International Minerals Announces Update for Inmaculada Project,
International Minerals Announces Update for Inmaculada Project, Peru
SCOTTSDALE, AZ -- (Marketwire) -- 11/26/12 -- International Minerals Corporation (TSX: IMZ) (SWISS: IMZ) (the "Company" or "IMZ") announces updates for its 40%-owned Inmaculada gold-silver project in Peru ("Inmaculada").
The Company was informed by Hochschild Mining plc (60% owner and the mine operator) on November 22, 2012 (Thanksgiving Day, USA) of certain changes with respect to the anticipated timeline for commencement of production and an expected increase in initial capital costs for Inmaculada.
Recent regulatory changes to the permitting process in Peru have dictated that the final mill construction permit for Inmaculada is now expected in the second half of 2013 and therefore the commencement of production will be delayed from the end of December 2013 to early in the second half of 2014.
Initial capital costs, including currency adjustments caused by the strengthening Peruvian currency and construction-delay related costs, are now estimated to have increased by about 17% from the January 2012 feasibility study estimate of $315 million to approximately $370 million. This increase is not inconsistent with other mining projects at this stage of development.
Based on Hochschild's revised capital cost estimate for Inmaculada of $370 million, IMZ's share of initial capital costs would increase by approximately $22 million, from $90 million (based on the January 2012 feasibility study) to approximately $112 million. Based on current projections, the Company believes that this increase in capital costs can be funded from existing cash and expected cash flow from operations.
It is also worth noting that the January 2012 feasibility study assumed that Inmaculada would be ramping-up production in 2014 and would produce approximately 50% of its full-year production mill capacity (estimated for 2014 at 70,000 ounces of gold and 1.7 million ounces of silver compared to average annual production of 124,000 ounces of gold and 4.2 million ounces of silver, both on a 100% project basis). The projected delay in the start of production until early in the second half of 2014 may therefore not have a significant effect on the overall cash flow generated by Inmaculada for the full
2014 calendar year as Hochschild have indicated that the ramp-up phase of production could be reduced due to the longer lead time now available for mine development.
The technical disclosure in this news release has been reviewed by IMZ's Qualified Person, VP Corporate Development, Nick Appleyard.
Hochschild Mining does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any responsibility is hereby disclaimed in all respects.
About International Minerals
International Minerals is a silver-gold producer, explorer and developer with silver-gold production from its 40%-owned Pallancata Mine in Peru. In 2011, it was the sixth largest primary silver mine in the world.
In addition to Inmaculada and Pallancata, IMZ also owns a 100% ownership interests in advanced stage gold projects in Nevada (Goldfield and Converse) and is in the process of selling its variable interests in gold projects in Ecuador (Rio Blanco 100% and Gaby approximately 60%).
IMZ is listed on the Toronto Stock Exchange (since 1994) and the Swiss Stock Exchange (since 2002).
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. Forward-looking statements in this release include statements regarding estimates of capital cost; timing of obtaining construction permits; timing and significance of future cash flows and revenues and timing of production and processing. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to capital costs; risks relating to obtaining construction permits; risks relating to timing and significance of future cash flows and revenues; risks relating to estimates of timing of production and processing; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties detailed in the Company's Annual Information Form for the year ended June 30, 2012, 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 statement, unless required by law, whether as a result of new information, future events or otherwise.
For additional information, contact:
In North America: Paul Durham VP Corporate Relations Tel: +1 203 883 8358
In Europe: Oliver Holzer Marketing Consultant Tel: +41 44 853 00 47
Renmark Financial Communications: Christine Stewart Tel: +1-416-644-2020
Robert Thaemlitz Tel: +1-514-939-3989