Category: Uncategorized
- Published: 29 November -0001
International Minerals Announces Production Results From Pallancata Mine, Peru; Pallancata Continues to Produce Well Ahead of Schedule
International Minerals Corporation (TSX: IMZ) (SWX: IMZ) has received production data from co-owner and mine operator, Hochschild Mining plc (\"Hochschild\"), showing impressive second calendar quarter of 2008 (\"Q2 2008\") production results from the Pallancata silver-gold mine in southern Peru. The Pallancata Mine is jointly owned by IMZ (40%) and Hochschild (60%).
Q2 2008 silver and gold production at Pallancata increased 66% and 67% respectively compared to the first calendar quarter of 2008 (\"Q1 2008\"), producing a total of 829,000 ounces silver and 3,230 ounces gold respectively (approximately 1,023,000 ounces silver equivalent, based on a silver-to-gold ratio of 60:1). IMZ\'s 40% share of production was 331,600 ounces of silver and 1,292 ounces of gold (approximately 409,000 ounces of silver equivalent). See Tables 1 and 2 below for further production details. During Q2 2008, Pallancata ore processed at Hochschild\'s Selene processing plant increased 64%, compared to Q1 2008, to 83,517 tonnes. The planned production ramp-up to approximately 2,000 tonnes per day (tpd) by year-end 2008 is proceeding on schedule. IMZ\'s share of the cost of this expansion is estimated to be approximately $3.5 million and is expected to be funded by mine cash flow. The capital required for the expansion of Hochschild\'s Selene plant to accommodate the increase in mine production will be funded 100% by Hochschild, with a corresponding increase per tonne in the toll processing fee charged to the Pallancata Mine.
It is significant that production at Pallancata is well ahead of the original contractual requirements under the terms of the June 2006 joint venture agreement between IMZ and Hochschild. The current production rate of approximately 1,000 tpd is double the production rate originally required to be achieved by the present date. By year-end 2008, the production rate is scheduled to double again to approximately 2,000 tpd, an impressive achievement by Hochschild, considering that mine start-up only occurred in September 2007 at a rate of 500 tpd.
For IMZ\'s fiscal year ended June 30, 2008, IMZ\'s 40% of production (only since September 2007 start up) from the Pallancata Mine totaled 813,200 ounces of silver and 3,168 ounces of gold, or 1,003,280 ounces of silver equivalent (based on a silver-to-gold ratio of 60:1). See Table 2 below for details.
IMZ uses an equity accounting basis to record its interest in the Pallancata Mine and will report its consolidated corporate audited year-end June 30, 2008 financial results by September 29, 2008.
The technical information reported in this news release was reviewed by IMZ\'s Qualified Person, Technical Manager Nick Appleyard.
Table 1: Pallancata Mine Production Highlights (100% Basis)
Since
Quarter Ended Start-Up
------------------------------------------- To
On 100% basis 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2008*
---------- ---------- ---------- ---------- ----------
Ore processed
(tonnes) 83,517 50,893 63,612 14,723 212,745
Average head grade
silver (g/t) 339.36 340.10 322.6 255.5 328.7
Average head grade
gold (g/t) 1.70 1.61 1.50 1.30 1.59
---------- ---------- ---------- ---------- ----------
Concentrate produced
(tonnes) 847 541 560 79 2,027
Silver grade in
concentrate (kg/t) 30.45 28.71 33.25 41.60 31.2
Gold grade in
concentrate (kg/t) 0.12 0.11 0.13 0.17 0.12
---------- ---------- ---------- ---------- ----------
Silver produced (oz) 829,000 500,000 599,000 105,000 2,033,000
Gold produced (oz) 3,230 1,930 2,330 430 7,920
Silver equivalent
oz produced
(60 Ag:1 Au) 1,022,800 615,800 738,800 130,800 2,508,200
---------- ---------- ---------- ---------- ----------
Silver sold (oz) 796,000 391,000 561,000 0 1,748,000
Gold sold (oz) 3,130 1,440 2,080 0 6,650
Silver equivalent oz
sold (60 Ag:1 Au) 983,800 477,400 685,800 0 2,147,000
---------- ---------- ---------- ---------- ----------
Table 2: Pallancata Mine Production Highlights (IMZ 40% Share)
Since
Quarter Ended Start-Up
------------------------------------------- To
IMZ\'s 40% share 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2008*
---------- ---------- ---------- ---------- ----------
Silver produced (oz) 331,600 200,000 239,600 42,000 813,200
Gold produced (oz) 1,292 772 932 172 3,168
Silver equivalent
oz produced
(60 Ag:1 Au) 409,120 246,320 295,520 52,320 1,003,280
---------- ---------- ---------- ---------- ----------
Silver sold (oz) 318,400 156,400 224,400 0 699,200
Gold sold (oz) 1,252 576 832 0 2,660
Silver equivalent oz
sold (60 Ag:1 Au) 393,520 190,960 274,320 0 858,800
---------- ---------- ---------- ---------- ----------
Notes for Table 1 & 2: The difference between produced metal ounces and
sold metal ounces is still in inventory.
* Production at Pallancata Mine started on September 10, 2007.
Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.
Cautionary Statement:
Some of the statements contained in this release are \"forward-looking statements\" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding timing and scale of production and processing and estimated expansion costs. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of production and processing rates; risks of cost overruns and completion delays; and other risks and uncertainties detailed in the Company\'s Renewal Annual Information Form for the year ended June 30, 2007, which is available at www.sedar.com under the Company\'s name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact: Wendy Yang (1) 303-357-4863 Internet Site: http://www.intlminerals.com E-mail: Email Contact
SOURCE: International Minerals Corporation
