International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

August 25, 2005 09:01 ET

International Minerals Intersects 1.2 Meters at 151 g/t Gold and 647 g/t Silver in New Vein System at Rio Blanco Project, Ecuador

SCOTTSDALE, ARIZONA--(CCNMatthews - Aug. 25, 2005) - International Minerals Corporation ("IMC") (TSX:IMZ)(SWX:IMZ)(FWB:MIW)has received high-grade assay results from an initial core drilling program that has intersected a newly discovered vein system (designated the San Luis Veins) on the Rio Blanco epithermal gold-silver project located in southern Ecuador. IMC management expects that this new discovery has potential to add significant gold resources to those previously discovered in the Alejandra Vein, where IMC will complete a feasibility study in January 2006.

The results from the San Luis drilling program combined with initial encouraging results in several other areas (Bolivar, Arco Iris and Lourdes) indicate the exciting upside potential of the overall Rio Blanco gold-silver project.

San Luis Veins

IMC's initial core drilling program has intercepted a series of relatively narrow, but high-grade, mineralized veins immediately north of, and roughly paralleling, the east-northeast trending Alejandra Vein structure (see attached Plan Map). Results for 13 drill holes (1,927.9 meters in total) have been received to date. High-grade intercepts (estimated true widths) include: drill holes BC-184 with 1.2m of 150.9 g/t gold and 647 g/t silver, BC-185 with 1.3m at 31.9 g/t gold and 41 g/t silver, and BC-186 with 1.0m at 47.8 g/t gold and 157 g/t silver.

The veins were intersected in a concealed andesite unit located below a thick overlying sequence of clay-altered tuffs which display anomalous gold values (together with typical epithermal "pathfinder" elements such as arsenic, antimony, and mercury) extending over a surface area of approximately 880m by 500m. These data suggest the potential for locating additional "blind" veins in this underlying andesite sequence below the altered tuffs.

Further drilling is ongoing to enable IMC to calculate an initial Inferred Mineral Resource estimate for the San Luis Veins as soon as possible. Although IMC cannot include this resource estimate in the base-case economic evaluation being completed for the Alejandra Vein feasibility study under the rules of National Instrument 43-101 (because economic analyses can only be applied to Measured and Indicated Resources), the resource estimate can be used by IMC as a separate, extended base-case economic sensitivity scenario in the feasibility study to indicate the upside potential of the project.

Assay results for all the holes drilled in this area are summarized in the Table below and drill-hole locations are shown on the attached Plan Map. All assay values are uncut.

Hole # Estimated Gold Silver
(Depth Interval Length True Grade Grade
-meters) (meters) (m) Width (m) g/t g/t Comments
BC 175 No Significant Values Outside
(80.5m) mineralized
BC 176
(103.3m) 95.7 - 96.1 0.4 .04 10.3 26
BC 177 No Significant Values Outside
(129.0m) mineralized
BC 179
(172.9m) 57.2 - 59.1 1.9 1.7 7.0 14
60.2 - 60.4 0.2 0.2 202.0 341
79.7 - 81.5 1.8 1.6 3.1 Less
than 5
BC 180
(130.6m) 78.4 - 80.9 2.5 2.2 5.9 61
Includes: 80.7 - 80.9 0.2 0.2 44.9 187
82.0 - 83.7 1.7 1.5 3.1 24
89.3 - 90.1 0.8 0.7 4.6 39
BC 181
(180.5m) 1.2 - 3.4 2.2 1.6 21.0 20
Includes: 1.2 - 2.0 0.8 0.5 36.0 24
33.9 - 34.5 0.6 0.5 50.0 373
40.4 - 44.6 4.1 3.2 3.7 8
121.5 - 122.5 1.0 0.9 5.1 13
BC 183
(171.0m) 29.3 - 31.0 1.7 1.4 14.0 77
Includes: 30.0 - 30.3 0.3 0.2 56.1 203
103.8 - 104.7 0.9 0.8 44.7 53
BC 184
(151.0m) 49.6 - 51.0 1.4 1.2 150.9 647
BC 185
(212.0m) 52.0 - 53.5 1.5 1.3 31.9 41
BC 186
(130.8m) 10.7 - 11.9 1.2 1.0 47.8 157
77.9 - 78.6 0.7 0.6 13.2 51
BC 187 No Significant Values Outside
(161.1m) mineralized
BC 188
(150.2m) 50.2 - 50.6 0.4 0.3 23.7 54
BC 189 No Significant Values Outside
(155.0m) mineralized

Drilling in Other Areas

Appendix 1 (attached) shows a complete summary of new drill results to date in other areas on the Rio Blanco property. Many of the drill holes (BC 156-168) were undertaken to condemn or sterilize ground planned for process plant and/or tailings facilities for a planned mining operation. Other areas tested by drilling included the Bolivar, Arco Iris, Dorada and Lourdes veins. Several infill holes in and around the Alejandra Vein area were also completed, primarily for geological information.

Notable drill results (all estimated true width intersections) include: BC-196 in the Bolivar Zone with 5.5m containing 7.8 g/t gold; BC-198 in the Arco Iris Zone with 2.3m containing 6.5 g/t gold; and BC-193 in the Lourdes Zone with 1.7m containing 9.9 g/t gold. These areas require additional follow-up drilling.

The overall drill program is being carried out under the supervision of IMC's Qualified Person, Consulting Economic Geologist, Mr. John Sutcliffe. Drilling to date has been carried out by Paragon Drilling Ecuador S.A. Sample preparation was carried out at the ALS Chemex laboratory in Quito, Ecuador using standard industry practices. Analytical work was carried out at the ALS Chemex laboratory in Vancouver, Canada using a screen fire assay method for gold and silver. For quality control purposes, analytical standards with known metal values were included with IMC's samples and show good reproducibility. Duplicate analyses on selected samples are to be undertaken by Chris Christopherson, Inc. of Kellogg, Idaho.

Update on Feasibility Study - Alejandra Vein

In January 2005 (see news release dated January 26, 2005), IMC announced Measured and Indicated Resources for the Alejandra Vein of 2.0 million tonnes at an average grade of 8.9 g/t gold and 68 g/t silver containing approximately 592,000 ounces gold and 4.5 million ounces silver, using a 3g/t gold cut-off grade. Inferred Resources total 49,000 tonnes containing approximately 11,000 ounces gold and 92,000 ounces silver. The Mineral Resource estimate was prepared in accordance with National Instrument 43-101 by Micon International of Toronto (Qualified Person, Senior Geologist Paul Gribble, C.Eng.).

Micon are currently developing a mine plan and schedule for production from the Alejandra Vein, which will be followed by a mineable reserve estimate. A final feasibility study, conducted under the supervision of Micon, is scheduled for completion in January 2006. Approval for an Environmental Impact Statement required to obtain production/construction permits is expected to be received by mid-2006 with production then anticipated in the fall of 2007, subject to financing.


Stephen J. Kay, President and CEO

To view the map and Appendix 1 please click on the following link:

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