International Millennium Mining Corp.

International Millennium Mining Corp.

August 30, 2013 08:45 ET

International Millennium Mining Corp. Reports 2nd Quarter Results

NEW WESTMINSTER, BRITISH COLUMBIA--(Marketwired - Aug. 30, 2013) - International Millennium Mining Corp. ("IMMC" or the "Company") (TSX VENTURE:IMI) reports the Company's results for its fiscal year 2013 second quarter ended June 30, 2013.

Summary of 2nd Quarter Results Ended June 30

2nd Quarter
Fiscal 2013
2nd Quarter
Fiscal 2012
Year to Date
Fiscal 2013
General and Administrative Expenditures $ 90,093 $ 108,062 $ 174,566
(Gain) Loss on Foreign Exchange 95 21,180 (343 )
Stock Based Compensation $ - $ 240,000 $ -
Gain on Disposal Mineral Properties $ - $ - $ -
Net Income (Loss) for the Period $ (112,457 ) $ (348,365 ) $ (231,441 )
Net and Comprehensive Income (Loss) for the Period $ (112,457 ) $ (544,865 ) $ (231,441 )
Net Income (Loss) Per Share $ 0.00 $ 0.01 $ 0.00
As at June 30, 2013 December 31, 2012
Deferred Mineral Property Expenditures $ 5,701,045 $ 5,577,125
Total Assets $ 5,923,090 $ 5,895,236
Total Liabilities $ 660,151 $ 684,312
Share Capital $ 17,028,041 $ 16,299,945
Common Shares Outstanding 113,363,296 104,245,096
Fully Diluted Shares Outstanding 148,321,921 136,628,761

Summary Discussion

At June 30, 2013, the Company had a total of 113,363,296 common shares outstanding.

During the six months ended June 30, 2013 the Company recorded a net loss of $231,441 as compared to a net income of $129,517 during the comparable period in fiscal 2012. The material variances during the periods are as follows:

  1. During the second quarter of fiscal 2012 the Company recorded a $240,000 stock based compensation when the Company granted 1,615,000 stock options and extended the expiry date of 1,930,000 stock options all expiring December 31, 2014 as compared to a nil expense during the first six months of fiscal 2013;

  2. The Company had recorded a gain of $640,000 during the first six months of fiscal 2012 compared to nil gain in the six months of fiscal 2013 (this amount was recalculated in the fourth quarter of fiscal 2012 to $170,825) on the sale of the remaining 20% interest in the Hilda/Guadalupe property. IMMC received 4,000,000 shares of First Mexican Gold Corp. ("First Mex") and a 2% NSR payable to IMMC with 1% re-purchasable by First Mex for US$1 million dollars. The Company had previously reported the gain of $640,000 in the first quarter of fiscal 2012, but it was revised to reflect the present value of the 4,000,000 shares received. According to an agreement signed with First Mex IMMC can only sell 50,000 shares per month, unless otherwise agreed between the parties;

  3. The Company incurred an accretion expense of $28,044 as a result of a $286,000 loan as compared to $16,358 during the first six months of fiscal 2012; and,

  4. The Company wrote down resource properties by $15,000 in the first six months of fiscal 2013.

The Company's working capital deficit increased to $585,327 at June 30, 2013, as compared to a deficit of $513,422 at December 31, 2012.

Operating Expenses

Comparison of the quarterly results

Overall, there was a 16% decrease in expenses, to $90,093 in the second quarter of fiscal 2013, compared to $108,062 (does not include the $240,000 stock based compensation expense) in the second quarter of fiscal 2012 and an increase from the $83,473 recorded in the first quarter of fiscal 2013.

  1. In the second quarter of fiscal 2013, the Company recorded a foreign exchange loss of $95, compared to a foreign exchange loss of $21,180 in the comparable fiscal 2012 period as a result of the translation of the foreign subsidiaries;

  2. The Company recorded a $240,000 stock based compensation during the second quarter of fiscal 2012 as compared, to nil during the comparable period in fiscal 2013;

  3. Promotion and trade show costs increased to $31,601 in the second quarter fiscal 2013, from $29,596 in the second quarter of fiscal 2012. The primary difference is the additional costs incurred attending trade shows;

  4. Salaries and benefits decreased during the second quarter of fiscal 2013 to $8,375 from $14,286 recorded in the comparable period in fiscal 2012, due to less administration required for its property record keeping, regulatory filings and other legal document filings; and,

  5. Transfer agent and filing fees increased during the second quarter of fiscal 2013 to $16,643 compared to $10,264 in the comparable fiscal 2012 period. The majority of this difference is the increased filing fees for private placements in 2013 compared to 2012 and the annual sustaining fee for the TSX venture.

The Company recorded a net loss of $112,457 during the second quarter fiscal 2013, as compared to a net loss of $348,365 in the second quarter of fiscal 2012 and net loss of $118,984 during the first quarter of fiscal 2013. The primary reason for difference is the stock based compensation expense recorded in the second quarter of fiscal 2012.

Exploration Programs

Nivloc Mine, Nevada Property

In August 2012, the Company filed its initial National Instrument 43-101 ("NI 43-101") compliant, independent Mineral Resource Estimate (the "Estimate") on its Nivloc silver and gold project (the "Nivloc Mine Property"). The independent technical report, entitled "NI 43-101 Technical Report on the Nivloc Mine Property, Esmeralda County, Nevada, USA" (the "Technical Report"), was prepared for the Company by Seymour M. Sears, a consulting Geologist based in Sudbury, Ontario; P. J. Hollenbeck, an independent resource modeling Geologist based in Colorado Springs, Colorado; and, A. David Heyl, an independent Geologist based in Denver, Colorado. The Technical Report is available under the IMMC profile on SEDAR at and on the Company's website at

The Technical Report concludes that the area tested by the 2011 drilling program on the Nivloc Mine Property contains an Inferred Mineral Resource, at 40 g/t Ag cut-off, of 1,640,000 tonnes at a grade of 106.47 g/t Ag and 0.78 g/t Au, resulting in a 7,689,000 silver equivalent total ounces, at a 50:1 silver gold ratio pursuant to the NI 43-101 Technical Report.

Further infill drilling at the Nivloc Mine Property, reported in December 2012, verified the thickness and grades that were reported in the Technical Report. Hole 12NL-35, collared from pad 6, tested an area between the 700 and 800 foot levels within the old mine workings and below resource blocks outlined by the 2011 drilling program. Drill highlights from the hole included 115 ft @ 89.1 g/t Ag and 0.33 g/t Au, including 13.5 feet @ 210.0 g/t Ag and 1.03 g/t Au, including 3.0 feet @ 436.0 g/t Ag and 2.57 g/t Au.

The Company also reported results from two more drill holes completed on its Nivloc Mine Property. Holes 12NL-36 and 12NL-37 tested an area between the 600 and 800 ft levels of the historic mine workings, within and near the eastern end of the 2011 43-101 resource area. Drill hole 12NL-36 tested an area between three previously drilled holes, while 12NL-37 was a short step- out hole towards the northeast, although proximal to two other holes completed in 2011. Drill highlights from Hole 12NL-36 included: 70.0 feet @ 103.0 g/t Ag and 0.43 g/t Au, including 1.0 foot @ 335.6 g/t Ag and 1.12 g/t Au. Drill highlights from Hole 12NL-37 included 92.0 feet @ 163.8 g/t Ag and 0.80 g/t Au, including 3.5 feet @ 599.0 g/t Ag and 4.27 g/t Au.

On March 11, 2013 the Company announced that its wholly-owned subsidiary, International Millennium Mining Inc. ("IMMI"), executed a Sale and Purchase Agreement (the "Agreement") to acquire the balance of Silver Reserve Corp.'s ("SRC") underlying interests in the Nivloc Mine Property. Pursuant to the Agreement, IMMI will pay SRC US$425,000 for the Nivloc Property interests detailed above and SRC will transfer 100% of its interest, right and title in those interests to IMMI. The Company has made a 10% deposit of US $42,500 during the quarter.

Wild Goose Property

The Wild Goose property, encompassing 2,918.62 hectares, is located approximately 23 km northwest of Revelstoke, BC and 5 km north of Mount Copeland (approximately 10 minutes by helicopter from the Revelstoke airport). The property is underlain by the Shuswap Metamorphic Complex. Historical reports identify four (4) distinct lead/silver/zinc showings, several of which have anomalous gold values. Geologically, the showings all occur in the footwall of the easterly striking Bews Creek Fault, which may be a detachment structure.

MMI (mobile metal ion) soil sampling was carried out on the Wild Goose Property in October 2012. The MMI survey was conducted on two grids, each with a line spacing of 100 meters and a sample interval of 25 meters, as part of a program designed to extend the known mineralization on the property and locate previously unknown mineralization. The MMI results revealed that both the north and south MMI grids are almost entirely covered by highly anomalous lead results. In addition, a silver anomaly covers almost the entire north grid.

Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.

Concurrently with this news release, the Company is filing its quarterly financial statements and Management Discussion and Analysis (BC Form 51-102F1) with the regulatory authorities through SEDAR (, and has mailed it to shareholders who have requested copies and whose names appear on the Company's Supplemental List. Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website, or on the Company's website

International Millennium Mining Corp. (TSX VENTURE:IMI) is a mineral exploration and development company engaged in acquiring known smaller mine deposits, such as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal of advancing the properties to the mining stage. Emerging targets include silver, gold, copper, zinc and lead. The Company's common shares trade on the TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under the symbol: L9J.


John A. Versfelt, President and CEO

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. 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, potential mineral recovery processes and other business transactions timing. 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.

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