February 9, 2009

NEVORO ADVANCES STILLWATER PGM AND Ni-Cu-Co TARGETS

Toronto, ON – Nevoro Inc. (TSX:NVR) (“Nevoro”) is pleased to announce results from its initial core drilling program at its 100%-owned Stillwater Project in Montana. Two drill holes were collared in late autumn, 2008, to examine the PGM-bearing ‘A’ and ‘B’ reefs in the Ultramafic Series sequence and massive Ni-Cu-Co sulfide mineralization in the Basal Series sequence. These rock sequences occur immediately south of and parallel to the J-M Reef, site of the Stillwater mine, one of the world’s largest and richest operating PGM mines.

The first hole (MV-08-01) was abandoned at 120 m depth due to bad ground conditions but a second, more steeply inclined hole (MV-08-02) collared 200 m west was drilled to 639 m before being terminated due to an unusually heavy autumn snowstorm. Highlights from the second hole include:

William Schara, President and CEO of Nevoro stated, “Given that Nevoro acquired the property in mid-2008, it was fortunate to get the necessary permits and begin drilling before winter. Also, we have a healthy treasury, approximately C$6.9 million at year end, that will allow us to continue developing the project even in a downturned market.” 

PGM Mineralization

The following table summarizes the best PGM intercepts in drill hole MV-08-02:

From (m)

To (m)

Length (m)

Pt (g/t)

Pd (g/t)

Rh (g/t)

Zone

309.2

309.7

0.5

2.90

6.00

>1.00

Upper B

321.7

323.1

1.4

0.18

0.63

0.07

Middle B1

326.3

327.4

1.0

0.21

0.60

0.10

Middle ‘B2’

334.5

335.0

0.5

0.19

0.09

NA

Lower ‘B’

360.1

361.2

1.1

0.33

0.26

0.09

Upper ‘A’

368.9

370.3

1.4

0.28

0.23

0.09

Lower ‘A’

424.6

425.5

0.9

0.98

0.19

0.004

‘A’ Pegmatoid

Note: The lengths (widths) of all drill intervals reported in this news release and in the above table are down-hole lengths which are approximately 1.15x greater than the estimated true stratigraphic widths.

These results confirm the presence of PGM mineralization in seven seams – four chromite-bearing reefs assigned to the ‘B’ interval, two chromite-bearing reefs assigned to the ‘A’ interval, and an unexpected sulfide-rich pegmatoid reef below the chromite reefs – offering evidence that the number of PGM-enriched seams increases down-dip, to the west, presumably pointing toward a possible feeder system for the mineralization. The PGM-enriched chromite seams are considered analogous to the UG2 chromite reef, which produces the majority of PGMs from the Bushveld layered intrusive complex in South Africa. The unexpected PGM-enriched ‘A’ pegmatoid reef in MV-08-02 contains no chromite but has sulfides and textures markedly similar to those of the nearby producing J-M reef, an analogue of the highly productive Merensky Reef in the Bushveld, which occurs above the PGM-bearing chromite reefs.

Interpretative Cross-section of Diamond Drill Holes MV-08-01 and MV-08-02


The relatively high rhodium (Rh) contents in the PGM analyses returned for MV-08-02 are noteworthy, especially the high-grade 0.5 m Upper ‘B’ reef interval which contains rhodium in excess of 1.00 g/t (the upper limit of detection in the analysis as received). Rhodium is a very rare PGM and is typically several times more valuable (in dollars per ounce) than platinum (Pt), which in turn is typically several times more valuable than palladium (Pd), which is the most common and least valuable PGM. This high-grade rhodium-rich sample is currently being re-analyzed by a second laboratory and if the results are confirmed, this may well be the highest-grade rhodium sample yet collected from the Stillwater Complex. Also noteworthy is that the four lowermost PGM reefs (Lower ‘B’, Upper ‘A’, Lower ‘A’, and ‘A’ pegmatoid) contain distinctly more platinum than palladium. This is quite different from the upper chromite reefs and the high-grade PGM sulfide-bearing ores of the nearby producing J-M reef, all of which typically contain several times more palladium than platinum.

Only 20% of the core from MV-08-02 has been sampled and analyzed to date, consisting of 134 initial samples collected across zones of most apparent interest. Considering the encouraging results returned from this selective sampling – and considering a few pleasant surprises such as the platinum-enriched ‘A’ pegmatoid reef – a priority effort is underway to sample and analyze all remaining drill core. Future drilling near this site will attempt to identify vectors suggested by these multiple PGM-enriched horizons to point towards richer and thicker PGM accumulations and a possible feeder system in the Ultramafic Series.

Ni-Cu-Co Mineralization

MV-08-02 intersected significant Ni-Cu mineralization (567.5–571.8 m: 4.3 m @ 0.29% Ni and 0.19% Cu) at depth (toward the east) in the upper part of the Basal Series sequence and significant gold (1.2 m @ 0.77 g/t Au) near the bottom of the hole in a sulfide-rich hornfels unit. The hole was terminated short of intersecting the lowermost part of the Basal Series, which is host to significant massive Ni-Cu-Co mineralization defined by historical drilling in the up-dip shallower Mouat area to the east.

The Mouat area was first examined in the 1970s by the Anaconda Copper Company with more than 33,000 m of drilling (127 core holes) and approximately 500 m of underground development. This work defined a historical resource of 23 million tons of 0.62% Ni, 0.45% Cu and 0.062% Co occurring as massive sulfide bodies in the lower part of the Basal Zone sequence. (Note: This is a ‘historical resource’ only which does not conform to CIM resource reporting standards as required by National Instrument 43-101.) Additionally, Anaconda outlined a potentially much larger Ni-Cu-Co deposit with wide-spaced drilling in the same rock sequence in the Nye Basin area, on strike several kilometers east of the Mouat area, and a similar third sulfide deposit further east in the Benbow area.

Nevoro has contracted an independent Qualified Person to review the vast historical data available on these Ni-Cu-Co sulfide occurrences and prepare a Technical Report summarizing the known deposits and target areas and recommending follow-up work necessary to upgrade and extend the mineralization. The report is tentatively scheduled for completion by June 2009.

Chromite Mineralization

In addition to exploration potential for PGMs and massive sulfide deposits with historical Ni-Cu-Co resources, Nevoro’s 18.6 square kilometers of patented and unpatented claims in the Stillwater Intrusive Complex include several former producing chromite deposits. Collectively these chromite deposits comprise a remaining historical resource of at least 50 million tons of 22% Cr2O3, currently the largest known chromite resource in the western hemisphere (USGS, 2001). (Note: This is a ‘historical resource’ only which does not conform to CIM resource reporting standards as required by National Instrument 43-101.) The deposits consist of coarse-grained massive chromite bodies in the ‘G’ and ‘H’ seams of the Ultramafic Series sequence above (north and west of) the PGM-bearing ‘A’ and ‘B’ chromite seams, and lie immediately south of the producing Stillwater PGM mine. Nevoro continues to evaluate the extensive historical data available on the chromite deposits, including a detailed pre-Feasibility study completed in 1988 by Chrome Corporation of America on the “brownfields” Mountain View deposit.

Core logging, sawing, and sampling for Nevoro’s initial drilling program at Stillwater were carried out by licensed senior geological consultants who are ‘Qualified Persons’ as currently defined by NI 43-101. Sample standards and blanks were inserted in a manner consistent with accepted QA/QC protocols. The samples were shipped via commercial carrier to the ALS Chemex preparation facility in Elko, Nevada, and subsequently to the ALS Chemex laboratory in Vancouver, British Columbia, for analysis using standard 30 g fire-assay and inductively coupled plasma mass spectrometry methods. Selected pulp and coarse reject samples prepared by ALS Chemex are in the process of being submitted to a second outside laboratory as a means of verifying the ALS Chemex results.

The Qualified Person under NI 43-101 responsible for reviewing and presenting all technical data reported in this news release is Mel Klohn, Director and Executive Vice President, Exploration, for Nevoro Inc.

About Nevoro Inc.

Nevoro is a TSX-listed exploration and development company focused on the discovery of precious and base metals primarily in the western USA. Nevoro holds the Stillwater nickel-copper-cobalt-PGE-chromite project in Montana and the Moonlight copper project in California. Nevoro also holds 11 gold and base metal exploration projects in Nevada and Idaho.

For more information, please contact:

William Schara

 

President and CEO

 

Tel: (416) 363-8238 ext. 224

 

E-mail: wschara@nevoro.com

 

 

CAUTIONARY STATEMENT: All statements, other than historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of Nevoro, constitute “forward looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the date of this news release. Such “forward looking statements”, reflects management's current beliefs and are based on information currently available to management of Nevoro. In some cases, forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “intention” or the negative of these terms or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes but is not limited to economic performance of Nevoro, statements regarding potential mineralization and resource, exploration and future plans and objectives of Nevoro, including exploration and development. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking information including risks related to investments, conditions of capital markets, economic conditions, dependence on key personnel, interest rates, regulatory change and availability of future financing. These factors should not be considered exhaustive. In addition, in evaluating this information, investors should specifically consider various factors, including risk factors, which may cause actual events or results to differ materially from any forward-looking statement. In formulating forward-looking information herein, management has assumed that business and economic conditions affecting Nevoro will continue substantially in the ordinary course, including without limitation with respect to general levels of economic activity, regulations, taxes, interest rates and that there will be no material changes. Although the forward-looking information is based on what management of Nevoro considers to be reasonable assumptions based on information currently available to it, there can be no assurance that actual events or results will be consistent with this forward-looking information, and management's assumptions may prove to be incorrect. This forward-looking information is made as of the date of this press release, and Nevoro does not assume any obligation, except as required by law, to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking information.