International Millennium Mining Corp.

International Millennium Mining Corp.

May 27, 2005 16:30 ET

International Millennium Mining Corp.: 1st Quarter Report

NORTH VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 27, 2005) - International Millennium Mining Corp. (the "Company") announces the release of its 1st Quarter Report for the three months to March 31, 2005. (BC Form 51-102F1). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report. Concurrently with this news release, the Company is filing the Quarterly Report with the regulatory authorities through SEDAR (www.sedar.com) and has mailed it to shareholders whose names appear on the Company's Supplemental List. A copy of the Quarterly Report is available immediately on the SEDAR website, or will be mailed upon request.

Description of Business

International Millennium Mining Corp. (the "Company") is a mineral exploration and development company engaged in the acquisition and exploration of mineral properties in Canada, USA, and Mexico. The Company is currently exploring a group of properties just east of Harrison Lake, British Columbia; Mineral County, Nevada and properties in the State of Sonora, Mexico. Emerging metal targets include nickel, silver, gold, copper, lead, zinc, and platinum group elements.

Expenditures

General and Administration expenditures and operating losses for the quarter were $45,580 (2004 $4,754). During the quarter, the Company spent $28,226 on the mineral property program, as detailed below. The total mineral property acquisition and net exploration expenditures to March 31, 2005 amount to $428,619.

Harrison Lake Properties, British Columbia

Pursuant to a Sale and Purchase Agreement dated March 7, 2003 and acquisition by staking, the Company holds and has staked an undivided 50% right, title, and interest in 87 contiguous mineral claims comprised of 852 claim units of the Harrison Lake Property (the "Property") for $34,956 (paid), the issuance of 250,000 common shares of the (issued), and by incurring not less than $200,000 of exploration and property maintenance expenditures upon or in relation the Property (expended in full). The Property is subject to a 2.0% Net Smelter Royalty and a 7.5% Rock Royalty, 50% of which would be contributed by the Company and the balance by the Third Party.

The remaining 50% interest in the Property was acquired by Sutcliffe Resources Ltd. (the "Third Party"), upon finalization of a Sale, Purchase and Assignment Agreement between the Property vendor, the Third Party, and the Company. As a condition of the Third Party's acquisition of their interest in the Property, the Third Party and the have executed a Joint Venture Agreement dated August 27, 2003 which shall become effective upon the Third Party completing an exploration program of no less than $300,000 on the Property, but in any event no later than March 31, 2006. The Property Net Smelter Royalty can be reduced to 1% by payment of $1,000,000 to the Property vendor. Advance royalty payments totaling $18,000 shall be payable by the joint venture beginning July 1, 2008.

The Property is located in the same ultramafic intrusive belt that hosted past nickel-copper producer B.C. Nickel Mine (held by Giant Mascot Mines Ltd. now Barrick Gold Corporation, and previously also known as the Pacific Nickel Mine). The Company's ground covers some 55 kilometers on the northwest trending ultramafic intrusive belt, 20 kilometers northwest and along strike from the B.C. Nickel Mine. This active and under-explored region is within two hours drive of Vancouver, B.C.

The Company also holds a 100% right and option to acquire the Jason Property, representing 11 contiguous 1-unit legacy claims and one 6-cell tenure claim within the Property boundaries. The regional and claims specific geological work on the Jason Property to date suggests the ground is prospective for nickel, copper, platinum/palladium, gold, cobalt, chromium and silver hosted in a massive sulphide deposit. Under the terms of the Jason Property option agreement, amended a number of times between September 2002 and February 2005, cash payments totalling $76,000 ($37,250 paid) and share payments totalling 200,000 common shares (25,000 shares issued), are both due by January 31, 2007 (the next payment of 50,000 shares is due within five (5) days of the Company's shares being listed for trading on a Canadian stock exchange). In addition, exploration and development expenditures totalling $500,000 are to be incurred by July 31, 2008 (over $50,000 exploration work completed) and a feasibility study is to be completed by September 30, 2009. The Jason Property straddles the junction of Cogburn Creek and Hut Creek approximately 17 kilometres northwest of the Giant Mascot Mine.

During the year 2003, the Company increased its holdings in the Harrison Lake area by entering into three purchase agreements to acquire the Yale I, II, and III properties. Total consideration was the issuance of 100,000 common shares by March 31, 2003 (issued) and the payment of $5,000 on or before December 31, 2003 (paid). The properties are subject to a 2.5% net smelter royalty of which 40% can be acquired by the Company for a total of $400,000.

Cumulative property acquisition and deferred exploration expenditures to March 31, 2005 exceed $415,000, including advances, for the Harrison Lake, Jason and Yale Properties.

Simon Mine Property, Nevada

The Company executed an option agreement dated December 15, 2004, amended January 10, 2005, to acquire the Simon Mine Property, representing 20 patented mineral claims and 3 unpatented claims within the Property boundaries. Under the Simon Property Option Agreement the company shall make cash payments totaling US $900,000. US $6,000 was due on execution (paid) and the remainder is payable at a rate of US $3,000 or 11/2 % of net smelter returns, whichever is greater, a month due on the 15th of every month starting January 15, 2005 (US$9,000 paid).

A 200,000 share finder's fee is payable (40,000 share issued) as a result of this purchase while the agreement remains in good standing.

Exploration Program

To date, the Company's Harrison Lake Properties exploration programs have included: a compilation of relevant Harrison Lake Area geological research material; assisting the B.C. Geological Survey in fieldwork; locating and assessing access; prospecting; geological mapping; economic geology potential; silt sampling; structural analysis; linecutting and geochemistry; thin section analysis of selected rocks; magnetic and ground geophysics; and AeroTEM airborne geophics. Preliminary geological mapping of drainages and roads was mainly geared to locating evidence of ultramafic and mineralized outcrops as well as identifying accessible areas for subsequent detailed mapping and surveying. In addition, geological mapping of the old mine area was undertaken to create a knowledge base for mapping of the Harrison Lake Properties. Prospecting entailed following existing and overgrown logging roads, sampling and recording outcrops, reviewing soils and rock in large drainages which had been transported downstream and traverses along ridges. Prospecting, in conjunction with geology, yielded data that adds to the understanding of the detailed geology. Numerous rock samples have been collected and cut sections were made from rocks from all the Property areas reflecting different rock types which have undergone thin section analysis.

Geological traverses over the claims identified the various geological units present in the area, including the metasedimentary and metavolcanics of the Slollicum and Settler Schists, the metagabbro, metavolcanics and ultramafics of the Cogburn Schist and the intrusive ultramafics and Spuzzum Diorite and its equivalents (Hut Creek Pluton, Urquhart Intrusive, Scuzzy Diorite).

A geophysical and geochemical program on the Jason Property including line cutting, began in June, 2004 and was completed in the third quarter, 2004. During the fourth quarter, the Company and Sutcliffe contracted and completed an AeroTEM airborne geophysics program over the Harrison Lake Properties. The Company has spent over $415,000 on acquisition and exploration of the Harrison Lake Area Properties in the past four years. Sutcliffe is to expend $300,000 on the Harrison Lake Properties pursuant to the Sale, Purchase and Assignment Agreement.

Exploration Results

The Geology Report -"Harrison Lake Nickel Copper Massive Sulphide Project" was completed in May 2003 by George E. Nicholson, P. Geo. and Charles J. Greig, M.Sc., P. Geo., and updated at January, 2005 as a result of the 2004 work programs, including the AeroTEM airborne geophysics program. This comprehensive report runs to two volumes, and was prepared for the Company and for Sutcliffe. It describes the broad geological aspects of the ultramafic belt associated with the Giant Mascot Mine. The geology of the ultramafic belt was confirmed to be in distinctive sequential units broadly summarized as the Settler Schist on the east and the Cogburn Schist in the central portion and the Settler Schist (or Slollicum Metavolcanic Schist) to the west. The Spuzzum Diorite is found on the east and south side of the belt and within it, and the ultramafic intrusives are generally located within the belt.

Ultramafic units were identified on the Property by prospecting and initial geological mapping. It was noted that disseminated sulphides were present in many localities and on a few occasions some sulphide stringers were found. Ultramafic rocks are associated with the most prolific part of the belt and, more significantly, any sulphides found, principally pyrrhotite, are associated with ore bearing areas. All the course grained ultramafics that have been identified to date have been associated with aeromagnetic highs from the 1972 regional government airborne magnetic survey. Ultramafic boulders were identified in all the major drainages. The sources of these boulders are juxtaposed so that they cannot be related to B.C. Nickel Mine and therefore represent new mineralized zones.

The prospecting and geological mapping programs identified more ultramafics than were previously mapped in the area, suggesting a more extensive ultramafic belt with a better potential for further discoveries. In all the drainage regions covered thus far within the Property, mineralized ultramafic rock has been found.

Regional government stream sediment geochemical surveying was completed which identifies the Property as an area of significant anomalous base metal and indicator values. It should be noted that anomalous values, including those near the mine, appear to correlate with the magnetic highs identified in the 1972 government airborne geophysical survey. A total of 30 thin section samples were selected as a representative sample of the rocks within the entire Property. The geology department at the University of B.C. prepared the slides and a descriptive analysis was completed.

From an exploration point of view, it is apparent that the presence of sulphides in the more ultramafic portions of the intrusive belt is important for the identification of prospective exploration targets. There are several similar aeromagnetic geophysical "thumb prints" on the Property which correlate to the one associated with the past producing B.C. Nickel Mine. There are significant associated anomalous geochemical targets and key structural features as well.

Future Exploration Program

Following the recommendations in the May, 2003 geological report, updated in August, 2003, a Phase I detailed airborne magnetic and EM geophysics survey was completed in late 2004. In addition, further geological mapping, geochemical sampling, and ground geophysics was completed on the Jason Claims. This airborne geophysics program was correlated with previous groundwork and confirmed and defined fifteen targets. The budget for this work was $216,800, to be financed and carried out by the Company and the joint venture partner, Sutcliffe. However, in order to expedite the program, the Company agreed to fund $100,000 of the airborne survey work and the agreement with Sutcliffe was amended to increase Sutcliffe's joint venture requirement by the $100,000.

Of the 15 targets, priority will be given to those with favorable geology, geochemistry, airborne geophysics and working logistics. Further ground geophysics is recommended for 5 of the 15 targets and, subject to positive ground geophysics, ground proofing geology and sampling will allow for timely drill hole section. Road access to each will need to be cleaned of alders and brush to provide 4-trax access. Contingent on the success of Phase I drilling, an additional 2000 m will be budgeted for in Phase II drilling on the priority five airborne targets. At some point, time and budget should be provided to at lease do initial prospecting follow-up on the other 10 identified airborne targets.

On the Jason Property, the Company completed a geophysical and geochemical program in September, 2004 and is awaiting the updated report and final costs. The budget for this program was $50,000, of which approximately $36,000 was paid by December 31, 2004.

General and Administrative

General and administrative costs for the quarter ended March 31, 2005 were $49,732 (2004- $4,754), up from $22,088 for the previous quarter. The primary reasons for the increase in costs as compared to the 1st quarter, 2004 of $44,978 include the annual general meeting expenses incurred in the first quarter rather than in the second quarter. Significant travel, administration, legal and regulatory costs were incurred as a result of due diligence, property examination, negotiations, and preparation of agreements concerning two silver/gold polymetallic properties in the State of Sonora, Mexico.

The translation of US currency on deposit resulted in the reporting of a foreign exchange gain of $4,152.

The public exchange listing application has also been delayed until late summer as a result of poor financing markets. The Company continues to arrange financing privately to fund its listing application, general corporate endeavours, and new mineral property acquisitions. With the director and management team elected and appointed respectively in April, 2005, we are focused primarily on silver/gold polymetallic projects and will work towards building a strong, stable and well financed mineral exploration entity.



Selected Financial Data by quarter

------------------------------------------------------------------------
Year ended December 31, 2003
------------------------------------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------------------------------------------------------------------------
Net Revenues Nil
------------------------------------------------------------------------
Loss before discontinued operations $ 48,850
and extraordinary items
------------------------------------------------------------------------
Loss per share 0.01
------------------------------------------------------------------------
Diluted loss per share 0.01
------------------------------------------------------------------------

------------------------------------------------------------------------
Net Loss 48,580
------------------------------------------------------------------------
Net Loss per share 0.01
------------------------------------------------------------------------
Diluted Net Loss per share $ 0.01
------------------------------------------------------------------------


------------------------------------------------------------------------
Year ended December 31, 2003
------------------------------------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------------------------------------------------------------------------
Net Revenues Nil Nil Nil Nil
------------------------------------------------------------------------
Loss before discontinued operations $ 4,754 43,767 15,126 22,088
and extraordinary items
------------------------------------------------------------------------
Loss per share 0.01 0.01 0.00 0.00
------------------------------------------------------------------------
Diluted loss per share 0.01 0.01 0.00 0.00
------------------------------------------------------------------------

------------------------------------------------------------------------
Net Loss 4,754 43,767 15,126 38,385
------------------------------------------------------------------------
Net Loss per share 0.01 0.01 0.00 0.01
------------------------------------------------------------------------
Diluted Net Loss per share $ 0.01 0.01 0.00 0.01
------------------------------------------------------------------------



------------------------------------------------------------------------
Year ended December 31, 2003
------------------------------------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------------------------------------------------------------------------
Net Revenues Nil Nil Nil Nil
------------------------------------------------------------------------
Loss before discontinued operations $ 21,096 27,555 21,101 9,426
and extraordinary items
------------------------------------------------------------------------
Loss per share 0.01 0.01 0.01 0.01
------------------------------------------------------------------------
Diluted loss per share 0.01 0.01 0.01 0.01
------------------------------------------------------------------------

------------------------------------------------------------------------
Net Loss 21,096 27,555 21,101 9,426
------------------------------------------------------------------------
Net Loss per share 0.01 0.01 0.01 0.01
------------------------------------------------------------------------
Diluted Net Loss per share $ 0.01 0.01 0.01 0.01
------------------------------------------------------------------------


Related Party Transactions

American Resource Management Consultants Inc., ("ARMC"), a company controlled by John A. Versfelt, provides general and project management, administration and secretarial, accounting, paralegal/regulatory services, office facilities and other services to the Company. Total indebtedness to ARMC, including the convertible debenture, now stands at $515,984. The cost of ARMC's services for the first quarter was $37,886.

Investor Relations

Investor relations continue to be carried out solely by management.

Liquidity and Capital Resources

Cash reserves decreased during the quarter from $442,071 to $262,819. The Company's working capital position has decreased from $90,884 at December 31, 2004 to $11,204 at March 31, 2005. The decrease in working capital position is due to mineral property payments, regulatory work and due diligence work in the negotiation and acquisition of mineral properties in the US and Mexico.

Subsequent Events

On April 21, 2005, the Company entered into option agreements to acquire a 100% interest in the Hilda 30 Property located in the Yecora District, in the eastern area of the State of Sonora, Mexico, approximately 240 kilometres ESE of Hermosillo, near the village of Guadalupe. The Company is acquiring 20% and 80% interests in the 257 hectare Hilda 30 Property under two separate option agreements. The option agreements require the Company to make total cash payments of US$25,000 and US$1,000,000, respectively, over a period of fourteen years until the full purchase price of US$1,025,000 has been paid.

Another Mexico silver/gold polymetallic property located approximately 45 kilometres NW of the Hilda 20 Property, the La Esperanza, containing approximately 1,764 contiguous hectares was acquired for US$5,000 plus staking costs. Finder's fees of up to 300,000 shares are to be paid over two years, provided the Hilda 30 option agreements remain in good standing, and up to 100,000 shares provided the La Esperanza claims remain in good standing.

Additional Information

Additional information on the Company, including audited annual financial statements, is available on the internet at the SEDAR website, namely http://www.sedar.com.

Industry Trends and Risks

Industry trends and risks are substantially unchanged since the Annual Management Discussion and Analysis was issued (April 21, 2005 see http://www.sedar.com).

Financial Risks

Financial risks are substantially unchanged since the Annual Management Discussion and Analysis was issued (April 21, 2005 see http://www.sedar.com).

Conflicts of Interest and Dependence on Key Personnel

Conflicts of interest and dependence on key personnel are substantially unchanged since the Annual Management Discussion and Analysis was issued (April 21, 2005 see http://www.sedar.com).

Government Regulations

Risks due to Government Regulations are substantially unchanged since the Annual Management Discussion and Analysis was issued (April 21, 2005 see http://www.sedar.com).



ON BEHALF OF THE BOARD



___________________________
John A. Versfelt,
President and CEO


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 and the timing of other business transactions. 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.

Contact Information

  • International Millennium Mining Corp.
    John A. Versfelt
    (604) 984-9907
    (604) 983-8056
    Email: info@immc.ca
    or
    International Millennium Mining Corp.
    3rd Floor - 120 Lonsdale Avenue
    North Vancouver, BC V7M 2E8