Iberian Minerals Corp.

Iberian Minerals Corp.

December 01, 2006 12:24 ET

Iberian Minerals’ President’s Letter #2

TORONTO, ONTARIO--(CCNMatthews - Dec. 1, 2006) - Iberian Minerals Corp. (TSX VENTURE:IZN) -

The rate of activity is steadily increasing at the Company's Aguas Tenidas copper/zinc project in SW Spain. Site clearance for the proposed ore processing plant and tailings facility is now well underway. The mine portal for the second ramp is under construction; new offices and research facilities are being erected and the surface infrastructure is being expanded to accommodate approximately 500 contractual staff, who are expected to be eventually working on site.

Underground development has recommenced following receipt of the necessary permits and is presently focussed on extending the 'investigation gallery', which will be used for i) infill drilling to better define the Aguas Tenidas mineral reserve, and ii) provide a return airway for underground mine ventilation.

The Company continues to work closely with the Spanish authorities towards receiving the necessary resolutions approving the final permits for the construction of the ore processing plant and tailings facilities. The regional authorities in Andalucia have requested additional clarification on certain matters relating to the final engineering and design of the tailings dam. Golders & Associates have indicated they expect to have this completed by year end. All environmental approvals for the Aguas Tenidas project have now been received.

RSG Global Consulting Pty Ltd. of Australia has been providing technical consulting services for the final design process for the new Aguas Tenidas mine plan, which is expected shortly. The three principal areas of difference between the SRK January 2006 Feasibility Report and the new mine plan are expected to be: i) inclusion of the second ramp (incline shaft), ii) a substantially increased percentage of more efficient longhole open stope (LOS) mining, as opposed to drift and fill methods, and iii) the planned recovery of zinc concentrates for the first time from the cupriferous (copper) ore processing circuits.

Abnormally heavy rains occurred in mid-October, requiring the Company to make a number of minor amendments and improvements to the ore processing plant's design. No damage was reported to any of Aguas Tenidas' assets or infrastructure. As required by European law, the plant and tailings facility are being planned to cope with 'a 500 year weather event'.

Two new core drill rigs will shortly arrive in Spain from Sweden to be operated by leading Canadian driller Cabo Drilling Corp. Underground exploratory and infill drilling is expected to commence in early January next year; with the surface drill program commencing shortly thereafter.

Minas de Aguas Tenidas ("MATSA"), the Company's wholly owned Spanish subsidiary, continues to increase its land holdings in the Spanish Pyrite Belt with the acquisition of the La Romanera, La Infanta and Vuelta Falsa prospects. The Company's geologists believe La Romanera may have the greatest potential of these three deposits and will shortly commence an evaluation program to determine its economic viability; this program is expected to require a minimum of one additional core drill rig.

The Company recently contracted Qualified Person Jim Burns P.Geo. to provide NI 43- 101 compliant reports on these and several other of its exploration properties. These reports will include detailed proposals for future exploration programs. The Company now intends accelerating its previously planned exploration programs for 2007/8 in order to better ascertain the true potential of its principal exploration properties in the Spanish Pyrite Belt.

MATSA continues to strengthen its middle management team, a process which is expected to be largely completed by mid-February. Aker Kvaerner Engineering Services Ltd (Stockton), the international engineering group, whose British subsidiary is responsible for plant design, has begun assembling its construction team on site in Spain and now has approximately 30 engineers working exclusively on the Aguas Tenidas project.

In conclusion, we are encouraged by the project's current rate of progress and are gratified by the support being received from local communities and governmental authorities. We are particularly pleased by the recent decision by all the holders of the 30 million subscription receipts to convert into common shares of the Company, thereby adding just over $22.5 million to the Company's treasury.

Peter Miller, President & CEO

About Iberian Minerals Corp.

Iberian Minerals Corp., through its wholly owned subsidiary MATSA, is currently proceeding with the re-opening of the Aguas Tenidas copper/zinc project located in the Region of Andalucia, SW Spain. In January 2006, a feasibility report on the project was prepared by SRK Consulting of Cardiff UK, which demonstrated the technical feasibility and economic viability of the project (press release Jan. 20th, 2006). The project has sufficient reserves for a 13 year operating life at a production rate of 1.60 million tonnes annually. The Company has also signed a long term offtake agreement with Trafigura Beheer AG for the sale of all its metal concentrates from Aguas Tenidas. The Company is in the process of arranging a financing package for the project through a combination of project bank debt, subordinated debt, and equity.

Mike Newbury, P.Eng., 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 November 20th, 2006 there were 160,447,614 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 or Norm Brewster
    (416) 815-8558