Imperial Metals cuts high grade at Sterling (August 13, 2002)

Vancouver–Imperial Metals (III-V) has released high grade assay results from the first three holes drilled in its six hole diamond drill program at its wholly-owned Sterling Mine near Beatty, Nevada.

The program was designed to test areas within 100 ft. of the 144 Zone where discovery hole 7A intersected 0.32 oz gold per ton over 20 ft. Imperial reports that all holes are being drilled vertically, using HQ-sized core, with rotary-drilled pre-collars.

The 144 zone is situated about 300 ft. below the lower most underground workings of the Sterling mine. The zone is centered along the Tertiary-aged, high-angle Reudy fault. Mineralization is hosted in north dipping brecciated and silicified, silty carbonates about 680-to-800 ft. below the surface. Imperial report that the highest grades are associated with steep, iron-oxide rich gouge zones and an altered dike contact. Quartz latite dikes that are believed to be slightly older than the mineralization cut the Reudy fault and may be related to a hydrothermal event.

Results from the first three holes are as follows;

• Hole 02-18 was collared approximately 30 ft east of the discovery intercept in hole 7A and intersected 129 ft. averaging 0.20 oz gold per ton, starting 633 ft. down hole. This included a 14.8-ft. intercept which averaged 0.99 oz. gold, starting 723.7 ft. down-hole as well as a 2.0-ft. interval that averaged 1.02 oz. gold, starting 750, ft. down-hole.
• Hole 02-21 was collared between previously announced drill holes 7A and 01-09 (45 ft. grading 0.57 oz. gold per ton including 20 ft. that averaged 1.03 oz. gold). Hole 02-21 intersected 47.5 ft. averaging 0.50 oz gold per ton, starting 693 ft. down-hole. This included a 19.5-ft. interval that assayed 1.08 oz. gold, starting 721 ft. down-hole.
• Hole 02-19, collared about 120 ft. south of 01-09 intersected 9.5 ft. averaging 0.27 oz. gold followed by 5.0 ft. averaging 0.30 oz. gold and 3.5 ft. averaging 0.28 oz. gold within a larger 125-ft.-wide zone grading 0.13 oz. gold, starting 669 ft. down-hole.

The Sterling property is located near Beatty, Nevada, 115 miles northwest of Las Vegas. The property covers about 3,099 acres and is subject to a 2.25% Net Smelter Return. The Sterling mine was operated as an open pit and later as an underground mine from 1980 to 1997. Total gold production through 2000 was 194,996 ounces from 941,341 short tons of ore with an average grade of 0.217 oz. gold per ton.