INV Metals Inc. - QwikReport

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Rio Novo, Brazil

The four claim, ~29,000 hectare, Rio Novo property is strategically located within the Carajás district of Brazil, one of the world's most prolific mining camps. Not only is Carajás one of the world's greatest iron ore mining districts, it is host to five of the ten largest iron oxide -- copper gold ("IOCG") deposits in the world, as per the table below. IOCG deposits are similar to porphyry copper deposits, with resources that can range up to hundreds of millions of tonnes grading ~1% copper, frequently with gold, rare earth, and uranium credits.

Approximate Resources of Carajás IOCG Deposits

Deposit	Tonnage (Mt)	Cu (%)	Au (g/t)	Year of Discovery

Salobo	789	0.96	0.52	1977
Sossego	355	1.1	0.28	1996
Cristalino	500	1.0	0.30	1998
Igarapé Bahia -- Alamão	219	1.4	0.86	1995
Cento e Dezoito (118)	170	1.0	0.30	1998

(From Grainger, C.J, Groves, D. I, Tallarico, F.H. B, Fletcher, I.R., 2008. Metallogenesis of the Carajás Mineral Province, Southern Amazon Craton, Brazil: Varying styles of Archean through Paleoproterozoic to Neoproterozoic base- and precious-metal mineralization. Ore Geology Reviews 33, pp 451-489)

Previous work by Teck identified numerous zones of hydrothermal alteration and brecciation and a number of surface and drill intersected copper sulphide zones characteristic of IOCG deposits, including 55 m grading 1.3% copper and 183 m grading 0.55% copper.
The IOCG mineralized zones and targets areas identified by Teck are designated RN-1, RN-2, etc. An overview of certain priority targets is provided below.

RN-1

RN-1 is defined by a > 4 km long, up to 700 m wide copper in soil anomaly greater than 300 ppm, with a gap in the middle splitting the anomaly into two halves. The western anomaly is about 2 km long and 500 m wide, with a peak copper value of 2,357 ppm, and peak gold of 207 ppb. The eastern anomaly is 2.3 km long and 300 to 400 m wide, with a peak copper value of 842 ppm and peak gold of 82 ppb. The anomalies trend northwest-southeast parallel to the Estrela granite contact. There is no magnetic anomaly associated with RN-1.

Teck completed 13 holes totalling 2,982 metres, which represents almost half of the drilling that Teck completed at Rio Novo. The drilling intersected 55 m @ 1.3% copper, 0.2 g/t gold, including 30.0 m @ 2.0% copper and 0.32 g/t gold in borehole 13. Hole 16, a 100 m stepout to the west, intersected 47 m @ 0.55% copper, including 15.0 m @ 0.94% copper, 0.22 g/t gold, while hole 17, 100 m east of hole 13, intersected 64 m @ 0.94% copper, including 21.0 m @ 1.74% copper and 0.32 g/t gold. Mineralization at RN-1 is hosted by a fine-grained, plagioclase-phyric intermediate igneous rock proximal to the Estrela Granite. Subsequent to the drilling, Teck flew an airborne electromagnetic survey "VTEM" which detected a two-line conductor associated with the drill intersections, proving the efficacy of the VTEM survey and the significance of numerous other untested VTEM conductors on the property.

RN-7

Target RN-7 was identified as a 7 km long discontinuous copper in soil anomaly > than 300 ppm copper. South of the peak copper anomaly, on a ridge top, there is a ~1 km long gold in soil anomaly with values greater than 25 ppb gold, with a peak value of 122 ppb; it is possible that the copper has been leached on the ridge top while the gold has remained. The ridge is primarily underlain by a banded iron formation, which at surface is largely hematitic, recrystallised and locally cut by hydrothermal magnetite-hematite veins. Two holes 800 m apart were drilled to test the copper soil anomaly. Borehole DD-29 intersected 102 m @ 0.66% copper, including 5 m @ 9.5% copper, while DD-30 intersected 69 m @ 0.4% copper. In the drill core, veinlets and stringers of chalcopyrite occur randomly throughout the iron formation, with individual samples grading up to 3.1% copper. The subsequent VTEM survey identified a 1.8 km long conductor south of the two northward drilled boreholes, over and extending to the west beyond the gold in soil anomaly and hence both the gold geochemical anomaly and the EM conductor remain untested. Intense alteration typical of IOCG deposits occurs throughout the two holes, increasing in intensity up-hole, i.e. towards the conductor.

RN-11

The RN-11 prospect is outlined by a 1.4 km by 400 to 500 m copper-gold soil anomaly, with peak values of 1,258 ppm copper and 317 ppb gold, which is roughly coincidental with a magnetic anomaly. A cobalt in soil anomaly, as defined by the 50 ppm contour, is situated directly over the magnetic anomaly. Two gossans were discovered by Teck, with a grab sample of the western gossan assaying 1% copper, and the easterly gossan returning 17% copper and 1.5 g/t gold. A sample of the eastern anomaly collected by INV personnel returned 27% copper and 4.6 g/t gold. The gossan contains chalcocite and various copper oxide minerals including malachite. Other outcrops in the area of the gossan exhibit very coarse-grained intense actinolite-albite alteration suggesting intense, voluminous hydrothermal fluid flow. RN-11 has never been drilled.

RN-5

The RN-5 target was identified by a gossan-capped hill with local coarse-grained quartz infill, within a copper in soil anomaly 4.9 km in an east-west direction and about 500 m wide, with peak values of 1,200 ppm copper and 308 ppb gold. Five holes were drilled at RN-5; with intersections including DD-19: 45.0 m @ 0.41% copper, 30.50 m @ 0.49% copper, 20.0 m @ 0.73% copper, 11.0 m @ 0.47% copper, DD-20: 15.4 m @ 0.62% copper, 10.0 m @ 0.51% copper, DD-26 with 8.0 m @ 0.27% copper, DD-28, 48.8 m @ 0.40% copper, and DD-27, which undercut DD-28, 183 m @ 0.53% copper. DD-27 collared into mineralization, hence the zone is open to the south. Mineralization comprises stockwork to crackle breccia quartz-calcite-actinolite-chlorite-chalcopyrite ± pyrite veins and veinlets with albite ± magnetite alteration halos. Magnetite and lesser hematite are locally present in mineralized quartz-calcite-chalcopyrite-actinolite veins. There is a VTEM anomaly which potentially represents massive mineralization at depth down-plunge.

North of the area of brecciation and alteration drilled, there is a bullseye 800 m by 650 m magnetic anomaly with a coincident very strong lanthanum anomaly, based on a 20 ppm contour and peaking at 1,940 ppm. The Igarapé Bahia -- Alamão IOCG deposit in Carajás was anomalous in lanthanum (values not known), as is the Olympic Dam deposit in South Australia with 0.3% to 0.5% combined cerium and lanthanum. Within the magnetic anomaly there is an outcrop of brecciated iron formation containing hydrothermal magnetite which graded 900 ppb gold, as well an outcrop of actinolite-altered iron formation containing malachite veinlets.

RN-4

The RN-4 prospect was identified by a combination of soil geochemistry (the copper in soil anomaly is about 1 km by 700 m, with peak values of 935 ppm copper and 132 ppb gold) and geological mapping followed by the completion of a four line IP survey which identified a strong chargeability anomaly, culminating in three diamond drill holes with hole DD-09 returning assay results of 58 m @ 0.38% copper along with anomalous molybdenum throughout the hole. There is a strong VTEM anomaly which is interpreted to be situated beneath DD-10 which intersected 11.2 m @ 0.43% copper.

Although INV's primary target at Rio Novo is IOCG deposits, the property also has exploration potential for iron ore and gold deposits.

Teck identified at least three iron ore targets, including: a) a high grade hematitic iron formation over a strike length of 1,200 m with auger drill intersections of up to 79.2% Fe2O3 over 11 metres; b) a north-south trending >5 km long iron formation from which grab samples returned values up to 97.6% Fe2O3; and c) an iron formation associated with IOCG target RN-7.

Two kilometres east of the northern portion of the property, the Serra Pelada deposit produced over 2 million ounces of gold, platinum and palladium by garimpeiros (artisanal miners). The Serra Pelada deposit is hosted within graphitic sediments which would therefore be conductive The rock sequence hosting Serra Pelada is interpreted to strike towards the Rio Novo North claim. Teck's VTEM survey has identified two conductive horizons at Rio Novo North with locally coincident gold-platinum-palladium in soil anomalies.

With the multitude of targets and mineralized environments present on a property located within such a prolific camp, the potential to make an economic discovery is high.

INV has committed to fund a minimum of $4 million in exploration over the first two years of the agreement with Teck. The budget for late 2009 -- 2010 is $2.7 million, which includes drilling of approximately 4,450 metres. The program will include a blend of evaluating existing high-priority targets such as RN-7, RN-5 and RN-11, as well as building a pipeline of new targets, such as the potential Serra Pelada extension target. In addition, there are numerous copper and/or gold geochemical anomalies which have not yet been followed up and require in-fill soil sampling, as well as a number of VTEM anomalies which require evaluation.

For additional information and graphics for the Rio Novo copper-gold property, see INV's corporate presentation.

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This page was created on Wed Sep 8, 2010 at 3:44:58 AM Pacific Time.