IMA updates Navidad resource

Vancouver – IMA Exploration (IMR-V, IMR-X) has tabled an updated resource estimate for its embattled Navidad silver-lead project in the northern Patagonia region of Argentina.

Incorporating past data plus recent infill and perimeter drilling on the Galena Hill, Connector, Navidad Hill and Calcite Hill zones, and a new resource from Calcite NW, resulted in a very slight boost in the global indicated resource to 93.4 million tonnes grading 102 grams silver per tonne and 1.4% lead using a 50 gram silver equivalent cut-off grade. The estimate equates to over 305 million oz. of contained silver and 2.9 billion pounds (1.3 million tonnes) of lead.

Additionally, early metallurgical testing indicates encouraging recoveries (up to 89%) with the use of calcium thiosulphate to leach oxide silver from pyrite concentrates. The material was pressure oxidized then leached under atmospheric conditions to produce silver. Thiosulphate is relatively environmentally benign, and is also used as an agricultural fertilizer.

Engineers Pincock, Allen and Holt recently commenced a scoping study at Navidad, examining preliminary technical, legal, social, environmental and economic facets of project.

Shareholders and principals of both IMA and Aquiline Resources (AQI-T, AQLNF-O) are now anxiously awaiting the court’s decision in the litigation over ownership of the large Navidad silver deposit. Aquiline, the plaintiff, asserts IMA used confidential information contained in a data package, supplied by Newmont Mining (NMC-T, NEM-N), to stake a near-by land position that now encompasses the Navidad project. IMA denies any wrong doing. The trial concluded in mid-December with a decision anticipated at any time.

Prior to commencement of the trial, in late-2005, IMA made a revised offer of 3.5 million shares and warrants to Aquiline shareholders, and $1 million cash payment to the company in an effort to settle the claim. Aquiline promptly turned it down. IMA’s sweetened proposal had followed an earlier $100,000 offer to rid itself of the “nuisance value” of the lawsuit.

On the revised resource news, shares of Aquiline gained a dime to close near a 52-week high at $2.20 apiece while IMA rose 8 to close at $3.34 per share, about midway in its one-year range of $2.56-to-$4.45.