IMZ Releases New Drill Results at Recently Acquired Inmaculada Project
January 19, 2010, Scottsdale, Arizona � International Minerals Corporation (TSX and SIX � �IMZ� or the �Company�) is pleased to announce some of the best drill results to date from the Angela Vein at the Inmaculada Project, including 3.5 meters (�m�) at an average grade of 37.1 grams per tonne (�g/t�) gold and 270 g/t silver and 6.2m at an average grade of 22.4 g/t gold and 156 g/t silver.
The Inmaculada Project was recently acquired by IMZ through the acquisition of Ventura Gold Corp. (�Ventura�) in an all-share deal under the terms of a statutory plan of arrangement that was completed on January 12, 2010 (see news release dated January 12, 2010). IMZ currently owns a 51% interest in Inmaculada, with Hochschild Mining PLC owning the remaining 49% interest. IMZ can earn a 70% interest by completing (at its sole cost) a feasibility study by September 2013 (see further details below).
The complete 2009 drilling program at Inmaculada comprised 45 core drill holes (totaling 14,432m). Assay results for seven of these drill holes (Inma 55-61) were previously reported in a Ventura news release dated August 27, 2009. Results for an additional 26 drill holes (Inma 62-87) are summarized in Appendix 1 and shown on the long section in Appendix 2. The results for the remaining 12 drill holes are pending.
Highlights of the drill intersections from the 26 drill holes (all representing estimated true widths and average uncut grades) include:
- 3.5m at 37.1 g/t gold and 270 g/t silver in drill hole Inma-65
(including 0.4m at 260 g/t gold and 871 g/t silver)
- 6.2m at 22.4 g/t gold and 156 g/t silver in drill hole Inma-75
- 8.3m at 8.2 g/t gold and 419 g/t silver in drill hole Inma-83
- 3.3m at 5.9 g/t gold and 437 g/t silver in drill hole Inma-68
- 6.4m at 4.3 g/t gold and 242 g/t silver in drill hole Inma-62
To date, mineralization within the Angela Vein has been defined over a strike length of more than 1,400m and a vertical extent of up to 300m (see Appendix 2). It remains open along strike to the northeast. The Angela Vein is one of 11 known significant vein systems recognized at the Inmaculada Project, all of which are relatively under-explored and outcrop for more than 25km. Some of these other vein targets will be drilled in 2010.
With these new results, the Angela Vein continues to demonstrate continuity in grade and vein width. These drill results (which are not included in the last published inferred resource estimate completed in January 2009) will be used in the calculation of an updated mineral resource estimate, which is expected to be announced in February 2010.
The January 2009 initial, independent National Instrument (�NI�) 43-101 compliant inferred mineral resource estimate on the Angela Vein (based on approximately 13,150m of exploration drilling in 54 core holes) reported approximately 483,000 ounces of gold and 16.6 million ounces of silver contained within 3.7 million tonnes at 4.0 g/t gold and 139 g/t silver (100% project basis) at a cut-off grade of 3 g/t gold equivalent, (using an 80:1 silver to gold ratio).
The 2009 drill program focused solely on the Angela Vein. A total of approximately 11,864m (in 25 drill holes) of exploration drilling were used to expand the known mineral resource estimate, extend the vein laterally to the north-east and further define some of the possible feeder zones that are still open at depth. A total of approximately 3,568m (in 20 drill holes) were used in resource definition/in-fill drilling in the south-western, near surface portion of the Angela Vein, in order to increase drill density and upgrade resource classification in that area to support a planned feasibility study.
Feasibility Study
Three core rigs have been drilling on-site for several months and are planned to continue drilling through the January-April rainy season and throughout 2010, with the intention of expanding and upgrading the resource estimate to support completing a feasibility study by the end of 2011.
Delivery of a feasibility study to Hochschild (together with required share issuances totaling 200,000 IMZ shares over a 5-year period, commencing February 2011) will complete the earn-in of an additional 19% interest in the Inmaculada Project, to increase IMZ�s interest from 51% to 70%. Under the terms of the joint venture agreement with Hochschild, IMZ is required to deliver the feasibility study (at its sole cost) by September 2013. IMZ estimates that the feasibility study will cost approximately US$7 million.
Metallurgical testwork is ongoing and preliminary results suggest that the Inmaculada mineralization is treatable by conventional processing techniques with good metal recoveries.
General
Sample preparation and analytical work for the Inmaculada drilling program were carried out by SGS Mineral Services in Lima using industry-standard sampling practices and analytical methods for silver and gold. As part of Ventura�s QA/QC protocol, standard samples and blanks were inserted into the sample processing stream at a rate of one per 10 samples. Duplicate and alternate laboratory check samples also form part of this sampling protocol. The technical disclosure including drill results in this news release were reviewed by Qualified Person, IMZ Exploration Manager, Mark Cannuli.
The previous Angela Vein mineral resource estimate was classified as inferred in accordance with CIM guidelines, as required by NI 43-101, by Micon�s Qualified Person B. Terrence Hennessey (P.Geo.) and the estimate had an effective date of January 5, 2009.
A technical report on the Inmaculada Project, providing additional information about the mineral resource estimate, mineralization, geology and exploration drilling program at the Angela Vein, was filed by Ventura on SEDAR on March 6, 2009 and is available on IMZ�s web site at www.intlminerals.com.
Update on Metallic Ventures Transaction
On November 2, 2009 IMZ and Metallic Ventures Gold Inc. (TSX: MVG) (�Metallic�) jointly announced that they had entered into an arrangement agreement whereby IMZ will acquire, in a cash and share transaction (the �Transaction�), all of the issued and outstanding shares of Metallic by way of a statutory plan of arrangement.
The Transaction is expected to close on or about February 26th, 2010, subject to, among other things, receipt of regulatory, court and Metallic shareholder approvals. Metallic�s shareholder meeting to approve the Transaction is scheduled for February 22, 2010.
Metallic�s principal assets are: (a) two advanced gold exploration properties in Nevada (Converse and Goldfield) with significant measured and indicated resources; (b) a 3% net smelter return (NSR) royalty from Barrick�s Ruby Hill gold mine, also in Nevada; and (c) approximately US$12 million in cash.
About International Minerals
International Minerals is a silver-gold producer, explorer and developer with silver-gold production from its 40%-owned Pallancata Mine, one of the top-10 primary silver mines in the world. IMZ estimates production (on a 100% project basis) from the Pallancata Mine for 2009 of approximately 8.0 million ounces of silver and 30,000 ounces of gold (40% attributable to IMZ�s account). Production of approximately 10 million ounces of silver and 35,000 ounces of gold is expected in 2010.
IMZ also has interests in the Rio Blanco gold-silver property and the Gaby gold property, both development stage projects in Ecuador.
IMZ has been listed on the Toronto Stock Exchange since 1994 and the Swiss Stock Exchange (�SIX�) since 2002.
Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.
For additional information, contact:
In North America: Terri Kasten, Corporate Affairs Manager Tel: (480) 483 9932
In Europe: Oliver Holzer, Marketing Consultant +41 (0) 44 854 11 39
Or email IMZ at: IR@intlminerals.com
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 timing of feasibility studies, estimates of production and information on a potential corporate transaction. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks in maintaining production and processing rates, risks of cost escalation, risks of estimating mineral resources and reserves, variances between mineral reserves and actual mineral production, risks of completing feasibility studies and pending acquisition, and other risks and uncertainties detailed in the Company�s Renewal Annual Information Form for the year ended June 30, 2009, 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. |