IMZ Reports Temporary Work Stoppage at Pallancata Mine, Peru
Scottsdale, Arizona, March 24, 2009 � International Minerals Corporation (TSX and SWX: �IMZ� or �the Company�) has been informed by its joint venture partner Hochschild Mining PLC (�Hochschild�) that all mining activities at the Pallancata silver-gold mine in Peru (owned 40% by IMZ and 60% by Hochschild, the mine operator), have been temporarily halted by a work stoppage by local workers. Hochschild also reported that this work stoppage has affected all four of its mining operations in southern Peru, including the Selene Mine and processing facility, where the Pallancata ore is toll processed into concentrate.
Hochschild is negotiating with the local workers and Peruvian labor authorities, who are serving as mediators, to reach a resolution regarding workers� claims for greater profit sharing. Under Peruvian law, employees are entitled to a profit sharing of 8% of taxable profits.
According to information published by Hochschild, �Mining industry workers are expecting profit sharing to remain at levels similar to previous years despite the dramatic downturn in the global economy, particularly during the second half of 2008� Management [of Hochschild] is optimistic that a negotiated solution can be reached and [Hochschild] will keep the market informed of developments as they occur.�
IMZ has been informed that there should be no significant impact to the Pallancata Mine production estimate of 7 million silver equivalent ounces (100% basis) for calendar year 2009 if the production interruption period is short.
IMZ will provide updates to the situation as appropriate and is hopeful of a quick resolution to the work stoppage.
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 length of work stoppage; production estimate; period till resumption of mining; and labor relations at the Pallancata Mine. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to labor negotiations; project capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; financing 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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