TORONTO, ONTARIO -- (Marketwire) -- 02/19/13 -- INV Metals Inc. ("INV Metals" or "Company") (TSX: INV) is pleased to provide guidance on the Company's 2013 operating budget and exploration program. INV Metals' unaudited cash balance as at December 31, 2012 was approximately $25.3 million. The Company's 2013 exploration and operating budget approved by the Board of Directors is estimated at $12.7 million, including planned exploration expenditures of $9.7 million at the Quimsacocha Project, located in Ecuador.
Quimsacocha Property, Ecuador
In November 2012, INV Metals successfully completed the purchase of a 100% interest in IAMGOLD Ecuador S.A. ("IAMGOLD Ecuador"), which holds a 100% interest in the Quimsacocha property ("Quimsacocha", the "Property" or the "Project"), from IAMGOLD Corporation ("IAMGOLD") and various subsidiaries. IAMGOLD Ecuador S.A. is to be renamed INV Minerales Ecuador S.A., upon the completion of outstanding administrative matters.
INV Metals has initiated a comprehensive review of all previous exploration data in order to build an updated model and exploration plan for 2013. The Company will provide a detailed exploration update once the review is complete. Preliminary indications indicate the presence of a number of targets to expand the known deposit, along with high priority targets outside the known deposit. Drilling is expected to begin at the Property by early to mid March. A preliminary budget of $9.7 million has been approved for 2013, including engineering, exploration, social development and administrative costs within Ecuador and at the Property.
Management is also in discussions with engineering, metallurgical, environmental and water consultants previously engaged on the Quimsacocha Property to determine the appropriate actions necessary to update the pre-feasibility study issued by IAMGOLD in 2009. Also, a corporate sustainability and responsibility consultant has been engaged to advise management on community development issues. The transition and integration of the employees of IAMGOLD Ecuador is on-going and proceeding well.
Rio Novo Property, Brazil
INV Metals and Teck Resources ("Teck"), have indirectly through their subsidiaries, divested of the Rio Novo North property ("Rio Novo North") to an arm's length private Brazilian company. INV Metals and Teck each held a 50% interest in Rio Novo North, located in the Carajas district, Brazil and still retain their 50% interests in the southern claims. The target at Rio Novo North was gold and precious metals analogous to the Serra Pelada deposit which is contiguous and along strike to the property. The property was no longer considered a core asset to INV Metals.
INV Metals and Teck each retain a royalty equal to 0.75% of gross sales for iron ores and a royalty equal to 0.75% of net smelter returns for all other metal sales in the event that Rio Novo North is put into commercial production.
About INV Metals
INV Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Ecuador, Brazil, Namibia and Canada. Currently, INV Metals' primary assets are: (1) it's 100% interest in the Quimsacocha gold property in Ecuador, (2) its 35% interest in the Kaoko property, located in Namibia and (3) its 50% interest in the Rio Novo southern claims, located in Brazil.
This press release contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, risks associated with mining and mineral exploration activities, uncertainty in the estimation of mineral resources, including, without limitation, the assumptions on which such estimates are based, changes in project parameters as plans continue to be refined, future prices of metals, economic and political stability in Canada, Namibia and Brazil, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals' properties. For a more detailed discussion of such risks and other factors, refer to INV Metals' annual information form filed with Canadian securities regulators available on www.sedar.com.
INV Metals Inc.
President and CFO
INV Metals Inc.
Chief Executive Officer
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