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Press release from Marketwire

Imperial Announces Red Chris Drill Results From 2010-2011 Program

Monday, October 31, 2011

Imperial Announces Red Chris Drill Results From 2010-2011 Program19:32 EDT Monday, October 31, 2011VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2011) - Imperial Metals Corporation (TSX:III) reports results from 2010–2011 exploration drilling at its Red Chris property. Results from 45 diamond drill holes(1), representing 49,760 metres, have completed the first pass of drilling beneath the proposed open pit to a minimum of 1,000 metres depth. The 2010–2011 drilling continued to define and extend the mineralization at depth beneath the proposed 400 metre deep open pit. Results include intervals of high-grade such as the 216.9 metre section in drill hole RC10-423 grading 1.15% copper and 2.44 g/t gold, and further long intercepts of continuous mineralization such as drill hole RC11-431 with 1,077.5 metres grading 0.44% copper and 0.29 g/t gold. Results indicate the mineralization is still open to the east and west, and holds potential for further expansion to the north and south in parts of the porphyry system. Brian Kynoch, President of Imperial stated: "We are very pleased with the results of the deep drilling at Red Chris as the results clearly continue to confirm the significant size of the Red Chris porphyry system."East ZoneDrilling at the East zone(2) was successful in both extending the known size of the deep high grade core and extending the known limits of the larger mineralized porphyry system. High grade intersections include 216.9 metres of 1.15% copper and 2.44 g/t gold in drill hole RC10-423 which also featured a 59.4 metre section of 2.93% copper and 6.85 g/t gold. This mineralization starts 90 metres below an interval of 345.9 metres grading 0.68% copper and 0.94 g/t gold.Outside of the high-grade East zone core, drilling continued to intersect long intersections of porphyry style mineralization. Drill hole RC11-409 intersected 1,007.0 metres grading 0.30% copper and 0.30 g/t gold. This intercept was uniformly mineralized over its entire length which exceeded one kilometre. This style of mineralization, which encompasses and extends outward from the East zone core, was the main focus of almost 50,000 metres of diamond drilling, aimed at delineating the size of the broader mineralized porphyry system.While drilling was concentrated in the area of the planned open pit, a hole was drilled to test extensions of the mineralization to the east, with encouraging results. Drill hole RC10-411, collared approximately 160 metres east of the pit area, intercepted 610.0 metres of 0.43% copper and 0.41 g/t gold, establishing that mineralization continues and remains open to the east.EAST ZONE – SELECTED RESULTS (6)Drill Hole #ZoneTotal Length (m)Interval from (m)Interval To (m)Interval Length (m)Copper %Gold g/tSilver g/tRC10-409East1361.5297.51304.51007.00.300.301.44RC10-411East1075.0437.51047.5610.00.430.411.27RC10-423East1257.9385.0730.9345.90.680.942.16and820.41037.3216.91.152.445.79including820.4879.859.42.936.8515.44RC11-431East1312.8172.51250.01077.50.440.290.84Saddle ZoneDrilling in the Saddle zone(3), the area between the East and Main zones, intersected long intervals of good copper/gold mineralization. Historic drilling in this area stopped at a depth of about 350 metres. The 2010-2011 deeper drilling confirms the copper/gold mineralization is continuous at depth between the East and Main zones. Of note are drill holes RC10-394 which intersected 735.4 metres of 0.32% copper and 0.32 g/t gold, RC11-445 which intersected 762.5 metres of 0.43% copper and 0.48 g/t gold, and RC10-401 which intersected 637.5 metres of 0.42% copper and 0.39 g/t gold. The most northerly drill hole at Saddle zone, RC10-429, was barren in the top 750 metres before hitting 402.5 metres of 0.37% copper and 0.42 g/t gold in a strongly altered interval, indicating the excellent potential for additional deep mineralization to the north. A strongly altered 70.0 metre interval in that hole grading 0.71% copper and 0.91 g/t gold is particularly intriguing, indicating the intercept is still well within the system and not near the periphery.SADDLE ZONE – SELECTED RESULTS (6)Drill Hole #ZoneTotal Length (m)Interval from (m)Interval To (m)Interval Length (m)Copper %Gold g/tSilver g/tRC10-394Saddle1501.1472.11207.5735.40.320.321.54RC10-401Saddle1038.5347.5985.0637.50.420.391.31RC10-429Saddle1251.8750.01152.5402.50.370.420.70including797.5867.570.00.710.911.08RC11-445Saddle1482.9337.51100.0762.50.430.480.84Main ZonePrior to this release, only two drill holes had tested the area deeper than the bottom of the proposed Main zone open pit, both of which were drilled by Imperial in 2007 and include 07-336 which returned 996.4 metres grading 0.40% copper and 0.38 g/t gold (NR: Oct 16/07). The current drilling(4) has confirmed the continuation of the porphyry copper/gold mineralization to a depth of up to 1,000 metres in the Main zone The presence of significant lengths of moderate but consistent grades is characteristic of the Main zone mineralization. Examples are drill hole RC10-407, which intercepted 1,026.0 metres grading 0.22% copper and 0.20 g/t gold including 57.5 metres at 0.70% copper and 0.31 g/t gold, and drill hole RC10-403 which intersected 900.0 metres of 0.25% copper and 0.22 g/t gold including 62.5 metres of 0.59% copper and 0.35 g/t gold. Hole RC10-406 intersected 592.5 metres of 0.33% copper and 0.26 g/t gold.Similar to the test of the eastern end of the known mineralized zone, vertical drill hole RC10-412 was collared 290 metres west of the western edge of the pit and returned 444.3 metres grading 0.22% copper and 0.27 g/t gold. The rocks display strong alteration both within the mineralization and outside of it, indicating that additional work is warranted in the surrounding area.MAIN ZONE – SELECTED RESULTS (6)Drill Hole #ZoneTotal Length (m)Interval from (m)Interval To (m)Interval Length (m)Copper %Gold g/tSilver g/tRC10-403Main1522.5337.51237.5900.00.250.220.95including1015.01077.562.50.590.351.79RC10-406Main986.615.0607.5592.50.330.260.75RC10-407Main1053.74.01030.01026.00.220.200.97including77.5135.057.50.700.311.14RC10-412Main1029.3530.0974.3444.30.220.271.63The deep drilling program reported in this release was completed in April 2011. Drilling operations resumed in July with a skid steer mounted diamond drill that probed beneath the extensive cover of the Todagin Plateau where Red Chris is situated. This unit is used to assist in geologic mapping, as well as prospecting for alteration and mineralization. The results from that drilling will be compiled over the winter.A deep diamond drilling program was initiated in August 2011 to test the continuation at depth of mineralization historically defined in the Gulley zone, located over one kilometre west of the western rim of the proposed open pit. Drilling in the area by previous operators penetrated about 350 metres in the zone with a maximum penetration of 470 metres, encountering strong alteration and widely distributed copper/gold mineralization. Geological and analytical studies of the historic drill core, and results from the Titan 24 geophysical survey completed in 2009, indicate the potential for additional deep porphyry mineralization below these zones. Three drill holes have been drilled in Gulley zone in this phase of drilling(5).Drilling is planned for the area east of the proposed pit where geological mapping, historic drilling and results of the Titan 24 survey indicates the potential to both expand the deposit further east from drill hole RC10-411 and an offset extension of the deposit. Diamond drilling will continue until the year end break.Steve Robertson, P.Geo., the designated Qualified Person as defined by National Instrument 43-101 for the exploration programs at Red Chris, has reviewed this news release. Samples for the diamond drilling reported at Red Chris were analyzed at Acme Analytical Laboratories in Vancouver. A full QA/QC program using blanks, standards and duplicates was maintained for all samples submitted to the labs. The deeper portion of the Red Chris porphyry mineralization may be irregular in shape so true thicknesses have not been estimated.The Red Chris project is located in northwest British Columbia, and lies at an elevation of 1,500 metres above sea-level on a plateau with topography and climate favourable to mining operations. Access to the property from pavement at Highway 37 is six kilometres along the Ealue Lake Road, and 17 kilometres along the Red Chris access trail.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 the development stage Red Chris copper/gold property in British Columbia and the Sterling gold property in Nevada.Documents available on www.imperialmetals.com:(1) deep drilling update Plan Map; (2) 3D section E-F; (3) 3D section C-D; (4) 3D section A_B; (5) outside target drilling Plan Map; (6) 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