (Main Zone), Layered Zone, and Upper
Border Zone (including Soda-granophyre and Ferrodiorite Zones). The vanadium
mineralization in the Lac Dore Complex (Allard, 1976) is contained in the
lower-most part of the Layered Zone in Rinfret and Lamoine Townships and in
the Cache Lake - David Lake area. The vanadium horizon consists of
rhythmically layered units (50 to 200 meter-thick layered zones) rich in
ferroaugite, magnetite and ilmenite, intercalated with layers of leuco-gabbro.
The Fe-Ti oxides at Lac Dore are heterogeneously and rhythmically distributed,
with Fe-Ti-oxide-rich horizons intercalated with oxide-free horizons.
    Vanadium is a strategic metal having many important industrial
applications. Most vanadium is consumed as ferrovanadium (FeV), which is used
to introduce vanadium into steel, improving the steel's strength and
toughness. Production of carbon, full-alloy and high-strength low-alloy
steels, in nearly equal amounts, accounts for more than 90 percent of domestic
vanadium consumption. 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.
Nonmetallurgical applications such as catalysts, ceramics and vanadium
batteries are produced from vanadium pentoxide. China, Russia and South Africa
are the leading vanadium-producing nations, where the mining and processing of
magnetite-bearing ores is the predominant source of vanadium production.
    The Qualified Person ("QP") for the purposes of this news release is Dr.
Christian G. Derosier M.Sc., D.Sc., Geology.

    ON BEHALF OF THE BOARD OF DIRECTORS OF NOVAWEST RE

SOURCES INC. "Patrick D. O'Brien" ------------------------------ Patrick D. O'Brien - Chairman Novawest invites the public to visit its website at http://www.novawest.com or e-mail the company at novawest@novawest.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: Novawest Resources Inc., Suite 1000, The Marine
Building, 355 Burrard Street, Vancouver, BC, V6C 2G8, Phone: (604) 683-8990 or
Toll Free: 1-800-663-8990, Fax: (604) 683-8903

Organization Profile

NOVAWEST RESOURCES INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890