Vancouver – Having completed the takeover of Metallic Ventures Gold in February, International Minerals (IMZ-T) has now released the first drill results from the Goldfield project in Nevada that was acquired through the deal.
The company has been exploring on the Goldfield Main deposit, with the aim of both shoring up the resource and increasing it.
Reverse circulation drill results include a number of medium-length intercepts at significant grades. International Minerals has released the results of roughly 6,800 metres of drilling in 31 holes, with 20 targeting the existing resource and 10 as step-out holes.
In extension drilling, results included hole 10-55 that cut 21.3 metres grading 6.9 grams gold per tonne from 174 metres depth, hole 10-63 that hit 39.6 metres grading 2 grams gold from 154 metres and hole 10-67 intersected 13.7 metres grading 7.3 grams gold from 145 metres. Extensional drilling also hit several intercepts grading around one gram gold.
Infill drilling included hole 10-48 that intersected 3 metres grading 15.5 grams gold from 31 metres, then further down hit 48.8 metres grading 1.7 grams gold from 189 metres. Hole 10-49 cut 32 metres grading 2.6 grams gold from 7.6 metres and hole 10-53 returned 18.3 metres grading 3.7 grams gold from 130 metres.
The drilling is part of a 20,000-metre drill program the company is conducting at Goldfields. International Minerals has added 11 more drill holes to the program based on the results. A feasibility study is also in the works, to be completed sometime in late 2011, while International Minerals expects to announce an updated resource for the Main deposit in early 2011.
The current resource for Goldfield Main is 6 million indicated tonnes grading 1.2 grams gold for 242,000 contained oz., and a further 1.9 million inferred tonnes grading 1.3 grams gold for another 80,000 oz.
The Goldfield property also hosts the Gemfield and McMahon Ridge deposits. All combined the Goldfield project contains 28.8 million measured and indicated tonnes grading 1.2 grams gold for 1.07 million oz. gold, and a further 3 million inferred tonnes grading 1.1 grams gold.
International Minerals paid US$24 million in cash and issued 8.5 million shares to Metallic Ventures shareholders to acquire the company. Along with Goldfield, IMZ acquired the Converse gold project, also in Nevada, and a 3% net smelter return royalty on Barrick Gold‘s (ABX-T, ABX-N) Ruby Hill gold mine.
Elsewhere, International Minerals owns 40% of the Pallancata silver mine in Peru while Hochschild Mining (HOC-L) controls the rest. The mine is expected to produce roughly 10 million oz. silver and 33,000 oz. gold in 2010.
International Minerals also owns a 51% interest in the Inmaculada gold-silver project in Peru. It can earn a further 19% by completing a feasibility study by late 2013 and issuing 200,000 shares to Hochschild, which also controls the rest of that project.
International Minerals stock price recently closed at $4.37. The company has 115 million shares outstanding.
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