Overview

Property Description

The Acos gold project is located in approximately 130km east of Nazca and 70km southwest of the Company’s 40%-owned Pallancata silver-gold mine in southern Peru. Acos consists of 12 concessions totaling 12,000 hectares (120 sq km).

Exploration History

Detailed geological mapping, rock sampling and ground geophysics have been completed to date on the Acos property with encouraging results. A drilling program was initiated in late 2007 but was suspended due to weather and logistical issues.

Exploration Outlook

Limited drilling performed in late 2007 identified two large hydrothermal systems underlying the Acos anomaly: an early low sulfidation event and a later high sulfidation event. Broad anomalies in arsenic, mercury, molybdenum, selenium and tellurium were detected mainly in areas of advanced argillic alteration. Some weak gold anomalies, equivalent to those obtained on surface, were also detected. Surface mapping, infrared mineral analysis and geochemical sampling are ongoing. Targets are being defined for the next round of drilling in 2008.

Geology and Mineralization

The mineralization consists of a large epithermal alteration zone at surface, covering approximately 7km by 4km and comprising an upper chalcedonic cap and an underlying, advanced argillic mineral assemblage. Irregular zones of vuggy silica with pyrite/limonite are also seen within the chalcedonic cap. Samples of vuggy silica taken by IMZ were anomalous in gold, silver, arsenic, copper, mercury, molybdenum, lead, tellurium and antimony, which represents a suite of metals typically associated with known deposits of this type.

Joint Venture

The Acos Project is a 50/50 joint venture with IAMGOLD Corporation. IMZ is the operator of the project. The costs of the exploration program are shared equally by IMZ and IAMGOLD. IAMGOLD has the right to acquire an additional 15% interest in the project by completing a bankable feasibility within three years of the date on which IAMGOLD elects to commence such a study. IAMGOLD also has the right to earn an additional 5% interest in the project by arranging mine development financing, including the provision of financial guarantees as may be required by a lender to finance the project.

Qualified Person

The technical information reported here was supervised and reviewed by IMZ's Qualified Person, Exploration Manager Mark Cannuli .