NEWS RELEASE
INTERNATIONAL MINERALS CORPORATION
(formerly Ecuadorian Minerals Corporation)
January 9, 2003
Trading: TSX & SWX: "IMZ"
ON THE CANICAPA PROPERTY IN ECUADOR
International (formerly Ecuadorian) Minerals Corporation (“IMC”) has acquired a 100% interest in the Cańicapa gold project in Ecuador and has signed a “Heads of Agreement” with IAMGOLD Corporation (“IAMGOLD”) to joint venture the project with IAMGOLD. Cańicapa is located in southern Ecuador, approximately 380 km south of the capital city of Quito and 50km north of Loja (see attached map).
The Cańicapa project area comprises two concessions (Cańicapa and Celen) totaling 39 sq. km. On the Cańicapa concession, argillic (clay) alteration covers an area of approximately 14 sq. km within which a 2.5 sq. km zone possesses the alteration characteristics that are typical of systems that host epithermal gold mineralization of the high-sulfidation type elsewhere in the world, such as Yanacocha in Peru. This view of the alteration characteristics at Cańicapa has been endorsed by international epithermal-gold specialist, Dr. Jeffrey Hedenquist, who visited the Cańicapa project area in 2002 on behalf of IMC. Preliminary exploration work on the property conducted by the previous property owner has shown anomalous concentrations of gold, copper, arsenic, antimony and bismuth, which are consistent with epithermal mineralization of the high-sulfidation type.
Gold values from 1,317 rock channel samples taken by the previous property owner from approximately 4 km of hand-dug trenches on the Cańicapa concession ranged from trace levels to 3.0 g/t and averaged O.17 g/t. The most notable trench sections averaged 2.2 g/t gold over a trench length of 12m and 0.6 g/t gold over 132m. Generally the anomalous gold concentrations are associated with leached rocks and concentrations of residual quartz.
In 1999, the previous property owner drilled a total of seven shallow core holes on the Cańicapa concession, ranging in depth from 15m to 162m, for a total of 569m. Severe drilling problems were encountered due to adverse ground conditions found in the strongly altered rocks and drill core recoveries were very low, and, in some cases, no core could be recovered. The drill program was abandoned before the targeted depths for expected precious metal mineralization could be reached. Gold values in drill samples were low and overall reflect the gold values found in the trench samples.
IMC and IAMGOLD believe that the Cańicapa project represents a relatively low-cost opportunity to test a large epithermal gold prospect of potential high-sulfidation type on which preliminary exploration work to date has given significant encouragement. IAMGOLD’s initial exploration program, which is expected to commence early in 2003, will involve detailed geological mapping and rock sampling with a view to commencing drilling in the second or third quarter of the year.
Terms of IMC Agreement with Underlying Property Owner.
IMC has acquired a 100% interest in (and received titles to) the Cańicapa and Celen concessions (the “IMC Concessions”). IMC’s 100% interest in the Concessions can be maintained by making nominal annual payments of US$10,000 to the previous property owner. The agreement also provides for a 2.5% Net Smelter Return (“NSR”) production royalty to the property owner that can be purchased by IMC for US$5.0 million within 120 days of the start of commercial production from the IMC Concessions. In addition a one-time cash payment of US$500,000 is payable upon commencement of commercial production.
Terms of IMC Agreement with IAMGOLD.
Under the terms of the Joint Venture Heads of Agreement (the “HOA”) with IMC, IAMGOLD can acquire an initial 60% interest in the Canicapa property (the “Property”) by spending US$2.0 million in exploration expenditures over a 5 year period from the date of the HOA, with minimum expenditures of US$200,000 in the first year and US$250,000 in the second year. IAMGOLD will then have the option to acquire a further 20% interest in the Property (for an aggregate 80% interest) by funding and completing a bankable feasibility study within an eight-year period from the date of the HOA.
In addition to the IMC Concessions, the Property includes certain IAMGOLD concessions (covering 159 sq. km) within a 3 km “Area of Interest” surrounding the IMC Concessions. IAMGOLD will assume responsibility for the maintenance of the Property and for the payments related to the agreement between IMC and the previous property owner. The HOA is subject to IMC Board approval and is intended to be replaced by a formal joint venture agreement at a later date.
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.