On-site exploration yields high-grade zones for Imperial

Vancouver — A spring drilling campaign by Imperial Metals (III-T, IPMLF-O) has returned encouraging results from several zones near existing pits at the wholly owned Mount Polley copper-gold mine situated 56 km northeast of Williams Lake, B.C.

Imperial reopened the past-producing, open-pit mine in early March 2005. Production over the subsequent 10-month period totalled 30 million lbs. copper, 30,000 oz. gold and 234,000 oz. silver. The company initially opened the $115-million mine in 1997, only to suspend operations two years later because of low metal prices.

During the closure, the company explored the property and discovered the Northeast zone in an area not believed to be prospective for new discoveries. Drilling returned grades well above those of past-producing pits, and subsequent exploration led to the discovery of several other high-grade zones, including some near existing pits.

The latest exploration results are from the Boundary zone, west of the producing Wight pit. Recent drilling returned a 39.2-metre intersection grading 0.9% copper and 0.68 gram gold per tonne, while a second hole testing this target returned 34.8 metres of 0.98% copper and 1.12 grams gold. Silver assays for both holes are pending.

Selected intervals from the two holes returned even higher gold grades within magnetite breccia bodies, notably 8.7 metres of 1.13% copper and 2.25 grams gold, and 11.9 metres of 0.55% copper and 2.12 grams gold. A second, 25-metre interval from one of the holes graded 1.51% copper and 2.56 grams gold, starting at a depth of 75.1 metres, which includes 5 metres of 3.75% copper and 8.42 grams gold.

Imperial notes that these intercepts are in magnetite breccia, and geologically similar to the host of high-grade mineralization drilled in the C2 zone earlier in the spring program.

The C2 zone is situated south of the Cariboo pit. The two best holes testing this target returned 45 metres grading 1.23% copper and 1.77 grams gold, and 45.7 metres of 1.09% copper and 2.41 grams gold, respectively. Both holes intersected mineralization hosted in magnetite breccia at shallow depths of 22 metres and 37.5 metres, respectively.

The company also drilled two additional holes in hopes of extending the C2 zone to the south. One hole drilled 50 metres south of any previous drilling returned 0.36% copper and 0.81 gram gold over 35 metres, which opened up the zone for exploration to the south in an untested area covered by overburden.

Imperial cautions that the deposits at Mount Polley are irregular in shape, hence true thicknesses have not been estimated.

Exploration drilling this spring returned a 140-metre interval grading 0.17 gram gold at the Tall Fir zone, described as the first area to reveal a “gold-only population over any significant interval.” The ongoing drill program will also test exploration targets generated during last year’s program, and potential extensions of existing zones.

Along with the Mount Polley mine, Imperial owns 50% of the producing Huckleberry mine in central British Columbia. Output from these mines allowed Imperial Metals to report net profits of $21.6 million last year, compared with net income of $3.6 million in 2004. Reserves at Huckleberry are nearing depletion. The mine was expected to cease operations this fall, however, a new reserve estimate provides for an extension until mid-December. In the meantime, the company plans to explore the Main zone extension area.