International Minerals Corporation
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TSX : IMZ
Swiss : IMZ

International Minerals Corporation

May 24, 2005 09:00 ET

International Minerals Reports Additional High-Grade Silver and Gold Results from Phase 2 Drilling at Pallancata, Peru

SCOTTSDALE, ARIZONA--(CCNMatthews - May 24, 2005) - International Minerals Corporation ("IMC") (TSX:IMZ)(SWX:IMZ)(FWB:MIW) has received additional assay results from a second phase core drilling program at its 100%-held Pallancata silver-gold property, located approximately 240km southeast of Ayachuco in southern Peru. To date, IMC has completed 44 drill holes (totaling 11,956m) of a planned Phase 2 program totaling approximately 13,200m in 51 drill holes. Combining Phase 1 and 2 drill programs, an aggregate total of 14,446m in 61 drill holes has been completed so far on the Pallancata property.

Currently IMC has identified four principal areas of low-sulfidation, epithermal, silver-gold vein-breccia type mineralization on the Pallancata property. These four areas are designated by IMC as: Pallancata, Mariana, Soroche and Ranichico (see Figure 1). The Pallancata vein-breccia structure has been the primary focus of IMC's drilling program to date and all assay results received to date are reported from that structure. Drilling recently commenced in the Mariana area and assay results are pending.

Pallancata Structure - Phase 2 Drill Results

Initial drill assay results were released by IMC for the first eight drill holes (PAC 18-25) in a news release dated December 8, 2004. These results (with uncut values and estimated true widths of mineralization) include high-grade silver and gold values in drill-hole PAC-20 with 2.6 m at 4,243 g/t silver and 25.7 g/t gold and hole PAC-23 with 1.6 m at 2,320 g/t silver and 11.1 g/t gold. Both of these drill holes are located in the western part of the Pallancata vein-breccia structure in an area designated by IMC as the "West Breccia Zone".

These eight drill holes (PAC 18-25) have been restated in the Table below primarily because of (a) changes to core interval lengths as a result of meterage conversion errors by the drilling company and (b) additional sampling by IMC geologists of previously unsampled mineralized intervals. Significant new assay results for additional drill holes PAC 26-55 are also shown in the Table below.

All drill-hole locations and points of mineralized intervals are shown on the attached longitudinal section (Figure 2) in the plane of the vein. All assay values are uncut.



------------------------------------------------------------------------
Est.
Inter- True
Drill Depth Interval cept Width Silver Gold Comments
Hole m m m m g/t g/t
------------------------------------------------------------------------
PAC 18(i) 161.2 116.5 - 120.6 4.1 3.1 357 1.2 West Breccia
135.4 - 137.3 1.9 1.4 470 2.2 Zone
------------------------------------------------------------------------
PAC 19(i) 176.3 104.9 - 112.4 7.5 5.8 382 1.4 West Breccia
Includes: 104.9 - 107.0 2.1 1.6 764 2.7 Zone
------------------------------------------------------------------------
PAC 20(i) 317.5 281.7 - 292.2 10.5 6.6 2,107 11.8 West Breccia
Includes: 288.2 - 292.2 4.1 2.6 4,243 25.7 Zone
------------------------------------------------------------------------
PAC 21(i) 296.1 193.7 - 197.0 3.3 2.7 265 1.1 West Breccia
237.9 - 238.2 0.2 0.2 866 3.9 Zone
276.7 - 276.9 0.2 0.2 1,010 4.3
------------------------------------------------------------------------
PAC 22(i) 143.5 105.6 - 109.5 3.9 3.0 570 2.4 West Breccia
114.6 - 117.1 2.5 1.9 481 2.8 Zone

------------------------------------------------------------------------
PAC 23(i) 293.6 159.7 - 163.9 4.2 2.7 1,483 6.6 West Breccia
Includes: 159.7 - 162.0 2.3 1.6 2,320 11.1 Zone

194.1 - 199.3 5.2 3.4 477 2.0
Includes: 194.1 - 196.0 1.9 1.3 710 2.9

207.8 - 224.1 16.4 11.0 460 1.7
Includes: 214.7 - 217.4 2.7 1.7 752 2.9
------------------------------------------------------------------------
PAC 24(i) 216.7 171.5 - 173.4 1.9 1.0 370 2.2 West Breccia
Zone
------------------------------------------------------------------------
PAC 25(i) 293.2 No significant West Breccia
intervals Zone
Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 26 215.5 189.2 - 213.4 24.2 12.8 989 1.3 Central Zone
Includes: 200.0 - 208.6 8.6 4.5 2,163 2.0
------------------------------------------------------------------------
PAC 27 399.7 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 28 383.4 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 29 441.0 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 30 348.9 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 31 297.8 206.7 - 210.6 3.9 2.2 235 0.3 Central Zone
------------------------------------------------------------------------
PAC 32 372.3 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 33 311.2 181.2 - 181.8 0.7 0.5 629 1.9 Central Zone
------------------------------------------------------------------------
PAC 34 236.4 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 35 212.4 130.6 - 131.3 0.7 0.5 342 0.7 Central Zone
------------------------------------------------------------------------
PAC 36 160.8 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 37 242.3 No significant Central Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 38 266.6 9.5 - 10.4 0.9 0.6 219 1.7 Central Zone
------------------------------------------------------------------------
PAC 39 115.8 No significant Suyamarca Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 40 302.0 44.1 - 45.3 1.2 0.5 255 0.5 Suyamarca Zone
------------------------------------------------------------------------
PAC 41 65.3 No significant Shallow hole to
intervals test secondary
vein only
------------------------------------------------------------------------
PAC 42 176.3 78.1 - 79.0 0.9 0.8 272 3.2 Suyamarca Zone
99.9 - 100.3 0.4 0.4 249 1.4

------------------------------------------------------------------------
PAC 43 272.0 181.4 - 181.6 0.3 0.2 558 1.4 Suyamarca Zone

------------------------------------------------------------------------
PAC 44 273.3 117.5 - 118.0 0.5 0.4 306 1.8 Suyamarca Zone

------------------------------------------------------------------------
PAC 45 320.3 175.3 - 175.8 0.5 0.4 401 1.5 Suyamarca Zone
184.9 - 185.9 1.0 0.8 315 1.1
193.2 - 193.9 0.7 0.6 614 2.8
------------------------------------------------------------------------
PAC 46 178.7 46.6 - 46.9 0.3 0.3 460 1.1 Suyamarca Zone
63.8 - 64.6 0.8 0.7 396 1.0
68.7 - 69.5 0.8 0.7 452 1.9
72.0 - 72.8 0.9 0.8 1,390 4.3
73.1 - 73.7 0.6 0.5 456 1.7
85.2 - 85.8 0.6 0.5 325 1.1
------------------------------------------------------------------------
PAC 47 401.2 No significant Suyamarca Zone
intervals Outside
mineralized
shoot
------------------------------------------------------------------------
PAC 48 299.0 170.0 - 170.4 0.5 0.5 220 0.6 Suyamarca Zone
Open to east
------------------------------------------------------------------------
PAC 49 323.2 241.4 - 242.3 1.0 0.7 382 1.4 Suyamarca Zone
Open to east
------------------------------------------------------------------------
PAC 50 510.8 393.8 - 398.7 4.9 2.8 265 0.2 West Breccia
Includes: 393.8 - 395.4 1.6 0.9 412 0.3 Zone
Open at depth
and to east
------------------------------------------------------------------------
PAC 51 503.3 249.3 - 259.7 10.4 7.3 503 3.5 West Breccia
Includes: 253.8 - 254.3 0.5 0.4 1,190 6.3 Zone
and incl: 258.2 - 258.8 0.6 0.4 1,450 6.2 Open at depth
and to west
290.5 - 292.1 1.7 1.2 2,130 13.9 Deepest
intercept to
362.8 - 363.3 0.6 0.4 912 3.4 date
(+/-350m below
431.6 - 439.6 6.9 3.5 352 1.1 surface)
Includes: 434.7 - 436.9 2.2 1.1 698 2.4
------------------------------------------------------------------------
PAC 52 359.9 131.9 - 132.6 0.7 0.4 671 1.9 West Breccia
160.9 - 162.6 1.7 1.0 688 3.4 Zone
227.0 - 227.3 0.3 0.2 877 23.7

338.6 - 341.4 2.9 1.7 741 3.2
Includes: 340.4 - 341.4 1.0 0.6 1,485 7.3

349.8 - 350.5 0.7 0.4 1,480 8.8

------------------------------------------------------------------------
PAC 53 338.6 276.3 - 286.1 9.9 481 1.4 West Breccia
Includes: 276.3 - 280.4 4.2 704 2.0 Zone
which incl: 278.0 - 278.3 0.3 1,125 2.8 Open at depth

and incl: 285.7 - 286.1 0.4 996 3.1
------------------------------------------------------------------------
PAC 54 216.4 145.0 - 147.0 2.1 1,274 8.8 West Breccia
(216.4)Includes: 145.0 - 145.8 0.8 2,900 20.4 Zone

184.5 - 185.7 1.2 517 1.6

223.6 - 224.1 0.5 586 2.4

230.1 - 262.0 31.9 461 1.3
Includes: 231.2 - 234.5 3.3 950 1.5
and incl: 250.5 - 256.9 6.5 833 2.6
which incl: 252.8 - 253.9 1.2 2,940 7.1
------------------------------------------------------------------------
PAC 55 223.0 127.4 - 129.4 2.0 931 3.9 West Breccia
Includes: 127.4 - 128.4 1.0 1,265 5.3 Zone
and incl: 129.1 - 129.4 0.3 1,920 8.1 Open at depth
and to west
201.2 - 202.9 1.7 448 1.7
Includes: 201.2 - 201.4 0.2 2,470 9.8

211.6 - 213.6 2.0 363 1.9
Includes: 212.6 - 213.6 1.0 499 2.4
------------------------------------------------------------------------
PAC 56 419.6 Assays Pending

------------------------------------------------------------------------
(i)Previously reported in news release of December 8, 2004.


IMC geologists have identified a lithological control to precious metal mineralization within the Pallancata vein-breccia. Drill holes that report low or non-significant values typically are found in the Central Zone (see Figures 1 and 2) where the Pallancata structure is contained within unsilicified volcanic tuffs or within an andesite intrusive ("sill"). The highest grade intercepts in the structure are generally located in the western part of the structure, in the West Breccia Zone. Of notable interest is that surface values for silver and gold in this area were relatively low, reflecting a combination of lithological control and vertical zonation of precious metal mineralization, the latter commonly seen in epithermal silver-gold deposits in this region of southern Peru and elsewhere in the world.

Precious metal mineralization in the Pallancata structure has now been identified by IMC over a strike length of almost 2 km within the 6 km-long Pallancata structure and to depths of up to 350m below surface. Mineralization is still open along strike and at depth. The Pallancata vein-breccia structure is complex, with multiple hangingwall and footwall veins or "splays" being intersected in the drill-holes, as indicated in the Table of drill assay results (e.g. PAC 52, 54 and 55).

IMC's Phase 2 drill program, which commenced in August 2004, follows-up a successful Phase 1 program completed in July 2003 (see news release dated September 19, 2003) which comprised 17 core drill holes totaling approximately 2,500m. Drill hole assay results (uncut values and estimated true widths) for the Phase 1 program included 2.9m at 1,020 g/t silver and 5.5 g/t gold in drill hole PAC-04, 1.6m at 1,000 g/t silver and 2.6 g/t gold in hole PAC-06, 0.6m at 2,480 g/t silver and 9.0 g/t gold together with 1.0m at 1,199 g/t silver and 6.3 g/t gold in hole PAC-09.

Mariana / Soroche / Ranichico Areas

In 2004, IMC geologists discovered high-grade vein mineralization from surface and underground sampling of the previously unknown Mariana Vein, located some 800m to the north of the Pallancata structure (see March 3, 2004 news release). To date, the Mariana Vein has been traced over a strike length of approximately 350m. A total of 53 rock channel samples taken from accessible workings on the vein averaged 802 g/t silver and 2.7 g/t gold, with individual samples ranging from 72 to 8,240 g/t silver and from 0.3 to 26.7 g/t gold, with estimated true widths ranging from 0.30m to 1.20m.

Core drilling has now commenced in the Mariana area and a program of seven drill holes totaling approximately 900m is planned. To date four drill holes (624m) have been completed and assay results are pending.

In addition, a further 1,230m of core drilling is planned for the Ranichico area, located some 2.5 km north of the main Pallancata structure (see Figure 1).

Veins in the Soroche area were only discovered recently by IMC and surface geological mapping and rock sampling are underway to identify possible drill targets.

General

IMC's overall Phase 2 drill program at the Pallancata property is scheduled for completion in the third quarter of 2005. IMC intends to produce an inferred mineral resource estimate for the main Pallancata vein-breccia structure this summer, with a view to starting a pre-feasibility study in the fourth quarter of 2005, funded by existing IMC financial resources.

Core drilling is being carried out by Bradley Brothers of Rouyn, Quebec, Canada using Canadian drillers. Sample preparation and analytical work is undertaken at the ALS Chemex laboratory in Lima, Peru using standard industry practices and conventional atomic absorption and fire assay methods for gold and silver. For quality control purposes, analytical standards with known metal values were included with IMC's samples and show acceptable reproducibility. In addition, duplicate analyses on selected drill samples will also be carried out by a second independent assay laboratory. The overall exploration program is being conducted under the supervision of IMC's Qualified Person, Mr. John Sutcliffe.

ON BEHALF OF THE BOARD

"Stephen J. Kay"

Stephen J. Kay, President and CEO

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