Drilling expands Mount Polley’s potential

Vancouver – Continued drilling by Imperial Metals (III-T) on its wholly owned Mount Polley copper-gold mine project, 56 km. northeast of Williams Lake in central B.C., has further expanded the mineralization of the high-grade Northeast Zone northwards.

The latest set of drill results, which includes the northern-most intercepts to date, has extended the strike length of the Northeast Zone to at least 500 metres.

Highlights of the latest drilling include:

• Hole WB04-102 The northeasterly oriented hole intersected 227 metres (from 215 metres downhole) grading 1.11% copper, 0.41 grams gold per tonne and 7.5 grams silver per tonne;
• Hole WB04-104 An intercept of 37 metres (from 81 metres) returned 1.43% copper, 0.7 grams gold and 11.3 grams silver, further downhole, intersections of 116.5 metres of 0.9% copper, 0.06 grams gold and 6.3 grams silver, and 36 metres of 1.41% copper, 0.47 grams gold and 11.3 grams silver were encountered. Further assay results are expected for sections of the core below 383 metres;
• Hole WB04-113 A high-grade section of 43 metres (from 98 metres downhole) grading 1.75% copper, 0.15 grams gold and 10.6 grams silver was returned. Assays for sections of core from between 140 metres to 404 metres have not yet been received.

Expansion of the Northeast Zone will have significant, positive implications in mine-life economics and reserves, with imminent recommencement of production at Mount Polley. This new zone, discovered in mid-2003 through trenching, constitutes a considerable amount of the reserves for the mine. Drilling of the Northeast Zone, at least 130 holes to date, has demonstrated consistent values of high-grade copper sulphide mineralization.

A pit modeled on the Northeast Zone in the July 2004 feasibility study, named the Wight Pit after the late George Wight who was mine manager at Mount Polley from 1996-2003, has calculated proven and probable reserves of 6.2 million tonnes grading 0.98% copper, 0.32 grams gold and 7 grams silver.

Additionally, a number of these recent drill holes intersected high-grade copper mineralization in portions of the Wight Pit area that were previously modeled as waste rock. This will have a positive impact on the planned open pit operation, reducing the stripping ratio.

Imperial Metals continues its drill program on the Northeast Zone with two rigs testing the northern extent and depth potential and a third drill focusing on the southern edge of the Wight Pit, where some of the higher copper grades were encountered near an interpreted fault offset.

The company reports 25.8 million shares outstanding as of the latest figures. These latest Northeast Zone drill intercepts captured market attention with investors lifting the issue over 7%, up about 50, to the $7.35 per share level on moderate-to-high volume.