IMC starts Rio Blanco feasibility drilling

Arizona-based International Minerals (IMC, TSX: IMZ) has started a 48-hole, 9,000m core-drilling program at the high-grade Alejandra North zone of its Rio Blanco gold-silver project in central Ecuador. The drill program, together with approximately 120m of underground exploration, is scheduled to be completed within six months, the company said in a statement. The aim is to define, on relatively close-spaced centers of 25m-30m, the Alejandra North resource and is part of feasibility study work. Alejandra North has an internally calculated diluted inferred resource of approximately 744,000t grading 18.3g/t gold and 146g/t silver, containing 438,000oz gold and 3.5Moz silver. IMC plans to complete a full feasibility study on the project by mid-2005 under the supervision of independent mining consultants, yet to be appointed, it said. An independent scoping study on Alejandra North, released in October, estimates production of 67,200oz/y gold and 403,692oz/y silver over six years, at a processing rate of 400t/d and cash operating costs of US$109/oz gold equivalent. The study, carried out by Peru's Buenaventura Ingenieros (BISA), forecasts capital costs of US$22.5mn, including US$3mn of start-up working capital, to build an on-site, conventional direct whole-rock cyanidation process at what would be an open-pit and underground mine. Rio Blanco has an overall inferred resource of 5Mt grading 5.5g/t gold and 42g/t silver to contain 881,000oz gold and 6.7Moz silver. Management considers that "excellent potential" exists for extensions to the known zones of mineralization together with additional high-grade shoots, the statement said.