NEWS RELEASE

INTERNATIONAL MINERALS CORPORATION

October 14, 2003

Trading: Toronto: "IMZ", Switzerland: "IMZ", Frankfurt: "MIW"

INTERNATIONAL MINERALS ANNOUNCES POSITIVE SCOPING STUDIES
AT RIO BLANCO GOLD-SILVER PROJECT, ECUADOR

International Minerals Corporation (“IMC”) is pleased to announce positive results for the independent scoping (or “preliminary assessment”) studies carried out by Buenaventura Ingenieros S. A. (“BISA”) of Lima, Peru on the high-grade Alejandra North Zone within IMC’s 100% held Rio Blanco gold-silver deposit in southern Ecuador. BISA were selected by IMC because of their extensive experience in designing and building similar mid-scale underground mining operations in Peru for their parent company, Compania de Minas Buenaventura S.A.A.

The purpose of these scoping studies was to provide IMC with preliminary assessments of the economic viability of a mining operation for the high-grade mineralized zone (“ shoot”) within the Alejandra North Zone based on IMC’s internally estimated diluted Inferred Resource of approximately 744,000 tonnes at an average grade of 18.3 g/t gold and 146 g/t silver containing 438,000 gold ounces and 3.5 million silver ounces (see detail on page 3). This shoot forms part of the overall inferred resource estimated by IMC to date at Rio Blanco of 881,000 ounces of gold and 6.7 million ounces of silver contained within 5 million tonnes of material at 5.5 g/t gold and 42 g/t silver (see news release dated December 11, 2002). IMC management considers that excellent potential exists for extensions to the known zones of mineralization together with additional high-grade shoots.

BISA prepared two separate scoping studies to allow for direct cost comparisons between using an on-site, conventional whole-rock direct cyanidation process versus a non-cyanide process with flotation/gravity concentrates being shipped to a custom smelter for processing and sale. Based on the results of the studies, the on-site conventional direct whole-rock cyanidation process shows superior economics.

Each of BISA’s scoping studies state “Assuming that IMC’s internally calculated Inferred Mineral Resource estimate can be confirmed as a mineable reserve in a feasibility study, and the feasibility study otherwise confirms the key operational and capital cost factors of this preliminary assessment, then based on the results of this preliminary assessment study, the project economics are sufficiently robust/attractive to justify a mining operation.”

It should be noted that these scoping studies are categorized as “Preliminary Assessments” under the Canadian Securities Administrators National Instrument 43-101 and are preliminary in nature because they include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and therefore there is no certainty that the results of these scoping studies will be realized in the future.

BISA’s key projected technical and economic parameters for the two studies on a pre-tax and pre-royalty basis are shown below:

* “Gold equivalent” is based on the value of the recovered silver ounces converted to equivalent gold value using the base case metal prices per ounce of US$350 gold and US$5.00 silver

The foregoing economic evaluations are preliminary in nature and remain subject to completion of a feasibility study by IMC. The numbers shown are projections, which may not reflect actual performance.

The internal Inferred Resource used in the BISA scoping studies is based on a modification of IMC’s previously announced (see news release dated December 11, 2002) internal Inferred Resource estimate for the Alejandra North Zone of 1.54 million tonnes at grades of 11.2 g/t gold and 99 g/t silver, containing approximately 553,000 ounces of gold and 4.87 million ounces of silver (based on uncut gold and silver assays). This previous resource calculation was based on a polygonal method using vertical sections generally spaced 50m apart and utilizing a 1 g/t gold cut-off grade within 50m of surface and 5 g/t gold cut-off for mineralization deeper than 50m.

IMC’s modified in-house diluted Inferred Resource estimate used for BISA’s scoping studies is 744,324 tonnes at an average grade of 18.3 g/t gold and 146 g/t silver, containing approximately 438,000 gold ounces and 3,500,000 silver ounces (based on uncut gold and silver assays). A 10% mining dilution factor was used in the calculation of this Inferred Resource. Like the December 2002 estimate, this new estimate was also based on a polygonal method using vertical sections generally spaced 50m apart, but with a 5 g/t gold cut-off grade for a potential open-pit scenario and an 8 g/t cut-off grade for the underground resource outside of the potential open-pit area.

As part of the scoping studies, IMC carried out preliminary metallurgical testwork at the TECSUP laboratory in Lima, Peru. Results of this work confirmed Rio Tinto’s original 1995 testwork, with optimal recoveries by TECSUP of 97.9% for gold and 83.9% for silver using conventional direct whole-rock cyanide leaching. Conventional flotation methods (without cyanide) gave optimum recoveries of 87% for gold and 64% for silver. Stand-alone gravity concentration tests (which is used in combination with flotation/gravity in the BISA study) gave optimum recovery of 38% for gold and 22% for silver. Due to the very high-grade nature of the test sample used (87g/t gold and 844 g/t silver), metal recoveries used in the scoping studies were discounted and reduced by BISA by approximately 6% for gold and 18% for silver in the primary cyanidation scenario and 4% for gold and 20% for silver in the flotation/gravity scenario. Additional metallurgical testwork is planned by IMC utilizing head grades more closely approximating the overall average resource head grade.

BISA’s recommendations for the development of the project are divided into three phases:

Phase I. Duration six months (months 1 to 6), to commence immediately: to define mineable reserves (by drilling and limited underground development) in the area that can be exploited by open-pit methods together with infill drilling in the area that will be mined by underground methods. Social and environmental base line studies would also be started in this Phase together with additional metallurgical testwork. IMC estimates this Phase will cost approximately US$1.5 million, which will be funded by existing working capital.

Phase II. Duration one year (months 7 to 18): contingent on the success of Phase I, an Environmental Impact Study (“EIS”) and a Feasibility Study will be completed. This Phase will include definition of mineable reserves for future underground mining, extensive underground development, and sourcing the procurement of major equipment. IMC/BISA estimate that this Phase will cost approximately US$3.5 million. IMC will require additional financing to fund this Phase II program.

Phase III. Duration 8 months (months 19-26): open-pit preparation, construction of process plant and infrastructure facilities and start up. BISA estimates this construction and start-up Phase for the cyanidation recovery scenario will cost approximately US$22.5 million (including US$3.0 million in start-up working capital). IMC currently intends to seek new equity financing for all of this investment rather than a debt/equity scenario.

IMC will commence BISA’s recommended Phase I drill program by late October/early November 2003 utilizing two drill machines in a program estimated to total approximately 6,000 to 7,000 meters of surface core drilling together with underground exploration (and possibly underground drilling).

Stephen J. Kay, President and CEO

The Toronto, Swiss and Frankfurt 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.

Go Back to News Releases

Return to Homepage