Ivernia Confirms Large Mineralised System and High Grade Zone in the Wolf Prospect at the Prairie Downs Base Metals Project
TORONTO, ONTARIO -- (Marketwire) -- 06/15/11 -- All dollar amounts in this release are expressed in Australian Dollars
Ivernia Inc. ('Ivernia' or the 'Company') (TSX: IVW) is pleased to announce results from the second phase drilling program at the Prairie Downs base metals project located near Newman in Western Australia (the 'Project'). The Project is located within 250 kilometres ('km') of the Magellan mine, Ivernia's wholly owned Lead ('Pb') mine.
The highlights are:
-- Confirmation of high grade intercept at the 'Wolf' prospect, reporting
13 metres ('m') @ 6.5 % Zinc ('Zn'), 6.1 % Pb and 162 grams per tonne
Silver ('g/t Ag') in PDP404 from 100 m in a scissor hole confirming a
vertical system of approximately 7 m true thickness.
-- Intercept 150 m along strike reporting 14.4 m @ 7.7 % Zn, 6.2 % Pb and
45 g/t Ag downhole from 180m depth within a broad zone of 175 m @ 1.5 %
Zn, 0.7 % Pb, 8 g/t Ag in diamond hole PDD410.
-- Further large low grade intercepts of 129 m @ 1.6 % Zn including 17.4 m
@ 4.5 % Zn in PDD405, 124 m @ 1.3 % Zn including 22 m @ 4.6 % Zn in
PDP417and 114 m @ 1.6 % Zn including 6 m @ 5.9 % Zn in PDP419.
-- Broad zinc mineralization about 100 m thick intersected over a one km
strike length
Bruce Hooper, Vice President of Corporate Development and Exploration for Ivernia commented, 'This second drilling program has confirmed the size and grade indicated by the first drilling program at the Wolf prospect, extending the high grade zone and providing further information on the overall size of the system which is very encouraging'.
This second drilling program of 20 holes at the Project included four diamond drill holes for 1,282 m and 16 reverse circulation ('RC') drill holes for 2,457 m.
Drilling was completed at four targets; at the 'West Hyena', 'Anomaly A' and 'C7' prospects targeting geochemical and geophysical anomalies, and at the Wolf prospect to follow up the initial success of the first drilling program (Figure 1).
Only one incidence of minor mineralisation was encountered outside of the Wolf prospect, at the C7 prospect, although the style of mineralization at the West Hyena prospect indicates further potential along strike. All intercepts are quoted as downhole distances and not true thickness (Table 1).
A combination of diamond and RC drilling was completed at the Wolf prospect in association with downhole geophysics to understand the nature and scope of the previously encountered mineralization (Figure 2). Hole PDP404 drilled at the northwestern end of the Wolf prospect to follow up PDP379 from the south (scissor hole) reported 13 m @ 6.5 % Zn, 6.1 % Pb and 162 g/t Ag from 100 m depth downhole within a broader zone of 97 m @ 1.3 % Zn, 1.2 % Pb and 33 g/t Ag. This confirms a broadly vertical mineralized zone associated with silicification on the margins of a shale horizon of approximately 7 m true thickness. A deeper diamond hole PDP422 drilled from the north remained in the shale horizon and failed to test the mineralisation at depth (Figure 3).
The diamond hole PDD410 was drilled some 150 m southeast of the hole PDP404 and also intersected a broad mineralized horizon of 175 m @ 1.5% Zn, 0.7 % Pb including a high grade downhole intercept thickness of 14.4 m @ 7.7 % Zn, 6.2 % Pb and 45 g/t Ag from 180 m depth and 9.4 m @ 4.3 % Zn from 224 m depth downhole (Figure 4).
Further RC drilling in the northwestern portion of the prospect intersected large low grade intercepts including:
129 m @ 1.6 % Zn including 17.4 m @ 4.5 % Zn in PDD405
124 m @ 1.3 % Zn including 22 m @ 4.6 % Zn in PDP417
116 m @ 1.5 % Zn including 7 m @ 3.6 % Zn in PDP418
and 114 m @ 1.6 % Zn including 6 m @ 5.9 % Zn in PDP419.
Diamond hole PDD405 was drilled 420 m southeast of PDP404 and intercepted a broad mineralized horizon of 129 m @ 1.6 % Zn including a high grade intercept of 17.4 m @ 4.5 % Zn, 0.4 % Pb and 8 g/t Ag from 113 m depth. These drill holes confirm the size and strike extent of the Zn mineralization at the Wolf prospect extending over one km with widths of approximately 100 m and open to depth.
Interpretation of the drilling results and structure from diamond core continues to help define further drilling targets at the Wolf prospect for future drill programs.
Regional geochemical sampling using the portable XRF has re-commenced. Sampling is focused in targeting for both structurally controlled mineralization at the Husky and Coyote prospects to the northwest and on sedimentary hosted style mineralization along strike to the north of the West Hyena prospect.
Prairie Downs Earn-In
Under the terms of an earn-in agreement announced by the Company on June 14, 2010, a wholly-owned subsidiary of Ivernia may acquire up to 80% interest in the Project from Australian stock exchange listed Prairie Downs Metals Limited ('PDML').
The key features of Ivernia's earn-in agreement with PDML include:
-- An option in favour of Ivernia to purchase a 60% interest in the Project
for A$10 million in cash or its shares (at Ivernia's election)
exercisable by Ivernia after expenditure by it of A$3 million in 18
months (subject to the condition that a minimum expenditure of A$2
million must be spent in the first 12 months) or A$5 million within 36
months. Prior to the completion of this second phase drilling program
Ivernia had spent the minimum A$2 million expenditure and has advised
PDML accordingly.
-- Upon the purchase by Ivernia of a 60% interest in the Project, the
formation of an unincorporated joint venture ('Prairie Downs Joint
Venture') between it and PDML with respect to the Project.
-- The ability for Ivernia to increase its 60% interest in the Project to
80% by spending a further A$5 million on exploration within two years of
earning the initial 60% interest.
-- If either party fails to contribute its proportion of costs, its
interest in the Prairie Downs Joint Venture will dilute proportionally
until it is 2.5%, at which point the Prairie Downs Joint Venture will
convert to a free carried interest.
-- If the diluting party's interest falls to 5%, the other joint venture
participant has a right to acquire that interest at fair market value.
Qualified Person and Quality Assurance/Quality Control
The technical information in this news release is based upon information compiled by Bruce Hooper, who is a member of the Australian Institute of Geologists. Mr. Hooper is an employee of Ivernia, a Qualified Person within the meaning of National Instrument 43-101 and has visited the Project. Mr. Hooper has verified the data, including the sampling, analytical and test data underlying the information and has consented to the inclusion in this news release of the matters discussed.
The drill holes reported in this release were drilled by RC and diamond methods. The majority of RC samples were collected dry; occasional deeper zones could not be kept dry and samples were collected and recorded as being wet. Samples were split by a riffle splitter on a cyclone, with both a 1 m sample and an approximately 5 kilogram split collected. Subsequently, 5 m composite samples were collected over the length of the holes by spearing.
The diamond core was logged, photographed and cut in half on site. Core recovery was excellent throughout the program and was close to 100% recovery.
All 1 m samples were tested by XRF at the drill sites; 1 m samples that returned over 0.2% Zn by XRF were submitted to Genalysis Ltd ('Genalysis') for laboratory analysis. Perth, Australia-based Genalysis is an International Organisation of Standardisation ('ISO') Standard 9001:2000 and ISO Standard 17025 accredited laboratory and member of the Intertek Group. Genalysis is independent of Ivernia. The 1 m samples submitted to Genalysis were prepared with a four acid digest and assayed by atomic absorption spectroscopy for ore grade analysis of copper, Pb, Zn and Ag. All 5 m composite samples (1 in 5 diamond core samples) were analyzed by Genalysis for 34 elements, including Zn, Pb and Ag, with a four acid digestion and inductively coupled plasma optical emission spectrometry, and for gold by fire assay/atomic absorption using a 25 gram aliquot. All 1 m and 5 m samples submitted to Genalysis were transported by road using couriers.
Quality Assurance/Quality Control procedures include the submission by Ivernia of systematic duplicate and blank samples within the sample batches submitted to Genalysis. In addition, Genalysis inserts its own blanks and standards into each sample batch. The results from these control samples indicate acceptable consistency of analysis. Selected representative pulverized sample duplicates are submitted for referee analyses.
About Ivernia:
Ivernia is an international base metal mining company and the owner of the Magellan Mine, located in Western Australia.
Ivernia trades under the symbol 'IVW' on the TSX. Additional information on Ivernia is available on the Company's website at www.ivernia.com and at SEDAR at www.sedar.com.
Table 1. Drill results from the second phase drill program.
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Hole Name Prospect Easting Northing Dip Azimuth
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PDD216 Anomaly A 727920 7372567 -90
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PDP404 Wolf 731489 7376084 -61 47
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PDD405 Wolf 731809 7375814 -70 46
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PDP406 West Hyena 736411 7376505 -60 93
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PDP407 West Hyena 736520 7376504 -57 95
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PDP408 West Hyena 737723 7374565 -57 100
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PDP409 West Hyena 736438 7375891 -59 101
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PDD410 Wolf 731708 7376100 -60 228
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PDP411 Wolf 731446 7376238
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PDP412 Wolf 731455 7376244 -59 219
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PDP413 C7 730948 7376617 -59 225
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PDP414 West Hyena 736843 7375473 -59 104
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PDP415 West Hyena 738486 7373343 -59 100
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PDP416 West Hyena 738113 7373989 -59 100
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PDP417 Wolf 731661 7376117 -60 217
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PDP418 Wolf 731715 7376052 -58 219
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PDP419 Wolf 731612 7376135 -58 223
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PDP420 Wolf 731539 7376168 -59 220
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PDP421 West Hyena 737992 7373988 -59 98
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PDD422 Wolf 731571 7376177 -70 224
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Hole Hole
Depth Depth From To Interval Zinc Lead Silver
Hole Name m Dia m RC m m m % % g/t
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PDD216 605.9 332.5 No significant intercept
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PDP404 174 31 43 12 0.4 0.0 2
52 59 7 0.2 0.0 2
65 162 97 1.3 1.2 33
includes 100 113 13 6.5 6.1 162
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PDD405 343.7 51 57 6 0.5 0.1 2
--------------------- ----------------------------------------------
79 93 14 0.5 0.0 2
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113 242 129 1.6 0.2 8
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includes 190.6 208 17.4 4.5 0.4 8
--------------------- ----------------------------------------------
253 293.5 40.5 0.6 0.3 2
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PDP406 144 No significant intercept
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PDP407 168 No significant intercept
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PDP408 120 No significant intercept
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PDP409 168 No significant intercept
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PDD410 333.5 109 115 6 0.1 0.5 44
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118 293 175 1.5 0.7 8
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includes 180 194.4 14.4 7.7 6.2 45
--------------------- ----------------------------------------------
includes 224 233.6 9.4 4.3 0.0 2
--------------------- ----------------------------------------------
317 333.5 16.5 0.3 0.0 5
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PDP411 100 60 80 20 0.4 0.0 2
88 95 7 0.6 0.0 2
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PDP412 156 78 85 7 0.3 0.0 2
101 115 14 0.4 0.0 2
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PDP413 180 130 159 29 0.1 0.2 2
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PDP414 132 No significant intercept
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PDP415 102 No significant intercept
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PDP416 66 No significant intercept
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PDP417 204 80 204 124 1.3 0.3 12
includes 144 166 22 4.6 0.1 2
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PDP418 221 7 40 33 0.1 0.3 2
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105 221 116 1.5 0.2 6
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includes 183 190 7 3.6 0.1 6
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PDP419 228 15 20 5 0.2 0.2 2
75 104 29 0.1 0.5 2
111 225 114 1.6 0.1 7
includes 128 134 6 5.9 0.1 2
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PDP420 186 10 115 105 0.5 0.7 11
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includes 103 108 5 2.1 8.9 107
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130 186 56 0.1 0.8 2
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PDP421 108 No significant intercept
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PDD422 331.5 No significant intercept
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1,282 2,457
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Main intercept calculated using a 0.2 % Zn Pb cut-off.
Higher grade intercept calculated using a 3 % Zn Pb cut-off.
Intercepts contain up to 6m consecutive waste downhole.
Downhole intercepts, not true thickness.
Diamond core recovery greater than 95%
Forward-Looking Statements
Certain statements contained in this release constitute forward-looking information within the meaning of securities laws. All statements included herein (other than statements of historical facts) which address activities, events or developments that management anticipates will or may occur in the future are forward-looking statements, including statements as to the following: information with respect to future exploration, drilling and development plans concerning the Project, including expected timing for the next phase of drilling at Prairie Downs, any acquisition of an interest in the Project by Ivernia's subsidiary, and other such matters. Forward-looking statements are often, but not always, identified by the use of words such as 'seek', 'anticipate', 'contemplate', 'target', 'believe', 'plan', 'estimate', 'expect', and 'intend' and statements that an event or result 'may', 'will', 'can', 'should', 'could' or 'might' occur or be achieved and other similar expressions.
These statements are based upon certain reasonable factors, assumptions and analyses made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. However, whether actual results and developments will conform with management's expectations is subject to a number of risks and uncertainties, including factors underlying management's assumptions such as, the duration of the suspension of the Company's transportation of lead carbonate from the Magellan Mine, the duration of the period of care and maintenance commenced in April 2011, risks relating to the operations being placed on care and maintenance, the need for additional financing, matters relating the restart of mining and milling operations, matters relating to ramping up mining and milling throughput and operations, regulatory compliance and approvals, metal price volatility, lead carbonate concentrate treatment charges, exchange rates, regulatory proceedings and litigation, the fact that the Company has a single mineral property, resources and reserves, health and safety, environmental factors, mining risks, metallurgy, labour and employment regulations, government regulations, insurance, dependence on key personnel, constraints on cash flow, the nature of mineral exploration and development, matters related to the order to cease transport of lead concentrate and matters relating generally to the transportation of lead carbonate; matters related to the Esperance settlement and shipments through the Port of Fremantle; implications stemming from the Esperance inquiry; and common share price volatility and the dilution of the Company's common shares. Additional factors and considerations are discussed in the Company's MD&A for the interim financial period ended March 31, 2011 and in other documents filed from time to time by Ivernia with Canadian securities regulatory authorities. While Ivernia considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. These factors may cause the actual results of the Company to differ materially from those discussed in the forward- looking statements, and there can be no assurance that the actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected results on the Company. Undue importance should not be placed on forward-looking information nor should reliance be placed upon this information as of any other date. Except as required by law, while it may elect to, Ivernia is under no obligation and does not undertake to update this information at any particular time.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/ivw_0615_fig_1.pdf
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/ivw_0615_fig_2.pdf
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/ivw_0615_fig_3.pdf
To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/ivw_0615_fig_4.pdf
Contacts:
Ivernia Inc.
Brent Omland
Vice President, Finance and CFO
(416) 867-9298
(416) 867-9384 (FAX)
investor@ivernia.ca
www.ivernia.ca