Imperial Metals Corporation

Imperial Metals Corporation

January 18, 2007 14:42 ET

Imperial Update on Giant Copper Exploration

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - Imperial Metals Corporation (TSX:III) reports results from the second of two diamond drill holes completed in 2006 at the wholly owned Giant Copper property located east of Hope, British Columbia.

The Giant Copper property hosts a mineralized breccia pipe, called the AM Zone, that has surface dimensions of approximately 200 by 300 metres and has now been traced with drillhole GCS06-02 to a depth from surface of over 900 metres, over 370 metres deeper than any previous drilling in the breccia pipe.

Hole GCS06-02 was collared 150 metres east of the AM Zone and was expected to enter the breccia approximately 475 metres down hole, and then cross the breccia body below the known mineralization to test the depth extent of mineralization. Mineralized breccia was intercepted at a downhole depth of 203.1 metres, 270 metres earlier than expected. The entire mineralized section from 203.1 metres to 805.1 metres (602.0 metres) averaged 0.54% copper equivalent (see table below for complete results). The drill hole was completed to a depth of 868.4 metres, ending in granodiorite on the west side of the breccia.

Imperial considers the results of this hole to be very encouraging as it intersected a substantial length of mineralized breccia well to the east of its previously known extent, and also extended the known depth extent of the breccia from 1,250 metres ASL elevation down to 880 metres ASL elevation, an increase of 370 metres. The highest point of exposure for the AM Zone is at 1,786 metres, GCS06-02 has shown the vertical extent of the breccia pipe is in excess of 900 metres. Both 2006 drill holes were drilled at steep dips, and crossed the near vertical breccia pipe so the true width of the intercepts are approximately 25% of the drill hole interval. Assays are as follows:

Total Interval Interval Interval
Drill Length from to Length
Hole # Az Dip (m) (m) (m) (m)
GCS06-02 265 degrees -74 degrees 868.4 203.1 - 805.1 602.0
including 203.1 - 242.6 39.5
and 416.4 - 425.5 9.1
and 416.4 - 487.8 71.4
and 532.2 - 593.1 60.9

Drill Cu Au Ag Mo EqCu
Hole # % g/t g/t % %
GCS06-02 0.30 0.15 11.73 0.003 0.54
including 0.72 0.32 23.43 0.002 1.23
and 0.29 3.24 10.67 0.000 2.96
and 0.43 0.46 14.86 0.001 0.96
and 0.36 0.29 13.45 0.004 0.74

Cu % Equiv. equals Cu grade % + (27.00 times Au grade oz/ton) + (0.385
times Ag grade oz/ton)

The results drill hole GCS06-01 (NR Nov 27/06) indicate much higher grades than historically reported in the southern portion of the AM Zone. The combined results of the two holes drilled in 2006 have prompted Imperial to initiate plans for a substantial drill exploration program in the summer of 2007 to further test the depth extent, and southern portions of the AM breccia.

A complete assay table and drill plan are available on the Company's website

Steve Robertson, P.Geo. is the Qualified Person as defined by 43-101, and responsible for the preparation of the technical information in this release. Samples were analyzed by Acme Analytical Labs Ltd. in Vancouver, BC.

The 2,880 hectare Giant Copper property, located 220 kilometres east of Vancouver, hosts a copper-gold-silver-molybdenum hydrothermal system with associated breccia pipe and base metal veins. The property has a long history of exploration that includes more than 22,000 metres of drilling and 6 kilometres of underground workings. The property was the subject of a positive feasibility study in 1989 that was based on a reserve calculated at that time of 3.70 million tons grading 1.08% copper, 0.47 g /t gold, 19.18 g /t silver and 0.010% molybdenum, including 15% mining dilution. That reserve calculation is not NI43-101 compliant as it was estimated before these regulations were enacted, and were almost exclusively contained in the north nose of the AM zone breccia pipe. The majority of the pre-1989 drilling was not assayed for molybdenum, so distribution of molybdenum in the AM zone is not well defined, but is significant in some areas based on the results from hole GSC06-01 which intercepted 296.7 metres of 0.027% molybdenum along with copper, gold and silver mineralization.

Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company's key properties are the Mount Polley open pit copper/gold producing mine (100% interest) in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine (50% interest) in northern British Columbia, and the development stage Sterling gold mine (100% interest) in southwest Nevada.

Contact Information

  • Imperial Metals Corporation
    Brian Kynoch
    (604) 669-8959
    (604) 687-4030 (FAX)
    Imperial Metals Corporation
    Patrick McAndless
    VP Exploration
    (604) 488-2665
    Imperial Metals Corporation
    Sabine Goetz
    Investor Relations
    (604) 488-2657