IMA updates Navidad

Vancouver — IMA Exploration (IMR-V, IMR-X) has tabled an updated resource estimate for its embattled Navidad silver-lead project in the northern Patagonia region of Argentina.

Incorporating past data with recent infill and perimeter drilling on the Galena Hill, Connector, Navidad Hill and Calcite Hill zones, and a new resource from Calcite NW, resulted in a slight boost in the global indicated resource to 93.4 million tonnes grading 102 grams silver per tonne and 1.4% lead using a 50-gram silver-equivalent cutoff. The estimate equals over 305 million ounces contained silver and 2.9 billion lbs. (1.3 million tonnes) lead.

Early metallurgical testing indicates encouraging recoveries (up to 89%) with the use of calcium thiosulphate to leach oxide silver from pyrite concentrates. The material was pressure oxidized then leached under atmospheric conditions to produce silver. Thiosulphate is relatively environmentally benign, and is also used as an agricultural fertilizer.

Engineers Pincock, Allen and Holt recently began a scoping study at Navidad, examining preliminary technical, legal, social, environmental and economic facets of the project.

Shareholders and principals of both IMA and Aquiline Resources (AQI-T, AQLNF-O) are anxiously awaiting a court decision in litigation over ownership of the large Navidad silver deposit. Aquiline, the plaintiff, asserts IMA used confidential information contained in a data package, supplied by Newmont Mining (NMC-T, NEM-N), to stake a nearby land position that now encompasses the Navidad project. IMA denies any wrongdoing. The trial concluded in mid-December with a decision anticipated shortly.

Prior to the start of the trial in late 2005, IMA made a revised offer of 3.5 million shares and warrants to Aquiline shareholders, and a $1-million cash payment to the company in an effort to settle the claim. Aquiline promptly turned it down. IMA’s sweetened proposal had followed an earlier $100,000 offer to rid itself of the “nuisance value” of the lawsuit.

On the revised resource news, shares of Aquiline gained a dime to close near a 52-week high at $2.20 apiece while IMA rose 8 to close at $3.34 per share, in a 1-year trading range of $2.56-$4.45.