IMA Exploration Inc.
TSX VENTURE : IMR
FRANKFURT : IMT
BERLIN : IMT
AMEX : IMR

IMA Exploration Inc.

August 17, 2005 10:00 ET

IMA Intersects More Silver NW of Calcite Hill and Prepares to Test the Argenta Trend

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2005) - IMA Exploration Inc. (TSX VENTURE:IMR)(AMEX:IMR)(FWB:IMT)(BERLIN:IMT) (WKN 884971) is pleased to announce results from ongoing drilling at its 100% owned Navidad Project in Patagonia, Argentina. Drilling is continuing on the Calcite Hill NW Extension Zone and the Company is making preparations to drill the high grade Loma de la Plata Zone which lies along the Argenta Trend to the southwest of the Navidad Trend. Additional drill holes have also been completed along the northeastern flank of the Calcite Hill Deposit and adjacent to the southern flank of Navidad Hill Deposit; results from these holes are expected shortly.

Results reported below include diamond drill holes 189 to 204. Significant silver and lead values were obtained from the Calcite Hill NW Extension Zone centred about 500m to the northwest of the Calcite Hill mineral resource announced on June 16, 2005. Highlights include 29m of 154 g/t silver from hole 203 and 22.5m of 102 g/t silver and 2.79% lead from hole 201, both from the Calcite NW Extension area.

Surface results from the Loma de la Plata zone include 40m of 740 g/t (21.6 oz per ton) silver. This target has returned consistent high-grade silver values from surface sampling and has never been drill tested (see press release dated January 6, 2005). IMA is now making preparations to drill this high priority target. To date on the project the Company has defined an Indicated Resource of 300.7 million ounces of silver and 1.2 million tonnes of lead (92.8 million tonnes at 101 g/t silver and 1.36% lead using a 50 g/t silver equivalent cut-off).

Eleven new drill holes (189-192 and 198-204) were collared at the Calcite Hill NW Extension Zone and cover an area spanning approximately 1200 metres of strike length. Results from this drilling include intercepts from holes 199 (31.1m of 62 g/t silver and 1.29% lead), 201 (22.5m of 104 g/t silver and 2.79% lead), 202 (10m of 435 g/t silver), and 203 (29m of 154 g/t silver).

The mineralization at Calcite Hill Northwest is dominantly hosted in sedimentary rocks that overly the volcanic rocks which host the majority of the mineralization at Navidad Project. Within the overlying sediments strong clay alteration is widespread and affects pelites, sandstones and conglomerates. Mineralization can be lead-rich with silver (hole 201), or lead-poor but with minor values in copper and higher silver grades (holes 202 and 203). Fine-grained but visible, disseminated native silver was located within a carbonaceous bed in hole 203. This is a new mode of occurrence of silver at Navidad Project. At Calcite Hill Northwest mineralization appears to be stratigraphically controlled and is disseminated in the host rock; veins or feeder structures have not been recognized. Additional drilling is warranted to explore for extensions to the higher-grade mineralization in holes 179 (previously published) and new holes 202 and 203 which are open along strike and towards the southwest.

Hole 197 was collared on Galena Hill in order to collect material for ongoing metallurgical testwork. The hole returned 74m of 239 g/t silver and 1.97% lead, results that match or exceed those predicted by Snowden's block model that was used to produce the Galena Hill resource estimation of 207 million ounces of contained silver (63.6 M tonnes at 101 g/t silver and 1.76% lead, see news release dated May 25, 2004). Approximately 113 kg of mineralized rock from this hole were shipped to the laboratory where flotation testwork is currently underway.

Drill holes 193 to 196 were reconnaissance or stratigraphic holes designed to improve IMA's geological and structural understanding of the Navidad Project. Of note amongst these holes is hole 196 which was collared approximately 2.7 km south of Galena Hill between the Esperanza and Argenta Trends. This hole intersected 66.55m of the favourable trachyandesite stratigraphy starting at 223m depth. The nearest outcrops of this stratigraphic unit are located over 900m to the south in the Argenta Trend. The upper 24 metres of the unit are anomalous in silver and lead and a 3.6 m portion of it contained 1.23% lead with 15 g/t silver associated with visible galena mineralization (true thicknesses are uncertain but the hole cut beds at a nearly perpendicular angle). This appears to be the same contact which hosts the majority of the mineralization elsewhere at the project and demonstrates the large aerial extent and continuity of mineralization at or near this important contact at the Navidad Project and highlights the potential for discoveries of mineralization that does not outcrop.

IMA is well financed to continue to test the numerous exploration targets at Navidad with significant drill programs. The Company has over 10 years experience in Argentina and is focused on the environmentally and socially responsible exploration and development of its 100% owned Navidad silver discovery.

ON BEHALF OF THE BOARD

Mr. Joseph Grosso, President & CEO

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

2005 Number 16



Table 1: diamond drill hole results

---------------------------------------------------------------------
composite g/t % % %
DDH Location from to length Silver Copper Lead Zinc
(m) (m) (m) (LWA) (LWA) (LWA) (LWA)
---------------------------------------------------------------------
NV05-189 Calcite NW 55.50 68.82 13.32 30 0.03 1.07 0.10
---------------------------------------------------------------------
NV05-190 Calcite NW 48.67 53.10 4.43 107 0.00 3.06 0.08
---------------------------------------------------------------------
NV05-191 Calcite NW 8.00 30.86 22.86 36 0.01 0.40 0.17
including 26.00 30.86 4.86 81 0.03 0.80 0.04
and 43.51 44.47 0.96 46 0.07 3.83 0.10
and 76.81 84.66 7.85 49 0.00 0.96 0.04
---------------------------------------------------------------------
NV05-192 Calcite NW 17.82 22.07 4.25 19 0.00 1.29 0.03
and 36.50 39.08 2.58 26 0.00 1.44 0.57
and 97.78 101.74 3.96 26 0.00 2.06 0.58
---------------------------------------------------------------------
NV05-193 recce no significant assays
---------------------------------------------------------------------
NV05-194 recce no significant assays
---------------------------------------------------------------------
NV05-195 recce no significant assays
---------------------------------------------------------------------
NV05-196 recce 223.40 227.00 3.60 15 0.00 1.23 0.05
---------------------------------------------------------------------
NV05-197 Galena Hill 94.94 168.98 74.04 239 0.08 1.97 0.16
including 94.94 117.36 22.42 294 0.03 4.80 0.20
and 143.23 168.98 25.75 348 0.15 0.31 0.20
---------------------------------------------------------------------
NV05-198 Calcite NW 0.00 7.40 7.40(x) 1019(x) 0.01 0.97 1.20
and 7.40 32.30 24.90 13 0.00 0.87 0.09
and 106.75 108.83 2.08 52 0.00 2.04 0.18
---------------------------------------------------------------------
NV05-199 Calcite NW 0.00 53.10 53.10 52 0.00 1.09 0.12
including 0.00 31.11 31.11 66 0.00 1.44 0.19
including 21.41 31.11 9.70 141 0.00 3.11 0.03
---------------------------------------------------------------------
NV05-200 Calcite NW 86.35 91.20 4.85 41 0.00 1.64 0.31
---------------------------------------------------------------------
NV05-201 Calcite NW 118.26 140.76 22.50 102 0.03 2.79 0.09
including 129.02 140.76 11.74 166 0.05 3.86 0.04
---------------------------------------------------------------------
NV05-202 Calcite NW 61.15 71.10 9.95 449 0.08 0.24 0.01
---------------------------------------------------------------------
NV05-203 Calcite NW 47.00 75.96 28.96 154 0.06 0.30 0.01
including 59.00 71.00 12.00 335 0.14 0.01 0.01
---------------------------------------------------------------------
NV05-204 Calcite NW 71.00 119.12 48.12 60 0.02 0.14 0.00
including 71.00 77.00 6.00 113 0.03 0.18 0.00
and 113.00 119.12 6.12 307 0.04 0.57 0.04
---------------------------------------------------------------------
(x)Note: The first 7.4m of hole NV05-198 had just 7% core recovery
and were lumped into a single sample which assayed 1019 g/t silver.
The significance of this high assay is uncertain due to the poor
recovery and hence the sample has not been combined with adjacent
mineralization which had normal core recovery but much lower grades.


Note: To view the map associated with this release, please click the following link: http://www2.ccnmatthews.com/database/fax/2000/imr0817.pdf

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

Contact Information

  • IMA Exploration Inc.
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828
    or
    IMA Exploration Inc.
    Sean Hurd
    Investor Relations Manager
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)
    info@imaexploration.com
    www.imaexploration.com