International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

March 27, 2007 08:30 ET

International Minerals Receives Update on Pallancata Project From Co-Owner Hochschild Mining

SCOTTSDALE, ARIZONA--(CCNMatthews - March 27, 2007) - International Minerals Corporation ("IMC") (TSX:IMZ)(SWX:IMZ)(FRANKFURT:MIW) has received the following update for the Pallancata silver-gold project in southern Peru from the project operator, Hochschild Mining plc ("Hochschild"). Pallancata is jointly owned by IMC (40%) and Hochschild (60%).

- All applications for relevant permits have been submitted and approvals for those permits are expected to be received before commencement of production in the third quarter of 2007.

- Expansion of the processing plant to 2,000 tonnes per day ("tpd") at Hochschild's nearby Selene silver-gold mine (located to the north of Pallancata) to accommodate the Pallancata ore is progressing according to schedule. Initial production from Pallancata is projected at approximately 500 tpd. The Pallancata silver-gold concentrate produced at the Selene plant will be shipped to a commercial smelter for processing.

- Construction of the access ramp to reach the main Pallancata vein commenced at the end of January.

- Starting in March, Hochschild intends to build 22km of road to transport the ore from Pallancata to its processing plant at the Selene Mine.

- The building of a 12.6 km long electrical line between the Selene Mine and Pallancata is underway to provide power to the Pallancata mine site.

- Mining will be carried out using a fully mechanized cut and fill method using mining contractors, as is the current situation at Hochschild's three other Peruvian mining operations.

- Hochschild has prepared an independently-audited resource and reserve estimate for the Pallancata project in accordance with the JORC code developed by the Australian Joint Ore Reserves Committee. IMC's Qualified Person, Technical Manager Nick Appleyard, is currently reviewing Hochschild's data under the guidelines of National Instrument (NI) 43-101 and IMC will report his findings in the near term, together with IMC's own resource estimates based on the data provided by Hochschild. Mr. Appleyard has reviewed the technical information in this new release.

About Hochschild

Hochschild Mining plc (HOC.L on Reuters / HOC LN on Bloomberg) is a publicly held company listed on the London Stock Exchange. Hochschild is a leading precious metals company with a primary focus on the exploration, mining, processing and sale of silver and gold. The Company currently operates three underground epithermal vein mines located in southern Peru. The Company also has three advanced stage development projects, one in each of Mexico, Peru and Argentina and one early stage development project in Mexico. In addition, the Company has over twenty long-term prospects throughout Latin America. The Company has over forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit


Stephen J. Kay, President and CEO

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