International Minerals Corporation is pleased to announce that it has commenced a core drilling program at its Antabamba silver-gold project in southern Peru, which is held under an agreement with Barrick Gold Corporation’s Peruvian subsidiary. The project is located approximately 65km northeast of the Pallancata silver-gold property jointly owned by IMC (40%) and Hochschild Mining (60%). IMC’s initial drill program at Antabamba will comprise a minimum 4,000 meters ("m") in approximately 20 drill holes.
Within the Antabamba project area there are approximately 20km of mineralized veins, based on historical information from surface and underground rock sampling in approximately 3,200m of underground workings (now inaccessible) and 3,900m of core drilling (16 drill holes) carried out by a previous owner in the 1980’s and mid-1990’s.
Exploration work to date by IMC has focused on three of the most prospective of the vein systems: Minacasa, Santo Domingo and La Victoria.
– The Minaccasa vein/stockwork system strikes northeasterly for over 1.5 km and is open at its northern end. The system varies in width from 10m to greater than 100m. The previous owner performed underground exploration work, as well as drilling, on one of the Minacasa veins. Historical drill-hole intercepts included 1.1m at a grade of 1,086 g/t silver and 0.8 g/t gold and another drill hole with an intercept grading 0.9m at 683 g/t silver and 3.5 g/t gold.
A total of 197 continuous rock chip samples were taken by IMC from surface outcrops across the Minacasa vein system and consisted of both vein material and wallrock. Assay results from this sampling program varied from 1.0 g/t to 509 g/t silver and trace to 6.2 g/t gold across widths varying from 0.2m to 8.3m.
– The Santo Domingo vein system has an exposed strike length of approximately 500m and is open at its western end. It consists of a principal westerly-striking vein and a number of secondary, northerly-striking veins.
Only one core hole was drilled at a steep angle in this area by the previous owner and, based on IMC’s interpretation, may have drilled below the principal vein. Underground exploration along the principal vein was performed by the previous owner and incomplete historical data report 44 vein rock channel samples with grades of more than 1,000 g/t silver (including three results greater than 10,000 g/t silver) over vein widths of up to 1.0m.
A total of 33 rock chip samples were collected by IMC from surface outcrops, mainly from the principal vein and adjoining wallrock, together with several samples of the subsidiary veins. The most encouraging results were obtained from the principal vein, with assays varying from 2.0 g/t to 448 g/t silver and trace to 0.7 g/t gold across vein widths of between 0.2m and 3.5m.
– The La Victoria vein has been traced on surface by IMC along a strike length of more than 2 km. Three core holes were drilled by previous owner along a 1.2 km portion of the main vein and a subsidiary vein was also intersected in one of the holes. The best historical drill-hole intersection reported 1.5m at 1,468 g/t silver with a trace of gold.
Antabamba Property Agreement
Summarized below are the basic terms of the agreement between the current property owner, Barrick Gold Corporation’s Peruvian subsidiary, Minera ABX Exploraciones S.A. ("Barrick"), and IMC’s 100% owned Peruvian subsidiary, Minera Oro Vega S.A.C. ("Oro Vega"):
– To acquire a 51% interest in the property, Oro Vega must complete 20,000m of drilling by September 26, 2009, with a minimum of 4,000m by September 2007 and an additional 6,000m by September 2008.
– Once Oro Vega has acquired its 51% interest, Barrick will have a one-time back-in right to increase its interest from 49% to 60% (and become operator) if Oro Vega has established a total mineral resource (measured, indicated or inferred) in excess of 2.0 million ounces of gold, by paying three times Oro Vega’s drilling costs up to the date of Barrick exercising its back-in right.
– If Barrick’s participating interest is reduced to less than 20%, then Barrick may, at its sole election, exchange its participating interest for a 2% Net Smelter Return ("NSR") royalty payable on all minerals extracted from the property following commencement of commercial production.
The assay laboratories used for sample preparation and gold and silver analyses on historical samples collected from previous work carried out on the property are unknown. Sample preparation and analyses for IMC samples were carried out by ALS Chemex in Peru using industry-standard sample preparation and assaying methods for gold and silver. The technical information presented in this news release has been reviewed and verified by IMC’s Qualified Person, Chief Geologist, Mark Cannuli.
DISCLAIMER: The content of each press release is the responsibility of the publishing organization and is not vetted or approved by LivinginPeru.com prior to publication. LivinginPeru.com is not liable directly or indirectly for any direct or consequential loss, damage or expense resulting from the material disseminated and
published on the site. Readers are advised to check the accuracy of all press releases and to obtain their own professional advice in relation to such information.