International Minerals Reports Record Quarterly and Annual Production From Pallancata Mine
SCOTTSDALE, AZ -- (Marketwire) -- 01/25/11 -- International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) reports that silver production (100% project basis) at the Pallancata Mine for its second fiscal quarter ended December 31, 2010 (Q2 2011) increased 10% from the prior quarter to a record 2.76 million ounces. IMZ's 40% share of the silver ounces produced in Q2 2011 is 1.1 million.
In addition, for the 12-month period ended December 31, 2010, the Pallancata Mine production increased by 20% year-over-year to a record of 10.14 million ounces of silver. The mine also produced 35,848 ounces of gold in the same period, which represents an increase of 12% year-over-year. IMZ's share of metal production in calendar year 2010 is 4.05 million ounces of silver and 14,339 ounces of gold.
The Pallancata Mine is jointly owned by IMZ (40%) and Hochschild Mining plc ('Hochschild', 60% owner and the mine operator).
For both fiscal Q2 2011 and the 12 month period ended December 31, 2010, direct on-site costs are expected to be below US$3.00 per ounce of silver produced (net of gold by-product credit) and total cash costs (as defined by the Gold Institute) are expected to be below US$6.00 per ounce of silver produced (net of gold by-product credit). Final cost estimates are currently in progress and will be announced in IMZ's Q2 2011 Financial Statements on or before February 14, 2011.
Stephen Kay, President and CEO of IMZ, said, 'Based on the calendar year 2010 production figures, the Pallancata Mine has now become the fifth largest primary silver mine in the world. This is quite an achievement considering that the mine only commenced production in late 2007 and it is a credit to Hochschild's operating experience and expertise. We look forward to receiving the annual independent audit of reserves and resources for the 2010 calendar year-end from Hochschild, which will be published in March.'
Table 1: Pallancata Mine Production Highlights (100% Project Basis; in US Dollars)
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Quarter Ended Quarter Ended Calendar Full Calendar Full
On 100% Basis 12/31/10 9/30/10 Year 2010 Year 2009
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Ore mined (tonnes) 304,277 286,357 1,092,188 904,447
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Ore processed
(tonnes) 281,035 273,239 1,071,617 922,521
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Average head grade
silver(1)(g/t) 358 337 344 327
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Average head grade
gold(1) (g/t) 1.5 1.3 1.4 1.4
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Concentrate produced
(tonnes) 2,283 2,360 9,541 7,684
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Silver grade in
concentrate (kg/t) 37.6 33.1 33.0 34.1
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Gold grade in
concentrate (kg/t) 0.14 0.11 0.12 0.13
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Silver produced(2)
(oz) 2,762,725 2,511,189 10,135,483 8,420,449
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Gold produced(2)
(oz) 10,045 8,265 35,848 31,975
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Silver sold(3) (oz) 2,549,000 2,490,000 9,998,000 8,405,000
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Gold sold(3) (oz) 8,300 7,900 33,700 30,700
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Table 2: Pallancata Mine Production Highlights (IMZ 40% Share)
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Quarter Ended Quarter Ended Calendar Full Calendar Full
IMZ's 40% Share 12/31/10 9/30/10 Year 2010 Year 2009
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Silver produced(2)
(oz) 1,105,090 1,004,476 4,054,193 3,368,179
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Gold produced(2)(oz) 4,018 3,306 14,339 12,790
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Silver sold (oz) 1,019,600 996,000 3,999,200 3,362,000
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Gold sold (oz) 3,230 3,160 13,480 12,280
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Notes:
1. The reported head grades for silver and gold are based on the overall
metallurgical balance for the process plant.
2. The difference between 'produced' metal ounces and 'sold' metal ounces
is in-process concentrate.
3. Silver and gold ounces sold are now reported as gross ounces. IMZ has
also restated the previously reported sales, which had been reported as
net payable ounces.
4. Direct Site Costs per ounce silver and Total Cash Costs per ounce silver
reflect a 'mined ore inventory adjustment'. IMZ believes that this
calculation more accurately matches costs with ounces of production.
(Also see notes 4 and 5 below.)
5. Direct Site Costs per ounce silver comprise direct mining costs, mined
ore inventory adjustment, toll processing costs and mine general and
administrative costs (net of gold by-product credit).
6. Total Cash Costs, using the Gold Institute's definition, comprise: mine
operating costs, mined ore inventory adjustment, toll processing costs,
mine general and administrative costs, Hochschild's management fee,
concentrate transportation and smelting costs, taxes and the government
royalty (currently approximately 3% of gross revenue for Pallancata),
net of gold by-product credit.
IMZ uses an equity accounting basis to record its interest in the Pallancata Mine.
The technical information reported in this news release was reviewed by IMZ's Qualified Person, VP Corporate Development Nick Appleyard.
Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.
Cautionary Statement:
The Gold Institute calculation of Total Cash Costs is a non-Canadian GAAP financial measure, which IMZ management believes is useful in measuring operational performance. Some of the statements contained in this release are 'forward-looking statements' within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as the estimates of production costs, and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the fiscal year ended June 30, 2010, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact:
In North America
Paul Durham
VP Corporate Relations
Tel: 1 480 483 9932
Or email us at: Email Contact
In Europe
Oliver Holzer
Marketing Consultant
41 44 853 00 47
Internet Site: http://www.intlminerals.com