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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - May 11, 2010) - Imperial Metals
Corporation (TSX:III) reports the updated mineral reserve and mineral
resource estimates for the Huckleberry mine.
The updated
reserve for the Main Zone Extension Pit (Saddle Expansion) will enable
milling operations to continue to July 2012. Prices used in the
calculation of the Huckleberry reserves were: US$1.50/lb copper,
US$700.00/oz gold, US$8.00/oz silver, and an exchange rate of $1.25
CDN/US.
-------------------------------------------------------------------------- Ore Copper Moly Strip Proven and Probable Reserves(1) (tonnes) (%) (%) Ratio -------------------------------------------------------------------------- Main Zone Extension Pit (Saddle Expansion) (2) 14,010,000 0.362 0.005 0.56:1 -------------------------------------------------------------------------- 1. Released in 2009 Annual Information Form dated March 30, 2010. 2. A cross section is available on the Imperial website.
In 2009 Huckleberry conducted a two-phase
exploration program. Phase I included 12 diamond drill holes totaling
2,577 metres to test airborne and ground IP geophysical targets
generated from 2006-2007 exploration programs. Seven of the holes
intercepted copper mineralization, including 117 metres grading 0.24%
copper in drill hole 09-006 located in the TMF 2 area.
Phase II of the program tested the targets identified by Geoscience BC
airborne geophysics survey conducted in late 2008. The drill program
targeted resources at depth below the current Main Zone Extension pit,
as well as the previously mined Main Zone pit. The program culminated
with a total of 16 diamond drill holes totaling 5,714 metres.
Drill hole DDH90ST-F intersected 0.38% copper and 0.010% molybdenum
over 486 metres from 12 to 498 metres, which is the longest
intersection of continuous mineralization reported from Huckleberry
since exploration began nearly 47 years ago. Additional drilling is
planned for 2010 to follow up on the 2009 drilling, with emphasis on
locating higher grade mineralization. Complete assay results are
available on the Company's website. Following are select assays from
the 2009 Phase II drill program.
----------------------------------------------------------------------- 2009 Phase II Drill Results Depth Width Hole Dip Azimuth (m) Cu % Mo % (m) From (m) To (m) ----------------------------------------------------------------------- 09ST-A -50 180 351 0.42 0.017 246 78 324 09ST-C -50 180 345 0.40 0.015 267 54 321 09ST-E -90 360 249 0.49 0.015 219 0 219 09ST-F -46 180 498 0.38 0.010 486 0 486 09ST-G -75 180 470 0.38 0.008 369 21 390 09ST-H -65 360 354 0.41 0.005 273 9 282 09ST-Q -60 180 321 0.38 0.020 282 15 297 -----------------------------------------------------------------------
Based on the success of the Phase II drill
program, the resource model was updated, and the measured and indicated
resource for the entire Main Zone deposit increased from 117.9 million
tonnes grading 0.325% copper to 182.9 million tonnes grading 0.321% copper,
an increase of 55%. The resource estimates were calculated at a cut-off
grade of 0.20% copper, and include reserve blocks.
------------------------------------------- ------------------------------- 2008 Resource Model 2010 Preliminary Resource Model (prior to 2009 drilling) (with 2009 drilling) Contained Lbs Contained Lbs Tonnes Copper% Copper Tonnes Copper% Copper ------------------------------------------- ------------------------------- Measured 87.0 0.333 638.7 94.4 0.339 705.5 Indicated 30.9 0.305 207.7 88.6 0.301 587.9 ------------------------------------------- ------------------------------- Measured +Indicated 117.9 0.325 844.7 182.9 0.321 1,295.0 ------------------------------------------- ------------------------------- Inferred 8.0 0.264 46.5 45.4 0.288 288.2 ------------------------------------------- -------------------------------
Two
mine plans are being studied to extend the Huckleberry mine life, given
the current copper prices and the large resources remaining in the Main
zone. The first plan will be to mine a small expansion to the Main Zone
Extension pit, called the Stirrup Expansion, which could add about a
year to the mine life. Details of this plan are to be submitted to the
Huckleberry board of directors for consideration later this year. A
second mine plan that will determine the feasibility of removing
tailing and waste from the Main zone pit and mining a part of the large
resource located below it. A cross section is available on Imperial's
website.
The updated estimates of the Main Zone Extension Pit (Saddle Expansion)
were prepared as at January 1, 2010 under supervision of Kent
Christensen, P.Eng., Chief Mine Engineer for Huckleberry mine,
designated as the Qualified Person.
Peter L. Ogryzlo, M.Sc., P.Geo. is the designated Qualified Person as
defined by National Instrument 43-101 for the exploration programs.
Analyses for copper and molybdenum were performed using the laboratory
at the Huckleberry mine site. A full QA/QC program using blanks,
standards and duplicates was maintained for all samples submitted to
the lab. Several duplicate samples were sent to Acme Laboratories
Vancouver to compare and verify results from the Huckleberry mine
laboratory.
The Huckleberry board recently declared a dividend of $10 million to be
paid to its shareholders. Imperial, a shareholder of Huckleberry Mines
Ltd., holds a 50% interest.
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