Imperial hits high grades at Mount Polley (May 31, 2004)

Vancouver — Drilling by Imperial Metals (III-T) has returned high-grade mineralization at the Mount Polley copper-gold project in central British Columbia.

The best hole, drilled on the Springer zone, intersected 273.2 metres grading 0.72% copper, plus 0.36 gram gold and 1.32 grams silver per tonne, including 73.8 metres of 1.62% copper, 0.62 gram gold and 2.64 grams silver.

The program is testing extensive mineralization below the established resource. Hydrothermal breccia, a primary host of Mount Polley mineralization, continues to be encountered at depths beyond 1,000 metres.

Increased silver-to-gold ratios in the lower portion of hole 11 at the Springer zone are similar to those found at the Northeast zone, where higher grades have also been encountered, indicating a possible change in style of mineralization.

Other highlights from the Springer zone include the following:

— Hole 07 — 21.5 metres grading 0.43% copper and 0.48 gram gold, and 46.3 metres of grading 0.43% copper and 0.48 gram gold.

— Hole 08 — 174.2 metres of 0.32% copper and 0.3 gram gold, and 165 metres of 0.32% copper and 0.35 gram gold.

— Hole 09 — 284.5 metres grading 0.33% copper and 0.25 gram gold.

Drilling at the Northeast zone continues to deliver significant intersections of high-grade copper-gold-silver mineralization. Hole 59 intersected 149.3 metres grading 1.37% copper, 0.58 gram gold and 11.15 grams silver, including 17.5 metres of 4.93% copper, 3.81 grams gold and 42 grams silver.

Other results from the Northeast zone include the following:

— Hole 53 — 134.3 metres grading 1.7% copper, 0.56 gram gold and 10.62 grams silver, including 32 metres of 2.99% copper, 0.44 gram gold and 17.58 grams silver.

— Hole 56 — 110.4 metres of 1.11% copper, 0.33 gram gold and 8.17 grams silver.

— Hole 60 — 105.2 metres of 1.03% copper, 0.34 gram gold and 8.49 grams silver, including 21.6 metres of 2.7% copper, 1.19 grams gold and 27.1 grams silver.

— Hole 65 — intersected 107.5 metres of 0.76% copper, 0.36 gram gold and 4.27 grams silver.

An updated reserve/resource estimate for the Northeast, Bell and Springer zones is being prepared.

The Mount Polley copper-gold mine produced from 1997 to 2001, when operations were suspended as a result of low commodity prices. Imperial Metals is carrying out drilling programs and engineering studies aimed at resuming production.