Imperial Reports 2016 Production
imperialmetals.com
News Release
Imperial Reports 2016 Production
Vancouver | January 17, 2017 | Imperial Metals Corporation (the “Company”) (TSX:III) reports its 2016 base and precious
metals production from all operations totaled 119.17 million pounds copper, 94.93 thousand ounces gold and 330.96
thousand ounces silver, up from the 88.13 million pounds copper, 44.71 thousand ounces gold and 224.53 thousand ounces
silver produced in 2015. Production in 2016 includes the first full year of Red Chris operations, production at Mount Polley
(six months were modified mill operations), and Imperial’s 50% allocation from eight months production at Huckleberry.
Red Chris Mine
In the 2016 fourth quarter Red Chris copper production was 14.6 6 million pounds copper and 4.66 thousand ounces gold,
compared to 20.38 million pounds copper and 10.03 thousand ounc es gold in the 2015 fourth quarter. All ore was mined
from the Main zone pit, with average grades of 0.382% copper and 0.193 g/t gold compared to 2015 fourth quarter average
grades of 0.502% copper and 0.298 g/t gold when approximately 25% of the mill feed came from the higher grade East zone
pit. During the 2016 fourth quarter, milling rates were hampered due to a reclaim barge relocation in October which resulted
in approximately 72 hours downtime, and the failure of a SAG mi ll pinion in December which resulted in approximately
120 hours downtime. In the 2016 fourth quarter the mill achieved an average throughput of 24,904 tonnes per day compared
to 27,174 tonnes per day in the 2015 fourth quarter. The resul ting annual copper production of 83.61 million pounds was
1.6% less than the low end of the 2016 guidance (3Q2016 update) , while gold production of 47.09 thousand ounces was
about the midpoint of the targeted 45-50 thousand ounces.
Metallurgical performance in the plant is improving with the implementation of a new reagent and reagent addition scheme.
Recovery has averaged over 81% for the first ten days of January 2017. Work on installation of another rougher flotation cell
is underway, and is now targeted for completion by the end of the first quarter in 2017. Also, in order to further increase mill
operating time, a bypass conveyor is being installed to allow t he plant to continue operating when the high angle conveyor
that recirculates pebbles to the SAG mill is down.
Red Chris Mine Production 3 Months Ended December 31 Year Ended December 31
2016 2015 2016 2015(1)
Ore milled - tonnes 2,291,150 2,500,016 9,651,738 8,171,879
Ore milled per calendar day - tonnes 24,904 27,174 26,371 25,698
Grade % - copper 0.382 0.502 0.507 0.477
Grade g/t - gold 0.193 0.298 0.309 0.261
Recovery % - copper 75.96 73.70 77.52 68.09
Recovery % - gold 32.83 41.78 49.04 37.91
Copper – 000’s pounds 14,659 20,385 83,614 58,486
Gold – ounces 4,661 10,025 47,088 25,949
Silver – ounces 25,918 33,986 190,624 95,232
(1) production stated from February 17 to December 31, 2015
Red Chris 2017 production target is 85-92 million pounds copper and 40-45 thousand ounces gold. Production will be
weighted to the second half of t he year as grades are expected to be slightly under 0.4% copper for the first six months
compared to slightly over 0.5% copper for the second half of 2017.
Mount Polley Mine
During the 2016 fourth quarter 1,632,355 tonnes ore were treated, producing 4.98 million pounds copper and 11.29 thousand
ounces gold compared to 1,185,419 tonnes ore treated, producing 5.10 million pounds copper and 10.43 thousand ounces
gold in the 2015 fourth quarter. Operations in the 2016 fourth quarter were impacted by a period of very cold weather which
reduced water supply, and the failure of a ball mill motor whic h reduced the tonnage treated. As a result, annual copper
production was 25.34 million pounds and annual gold production was 46.44 thousand ounces, respectively 93.8% and 96.9%
of the low end of the 2016 guidance target.
The Boundary zone underground production for the 2016 fourth qu arter totaled about 40,000 tonnes grading 1.24% copper
and 0.72 g/t gold. A total of about 500,000 tonnes grading 1.22% copper and 0.78 g/t gold has been mined from this zone.
imperialmetals.com
A 5,000 metre underground drilling program is currently underway targeting the Martel zone, located underneath the Wight
pit, from the drill drift located about 100 metres to the west of the zone. The goal of the program is to confirm a higher grade
mineable block within the previously defined resource of 6.26 million tonnes grading 1.17% copper and 0.40 g/t gold.
Mount Polley Mine Production 3 Months Ended December 31 Year Ended December 31
2016 2015 2016 2015(1)
Ore milled - tonnes 1,632,355 1,185,419 6,684,824 1,781,799
Ore milled per calendar day - tonnes 17,743 12,885 18,265 11,958
Grade % - copper 0.208 0.286 0.247 0.293
Grade g/t - gold 0.326 0.382 0.310 0.368
Recovery % - copper 66.60 68.24 69.66 69.64
Recovery % - gold 66.00 71.60 69.78 72.11
Copper – 000’s pounds 4,977 5,098 25,339 8,007
Gold – ounces 11,291 10,430 46,444 15,190
Silver – ounces 11,237 14,054 90,125 25,911
(1) production stated from August 5 to December 31, 2015
The 2017 production target for Mount Polley is 26-29 million po unds copper and 55-60 thousand ounces gold. All 2017
production is expected to come from open pit operations.
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About Imperial
Imperial is a Vancouver based exploration, mine development and operating company. The Company, through its subsidiaries, owns the Red
Chris and Mount Polley copper|gold mines in British Columbia, and the Sterling gold mine in Nevada. Imperial also holds a 50% interest in
Huckleberry Mines Ltd. and in the Ruddock Creek lead|zinc property, both in British Columbia.
Company Contacts
Brian Kynoch | President | 604.669.8959
Steve Robertson | Vice President Corporate Affairs | 604.488.2669
Gordon Keevil | Vice President Corporate Development | 604.488.2677
Sabine Goetz | Shareholder Communications | 604.488.2657 | [email protected]
Forward-Looking Information and Risks Notice
Forward-looking stateme nts relate to future events or future pe rformance and reflect Company management's expectations or beli efs
regarding future events and in clude, but are not limited to, sp ecific statements regarding the expected improvement of metallu rgical
performance of the Red Chris plant with the implementation of a new reagent and reagent addition scheme, and the installation of an
additional rougher flotation cell; expectations that the instal lation of a bypass conveyor will increase mill operating time a t the Red Chris
mine; the 2017 production targets for the Red Chris and Mount Polley mines; expectations regarding a 5,000 metre underground drillin g
program targeting the Mount Polle y mine’s Martel zone located u nderneath the Wight Pit; and in general, statements with respect to the
estimation of mineral reserves and mineral resources, the conve rsion of mineral resources to mineral reserves, the realization of mineral
reserve estimates, the timing and amount of estimated future pr oduction, costs of production, capital expenditures, and success of mining
operations. In certain cases, fo rward-looking statements can be identified by the use of words such as "plans", "expects" or " does not
expect", "is expected", "outlook ", "budget", "scheduled", "esti mates", "forecasts", "intends", "anticipates" or "does not anti cipate", or
"believes", or variations of such words and phrases or statemen ts that certain actions, events or results "may", "could", "wou ld", "might"
or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. In this document certai n forward-
looking statements are identified by words including "guidance", "expectations", "targeted", "plan", "planned", "estimated", "calls for" and
"expected". By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause the actual results, perform ance or achievements of the Co mpany to be materially different from any future results, perfo rmance or
achievements expressed or impli ed by the forward-looking statem ents. Such factors include, among others, risks related to chan ges in
project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery
rates; accidents; dependence on key personnel; labour pool cons traints; labour disputes; availability of infrastructure requir ed for the
development of mining projects; d elays in obtaining governmenta l approvals or financing or in the completion of development or
construction activities; counterparty risks associated with sales of our metals; changes in general economic conditions; increased operating
and capital costs; and other risks of the mining industry as we ll as those factors detailed fro m time to time in the Company's interim and
annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review
at imperialmetals.com and sedar.com. Although the Company has attempted to identify important factors that could cause actual actions,
events or results to differ materi ally from those described in forward-looking statements, there may be other factors that cau se actions,
events or results not to be as anticipated, estimated or intend ed. There can be no assurance that forward-looking statements w ill prove to
be accurate, as actual results and future events could differ m aterially from those anticipated in such statements. Accordingl y, readers
should not place undue reliance on forward looking statements.