VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 15, 2005) - Imperial Metals Corporation (TSX:III) reports on recent developments at its 50% owned Huckleberry Mine located approximately 123 kilometres southwest of Houston, British Columbia.
Production at the Huckleberry mine in 2005 is expected to reach 75 million pounds of copper and 553,000 pounds of molybdenum, exceeding 2004 production of 63 million pounds of copper and 426,658 pounds of molybdenum. Planned mill throughput in 2006 is 7.12 million tonnes of ore generating 78.5 million pounds of copper and 662,000 pounds of molybdenum.
As previously reported, the initial study of Huckleberry's Main Zone Extension, north of the Main Zone Pit, showed it was marginally economic at a long term copper price of US$0.95/lb. Further analysis has been completed on two options: the current mine plan which anticipates closure in Q3 2007, and the current mine plan modified to include mining of the Main Zone Extension. A side by side comparison shows that a copper price exceeding US$1.50/lb would have to be maintained in 2008 and 2009 in order for the Main Zone Extension to generate more cash than the current mine plan. The analysis of the Main Zone Extension also highlighted a fault at the north end of the Main Zone Pit. This adds an additional element of uncertainty in that the Main Zone Extension requires the development of a new pit north of the Main Zone Pit, which is now filled with tailings. Based on this information, the Board of Huckleberry Mines Ltd. has resolved not to proceed with the Main Zone Extension at this time. This decision can be revisited as late as Q4 of 2006 if conditions change.
Exploration continues at the Whiting Creek prospect, situated approximately eight kilometers north of the Huckleberry mine site. Historical exploration at Whiting Creek had defined three mineralized zones; the Ridge stockwork molybdenum zone, the Rusty porphyry copper/molybdenum zone, and the Creek porphyry copper/molybdenum zone. The drill program completed in November focused on the Creek Zone and tested the connection between the Creek and Ridge zones, and the extensions of the Creek Zone to the north. The drill results were not encouraging, effectively closing the Creek Zone to the north and east. The zone remains open to the southwest and a budget of $519,000 has been proposed for a 2006 program to test this area.
A current drill plan and drill results are available on the Company's website www.imperialmetals.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Imperial Metals Corporation
Brian Kynoch
President
(604) 669-8958
Imperial Metals Corporation
Sabine Goetz
Investor Relations
(604) 488-2657
info@imperialmetals.com
www.imperialmetals.com
