International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

October 16, 2006 08:30 ET

International Minerals Reports Additional Results From Gaby

Drill Results Include 40m at 1.2 g/t Gold Tunnel Results Include 30m at 4.3 g/t Gold

SCOTTSDALE, ARIZONA--(CCNMatthews - Oct. 16, 2006) - International Minerals Corporation ("IMC") (TSX:IMZ)(SWISS:IMZ)(FWB:MIW) has received assay results from an additional eight core drill holes (totaling 1,361m) at its Gaby gold porphyry project in southern Ecuador. This drill program is a part of an estimated 25,000m drill program required for an independent feasibility study that is underway on the project. The study is expected to be completed in the third quarter of 2007. To date, IMC has received results for 25 drill holes (totaling 5,277m) of feasibility drilling.

The Gaby project comprises two main mineralized areas: the Main Gaby Deposit and the Papa Grande Deposit. All 8 holes included in this release are located at Papa Grande. Significant intercepts (all uncut values) are shown in the attached Table 1 and drill hole locations are shown on the attached map. Significant intercepts include drill hole PPG-29 with 40.0m at an average grade of 1.2 g/t gold and drill holes PPG-23 and PPG-25 reporting intercepts of 10m at 4.6 g/t gold and 4.0m at 18.2 g/t gold, respectively. Due to the broad irregular widths and sub-vertical control to the gold mineralization at Papa Grande, drill intercept thicknesses are expected to approximate 80% of true thickness in most cases.

Tunneling (adits) to gain additional geological and geotechnical information is also underway on the Main Gaby Deposit. The first tunnel (designated "Santa Monica") has been completed and results are encouraging with the entire 55m tunnel length reporting an average grade 2.5 g/t gold and 0.83% copper, including a 30m interval averaging 4.3 g/t gold and 1.2% copper. The Santa Monica area is located in the northeast part of the Main Gaby Deposit and, based on previous drilling by IMC and others in the mid-1990's, was known to be an area with higher-than-average gold grades within the Main Gaby Deposit. Previous assay results from core drilling in the mid-1990's reported intercepts that included: GD-008 (drilled by IMC) with 90m at an average grade of 1.3 g/t gold and 0.35% copper (including 18m at 4.0 g/t gold and 0.81% copper); and GDD-001 (drilled by Newmont in 1991) with a 44m intercept at an average grade of 1.5 g/t gold and 0.33% copper (including 12m at 3.3 g/t gold and 0.50% copper). Newmont utilized Bondar-Clegg Laboratories (now ALS Chemex) for its sample preparation and analytical work.

The Gaby project, on a 100% project basis, has a combined historical resource estimate, based on 1997 independent pre-feasibility studies, of approximately 212 million tonnes at 0.8 g/t gold containing approximately 5.5 million gold ounces in all mineral resource categories (IMC currently holds an approximate 70% interest in the Gaby project). The resource estimate, however, has not been reviewed or verified by an independent qualified person, nor has a NI 43-101 Technical Report been prepared yet by IMC (a report is expected to be ready by year end). IMC has not completed the work necessary to verify the historical classification of the mineral resource estimate and is not treating it as a current resource estimate as defined by NI 43-101 and therefore the estimate cannot presently be relied upon. This historical mineral resource at Gaby has no demonstrated economic viability and in no way reflects the quantities of gold expected to be economically extractable from the Gaby property.

Update on Feasibility Study

Infill and definition drilling is ongoing and a drilling campaign to determine pit-wall stability and define sub-surface water quantity and quality will start in November and should be completed in the first quarter of 2007. There are currently two drill rigs operating at Gaby and IMC is actively seeking additional drill rigs to accelerate the time line for completion of the feasibility study. Metallurgical test-work is underway to define the optimum recovery process option for the Gaby project. Metallurgical results are expected in December which should allow IMC to make a decision between a crushing/heap leach processing scenario or a combined milling/flotation-carbon-in-leach (CIL) plant, with the latter designed to recover both gold and copper.


Drilling at the Gaby Project was carried out by Paragon Drilling Ecuador S.A. Sample preparation was carried out by ALS Chemex in Quito, Ecuador using standard industry practices. Analytical work was carried out by ALS Chemex in Vancouver, Canada, using conventional fire assay methods for gold. For quality control purposes, analytical standards with known metal values were included with IMC's samples sent and in general show good reproducibility. Duplicate analyses of selected drill-hole intervals have been sent to a second independent assay facility (CCI of Kellogg, Idaho) and results are pending. The overall drilling program was supervised by IMC's Qualified Person, Technical Manager, Nick Appleyard.


Stephen J. Kay, President and CEO

Table 1

(International Minerals Corporation - October 16, 2006 press release)

Interval Intercept Gold
Drill Hole (depth-m) From(m) To(m) (m) (g/t)
PPG023(181.6m) 10.0 - 28.0 18.0 0.8
36.0 - 64.0 28.0 0.7
69.8 - 82.0 12.2 0.6
98.0 - 108.0 10.0 4.6
Includes: 102.0 - 106.0 4.0 11.1
116.0 - 124.0 8.0 0.8
PPG024(187.9m) 24.0 - 90.0 66.0 0.5
143.3 - 148.0 4.7 1.5
143.3 - 146.0 2.7 2.3
PPG025(189.4m) 12.0 - 26.0 14.0 0.6
124.0 - 130.0 6.0 0.8
138.0 - 148.0 10.0 0.5
162.0 - 186.0 24.0 3.3
Includes: 172.0 - 176.0 4.0 18.2
PPG026(147.5m) 0.0 - 36.0 36.0 0.8
Includes: 2.0 - 4.0 2.0 6.3
PPG027(129.3m) 0.0 - 5.0 5.0 0.4
12.0 - 18.0 6.0 0.4
PPG028(183.9m) 62.0 - 64.0 2.0 30.5
PPG029(137.7m) 0.0 - 40.0 40.0 1.1
Includes: 2.0 - 8.0 6.0 2.3
and includes: 14.0 - 22.0 8.0 2.4
54.0 - 58.0 4.0 0.7
PPG030(203.9m) 28.0 - 34.0 6.00 0.5
88.0 - 140.0 52.00 0.5
165.7 - 184.0 18.32 0.7

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