Exploration Update at Pallancata Mine, Peru and
Property Update at Gaby Project, Ecuador
Scottsdale, Arizona, July 15, 2009 � International Minerals Corporation (TSX and SIX: "IMZ") announces an update on the ongoing exploration drill program aimed at defining additional mineral resources at the Pallancata silver-gold mine in Peru, jointly owned by IMZ (40% interest) and Hochschild Mining plc ("Hochschild", 60% interest and operator). Several high-grade silver drill intercepts are reported to date.
In addition, as a cost reduction measure, IMZ has elected to relinquish an option to acquire an additional 50% interest in the Papa Grande property at the Gaby gold project in southern Ecuador. IMZ already owns the remaining 50% interest in the Papa Grande property.
Pallancata Near-Mine ("Brownfield") Exploration Update
The 2009 exploration program at Pallancata includes approximately 56 core drill holes (totaling approximately 16,428m) from surface drill rigs. To date, 11 drill holes for a total of 3,638m have been completed.
This exploration drill program is in addition to the ongoing delineation and development drilling being conducted with underground drill rigs within the Pallancata Mine itself.
Details of the drill hole locations and meterages in the various target areas are shown in Appendix 1 (a) and (b) .
The Brownfield drill program is designed to define new resources within separate veins that are within three kilometers ("km") of the current mine workings. IMZ believes that these high-grade veins could potentially complement the current production from the Pallancata Mine, as no significant additional infrastructure would be required for their development as mineral reserves.
Assay results to date have been received from 11 drill holes, primarily in the Virgen del Carmen area. These results include the following drill intercepts (uncut grades; true widths not yet estimated):
� VC09-002: 0.7m grading 406 grams per tonne ("g/t") silver and 1.6 g/t gold.
� VC09-003: 0.8m grading 527 g/t silver and 2.2 g/t gold.
� VC09-005: 1.5m grading 785 g/t silver and 1.5 g/t gold.
A complete list of assay results is provided in Appendix 2 .
Pallancata East Area
The Pallancata East area is the extension of the main Pallancata Vein structure that is located to the east of the Suyamarca River.Historically there were 13 core holes drilled by IMZ in 2005 for a total of 2,984 m.Significant results from these 2005 drill holes include (estimated true widths and uncut grades):
� PAC-46: 1.5m grading 857 g/t silver and 2.7 g/t gold.
� PAC-45: 1.3m grading 441 g/t silver and 1.8 g/t silver.
The 2009 exploration drill program will include an additional 4 drill holes totaling approximately 1,300m in the Pallancata East area.
Gaby Project Update
At the Gaby Project in southern Ecuador, IMZ has elected to relinquish its option to acquire the 50% of the Papa Grande property that it does not currently own, thus terminating the remaining US$11.26 million due in property payments owed under the terms of the January 2008 agreement (see IMZ press release dated March 3, 2008) with the local Ecuadorian partner.
The Gaby Project consists of two adjacent gold deposits, approximately 1.5 km apart: the Main Gaby Deposit and the Papa Grande Deposit. IMZ now holds the following percentage interests in the three principal mining concessions that comprise the Gaby Project: 50% of Papa Grande, 55% of Muyuyacu and 100% of Guadalupe.
Estimated Measured and Indicated ("M&I") Resources (on a 100% project basis) at the Gaby Project are 356 million tonnes at an average grade of 0.61 grams per tonne (g/t) gold containing a total of 6.94 million ounces (see Table 1 below).As a result of the decision to relinquish 50% of the Papa Grande property, 4.11 million ounces are now attributable to IMZ, a reduction of approximately 790,000 gold ounces or 16% of the contained M&I gold resources.
Estimated Inferred Resources (on a 100% project basis) at the Gaby Project are 143 million tonnes at an average grade of 0.62 g/t gold containing a total of 2.85 million ounces. Of these ounces, 1.76 million ounces are now attributable to IMZ, a reduction of approximately 410,000 ounces or 19% of the contained Inferred gold resources.
Steve Kay, President and CEO of IMZ, commented: "Based on our overall cost reduction program in Ecuador and considering the fact that the Gaby Project, as a projected high capital and operating cost producer, requires a steady-state gold price of at least $1,000 before IMZ could commit to a final feasibility study, IMZ decided that it was financially prudent to relinquish rights to a relatively small percentage of the total gold resources at the Gaby Project in order to conserve our cash reserves. IMZ's overall effective 60% interest in the total gold resource base at Gaby (representing over 4 million ounces and 1.8 million ounces in the M&I and Inferred categories respectively) remains highly leveraged to a rising gold price."
A summary of the mineral resource estimates using a range of gold cut-off grades (with the base case in bold print) is provided in Table 1 below, including the total contained project ounces and the ounces attributable to IMZ. These mineral resources were classified in accordance with CIM guidelines by Qualified Person, R. Mohan Srivastava (P.Geo.) of the independent consulting firm FSS Canada. The estimate has an effective date of January 26, 2009. Please refer to IMZ's news release of January 29, 2009 for further information about the resource estimation methodology, drilling contractor and laboratory sampling protocols.
Table 1. Gaby Project � January 2009 Mineral Resource Estimates - showing July 2009 updated attributable ounces to IMZ
|
Resource Estimate
Category |
Cut-Off
(g/t gold) |
Tonnes
(Mt) |
Gold Grade (g/t) |
Contained Gold
Ounces
(100% Project) |
IMZ Attributable
Gold
Ounces |
|
Measured |
0.3 |
122.8 |
0.57 |
2,250,000 |
1,350,000 |
|
0.4 |
91.6 |
0.64 |
1,900,000 |
1,140,000 |
|
0.5 |
61.1 |
0.74 |
1,460,000 |
870,000 |
|
Indicated |
0.3 |
419.3 |
0.50 |
6,770,000 |
4,030,000 |
|
0.4 |
264.8 |
0.59 |
5,040,000 |
2,960,000 |
|
0.5 |
157.6 |
0.69 |
3,500,000 |
2,040,000 |
|
Measured and Indicated |
0.3 |
542.1 |
0.52 |
9,020,000 |
5,390,000 |
|
0.4 |
356.4 |
0.61 |
6,940,000 |
4,110,000 |
|
0.5 |
218.7 |
0.71 |
4,960,000 |
2,910,000 |
|
Inferred |
0.3 |
245.2 |
0.51 |
3,980,000 |
2,470,000 |
|
0.4 |
143.2 |
0.62 |
2,850,000 |
1,760,000 |
|
0.5 |
86.1 |
0.73 |
2,030,000 |
1,250,000 |
Notes1. Numbers are rounded to reflect the precision of a resource estimate.
2. The estimated mineral resources are not mineral reserves and do not have demonstrated economic viability.
3. To limit the influence of individual high-grade gold samples, grade cutting was used. Gold assay grades were capped at 30 g/t.
4. Average dry bulk densities of 2.77 tonnes per cubic meter ("t/m3") for intrusive rocks, 2.97 t/m3 for volcanic rocks and 1.36 t/m3 for the saprolite (oxidized zone) were applied to block volumes.
5. The grades were interpolated using the "Probability Assisted Constrained Kriging" estimation technique within the sulfide geologic domain and ordinary kriging within the saprolite.
6. The contained metal estimates remain subject to factors such as mining dilution and process recovery losses.
7. Reporting cut-off grades were determined using a gold price of $650 per ounce.
IMZ's Qualified Person, Technical Manager Nick Appleyard, reviewed the foregoing disclosure.
For additional information, contact Wendy Yang at 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 exploration plan; development potential; potential for resource addition and resources estimates. 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 reserves; risks relating to obtaining mining and environmentalpermits; exploration and development risks; risk of commodity price fluctuations; political and regulatory risks; 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.
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