NEWS RELEASE
INTERNATIONAL MINERALS CORPORATION
(formerly Ecuadorian Minerals Corporation)
August 9, 2002
Trading: TSX & SWX: "IMZ"
SILVER-GOLD PROSPECT IN SOUTHERN PERU
International Minerals Corporation (formerly Ecuadorian Minerals), through its wholly-owned Peruvian subsidiary, Minera Oro Vega S.A., has signed an option agreement to acquire a 100% interest in the Pallancata silver-gold prospect located in southern Peru, approximately 240 km southeast of the city of Ayacucho, southeast of Lima (see attached map).
Pallancata is a multi-target prospect with many of the characteristics of the bonanza-type, silver-gold epithermal vein deposits that are located in this region of southern Peru. The project area is contained within a large, strongly altered area of Tertiary volcanics which hosts numerous small-scale underground silver-gold mines and prospects. Several of the mines in the region e.g. Arcata, Orcopampa and Caylloma, have each produced between 40 and 90 million ounces of silver and 100,000 to 1 million ounces of gold at grades in the order of 15-20 oz/t (470-620 g/t) silver and 2-12 g/t gold. Three of the recently opened mines, Ares, Antapite and Shila, are reported (by Peru’s Department of Mines) to contain considerably higher gold grades in the range of 10-20 g/t gold with lower silver grades at 6-10 oz/t (200-300g/t).
A characteristic of these high grade epithermal silver-gold vein deposits in this particular region of Peru is their very poorly mineralized or barren surface outcrops, often with only massive quartz veins containing only traces of precious metals. These deposits typically show strong vertical metal zonation, with a high-grade silver-gold zone below the barren/unmineralized outcrops grading into lead/zinc and/or copper mineralization at deeper levels. A good example of this type of zonation, with barren surface outcrops (and essentially unmineralized to depths of up to 250m), is the Hochschild Group’s Arcata Mine, some 90km east of Pallancata, which currently produces approximately 5 million ounces of silver and 25,000 ounces of gold per year. Since 1964, Arcata has produced more than 70 million ounces of silver and 400,000 ounces of gold at grades averaging 18 oz/t (560 g/t) silver and 2.1 g/t gold.
The Pallancata vein structure is approximately 1.6 km long and is up to 40m wide, including the intensely silicified wall rocks. It is steeply dipping and consists of several parallel quartz veins localized in a fault (shear) zone and breccia. In the middle of this structure an open cut of approximately 250m in length follows a 2.5m wide quartz vein containing disseminations and patches of pyrite and silver sulfide minerals. Two rock channel samples taken by the Company at the same location from this vein reported 2.5m at 5.4 g/t gold with 73 oz/t (2,270 g/t) silver and 2.0 m at 6.3 g/t gold with 74 oz/t (2,310 g/t) silver respectively. In addition there are breccia pipes consisting of strong silicified fragments, stockworks and quartz veinlets. One of the breccia bodies, covering an area of 140m by 40m, contains anomalous gold values between 0.1 and 0.2 g/t gold and <1 to 35 g/t silver. Complete results of the preliminary sampling of the vein structure by the Company (60 rock panel and channel samples) ranged from 0.005 to 6.3 g/t gold and <1 to 74 oz/t (2,310 g/t) silver.
Exploration work will commence on the property this month, with the initial program comprising rock sampling (including the sampling of additional old workings), surveying and detailed geological mapping. Drilling will likely be scheduled for the end of 2002 or early 2003 dependent upon exploration work and funding available for the Company’s other projects in Ecuador and Peru.
The Company holds an option from an arms-length third party to acquire an initial 75% interest in the property for a total cash payment of US$1.0 million over 7 years and can purchase the remaining 25% interest by paying an additional US$ 0.6 million. Annual option payments (to be paid quarterly to maintain the option) are as follows: year 1 total US$ 24,000; year 2 total US$ 36,000, year 3 through year 6 total US$ 48,000 per year; and year 7 total US$ 60,000.These option payments total US$312,000 over the seven year option period. At the end of the seventh year the balance of the total acquisition price must be paid by the Company to the vendor in order to complete the acquisition of the Company’s interest in the property (US$688,000 to acquire a 75% interest and $1,288,000 to acquire a 100% interest). There is no residual production royalty obligation payable by the Company to the vendor.
Stephen J. Kay, President and CEO
The Toronto and Swiss Stock Exchanges neither approve nor disapprove the information contained in this News Release.
For additional information, contact Investor Relations at Tel: (480) 483-9932 or Fax: (480) 483-9926.