Overview

Country:	Ecuador
Stage of Project:	Development
Ownership:	100% IMZ
Land Position:	58 sq km

The Rio Blanco gold-silver development project is progressing towards production, which is pending permitting and financing (please refer to our news releases for the latest updates related to Rio Blanco.) The project is situated on the western flank of the Western Cordillera in southwestern Ecuador. Elevations in the main target area range from 3,000 meters to 4,000 meters. The project is located approximately 50 km west of Cuenca and approximately 320 km southwest of Quito. IMZ’s Gaby gold property is located approximately 45 km west-southwest of the Rio Blanco property. Resources at Rio Blanco are hosted in an epithermal gold-silver vein deposit, characterized by multiple high-grade gold-silver veins.

A positive feasibility study was completed in 2006 and capital and operating costs were updated in February 2009 (see news release dated February 19, 2009 for details). Please refer to the Rio Blanco Technical Report, entitled “The Alejandra North Vein, Rio Blanco Gold and Silver Project, Feasibility Study, Ecuador” and dated January 30, 2006, by clicking here (Technical Report). The Technical Report was filed on SEDAR and is available for review under IMZ’s name at www.sedar.com.

Property Description

The property consists of four mining concessions, San Luis A2, Miguir, Canoas and Canoas I which in aggregate comprise approximately 5,799 hectares (approximately 58 sq. km). The four mining concessions (San Luis A2, Miguir, Canoas and Canoas I) are contiguous claims and are 100%-owned by IMZ, subject to IMZ making certain remaining property option payments and paying a 2.5% net smelter return (NSR) royalty to the previous owner. The known mineral resources on the Rio Blanco property are located in the central portion of IMZ’s mining concessions, entirely within the San Luis A2, Canoas and Canoas 1 concessions. There are presently no known mineral resources on the Miguir concession.

Exploration History

An initial, regional-scale reconnaissance sampling stream sediment survey was conducted by Rio Tinto in 1994. Gold mineralization was discovered on the Canoas concession in 1995. During 1996 and 1997, Rio Tinto (as part of a joint venture signed with IMZ in 1996) conducted geological mapping, including extensive surface rock geochemical sampling, geophysics, limited metallurgical testwork and core drilling.

In 1997, Rio Tinto completed 47 core holes for a total of 5,858m testing the areas now known as Alejandra South, Dorada North and Dorada South.  From 1999 to 2005, IMZ completed four additional phases of core drilling totaling almost 38,000m in 264 drill holes, focused primarily on the Alejandra and Dorada zones.

Current (October 2006) mineral resource and reserve estimations for the Alejandra North and San Luis Deposits are shown in the table below:

Notes:

1.  The mineral reserves are derived from total Measured and Indicated resources of 2,150,000 tonnes at an average grade of 9.5 g/t gold   and 69 g/t silver containing 661,000 ounces of gold and 4,785,000 ounces of silver at a cut-off grade of 3 g/t gold for Alejandra North and 4 g/t gold for San Luis (see news release dated May 30, 2006 for details).

2.   The previously announced mineral reserves for Alejandra North of 1,990,000 tonnes were at an average grade of 8.1 g/t gold and 63 g/t silver containing 521,000 ounces of gold and 4,039,000 ounces of silver at a cut-off grade of 4 g/t gold (see news release dated January 30, 2006 for details).

3.  The mineral reserves are estimated using a 4 g/t gold cut-off and a $475/oz gold price.

4.  The mineral reserves remain subject to overall metallurgical recoveries of 87% for gold and 70% for silver.

5.  Mining dilution of approximately 10%, with a diluting grade of 1.7 g/t gold has been accounted for in the reserves.

6.  Mining losses have been estimated at 10% for general mining, plus approximately 10% of the sill pillar that will not be recovered. These losses are accounted for in the reserves.

7.  The mineral reserve estimate for Alejandra North varies slightly from the Jan 2006 feasibility study estimate due to expected better recovery from the sill pillar based on the updated mine plan prepared by Wardrop Engineering- Oct 2006.

Exploration Outlook

Future exploration will focus on drilling possible extensions to the Alejandra vein and exploring the adjacent Bolivar, San Luis and other associated veins. Other drill targets to be tested include the Dorada zone, located south of the Alejandra vein, as well as a large unexplored area of the property.

Geology and Mineralization

The epithermal mineralization on the Rio Blanco property occurs in the southwest part of the Western Cordillera, close to the Bulubulu Fault. Important epithermal districts also occur a short distance to the west of the fault, at San Gerardo and Bella Rica, the latter districts located adjacent to IMZ’s Gaby gold project. Mineralization at the Rio Blanco property is recognized to be of the low-sulfidation epithermal (adularia-sericite) type. The style of mineralization at the Rio Blanco project shows similarities to the El Peñón deposit (of Yamana Gold) in northern Chile. Both are Tertiary low-sulfidation epithermal systems and both comprise quartz veins and hydrothermal breccias with “bonanza-type” (i.e. very high-grade) gold/silver values in some areas of the deposits. In addition, at both properties the principal control on the precious metal mineralization is district-scale faulting.

Precious metal mineralization on the Rio Blanco property extends discontinuously for over 3km in a north-south direction, from the Loma Larga area in the north to the Migsiguigshi area in the south, with a surface expression ranging from 750m to over 1,000m in width. In vertical extent, the overall epithermal system with high-grade values spans over 500m from elevations in the Dorada area at around 3,400m to the Alejandra North Vein to the north at about 3,900m. Worldwide, high-grade mineralized zones in epithermal deposits are generally less than 200m in vertical extent, in some cases less than 100m. In the case of Hishikari, Japan, it is only approximately 50m.

Qualified Person

The technical information reported here was supervised and reviewed by IMZ’s Qualified Persons, VP of Corporate Development Nick Appleyard and former Operations Manager Gordon Grams.