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Press release from Marketwire

Imperial Metals Corporation: Underground Diamond Drilling Continues to Expand the Ruddock Creek Zinc-Lead Deposit

Tuesday, October 25, 2011

Imperial Metals Corporation: Underground Diamond Drilling Continues to Expand the Ruddock Creek Zinc-Lead Deposit16:11 EDT Tuesday, October 25, 2011VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) - Imperial Metals Corporation (TSX:III) reports results from the completed 2011 underground diamond drill program at its Ruddock Creek property located 155 kilometres northeast of Kamloops, British Columbia. Highlights include two mineralized intervals intercepted in drill hole EUG-11-083 grading 14.43% zinc and 2.27% lead over an estimated true thickness of 8.4 metres and grading 11.64% zinc and 2.34% lead over an estimated true thickness of 5.9 metres. The underground diamond drill program was designed to further define the Lower E zone, and consisted of 76 drill holes totaling 14,133.4 metres from 7 underground drill stations. Following are selected significant intersections:Drill Hole #FromToInterval (m)Estimated True ThicknessZn %Pb %Zn+Pb %EUG-10-03369.878.38.56.810.752.0812.83and136.2142.66.45.210.832.2613.09EUG-11-03855.061.16.13.816.753.8220.57and144.9148.73.83.59.251.8011.05EUG-11-05577.480.63.22.320.053.9223.97EUG-11-057121.8132.510.76.212.482.0014.48and134.5135.51.00.614.033.3517.38EUG-11-05840.348.48.14.215.203.3118.50EUG-11-05993.7100.56.85.816.133.3419.47and160.8163.52.72.014.112.9617.07EUG-11-061109.9117.37.44.813.002.4715.47EUG-11-06532.439.87.46.815.093.0018.09EUG-11-07142.046.04.03.610.822.3613.18and48.049.61.61.513.723.5117.23EUG-11-08355.166.611.55.911.642.3413.99and84.2100.816.68.414.432.2716.70EUG-11-08978.986.67.74.811.872.1714.04EUG-11-09250.953.82.92.415.423.6319.06EUG-11-0996.18.52.42.314.453.1217.57EUG-11-100220.7226.05.32.519.412.9922.40EUG-11-109248.8258.09.24.011.801.9313.82Underground drilling commenced in late November 2010 and was completed in July 2011. To facilitate the drilling, the underground workings were dewatered and an additional 367 metres of underground development was completed by extending the E zone decline by 309 metres to a total length of 1,303 metres from surface, and excavating, drilling, remuck and sump cut-outs. These drill results confirm that the massive sulphide mineralization of the Lower E zone to date extends 450 metres in an east-west direction and 500 metres in a north-south direction.This portion of the Ruddock Creek Sulphide Horizon dips continuously and predictably at 28.5° northwest, similar to the Creek zone located along the Ruddock Creek Sulphide Horizon to the southwest. The objective of the 2011 underground drilling in the lower E zone was to significantly add to the previously reported resource at by increasing the density of drilling and extending it to the west.The E zone has been the focus of exploration since it was discovered in outcrop in 1960. Located at the eastern end of the Ruddock Creek Sulphide Horizon, this zone has now been defined by both surface and underground drilling for approximately one kilometre down plunge from where it outcrops at surface. Past exploration (1960-2010) at Ruddock Creek included the 982 metre E zone decline, a 180 metre incline cross-cut to provide access for underground diamond drilling of the Lower E zone, 3,584 metres of underground drilling and 44,088 metres of surface drilling.The 2011 exploration program also included additional surface exploration, geological mapping, sampling and further diamond drilling of the Creek, V and Q zones. The V and Q zones have seen minimal historic drilling and are located along the western extension of the Ruddock Creek Sulphide Horizon, which has been defined along a length of approximately five kilometres. Surface drilling commenced in July and was completed in October 2011. Up to four surface diamond drills have been in operation to complete this phase of the 2011 program before the onset of winter conditions. A news release providing results of the surface drill program is expected by year end.A comprehensive report will be completed in early 2012, including an update of the National Instrument 43-101 compliant report Mineral Resource Estimate, Ruddock Creek Deposit dated July 2009 [available on www.imperialmetals.com]. The report will be used to determine the next phase of exploration and development on the Ruddock Creek property.Mitsui Mining and Smelting Co. Ltd. and Itochu Corporation have an option to earn a 50% interest in the Ruddock Creek property. Their commitment is to spend $14 million by March 31, 2012 to earn a 35% working interest, with the right to spend a further $6 million by March 31, 2013 to earn an additional 15% working interest, at which point Ruddock Creek will be held by Imperial 50%, Mitsui 30% and Itochu 20%. Imperial will continue to operate the project through its wholly owned subsidiary Selkirk Metals Corp.Jim Miller-Tait, P.Geo. is the designated Qualified Person as defined by National Instrument 43-101 for the exploration program at Ruddock Creek and he has reviewed this news release. Samples for the drilling reported at Ruddock Creek were analyzed at Acme Analytical Laboratories Ltd. in Vancouver BC. A full QA/QC program using blanks, standards and duplicates was maintained for all samples submitted to the labs.Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company's key properties are two open pit mines: Mount Polley copper/gold mine and Huckleberry copper/molybdenum mine, both in British Columbia, as well as development stage Red Chris copper/gold property in British Columbia and Sterling gold property in Nevada.Documents available on www.imperialmetals.com :(1) 3D drill view (2) 2010-2011 drill resultsCAUTIONARY NOTE REGARDING "FORWARD-LOOKING INFORMATION":THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF CANADIAN AND UNITED STATES SECURITIES LAWS. EXCEPT FOR STATEMENTS OF FACT RELATING TO THE COMPANY, CERTAIN INFORMATION CONTAINED HEREIN CONSTITUTES FORWARD-LOOKING STATEMENTS.WHEN WE DISCUSS CURRENT AND FUTURE EXPLORATION PROGRAMS, EXPLORATION RESULTS, AND EXPECTIONS OR ASSUMPTIONS BASED ON THOSE RESULTS, WE ARE MAKING STATEMENTS CONSIDERED TO BE FORWARD-LOOKING INFORMATION OR FORWARD-LOOKING STATEMENTS UNDER CANADIAN AND UNITED STATES SECURITIES LAWS. WE REFER TO THEM IN THIS NEWS RELEASE AS FORWARD-LOOKING INFORMATION. THE FORWARD-LOOKING INFORMATION IN THIS NEWS RELEASE TYPICALLY INCLUDES WORDS AND PHRASES ABOUT THE FUTURE, SUCH AS: PLAN, EXPECT, FORECAST, INTEND, ANTICIPATE, ESTIMATE, BUDGET, SCHEDULED, BELIEVE, MAY, COULD, WOULD, MIGHT AND WILL.WE CAN GIVE NO ASSURANCE THAT THE FORWARD-LOOKING INFORMATION WILL PROVE TO BE ACCURATE. IT IS BASED ON A NUMBER OF ASSUMPTIONS MANAGEMENT BELIEVES TO BE REASONABLE, INCLUDING BUT NOT LIMITED TO: THE CONTINUED OPERATION OF THE COMPANY'S MINING OPERATIONS, THAT THE MINING OPERATIONS WILL OPERATE AND THE MINING PROJECTS WILL BE COMPLETED IN ACCORDANCE WITH THEIR ESTIMATES AND ACHIEVE STATED PRODUCTION OUTCOMES, AND SUCH OTHER ASSUMPTIONS AND FACTORS AS SET OUT HEREIN. IT IS ALSO SUBJECT TO RISKS ASSOCIATED WITH OUR BUSINESS, INCLUDING BUT NOT LIMITED TO: RISKS INHERENT IN THE MINING AND METALS BUSINESS; COMMODITY PRICE FLUCTUATIONS AND HEDGING; COMPETITION FOR MINING PROPERTIES; SALE OF PRODUCTS AND FUTURE MARKET ACCESS; MINERAL RESERVES AND RECOVERY ESTIMATES; CURRENCY FLUCTUATIONS; INTEREST RATE RISK; FINANCING RISKS; ENVIRONMENTAL RISKS; FOREIGN ACTIVITIES; LEGAL PROCEEDINGS; AND OTHER RISKS THAT ARE SET OUT IN OUR ANNUAL INFORMATION FORM AND MANAGEMENT'S DISCUSSION & ANALYSIS. IF OUR ASSUMPTIONS PROVE TO BE INCORRECT OR RISKS MATERIALIZE, OUR ACTUAL RESULTS AND EVENTS MAY VARY MATERIALLY FROM WHAT WE CURRENTLY EXPECT AS SET OUT IN THIS NEWS RELEASE.WE RECOMMEND YOU REVIEW OUR ANNUAL INFORMATION FORM AND ANNUAL MANAGEMENT'S DISCUSSION AND ANALYSIS, WHICH INCLUDE A DISCUSSION OF MATERIAL RISKS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM OUR CURRENT EXPECTATIONS. FORWARD-LOOKING INFORMATION IS DESIGNED TO HELP YOU UNDERSTAND MANAGEMENT'S CURRENT VIEWS OF OUR NEAR AND LONGER TIME PROSPECTS, AND IT MAY NOT BE APPROPRIATE FOR OTHER PURPOSES. WE WILL NOT NECESSARILY UPDATE THIS INFORMATION UNLESS WE ARE REQUIRED TO BY SECURITIES LAWS.FOR FURTHER INFORMATION PLEASE CONTACT: Brian KynochImperial Metals CorporationPresident604-669-8959604-687-4030 (FAX)ORPatrick McAndlessImperial Metals CorporationVice President Exploration604-488-2665ORSabine GoetzImperial Metals CorporationInvestor Relations604-488-2657info@imperialmetals.comwww.imperialmetals.com