IMA Exploration Plans Hushamu Copper Exploration

by Ellsworth Dickson

Joseph Grosso, president, CEO, IMA Exploration Inc. [IMR-TSXV;IMR-AMEX; IMT-FSE] reports that plans are underway to explore a 42,669-hectare (105,000 acres) copper-gold-molybdenum project located approximately 25 kilometres southwest of Port Hardy, northern Vancouver Island, British Columbia. The company can earn a 70% interest from Western Copper Corp. [WRN-TSX] by spending $19 million on exploration over four years.

IMA’s project, referred to as the Island Copper Project, has six known porphyry structures, multiple skarn-type deposit targets and a number of vein/disseminated targets. The Hushamu deposit hosts a NI 43-101 compliant measured and indicated resource of 230.9 million tonnes containing 2.29 million ounces of gold and 1.4 billion pounds of copper, grading 0.47% as a copper equivalent. There is an inferred resource of 52.8 million tonnes containing 327 million pounds of copper and 640,000 ounces of gold.

The resource study was based on the results from 114 diamond drill holes completed between 1980 and 1993.

Northern Vancouver Island is a highly mineralized region that hosted BHP Utah’s formerly producing Island Copper Mine which at one time was Canada’s third largest copper mine and produced 108.4 million pounds of copper and 3.27 million pounds of molybdenum between 1970 and 1995. The Island Copper Mine also produced 236 kilograms of rhenium in the moly concentrate.

The magnitude of the opportunity that exists in the Port Hardy mining region has been recognized by the B.C. Geological Survey, as the region is included in the highest mineral-potential category
for the province.

The Hushamu deposit contains molybdenum mineralization, not included in the resource calculation which could take the copper equivalent grades over 0.6% and greatly enhance the economics of a potential mine. In addition, the rare metal, rhenium, which sells for US $10,550 per kilogram, is also known to occur with the molybdenum mineralization in this area.

The 2008 Phase I drilling program will focus on two areas – 2,500 metres of infill drilling to confirm continuity of grades and resource expansion of the Hushamu deposit, and 2,500 metres to confirm the presence of molybdenum. In addition, drilling will be carried out on the NW Expo Zone located about 11 kilometres northwest of the Hushamu deposit. IMA has applied for a 10,000-metre drilling permit. Previous drilling on the NW Expo Zone by Western Copper returned 204 metres grading 0.74 grams gold/tonne, 182 metres of 0.58 grams gold/tonne and 0.013% Molybdenum and 120 metres grading 1.25 grams gold/tonne and 0.16% Copper.

Thanks to the former BHP Utah mining operation, there is a power line to the property and a deep water ocean port nearby that can be used for shipment of concentrate to Asian markets. Additionally, there is active mining in the region of industrial minerals that are the main components in the production of cement and a local skilled labour force that IMA can employ as the project grows in magnitude.

Lumina Resources, which was acquired by Western Copper, conducted extensive exploration on the property in the 1990s that included 2,687 line-kilometres of geophysics, 3,155 metres of diamond drilling in 18 holes, geological mapping, prospecting, geochemical surveys of 3,842 soil samples and alteration studies. Under the terms of the option agreement with Western Copper, IMA will spend a minimum of $1.9 million on exploration in the first year. Over years two and three, IMA will spend an additional $13.1 million on drilling, as well as metallurgical and engineering studies in order to complete a pre-feasibility report on the Hushamu deposit. This expenditure, a total of $15 million, and the completion of a pre-feasibility report will earn IMA a 49% interest in the project.

IMA can earn an additional 16% by funding a subsequent feasibility study by the fourth year. An additional 5% can be earned upon completion of mine permitting for a total interest of 70% with Western Copper retaining a 30% participating interest in the joint venture. IMA is well financed to carry out the exploration expenditures and has about $24 million in its treasury.

Years two and three of the exploration program will include a 47,000-metre drilling program, geophysical surveys, sampling, mapping, as well as metallurgical, engineering and environmental studies.

In accordance with IMA’s Community Relations Policy, a positive relationship has been established with the Quatsino First Nation. IMA’s Environmental and Community Relations Manager, Claudia Sandoval, commented, “We are very pleased that the Quatsino Chief and Council, have welcomed IMA and we will do our best to honor their trust.”

With the upgrading and expansion potential of the resource and the infrastructure and proximity to a direct shipping route plus the copper equivalent grades, this project certainly compares well to other major copper mines in production or those slated for production in BC. that can be used for shipment of concentrate to Asian markets. Additionally, there is active mining in the region of industrial minerals that are the main components in the production of cement and a local skilled labour force that IMA can employ as the project grows in magnitude.

Lumina Resources, which was acquired by Western Copper, conducted extensive exploration on the property in the 1990s that included 2,687 line-kilometres of geophysics, 3,155 metres of diamond drilling in 18 holes, geological mapping, prospecting, geochemical surveys of 3,842 soil samples and alteration studies. Under the terms of the option agreement with Western Copper, IMA will spend a minimum of $1.9 million on exploration in the first year. Over years two and three, IMA will spend an additional $13.1 million on drilling, as well as metallurgical and engineering studies in order to complete a pre-feasibility report on the Hushamu deposit. This expenditure, a total of $15 million, and the completion of a pre-feasibility report will earn IMA a 49% interest in the project.

IMA can earn an additional 16% by funding a subsequent feasibility study by the fourth year. An additional 5% can be earned upon completion of mine permitting for a total interest of 70% with Western Copper retaining a 30% participating interest in the joint venture. IMA is well financed  to carry out the exploration expenditures and has about $24 million in its treasury.

Years two and three of the exploration prgram will include a 47,000-metre drilling program, geophysical surveys, smampling, mapping, as well as metallurgical, engineering and environmental studies.

In accordance with IMA's Community Relations Policy, a positive relationship has been established with the Quatsino First Nation. IMA's Environmental and Community Relations Manager, Claudia Sandoval, commented, "We are very pleased that the Quatsino Chief and Council, have welcomed IMA and we will do our best to honor their trust."

With the upgrading and expansion potential of the resource and the infrastructure and proximity to a direct shipping route plus the copper equivalent grades, this project certainly compares well to other major copper mines in production or those slated for production in BC.

ResourceWorld.com