NEWS RELEASE

  INTERNATIONAL MINERALS CORPORATION

May 27, 2004     

    Toronto and Swiss Exchanges – Symbol “IMZ”, Frankfurt – Symbol “MIW”                                             

           INTERNATIONAL MINERALS REPORTS NEW DRILL RESULTS FROM FEASIBILITY STUDY DEFINITION DRILL PROGRAM AT RIO BLANCO PROJECT, ECUADOR

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International Minerals Corporation (“IMC”) has received assay results from an additional seventeen in-fill and definition core drill holes totaling 3,361m that form part of the on-going feasibility study on the high-grade Alejandra Vein at IMC’s Rio Blanco epithermal gold-silver project located in southern Ecuador. Results from the first 32 drill holes (totaling 4,580m) were previously reported in news releases dated March 8 and April 7, 2004 . To date results have been received for 49 drill holes totaling 7,941m. Sample preparation and analyses for samples from a further six drill holes are in progress. 

High-grade intercepts (which commonly are contained within much wider mineralized zones) from these latest seventeen drill-holes include: 17.1m at 7.8 g/t gold and 48 g/t silver (including 1.6m at 57.9 g/t gold and 219 g/t silver) in BC-107; 1.2m at 30.5 g/t gold and 272 g/t silver in BC-111; 3.3m at 36.2 g/t gold and 267 g/t silver (including 1.9m at 61.6 g/t gold and 448 g/t silver) in BC-113; 21.2m at 6.3 g/t gold and 37 g/t silver (including 5.1m at 15.2g/t gold and 68 g/t silver and 1.0m at 53.4 g/t gold and 142 g/t silver) in BC-116; 19.0m at 8.0 g/t gold and 57 g/t silver (including 1.6m at 39.7 g/t gold and 277 g/t silver) in  BC-119; 36.2m at 6.6 g/t gold and 57 g/t silver (including 5.1m at 28.8 g/t gold and 259 g/t silver) in BC-120; 23.3m at 12.4 g/t gold and 94 g/t silver (including 5.5m at 22.3 g/t gold and 203 g/t silver and 3.3m at 30.6 g/t gold and 194 g/t silver) in BC-122. The above intercepts are estimated true widths of the mineralized zones and all assay values are uncut.  

The high-grade intervals in drill holes BC 113 and 122 are considered by IMZ management to be significant in that they represent newly-identified zones of “bonanza” grade mineralization where such zones were not previously predicted, especially in the case of BC 113 which was drilled primarily to try to define the lower margin of the mineralized zone.  

Assay results at a nominal 1 g/t gold cut-off for the longer intercepts and 5 g/t gold for the shorter, higher grade intercepts are summarized in the table below and drill hole locations (mid-points of mineralized intervals) are shown on the attached longitudinal section in the plane of the vein. All assay values are uncut. 

Drill Hole #

(Depth-meters)

 

Interval

(meters)

Length

(m)

Estimated

True

Width (m)

Gold

g/t

Silver

g/t

Comments

BC 105 (238.0)

Includes:

 

Includes:

202.0

207.7

220.6

221.4

-

-

-

-

208.4

208.4

221.8

221.8

6.4

0.7

1.2

 0.5

6.1

0.7

1.1

0.4

3.4

13.4

13.3

22.1

23

78

82

137

 

BC 106 (201.6)

169.0

182.0

188.7

-

-

-

176.0

183.0

189.2

 7.0

1.0

0.5

 6.2

0.9

0.5

2.6

8.4

25.7

19

35

188

 

BC 107  (221.6)

Includes:

Includes:

169.7

180.3

180.3

-

-

-

192.7

188.6

182.4

23.0

8.2

2.0

17.1

6.2

1.6

7.8

16.7

57.9

48

61

219

 

 

BC 108  (192.8)

Includes:

Includes:

Includes:

147.9

154.0

156.4

164.7

-

---

165.1

154.8

157.4

165.1

17.2

0.8

1.0

0.4

16.1

0.7

0.9

0.4

3.8

19.1

14.6

15.8

21

93

86

129

 

BC 109 (296.9)

259.2

-

260.5

1.3

1.2

3.8

<5

Close to lower margin of mineralized shoot

BC 110 (133.1)

 

Includes:

  99.3

103.5

107.7

---

113.8

108.3

108.3

14.5

4.7

0.6

     12.7

4.1

0.5

   3.6

5.5

14.2

60

103

210

Close to upper margin of mineralized shoot

BC 111 (145.9)

  126.9

-

   128.3

    1.4

      1.2

  30.5

  272

 

BC 112 (107.9)

78.0

91.6

--

78.9

92.5

0.9

0.9

0.9

0.9

4.8

8.7

54

71

Close to upper margin of mineralized shoot

BC 113 (313.5)

Includes:

Includes:

Includes:

258.2

259.6

259.6

261.1

-

-

--

261.7

261.7

260.1

261.7

3.5

2.0

0.5

0.6

3.3

1.9

0.4

0.5

36.2

61.6

107.0

113.5

267

448

1,080

594

 

BC 114 (90.8)

Includes:

13.4

15.4

-

-

18.6

16.4

5.3

1.0

3.6

0.7

7.1

21.3

60

117

Close to upper margin of mineralized shoot

BC 115 (161.0)

Includes:

Includes:

114.1

125.5

127.7

-

-

-

140.7

129.4

129.4

26.6

3.9

1.7

25.3

3.7

1.6

2.4

9.5

14.3

31

108

177

 

BC 116 (108.9)

Includes:

Includes:

39.5

42.6

42.6

-

-

-

70.1

50.0

44.0

30.5

7.4

1.4

21.2

5.1

1.0

6.3

15.2

53.4

37

68

142

 

BC 117 (145.7)

Includes:

Includes:

96.1

111.5

120.1

-

-

-

121.9

120.7

120.7

25.7

9.2

0.7

18.2

6.5

0.5

2.3

3.2

10.7

26

31

75

 

BC 118 (336.4)

256.0

-

258.0

2.0

1.9

6.8

138

 

BC 119 (225.2)

Includes:

Includes:

 

Includes:

159.2

169.2

178.8

204.7

207.8

--

-

--

180.8

171.0

179.9

211.0

209.6

21.6

1.8

1.1

6.3

1.8

19.0

1.6

1.0

5.5

1.6

8.0

39.7

33.6

4.8

8.6

57

277

169

31

48

 

BC 120 (226.4)

Includes:

Includes:

135.0

138.1

159.1

---

173.3

143.5

160.3

38.3

5.4

1.2

36.2

5.1

1.1

6.6

28.8

13.1

57

259

44

 

BC 121 (285.85)

 

 

 

 

 

 

 

Results not yet received

BC 122 (242.7)

Includes:  Includes:

Includes:

Includes:

187.9

196.9

208.2

212.8

213.9

-----

217.0

203.8

208.9

217.0

216.0

29.1

6.9

0.7

4.2

2.1

23.3

5.5

0.6

3.3

1.7

12.4

22.3

82.9

30.6

47.8

94

203

651

194

332

 

 The Alejandra Vein is a complex vein-breccia structure with a drill-tested east-west strike length of approximately 500m, which remains to be drill-tested to the east. The structure ranges in width from less than 1.0m up to 30m (with an average of approximately 6m) and gold-silver mineralization extends from surface to a depth of about 300m. In an October 14, 2003 news release, IMC announced a positive preliminary assessment study (under the rules of National Instrument 43-101) carried out by Buenaventura Engineering (“BISA”). The study indicated strong economics (over 50% pretax IRR at base case metal prices of US$350/oz gold and US$5/oz silver) for this high-grade zone based on an inferred resource estimate of approximately 744,000 tonnes at an average grade of 18 g/t gold and 146 g/t silver, containing 438,000 gold ounces and 3.5 million silver ounces.  

The current expanded definition drill program of approximately 60 drill holes (totaling 12,000m, of which approximately 11,000m in 55 drill holes have been completed to date) is scheduled for completion in June and, combined with drilling from previous programs, is designed to produce drill intersections for the Alejandra Vein with an approximate spacing of 30m for reserve/resource calculations in the feasibility study. In addition, approximately 120m of underground exploration have been completed by IMC to complement the ongoing drill program.

Drilling to date has been carried out principally by Paragon Drilling Ecuador S.A. (under the supervision of a Canadian drilling consultant) and partially by Kluane International Drilling Inc., of Vancouver, Canada. Currently, Paragon is the sole drill contractor. Sample preparation was carried out at the ALS Chemex laboratory in Quito, Ecuador using standard industry practices. Analytical work was carried out at the ALS Chemex laboratory in Vancouver, Canada using screen fire assay for expected high grade zones and conventional fire assay methods for gold and silver for all other zones.  

For quality control purposes, analytical standards with known metal values were included with IMC’s samples and show excellent reproducibility. Duplicate analyses on selected samples were originally undertaken by Acme Geochemical Inc. in Vancouver. Acme’s results, however, for higher-grade samples (>10 g/t gold and >30g/t silver) were found to be significantly higher than ALS Chemex’s original results. Following re-analysis of the same duplicate samples by an independent, umpire laboratory (Chris Christopherson, Inc. (“CCI”) of Kellogg, Idaho) IMC has established that a higher level of accuracy and precision exists for the ALS Chemex analyses compared to Acme. As a result, IMC will utilize CCI for future duplicate analyses at Rio Blanco. 

The drill program is conducted under the supervision of IMC’s Qualified Person and Exploration Manager, Mr. John Sutcliffe and the overall feasibility study (which is expected to be completed in early 2005) is being conducted under the supervision of independent consultants Micon International Ltd of Toronto, Canada. Water Management Consultants of Santiago, Chile are undertaking the Environmental Impact Assessment (”EIA”) and metallurgical test work is being carried out by McClelland Laboratories, Inc. in Sparks, Nevada, USA.

 


 

ON BEHALF OF THE BOARD

 “Stephen J. Kay”

 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 Terri Kasten at Tel: (480) 483-9932 or Fax: (480) 483-9926

                         Internet Site: http://www.intlminerals.com       E-mail:emc@primenet.com