TORONTO, ONTARIO--(Marketwired - Jul 14, 2016) - INV Metals Inc. ("INV Metals" or the "Company") (INV.TO) is pleased to announce the positive results of its 2016 Preliminary Feasibility Study ("PFS" or the "Study") on its 100% owned Loma Larga gold project ("Loma Larga" or the "Project") in Ecuador. The PFS was prepared pursuant to National Instrument 43-101 ("NI 43-101") and has an effective date of July 12, 2016. A NI 43-101 technical report summarizing the PFS (the "Technical Report") will be available on SEDAR no later than August 29, 2016. All references to currencies herein are to U.S. dollars.

The results of the PFS support the development of an underground mine at Loma Larga and establish new Mineral Resource and Probable Reserve estimates for the Project. The PFS anticipates an underground mining operation with production of approximately 3,000 tonnes per day ("tpd"), which would classify the Loma Larga Project within the large-scale mining category established under the Ecuadorian mining law. The Study is an update of, and replaces, INV Metal's previously published 2015 PFS which was based on a medium-scale 1,000 tpd mining operation.

Ms. Candace MacGibbon, Chief Executive Officer, stated, "INV Metals is extremely pleased to announce such robust results from the new 2016 PFS. The PFS demonstrates the significant potential benefits to both the shareholders of INV Metals and the people of Ecuador. There have been positive changes and clarifications in the laws governing mining since the creation of the Ministry of Mines in early 2015 and the Ministry's significant efforts to advance the mining sector within Ecuador. These changes and clarifications, along with our continued optimization of the Project and its design as a much larger-scale mining operation, have greatly improved the PFS's financial results over the medium-scale 2015 PFS." She added, "Substantial financial improvements, such as a higher after-tax IRR of 26.3% and a pre-tax NPV (@5%) of $489.9 million support the Company's plans to immediately design and implement the long-lead, critical path items necessary to complete a Bankable Feasibility Study ("BFS"). The BFS is anticipated to commence prior to year-end."

Ms. MacGibbon continued, "We are also pleased to announce updated Indicated Mineral Resources of 2.55 million ounces of gold, Inferred Mineral Resources of 0.54 million ounces of gold, and Probable Mineral Reserves of 1.86 million ounces of gold."

PFS Description

The PFS was completed by Roscoe Postle Associates Inc. ("RPA") in association with Samuel Engineering, Inc. and Klohn Crippen Berger Ltd.

The Project is located 30 km southwest of the city of Cuenca, and consists of approximately 8,000 hectares held in three contiguous concessions. The Loma Larga deposit is located within the Rio Falso concession. The Project is situated relatively close to existing infrastructure. A 21 km access road will be upgraded to be utilized to transport equipment, supplies and people to the mine, and to ship concentrate to the port. Power will be accessed through a connection to the local Cuenca substation, and will require the construction of a 25 km 138 kV power line.

The deposit will be accessed from surface with a single ramp and raises will provide ventilation and secondary access. Mining at a rate of 3,000 tpd will be carried out using predominantly long hole open stoping methods and drift and fill mining where the ore body narrows, resulting in a high extraction ratio. Ore from the mine will be trucked to the process plant located approximately 7.5 km south of the portal where it will be processed through a sequential flotation circuit producing two concentrates: a pyrite-gold concentrate; and a copper-gold concentrate. The concentrates will be trucked 325 km to a storage facility at the port of Guayaquil for shipment to a third-party for smelting and refining.

Economics

With initial capital costs of $285.9 million, the base case in the PFS estimates that the Project will generate a robust pre-tax internal rate of return ("IRR") of 35.7%, a post-tax IRR of 26.3% and an after-tax payback in 2.7 years.

The PFS was prepared using a gold price of $1,250/oz. A sensitivity analysis of the Project economics indicates variations from the base case gold price had the following impact, with silver and copper held at $20/oz and $3/lb, respectively. The sensitivity analysis indicates an after-tax break-even price of approximately $785/oz of gold.