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WEST PERTH, Western Australia, Jan. 29, 2014 /CNW/ - Nevada Iron Ltd (the Company) is pleased to announce the acquisition of 278.61 acres of free hold land (including mineral rights) adjacent to the existing West Deposit (covering the western 1/2 of section 9 T24N R34E in Churchill County, Nevada). The strategic acquisition of this land accomplishes several objectives:
- Adds 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 sterilized 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 exploit the mineral resource.
- Provides additional exploration potential for mineral resource extension across the acquired property. The current mineral resource estimate was terminated at the previous property boundary and as seen in Figure 1, the magnetic anomaly clearly extends across the boundary.
- Expands options for the location of key infrastructure.
- Increases 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 requirements; and
- simplifies the permitting procedure.
The consideration paid was US$400,000 in cash and a 2% NSR on production from the area purchased.
Mick McMullen, Executive Chairman commented on the acquisition: "This transaction adds to our portfolio and importantly makes mine planning and permitting easier. We now have flexibility in the location of our plant and infrastructure and can now locate these facilities away from adjacent land owners. As seen in Figure 1, the magnetic anomaly clearly extends into this newly acquired ground and we can now lay our pit back into this new area, which adds to our mineral reserves."
Competent Persons Statement
The information in the news release 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 quaiify 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 minerai reserves is not material (being a 1% increase in contained metal) and that Table 1 is not required.
Image with caption: "Figure 1 - Location map showing acquired Mineral Rights and ground magnetics. (CNW Group/Nevada Iron Ltd)". Image available at: http://photos.newswire.ca/images/download/20140129_C5954_PHOTO_EN_36022.jpg
SOURCE: Nevada Iron Ltd
For further information:
Level 2, 85-91 Havelock Street, West Perth WA 6005 | PO Box 315 West Perth WA 6872
Tel: +61 8 9481 2006 Fax: +61 8 9481 0052;