Iberian Minerals Corp.
TSX VENTURE : IZN

Iberian Minerals Corp.

May 05, 2011 09:42 ET

Iberian Minerals Awarded Sotiel Copper Zinc Mine, Exploration Rights & Concessions

TORONTO, ONTARIO--(Marketwire - May 5, 2011) -Iberian Minerals Corp. (TSX VENTURE:IZN) today announced the receipt of exploration concessions for the Sotiel Mine, a formerly producing underground copper-zinc mine.

Located 25 kilometres from the Company's Aguas Tenidas Mine in Spain, the 17 new concessions cover approximately 200 ha2, encompass a formerly operating mine and were awarded by the Junta de Andalucia government after a public bidding process.

The Company intends to undertake a work program consisting of de-watering, underground drilling and studies to confirm resources. Iberian intends to commission a prefeasibility study in 2011. Rehabilitation of the mine is expected to take place over an 18 to 24 month period. All the annotated activities will be carried out concurrently, and are planned to start immediately. Prefeasibility study costs are expected to be covered by operating cash flows.

The Sotiel Mine previously operated at approximately 3,000 tonnes per day and Iberian anticipates similar production results, which could be transported by rail or road to Aguas Tenidas for processing. To accommodate material from the Sotiel Mine, the existing Aguas Tenidas plant will require a further expansion, for which plans are now being prepared.

Sotiel Mine

The Sotiel Mine is part of the Sotiel Migollas complex, located on the same pyritic mineral belt as Aguas Tenidas. It is a copper, zinc and lead mine which has been intermittently active since Roman times and was in operation until 2002 when low metal prices contributed to its closure.

While in operation, the mine produced approximately 8.4MT of polymetallic ores at 4.52% zinc from 1983-2000 and approximately 1.1MT of cupriferous ores at 3.27% copper from 1994-2000. The deposit is very similar to Aguas Tenidas, with 2/3 polymetallic and 1/3 cupriferous ores. The Company expects that recoveries from the Sotiel ores will be similar to those of Aguas Tenidas.

The Sotiel Mine consists of three deposits – Sotiel, Sotiel Este and Migollas. In 2000, a resource and reserve estimate was included in the final report to the government authorities as part of the mine closure plan and was compiled using an earlier resource estimate (prepared in accordance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the "JORC Code")) along with substantiated drilling and block modelling. Those historical resources are listed below:

SOTIEL
POLYMETALLIC ORECUPRIFEROUS ORE
Tones%CuZnPbTones%CuZnPb
ORE MINED 1983-20008,438,5004.521,102,0003.27
RESOURCES MEAS. 2000
SOTIEL577,0000.565.572.24
SOTIEL EAST941,0000.735.712.62
MIGOLLAS ZONE 2279,0006.200.750.39
RESOURCES IND. 2000
SOTIEL4,100,0000.55.72.3
SOTIEL EAST2,338,0000.615.242.19
MIGOLLAS ZONE 14,940,0000.604.772.24
MIGOLLAS ZONE 2151,0004.61.110.52

The Company intends to undertake an extensive drilling program to further define the inferred resource category. There is also an additional deposit at Migollas Este which could, with further definition, add increased tonnage to the resource.

To view Figure 1, (Cross section of the Sotiel Mine, including historical drilling), please visit the link below:

http://media3.marketwire.com/docs/sotielfig1.pdf

Sotiel operated via an underground crusher and conveyor system which was capable of operating at more than 1MT per year, and which are still in place. The mine has levels descending to approximately 300m below surface and, similar to the Aguas Tenidas operation, consists of large stopes which were subsequently backfilled with rock fill.

To view Figure 2, (Copper Reserves at Migollas), please visit the link below:

http://media3.marketwire.com/docs/migollasfig2.pdf

"We are very pleased to have been awarded these concessions and the rights to the Sotiel Mine. Preliminary reviews of the resources and reserves of the mine, along with knowledge of past production, indicate that this project could significantly add to our production. With excellent infrastructure in the area, we believe ore can be reliably transported to an expanded Aguas Tenidas plant. The various options and any potential production decision will be reviewed in due course," said Daniel Vanin, President and Chief Executive Officer of Iberian.

The foregoing historical resource estimate was completed using the JORC Code prior to the implementation of NI 43-101. Given the prior drilling and subsequent production from the property discussed herein, the company believes the resource estimates to be both relevant and reliable. However, for the purposes of NI 43-101, a qualified person has not completed sufficient work to classify the historical estimate as current mineral resources. The Company is not treating the historical estimate as current mineral resources as prescribed by NI 43-101 and the historical estimate should not be relied upon.

For further information, please contact the Investor Relations Department, or visit our website, www.iberianminerals.com.

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 and operates a 2.2 million tonnes per year underground mine and concentrator that produces copper, zinc and lead concentrates that also contain gold and silver.

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", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward looking information may include, but is not limited to, statements with respect to the future financial or operating performances of the Corporation, its subsidiaries and their respective projects, the timing and amount of estimated future production, estimated costs of future production, capital, operating and exploration expenditures, the future price of copper, gold and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. 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. Many of these assumptions are based on factors and events that are not within the control of the Corporation 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 section entitled "Risk Factors" in the Corporation's annual information form dated March 29, 2010. Although the Corporation 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. The Corporation 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
    www.iberianminerals.com