Iberian Minerals Corp.

Iberian Minerals Corp.

January 29, 2007 13:20 ET

Iberian Minerals Corp.: President's Letter # 3

TORONTO, ONTARIO--(CCNMatthews - Jan. 29, 2007) - Iberian Minerals Corp. (TSX VENTURE:IZN)-

Development of the Aguas Tenidas Project is continuing to accelerate with approximately 120 contractors and employees currently working on site. This number is expected to exceed 500 by the third quarter of 2007 and the infrastructure required for this work force is now being put in place, including: i) new offices, change houses and canteens, ii) upgraded access roads and parking areas, iii) sewage systems, iv) engineering and maintenance facilities, and v) deep fresh water wells. In addition, a sophisticated communications system will be installed shortly.

Construction of the portal for the new mine access ramp and roads is now nearly complete, development of the two principal underground haulage ways is on schedule and going well. Approximately 50 hectares (123 hectares) of surface brush has now been cleared at the plant and tailings deposit sites. Earth moving commences next week, which should allow the first concrete for plant foundations to be poured in approximately six weeks' time.

An important recent milestone for the Company was the receipt of the building licence (Licencia de Obra), announced on January 12th this year, from the Municipality of Almonaster La Real, which allows the construction of the ore processing plant, the tailings area and all surface infrastructure to proceed. The Company is still awaiting the operating permit to commence operation of the plant and tailings area once construction is complete. In this regard, detailed additional information requested has now been presented to the relevant authorities, including the final engineering for the paste tailings area,. One document still to be provided is on rheology (paste tailings analysis), which will be presented in early February. The Company has received all the environmental approvals required for construction and operation.

The Company continues to be gratified by the support it is receiving from local communities for the Aguas Tenidas project, which has been the subject of several favourable press reports in recent weeks.

Due to an unexpected shipping problem in Sweden, the two new exploration drills, to be operated by Cabo Drilling Corp's Spanish subsidiary, arrived three weeks later than anticipated, but are expected to become fully operational in early February. The underground drilling will initially target the "stockwork systems", which underlie much of the Aguas Tenidas massive sulphide mineralization. Management believes that these stockworks have the potential to host mineralization that would increase the mineral resource of the Aguas Tenidas project. This exploration drilling will define the potential of the copper stockwork mineralization that is not currently included in any mineral resource.

One of the surface drill's first targets will be the La Majada property, located approximately 20kms east of Aguas Tenidas. The 12.6 km2 La Majada prospect is known to host at least one large massive sulphide deposit; this has a known 750 metre strike length, as detailed in the Technical Report for the "La Majada" authored by James G. Burns B.Sc., P.Eng. and filed by the Company on SEDAR on January 22nd, 2007. During 1998-2001, Riomin Iberica S.A. drilled 17 core holes on La Majada, including MAD-09, the results of the work by Riomin Iberica S.A. are taken from Riomin Iberica S.A. records and are historical in nature and non 43-101 compliant, the results more fully examined in the technical report filed on SEDAR and are used by management for information purposes:

Width True Width (e) Zn Cu Pb Ag Au

MAD -09 21.3m 18.4m 7.81% 0.33% 1.43% 35.8g/t 0.84g/t
Check(i) 6.0m nc 12.39% 0.31% 2.17% 58.3g/t 1.50g/t

(i) In 1999 - 2001, Riomin Iberica, S.A. drilled 17 core holes on La Majada, including MAD-09. The average grade for the 21.3m massive sulphide intercept for this hole (estimated true width 18.4m)was 0.33% Cu, 1.43% Pb, 7.81% Zn, 35.8 g/t Ag and 0.84 g/t Au These results are historical and are non 43-101 compliant. They are used by management for information purposes.

The core for this hole has been stored in a secure facility in Valverde del Camino, Spain. In late 2006, and as part of the due dilligence process, Burns examined the core for MAD-09 and selected six consecutive one metre core lengths from 648.9m to 654.9m for re-assay. Under the direction of Burns, the remaining 1/2 core was cut in half with a core saw, each sample was crushed, pulverized, individually bagged and sealed at Matsa's Aguas Tenidas facility in Spain, and all six samples were shipped by bonded courier to OMAC Laboratories Ltd. (an ISO approved facility)in Galway, Ireland. At OMAC, the samples were assayed for gold by fire assay and a suite of base and trace elements by ICP analysis.

The average assays for the six samples follows, with the average for the original historical, non 43-101 compliant Riomin samples in brackets: 0.311 (0.305)% Cu, 2.17 (2.20)% Pb, 12.39 (12.43)% Zn, 58.3 (53.2) g/t Ag and 1.49 (1.50) g/t Au.

The Company retained the services of James G. Burns, B.Sc., P.Eng., to author a NI 43-101 compliant technical report on the project. In the course of this initiative two grab samples of silicified sulphide material collected from the La Majada property by Burns from a dump beside a small shaft of unknown age and depth averaged 6.5 g/t Au and 78 g/t Ag.

The Company's present interpretation of La Majada is that it: i) appears to host potentially interesting zinc mineralisation at depths of 600-800 metres, which requires additional drilling, and ii) a secondary gold/silver mineralization event has produced a near surface precious metal target, worthy of further investigation.

In addition to the La Majada project James G. Burns B.Sc., P. Eng. has been contracted to produce technical reports on several of the Company's exploration projects in the Spanish Pyrite Belt. These will include the following named massive sulphide deposits: Cueva de la Mora (including Monte Romero), La Romanera, La Infanta/Sierrecilla and La Concepcion.

For further information on La Majada, please reference the technical report on this property recently filed on SEDAR, entitled "Technical Report for the La Majada Property (Permit Investigation No. 14.826), Huelva Province, Region of Andalucia, Spain" by James G Burns B.Sc., P.Eng.

Mike Newbury, P.Eng., a director of the Company, is the Qualified Person who has reviewed the technical information in this news release on behalf of the Company.

Iberian Minerals Corp. trades on the TSX-V under the symbol IZN. As of January 2nd, 2007 there were 163,013,614 shares issued and outstanding.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are in Canadian dollars unless otherwise noted.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Peter Miller
    (416) 815-8558
    Iberian Minerals Corp.
    Norm Brewster
    (416) 815-8558