ERNATIONAL PRECIOUS METALS CORPORATION
November 14, 1997
NASDAQ: IPMCF
CDN: IPMC
Report to Shareholders
Toronto, Ontario - November 14, 1997 -- The Board of Directors of International Precious
Metals Corporation (IPM) is pleased to announce the following progress and milestones in the
development of the company's Black Rock Project located in Arizona.
Confirmation of an assay procedure for gold in Black Rock material
Completion of independent verification program confirms the presence of gold and
platinum
Capital raising and use of proceeds
Bateman Engineering's ongoing and expanded Development Program
These milestones have come together at a time when IPM is looking to forge ahead in the
determination of the economics of the Black Rock Project. The company is now finally positioned
to move from the long-term research and development mode, to the final assessment of Black
Rock's economic viability.
Confirmation of Assay Procedures / Verification of Gold and Platinum
The company's directors have received confirmation from an Arizona Registered Laboratory that a
Modified Fire Assay Procedure is able to quantify amounts of gold and silver in Black Rock
material. As a result of this advance, a number of samples held under chain of custody security
were analyzed by the independent laboratory utilizing the modified fire assay procedure and
yielded the following results:
Sample
No.
Head Grade
Gold oz/t
Head Grade
Silver oz/t
Type of
collection
Interval in
feet
Type of Sample
168
0.017
2.770
Auger
30-35
-
181A
0.023
1.800
Auger
3-25
Chain Of Custody
143A
0.033
1.490
Auger
3-25
Chain Of Custody
181T
0.042
0.020
Trench
5-25
Chain Of Custody
181T
0.080
Not Determined
Trench
5-25
Chain Of Custody
130A
0.052
1.500
Auger
40-45
-
127
0.035
1.300
Auger
15-20
-
181B
0.023
Not Determined
Auger
25-50
Chain Of Custody
181B
0.020
Not Determined
Auger
25-50
Chain Of Custody
Note: All of the values fall within the previously announced ranges of grade for the Black Rock area,
however, the above samples represent only two limited areas.
Independent verification by the modified fire assay procedures confirms gold and silver at Black
Rock, thus supporting the long-held conviction of IPM management as to its existence on the
property. This issue has been at the center of controversy, and was principally due to the
variability of the chemistry and geologic make up of the host material. In achieving the ability to
assay Black Rock material, IPM now has a procedure that allows for the determination of a head
grade on the initial 1-sq kilometer drilled grid. In addition to these assay results, gold and platinum
were established during the independent verification program recently completed. At this stage a
platinum assay procedure has not yet been confirmed by the registered lab. The company will
continue its scientific work in this area to increase the efficiency and accuracy of the modified fire
assay procedure.
Bateman Engineering Inc., an international engineering group with its U.S. headquarters in Denver,
Colorado has confirmed, the presence of gold and platinum at Black Rock using the nominated
recovery process in the independent verification program. However, the process utilized will most
likely not be used for commercial development of the project. Two samples were taken from two
separate parts of the one-kilometer grid and as such do not represent a meaningful average for the
total grid. These two samples of 20 lbs. each were collected and tested under chain of custody
surveillance of the independent consultants. Bateman has indicated that this testing should not be
used for the purpose of calculating a resource.
Capital Raising & Use of Proceeds
IPM is finalizing a private placement with several institutional investors for up to US $10 million.
The placement will be in the form of a redeemable convertible note with the conversion price
based on 125% of IPM's share market price. Proceeds from the placement will be utilized for
general corporate purposes in the further development of the Black Rock project. The Company
expects to draw down on this financing before the end of the month.
The company and Omega Investment are negotiating an extension of time on the purchase
agreement with respect to the acquisition of the additional 20% interest in the Black Rock
property. IPM is also negotiating the additional financing to conclude the purchase.
Bateman Engineering Inc. Development Program
The program to develop the mining and recovery of precious metals from Black Rock ore will be
a multi-phased multi-tasked effort. It will be directed by IPM and supported by Bateman
Engineering utilizing their resources, contract test work facilities and specialty process engineers.
As part of this program Bateman will also be providing the expertise to assist in the development
of a cost-effective process to extract metals. The company estimates that the Development
Program will take between twelve to eighteen months. Its objectives are to determine the grade,
scale and economics of the project and produce a full feasibility document with a view to taking
Black Rock into production.
In Summary
The Board of Directors of IPM understands and appreciates the commitment and dedication
shown by the company's technical groups and by IPM shareholders. The Board is very pleased
with the accomplishments of the current milestones and is excited by the opportunities ahead.
Much remains to be accomplished.
Utilizing the assay procedures IPM will begin analysis on a backlog of 2,100 samples from the
original grid. The objective is to determine a mean grade of the Black Rock material, one that
represents a mineable grade with the peaks minimized. Completion of the testing and other tasks
of the development program will result in an ore resource statement being calculated for the
original grid. Thereafter, the intent is to expand testing to the additional five 1-sq kilometer grids of
the Black Rock basin area to depth.
The sequence of events that IPM will focus on over the next twelve to eighteen months will include
finalizing the ore resource statement and determining the economics of the project via the
development program to a feasibility document. Based on the results of the program, IPM will
advance to a stage where a financing package can be put in place prior to engineering design,
construction and mining operations.
On Behalf of the Board of Directors
Alan Doyle
Chairman
ISSUED AND OUTSTANDING CAPITAL: 20,758,280 |
