Imperial Metals cuts high grade at Sterling (August 19, 2002)

Vancouver — Imperial Metals (III-V) has released high-grade assay results from the first three holes drilled in a 6-hole program at the Sterling mine, near Beatty, Nev.

The diamond drill program tested areas within 100 ft. of the 144 zone, where discovery hole 7A intersected 0.32 oz gold per ton over 20 ft. Imperial reports that all holes are being drilled vertically, using HQ-sized (63.5-mm) core, with rotary-drilled pre-collars.

The 144 zone is 300 ft. below the lowermost underground workings of the Sterling mine. The zone is centered along the Tertiary-aged, high-angle Reudy fault. Mineralization is hosted in north-dipping, brecciated, silicified, silty carbonates 680-800 ft. below the surface. The highest grades are associated with steep, iron-oxide-rich gouge zones and an altered dyke contact. Quartz latite dykes which would seem to be slightly older than the mineralization cut at the Reudy fault and may be related to a hydrothermal event.

Results from the first three holes are as follows:

– Hole 18 was collared 30 ft. east of the discovery intercept in hole 7A and intersected 129 ft. averaging 0.2 oz gold per ton starting at 633 ft. down-hole. Included were a 14.8-ft. intercept of 0.99 oz. gold, starting at 723.7 ft. down-hole, and a 2-ft. interval of 1.02 oz. gold starting at 750 ft. down-hole.

– Hole 21 was collared between previously announced holes 7A and 01-09 (45 ft. grading 0.57 oz. gold per ton, including 20 ft. of 1.03 oz. gold). This recent hole cut 47.5 ft. averaging 0.5 oz. gold per ton starting at 693 ft. down-hole, including a 19.5-ft. interval of 1.08 oz. gold starting at 721 ft. down-hole.

– Hole 19, collared 120 ft. south of 01-09, intersected 9.5 ft. averaging 0.27 oz. gold followed by 5 ft. of 0.3 oz. gold and 3.5 ft. of 0.28 oz. gold within a larger 125-ft.-wide zone grading 0.13 oz. gold starting at 669 ft. down-hole.

Situated 115 miles northwest of Las Vegas, the Sterling property comprises 3,099 acres and is subject to a 2.25% net smelter return royalty. The Sterling mine was operated as an open pit, and later from under ground, between 1980 and 1997. Gold production through to 2000 totalled 194,996 oz. from 941,341 tons of ore with an average grade of 0.217 oz. per ton.