IMA Exploration Inc.
TSX VENTURE : IMR
OTC Bulletin Board : IMXPF
FRANKFURT : IMT
BERLIN : IMT

IMA Exploration Inc.

June 16, 2005 12:25 ET

Silver Resources Increase to Over 300 Million Ounces at IMA's Navidad Discovery

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 16, 2005) - IMA Exploration Inc. (TSX VENTURE:IMR)(OTCBB:IMXPF)(FWB:IMT)(BERLIN:IMT)(WKN 884971) is pleased to report the results of a resource estimate on the Calcite Hill deposit at it's 100% owned Navidad Project in Patagonia, Argentina. The Indicated Resources at the Navidad Project now totals 300.7 million ounces of silver and 1.27 million tonnes of lead (92.8 million tonnes @ 101 g/t silver and 1.36% lead). Ongoing drilling continues to define additional mineralization in the area of the Calcite Hill deposit beyond the resource estimate published here.

With the addition for the first time of Indicated and Inferred Resources at Calcite Hill, IMA's Exploration Team has now defined continuous silver resources (Indicated and Inferred) over a 2.3 kilometre strike length along the Navidad Trend. Ongoing drilling is targeting significant extensions to this world-class silver resource; additional surface work continues to better define additional known mineralization at the Argenta and Esperanza Trends. In addition to exploring for new resources, the company continues to better define and expand resources around the margins of Galena Hill, the Connector Zone, and Navidad Hill. It is expected that updated resource estimations will be undertaken once this phase of drilling is complete.



Navidad Project Indicated Resources at 50g/t Silver
Equivalent Cut-Off(1):
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Contained Contained
Silver Lead
Deposit Tonnes Silver Lead (million (thousand
(millions) (g/t) (%) ozs) tonnes)
--------------------------------------------------------------------
Galena Hill 63.6 101 1.76 207.3 1,117.8
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Connector 2.1 74 0.27 4.9 5.6
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Navidad Hill 15.2 115 0.35 56.3 52.4
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Calcite Hill 12.0 83 0.75 32.2 90.5
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Total Indicated
Resource 92.8 101 1.36 300.7 1,266.4
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Navidad Project Inferred Resources at 50 g/t Silver
Equivalent Cut-Off(1):
--------------------------------------------------------------------
Silver Lead
Deposit Tonnes Silver Lead (million (thousand
(millions) (g/t) (%) ozs) tonnes)
--------------------------------------------------------------------
Galena Hill 5.8 43 0.56 7.9 32.6
--------------------------------------------------------------------
Connector 6.5 100 0.20 20.9 12.9
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Navidad Hill 2.9 103 0.77 9.6 22.5
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Calcite Hill 0.05 28 0.66 0.05 0.35
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Total Inferred
Resource 15.2 78 0.45 38.4 68.3
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The new resource estimate was prepared by Neil Burns, M.Sc., P.Geo. of Snowden Mining Industry Consultants Inc., who is an Independent Qualified Person as defined by National Instrument 43-101. The Calcite Hill estimate relied on assay results from 35 diamond drill holes covering an area of approximately 550 x 150-250 metres. Most of the estimated resource lies at relatively shallow depths starting at 50 to 80 metres and extending to 100 to 180 metres below the surface. Snowden created a block model (block size 12.5 x 12.5 metres in plan by 10 metres in depth) of the Calcite Hill deposit and coded this model into four domains based on geological interpretation. Grade was estimated using multiple indicator kriging techniques within the higher-grade domain and ordinary kriging with appropriate grade capping elsewhere. Densities were assigned to a block model using a nearest neighbour estimate from composited data determined from density measurements of entire boxes of whole core. Average densities used to calculate the tonnage at various AgEq cut-off grades are shown in the tables below. A small portion of the previously reported Navidad Hill Inferred Resource has been upgraded to the Indicated category and included within the Calcite Hill estimate. The Navidad Hill resources have been restated above to reflect these minor changes. Please note that the Project database at the time of this estimation comprised 174 diamond drill holes totalling 27,982 metres. Currently, 194 holes have been completed totalling over 32,200 metres.

Tables showing the breakdown of estimated resources at Calcite Hill at various silver equivalent cut-off grades are shown below. Complete tables and grade-tonnage curves showing the resource estimates for all the Navidad deposits at various cut-off grades are available at the company's website (www.imaexploration.com). The base-case 50 g/t silver equivalent (AgEq) cut-off was chosen as it reflects a contained gross metal value that is similar to many bulk-tonnage operations worldwide. No economic analysis has been applied to determine this figure; resources tabulated at other cut-off grades are presented below for comparison purposes. It is important to note that at Calcite Hill doubling the cut-off to 100 g/t AgEq only reduces the contained ounces of silver by 21%; applying this higher cut off to the project total resources produces only a 14% reduction in contained silver showing the robust nature of these deposits. Silver equivalent values were calculated using silver, lead, copper, and zinc grades and the same metal prices as were used in the previous Galena Hill and Navidad Hill resource estimates1. The silver equivalence formula makes no allowances for variable metal recoveries.



Calcite Hill Indicated Resources:
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Average Contained
Cut-off Density Thousand Ag Cu Pb Zn Silver
(g/t AgEq) (g/cm3) Tonnes (g/t) (%) (%) (%) (M Oz)
--------------------------------------------------------------------
100 2.57 6,943 113 0.07 1.04 0.08 25.2
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80 2.56 8,741 101 0.07 0.92 0.09 28.4
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70 2.55 9,831 94 0.07 0.86 0.10 29.8
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60 2.54 10,964 88 0.07 0.80 0.11 31.1
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50 2.54 12,048 83 0.07 0.75 0.11 32.2
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Calcite Hill Inferred Resources:
--------------------------------------------------------------------
Average Contained
Cut-off Density Thousand Ag Cu Pb Zn Silver
(g/t AgEq) (g/cm3) Tonnes (g/t) (%) (%) (%) (M Oz)
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100 2.70 8 149 55 2.00 0.17 0.015
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80 2.61 16 117 41 1.36 0.33 0.021
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70 2.47 31 98 37 0.93 0.31 0.037
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60 2.48 39 92 32 0.85 0.36 0.040
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50 2.42 53 82 28 0.66 0.38 0.048
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Notes:

1. Silver equivalent calculated using US$5.50/oz silver, $0.30/lb lead, $1.10/lb copper, and $0.40/lb zinc. (AgEq equals Ag + (%Pb x 10,000/242.5) + (%Cu x 10,000/66.1) + (%Zn x 10,000/181.9). No attempt has been made to adjust these relative values by accounting for metallurgical recoveries as insufficient or no information is available to do so. Metal prices have been left unchanged from the prior estimate at Galena Hill in May 2004 in order to simplify comparisons to the prior estimate.

2. The Galena Hill, Navidad Hill and Connector Zone Indicated Resources remain unchanged from the Phase I and II resource estimations released on May 25, 2004 and December 1, 2004 except for restating of the Navidad Hill Resource where a small change was made at the common border with the Calcite Hill resource.

3. Strict quality control and quality assurance procedures have been observed at all stages of data collection leading to this resource. Please see IMA's website (www.imaexploration.com) for a detailed overview of these procedures.

4. Resource categories (Indicated and Inferred) used here and the preparation of this resource estimate conform to Industry Best Practices standards as set out by National Instrument 43-101 "Standards of disclosure for mineral projects" and those of the 2000 Canadian Institute of Mining, Metallurgy, and Petroleum (the "CIM") "Standards on Mineral Resources and Reserves".

5. A National Instrument 43-101 Technical Report documenting the Snowden Resource Estimate will be filed at www.sedar.com as is required by Security Commission regulations.

6. An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

7. An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

ON BEHALF OF THE BOARD

Mr. Joseph Grosso, President & CEO

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. 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, receipt of property titles, potential mineral recovery processes, etc. 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.

2005 Number 11


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • IMA Exploration Inc.
    Joseph Grosso
    President & CEO
    1-800-901-0058 or (604) 687-1828
    or
    IMA Exploration Inc.
    Sean Hurd
    Investor Relations Manager
    1-800-901-0058 or (604) 687-1828
    (604) 687-1858 (FAX)
    info@imaexploration.com
    www.imaexploration.com