Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

September 11, 2009 09:15 ET

Iberian Minerals Reports Increased Aguas Tenidas Resources and Confirms Reserves, and Plans to Increase Mine Plan to Target 2.2 Mtpa Production

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2009) - Iberian Minerals Corp. (TSX VENTURE:IZN) announced today that it has received a report dated September 11, 2009 entitled "Report 43-101 Technical Report on the Mineral Resources and Reserves of the Aguas Tenidas Project, Spain" (the "43-101 Report"). Authored by Adam Wheeler, Mining Consultant, C.Eng and Eur. Ing., the 43-101 Report provides an update on resources and reserves as at June 30, 2009, and details new planned production levels for the Aguas Tenidas Mine.

Mr, Wheeler has authored several technical reports for Iberian for the project. A full copy of the 43-101 Report may be found on www.sedar.com.

Evaluation work was carried out, and the 43-101 Report was prepared in compliance with Canadian National Instrument 43-101, and the mineral resources in this estimate were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

The focus for the work of Mr. Wheeler was to confirm resources and corresponding reserve updates at Aguas Tenidas.

In summary:

  • Total Resources (Measured and Indicated) - 27.5 Mt including the cupriferous, polymetallic and stockworks resources. Importantly, the readily accessible copper stockworks resources have increased by over 100%.
  • Total Inferred Resources - 10.62 Mt, in all categories of mineralization - an increase of approximately 6 Mt from the previous estimates.
  • Total Reserves (Proven and Probable) - 19.21 Mt, a slight 1% increase from prior estimates.
  • Plans to increase mine production to 2.2 Mtpa, resulting in a 10 year mine life when taking into account a ramp-up period from the current 1.7 Mtpa target.

Updated estimations are:

Measured and Indicated Mineral Resources (at 30th June, 2009)

  CLASS Mt Cu % Zn % Pb % Ag g/t Au g/t
Polymetallic Measured 5.39 0.6 6.7 1.8 56.3 0.8
  Indicated 7.13 1.3 7.8 2.3 80.1 0.8
  Total 12.52 1.0 7.3 2.1 69.8 0.8

Cupriferous
 Measured 5.40 1.9 0.9 0.2 23.0 0.4
  Indicated 6.76 2.4 1.1 0.3 32.1 0.5
  Total 12.16 2.2 1.0 0.2 28.1 0.4
Stockworks Measured 0.93 2.0 0.3 0.1 9.4 0.1
  Indicated 1.89 1.7 0.1 0.1 6.1 0.1
  Total 2.82 1.8 0.2 0.1 7.2 0.1
Combined Measured 11.72          
Resources Indicated 15.78          
  Total 27.50          

Notes. Measured and indicated resources shown are inclusive of reserves. Mineral resources were evaluated using the following cut-off grades: Polymetallic 3% Zn, Cupriferous 1% Cu, Stockworks 1% Cu. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Inferred Mineral Resources (at 30th June, 2009)

    Mt Cu % Zn % Pb % Ag g/t Au g/t
Polymetallic Main zone 0.87 1.24 10.33 2.63 111.2 0.88
  Western Extension 1.94 1.64 4.00 1.31 64.7 0.56
  Total 2.81 1.52 5.96 1.72 79.1 0.66
               
Cupriferous Main zone 1.34 3.52 0.61 0.08 23.0 0.44
  Western Extension 6.25 1.99 1.51 0.50 37.7 0.67
  Total 7.59 2.26 1.35 0.42 35.1 0.63
               
Stockworks   0.22 1.38 0.05 0.02 4.6 0.03
               
Total Inferred Resources  10.62          

Notes: Same cut-offs as for measured + indicated. Stockworks only currently modelled between 690,800mE and 691,060mE. The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category

Proven and Probable Mineral Reserves (at 30th June, 2009)

Polymetallic Ore ClassTonnesCuZnPbAgAuNSR
          Mt%%%g/tg/t$/t
 Proven        2.44     0.87     6.48     1.86   62.9  0.87   82.2
 Probable        7.96     1.28     6.48     1.98   70.8  0.78   101.5
 Total      10.40     1.19     6.48     1.95   69.0  0.80   97.0
Copper Ore Proven        2.41     2.16     0.80     0.17   21.9  0.30   70.9
 Probable        6.40     2.32     0.99     0.24   28.2  0.43   77.8
 Total        8.81     2.27     0.94     0.22   26.5  0.40   75.9
Total Ore ClassTonnesNSR     
          Mt$/t     
 Proven        4.85   76.6     
 Probable      14.36   90.9     
 Total      19.21   87.3     

Notes: In determining mining reserves, reserves were blocked out on the basis of contained NSR value, with reference to the combined stoping and processing costs. The NSR values were calculated using metal prices of $4,500/t Cu, $1,650/t Zn, $1,650/t Pb, $12.5/oz Ag, $750/oz Au. Copper ore is split approximately 82%:18% Cupriferous:Stockworks

A life-of-mine plan and corresponding mining schedule have been developed for these reserves. Based on the ore production schedule, leading to an overall 1.7 Mtpa production, the expected life-of-mine from the time of writing would be 12 years. However, an expansion is currently being planned, which would lead to production rate of 2.2Mtpa total ore, and a revised mine life of 10 years, based on the same 19.21Mt mining reserve. The expansion is subject to regulatory approval; while the fact and timing of such an approval is not certain, the Company is confident of obtaining all required approvals in early 2010.

Mr. Wheeler has recommended an on-going in-fill drilling program from the investigation gallery, designed to upgrade the resource class status of the massive sulphide zones in the western part of the mine. Further deeper drilling, targeting copper stockworks resources, is designed to both increase the stockworks resource base and assist in upgrading the resource class levels of already delineated stockworks resources. Further mine planning work on the copper stockworks is expected to enable the conversion of some of the stockworks resources into reserves.

In light of the foregoing, the Company is updating Guidance for the Aguas Tenidas Mine for 2009 and 2010. It is expected that, based on Iberian's projections, ore processed will be 900,000 tonnes in 2009, down 100,000 tonnes from the earlier guidance and in the range of 2.0 million tonnes in 2010 during ramp-up to a target of 2.2Mtpa. Although actual costs remain to be calculated, current budget indications are that costs during the first year after expected commencement of commercial production, based on expected ore processed, will be as follows:

 Costs 2010
US$/t
 Mining 23
 Plant 20
 G&A  7
TOTAL 50

Daniel Vanin, President of Iberian said: "We are delighted with the findings from the 43-101 Report. Not only have we confirmed our reserves, we have increased our resource and inferred categories. This leads us to plan for aggressive on-going delineation of all resource categories to enhance our reserves, and we are confident of our ability to extend our mine life. Based on the current resource and reserve estimates and indications for the project, we have decided to plan to increase production at Aguas Tenidas from the current target of 1.7 Mtpa to a target of 2.2 Mtpa. We have extra capacity in the plant and a mining plan which allows expansion to this rate. There will be some capex required but we currently view this need to be minor, and included in the life of mine plan. We are now planning for implementation, and the necessary regulatory approvals.

For 2009, we are on track to mine and process 900,000 tonnes of ore. We are still aiming for commencement of commercial production in Q4. The copper circuit is functioning well and consistently. The polymetallic circuit is producing saleable bulk copper/lead, and zinc concentrates, and we will be announcing further final modifications shortly. We continue our work to optimise this circuit to produce three individual concentrates as originally planned, and we are confident that we have the answers and plan to produce the desired result by the end of 2009.

Today's news simply confirms our belief in the Aguas Tenidas Mine, and the future potential for this operation for Iberian and its shareholders."

About Iberian Minerals Corp.

Iberian Minerals Corp. is a Canadian listed global base metals company with interests in Spain and Peru. The Condestable Mine, located in Peru approximately 90 km south of Lima, operates at 2.2 million tonnes per year producing copper, and associated silver and gold in a concentrate. The Aguas Tenidas Mine is in the Andalucia region of Spain approximately 110 km north-west of Seville. Ramp-up continues on a 1.7 million tonnes per year underground mine and concentrator that will produce copper, zinc and lead concentrates that also contain gold and silver.

To find out more about Iberian Minerals Corp.

All technical information in this press release regarding the 43-101 Report has been reviewed and approved by Adam Wheeler, the author of the 43-101 Report.

This press release may use the terms "Measured", "Indicated" and "Inferred" Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

FORWARD LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "except", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Assumptions upon which such forward-looking statements are based included that all required third party regulatory and governmental approvals will be obtained. Many of these assumptions are based on factors and events that are not within the control of Iberian and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions and other risk factors discussed or referred to in the annual Management's Discussion and Analysis and Annual Information Form for Iberian filed with the applicable securities regulatory authorities and available at www.sedar.com. Although Iberian has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Iberian undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Iberian Minerals Corp.
    Laura Sandilands
    Investor Relations and Corporate Communications
    416-815-8558