International Minerals Corporation

Published : December 18th, 2008

2008 Review and 2009 Business Plans

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International Minerals - 2008 Review and 2009 Business Plans

         

Scottsdale, Arizona, December 18, 2008 � International Minerals Corporation (TSX and SWX: �IMZ� or �the Company�) reports a calendar year-end summary of its corporate and project activities during 2008 and its business plans for calendar year 2009.

Corporate

 

  • The Company�s share price, like that of most resource companies, has not performed well in 2008 due primarily to prevailing adverse market conditions not only in the natural resources sector but also in the general financial market. IMZ�s current share price is essentially at the same level as five years ago.

 

  • Management believes that the Company�s accomplishments of the past year (especially at the Pallancata underground silver-gold mine in Peru) combined with our future plans will remedy this situation and IMZ�s share price should recover in 2009 together with a likely resurgence in metal prices.

 

  • In terms of financial health, the Company is in the enviable position of having a strong balance sheet with cash and short-term investments of over US$50 million at calendar 2008 year end, with expected cash dividends commencing in late 2009 from the 40%-owned Pallancata Mine.

 

  • In mid-October 2008, IMZ instituted a share repurchase program because the Board believed that the market price of the Company did not fully reflect the underlying value of the Company�s business and its future business prospects. An update on the share repurchase program will be provided in the Company�s second fiscal quarter financial information for the period ending December 31, 2008.

 

A brief update on the Company�s key projects is provided below:

 

Pallancata Silver-Gold Mine, Peru

 

  • Owned 40% by IMZ and 60% by the mine operator, Hochschild Mining plc.

 

  • Pallancata has become one of the success stories in the mining industry in 2008 and is now the number-one primary silver mine in Peru in terms of silver reserves.

 

  • Proven and probable reserve estimates in August 2008 were approximately 80 million ounces of silver equivalent (using a 75:1 silver:gold ratio) contained within 5.8 million tonnes at 329 g/t silver and 1.2 g/t gold in proven and probable reserves. See IMZ news release dated August 25, 2008 for further details.

 

  • Production (100% project basis):

 

- From start-up (September 2007) to September 30, 2008 almost 3 million ounces of silver and over 10,000 ounces of gold have been produced.

 

- For calendar year 2008, production is expected to reach approximately 4.5 million ounces of silver and 18,000 ounces of gold.

 

- In 2009, Pallancata should become one of the top-10 largest primary silver mines in the world, producing an expected 6 to 7 million ounces of silver annually.

 

  • Total cash costs, including the government royalty, are currently under US$6.00 per ounce of silver net of by-product gold credits. Currently, direct mine site costs (included in the US$6.00 cash cost) are approximately US$3.15 per ounce (assuming only mining, processing and mine G&A costs).

 

  • IMZ�s net earnings from the Pallancata Mine to September 30, 2008 are approximately US$3.8 million.

 

  • Because all cash flow has been required for funding the aggressive capital expansion program at the Pallancata Mine, to date there have been no cash dividends distributed to the joint venture partners. Cash dividends are expected to commence, however, in the final quarter of calendar year 2009, dependent on metal prices and ongoing capital requirements.

 

Rio Blanco and Gaby Gold Projects, Ecuador

 

  • It has been a difficult year for the mining/exploration sector in Ecuador.

 

  • The market awaits the expiry of the mining mandate (that suspended exploration and mining activities in April) and approval of the new mining law in January 2009. Normalization of exploration/mining activities likely will likely take several months longer while the detailed regulations for the mining law are prepared and approved.

 

  • The negotiation of project-specific mining contracts (covering issues such as income/windfall taxes and royalty payments) for the more advanced projects (such as IMZ�s Rio Blanco, Kinross� Fruta del Norte, IAMGOLD�s Quimsacocha and Corriente�s Mirador projects) are expected to take up to an additional to six months to negotiate with the government.

 

  • In calendar year 2009, IMZ does not expect to spend significant funds in Ecuador at the Rio Blanco underground gold-silver project and the Gaby open-pit gold project and has already reduced its workforce accordingly. The Company is, however, maintaining its significant in-country infrastructure and its commitment to developing its Ecuadorian projects.

 

  • IMZ has previously completed much of the environmental permitting process for the proposed development of a mining operation at Rio Blanco. Final permitting approval is expected by the end of 2009, with construction (subject to required additional financing) starting in 2010.

 

  • In February 2008, the Company completed a preliminary feasibility report at Gaby, which was not positive at US$650 per ounce gold price but is currently being optimized for higher tonnage production. Results of the optimization program will be announced in the first quarter of 2009.

 

New Acquisitions

 

  • In the current market there are significant opportunities for IMZ to acquire gold-silver companies and/or projects that are in or near production at low acquisition costs that have not been seen in the industry for the past 20 years. IMZ is well-positioned with its cash resources and strong technical team to take advantage of this situation.

 

  • IMZ�s preference is to seek these opportunities in the Americas, especially in South America in order to leverage off of IMZ�s considerable technical and corporate expertise from over 15 years of exploration and development of projects in that region.

 

  • The Company has evaluated at least 25 companies/projects in 2008, using its experienced acquisition team, and management is confident that IMZ will achieve at least one major acquisition during the coming year.

 

The technical information in this news release was reviewed by IMZ�s Qualified Person, Nick Appleyard, Technical Manager.

 

          For additional information, contact Wendy Yang Tel: (303) 357-4863

Internet Site: http://www.intlminerals.com

Cautionary Statement:

Some of the statements contained in this release are �forward-looking statements� within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding capital expansion costs and completion, drilling and development programs on the Company�s projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental  permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, and other risks and uncertainties detailed in the Company�s Renewal Annual Information Form for the year ended June 30, 2008, which is available at www.sedar.com under the Company�s name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Data and Statistics for these countries : Ecuador | Peru | All
Gold and Silver Prices for these countries : Ecuador | Peru | All

International Minerals Corporation

PRODUCER
CODE : IMZ.TO
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Intl. Minerals is a producing company based in United states of america.

Intl. Minerals produces gold and silver in Peru, develops copper, gold and silver in Ecuador and in Peru, and holds various exploration projects in Ecuador.

Its main asset in production is PALLANCATA in Peru and its main assets in development are RIO BLANCO - ALEXANDRA NORTH, RIO BLANCO - SAN LUIS and GABY in Ecuador and INMACULADA in Peru.

Intl. Minerals is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 270.7 millions as of today (US$ 252.7 millions, € 183.7 millions).

Its stock quote reached its lowest recent point on June 01, 2001 at CA$ 0.82, and its highest recent level on April 29, 2011 at CA$ 8.00.

Intl. Minerals has 95 653 001 shares outstanding.

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Annual reports of International Minerals Corporation
2008 Annual report
Renewal Annual Information Form 2007
Nominations of International Minerals Corporation
4/8/2010Appointment of New VP
Financials of International Minerals Corporation
9/30/2013Reports Operating and Financial Results for the Fiscal Year ...
5/16/2013Reports Third Fiscal Quarter Ending March 31=2C 2013 Financi...
8/12/2010(Pallancata)Reports Strong Pallancata Mine Operating Results
11/17/2009(Pallancata)First Quarter Net Income of $1.2 Million; Net Equity Earning...
8/24/2009(Pallancata)IMZ Reports Strong Pallancata Operating Results & Initial US...
11/18/2008Sept. 30, 2008 Financial Results
5/20/2008 Realizes $4.12 Million ($0.04 per share) in Net Income for ...
Project news of International Minerals Corporation
7/17/2013s 2013 Cost Reduction Plans and Project Updates
6/25/2013Closes Sale of Rio Blanco Property in Ecuador
3/25/2013(Inmaculada)Announces Closing of $140 Million Loan Facility for Inmacula...
11/2/2012s Development of Goldfield Property
1/11/2012(Inmaculada)IMZ Announces Positive Feasibility Study at Inmaculada Gold-...
7/28/2010(Inmaculada)Reports New High-Grade Drill Results
5/5/2010(Inmaculada)New Drill Results
4/30/2010(Pallancata)Quarterly Production
3/26/2010(Pallancata)Reports Updates Reserve/Resource Estimates at Pallancata Sil...
2/24/2010(Pallancata)Record Production
2/4/2010(Inmaculada)Increased Resource Estimate at Inmaculada Project
11/12/2009(Pallancata)Record Quarterly Production at Pallancata Mine, Peru
7/16/2009(Pallancata)IMZ Update at Pallancata Mine, Peru and Gaby project, Ecuado...
5/23/2009(Pallancata)Got Gold? IMZ Reserves at 1M gold equiv oz. Investing in Gol...
5/15/2009(Pallancata)IMZ Announces 1st Quarter Production Results- Pallancata Min...
2/19/2009(Rio Blanco - San Luis)Updated Costs at Rio Blanco
2/17/2009(Pallancata)Record Production from Pallancata Mine, Peru
1/26/2009(Gaby)IMZ Announces Optimization Study Results-Gaby Project, Ecuad...
11/5/2008(Pallancata)Q3 Production Results for Pallancata Mine, Peru
10/2/2008(Pallancata) Reports Low Cash Costs at Pallancata Silver Mine, Peru
8/25/2008(Pallancata) Announces Major Increase in Reserves at Pallancata Mine
7/24/2008(Pallancata)Strong Production Results from Pallancata Mine
6/24/2008(Rio Blanco - Alexandra North)Reports High-Grade Gold Drill Results at Rio Blanco Project
Corporate news of International Minerals Corporation
9/19/2013Provides Gemfield Permitting Update and Earnings Guidance fo...
6/18/2013Announces Update of Feasibility Study at Goldfield=2C Nevada
5/2/2013Provides Earnings Guidance for Third Fiscal Quarter Ending M...
3/15/2013(Pallancata)s Reserve and Resource Estimates at Pallancata Silver Mine
2/14/2013Reports Second Fiscal Quarter Ending December 31, 2012 Finan...
1/30/2013(Pallancata)Reports Production Results From Pallancata Mine for Quarter ...
11/7/2012Provides Earnings Guidance for First Fiscal Quarter Ended Se...
7/17/2012Announces Positive Feasibility Study at Goldfield Gold Proje...
5/30/2012IMZ Reports Drill Results from Converse Project, Nevada
5/23/2012Announces Closing of Sale of Ruby Hill Royalty
5/15/2012Reports $6.8 Million in Pre-Tax Income for Third Fiscal Quar...
4/12/2012(Pallancata)IMZ Updates Reserve & Resource Estimates at Pallancata Mine,...
4/11/2012(Pallancata)s Reserve and Resource Estimates at Pallancata Silver Mine
3/20/2012Announces Metallurgical and Drill Results From Goldfield Pro...
2/15/2012IMZ Reports $12M in Pre-Tax Income for Quarter Ended Dec 31,...
2/14/2012Reports $12.0 Million in Pre-Tax Income for Second Fiscal Qu...
12/20/2011IMZ Announces Positive Preliminary Economic Assessment at Co...
12/15/2011IMZ Reports $15.2M in After-Tax Net Income for Quarter Ended...
11/29/2011Reports Drilling and Metallurgical Results From Converse Gol...
10/12/2011to Repurchase Shares
9/28/2011Reports Record Earnings of $58.4 Million Pre-Tax Net Income ...
8/24/2011Reports Increased Resource Estimate at Converse Gold Project...
8/18/2011on Rio Blanco Contract Negotiations With Ecuadorian Governme...
7/6/2011IMZ Reports Drill Results from Converse Project, Nevada
7/5/2011Reports Drill Results From Converse Project, Nevada, Includi...
7/1/2011IMZ Announces Expiry of Agreements with Chinese Company
6/17/2011IMZ Announces Drill Results from Goldfield Project, NV
5/17/2011IMZ Reports $12.9 Million in Pre-Tax Net Income for 3rd Fisc...
4/7/2011(Pallancata)IMZ Updates Reserve and Resource Estimates at Pallancata Sil...
2/25/2011(Inmaculada)IMZ Reports Increased Resources at Inmaculada Project
2/24/2011Reports Increased Resource Estimate at Inmaculada Gold-Silve...
2/15/2011IMZ Reports Record Net Income for Quarter Ended Dec 31, 2010
5/21/2010Commences Drilling at Goldfield, Nevada
5/18/2010US$3.3 Million Net Income for Third Fiscal Quarter
1/20/2010Drill Results for Recently Acquired Inmaculada Project
1/13/2010Completes Transaction to Acquire Ventura Gold
12/18/2009Ventura Shareholders Approve Arrangement Agreement
12/17/2009Resignation of VP
9/29/2009IMZ Year-End Financials Web Links
9/12/2009Webcasts from Denver Gold Forum & CEO Interview
8/20/2009IMZ Included in Swiss Performance Index of SIX
5/20/2009IMZ Reports Net Income of US$2.0 million for 3rd Quarter End...
2/20/2009Meet International Minerals' CEO Steve Kay at BMO Conference
2/18/2009Net Income $4.8M ($0.05 per share) for Fiscal 2Q
12/18/20082008 Review and 2009 Business Plans
9/30/2008 Reports Strong Year-End Balance Sheet
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