2014 Drill Program Confirms Encouraging Gold-Bearing System at LH Property near Silverton, BC

West Vancouver, British Columbia " January 12, 2015 " International Bethlehem Mining Corp. (the “Company” or “International Bethlehem”) is pleased to announce that its optionee/partner, Magnum Goldcorp Inc. (“Magnum” " TSX-V:MGI) has today reported its assay results from Magnum’s helicopter-supported drill program recently completed by it on its optioned gold exploration property (the “LH Property”). The LH Property consists of 19 contiguous crown granted claims and six mineral claims, located approximately 7 km south of Silverton, British Columbia, on the east side of Slocan Lake. Access to the LH Property is via Highway 6 for 8 km south of Silverton and then via Red Mountain Road for 2 km and a four-wheel drive road along Fingland Creek for 5 km.

As part of its 2014 exploration program, Magnum reported that it had completed 4 helicopter supported drill holes at 2 separate locations for a total of 707 metres (see Magnum’s News Releases dated Aug. 26 and Sept. 12, 2014).  According to Magnum, the program successfully tested magnetic anomalies identified from a ground geophysical survey completed in June/July 2014.  Coincident Self-Potential (“SP”) and Induced Potential (“IP”) anomalies are associated with the magnetic trend.

A review of previous exploration results, particularly those from the 2012 drill program completed by International Bethlehem, have been interpreted by Magnum to suggest that moderately to strongly anomalous gold values are associated with intervals having strong pyrrhotite mineralization.  Pyrrhotite, being both magnetic and strongly conductive, is interpreted to be a probable causative source for coincident SP / IP / magnetic anomalies.  Therefore, the anomalies may indicate elevated pyrrhotite content, with potentially elevated gold values. As indicated by Magnum, the objective of the drill program was to test for anomalous to elevated gold associated with the prominent magnetic trend, at locations associated with anomalous SP and IP responses.

Magnum reported that the first pad, from which drill holes LH14-26 and 27 were drilled, was located at the southern end of a linear trend of magnetic anomalies, coincident with both SP and IP anomalies identified previously (see Magnum’s News Release dated Sept. 12, 2014).  The pad was located on the western margin of the magnetic trend, with the two holes drilled to the east-southeast and east, respectively.  The second pad was located approximately 280 m southeast and 80 m higher than pad 1, on the southeast margin of the magnetic trend.  Drill holes LH14-28 and 29 were drilled to the west and northwest, respectively.

Magnum’s analytical results for the 2014 drill holes are presented in the following table:

Hole Number From (metres) To (metres) Width (metres) Gold (Au) (g/tonne)
LH-14-26        
  3.50 94.03 90.53 0.30
including 5.49 27.65 22.16 0.57
including 13.50 14.50 1.00 1.11
including 18.50 19.53 1.03 1.75
including 25.50 26.50 1.00 1.47
including 27.03 27.31 0.92 5.26
and 53.52 65.61 12.09 0.55
including 61.98 63.00 1.02 2.77
and 133.00 139.96 6.96 1.81
including 133.00 134.00 1.00 11.40
and 145.03 146.03 1.00 1.27
and 167.02 167.15 0.13 3.53
LH-14-27        
  4.00 117.00 113.00 0.28
including 9.31 18.50 9.19 0.980
including 9.31 10.00 0.69 1.19
including 12.50 13.53 1.03 1.31
including 13.53 14.53 1.00 3.94
and 29.56 30.54 0.98 1.98
and 67.92 71.00 3.08 1.91
including 67.92 69.00 1.08 1.23
including 69.00 70.00 1.00 3.79
LH-14-28        
  70.00 71.00 1.00 1.04
and 75.00 76.00 1.00 2.39
and 107.00 108.01 1.01 1.05
LH-14-29        
  43.00 66.00 23.00 0.19
and 161.00 209.36 48.36 0.18
including 186.00 189.00 3.00 0.41
and 192.00 195.13 3.13 0.36
and 204.00 208.00 4.00 0.39

*True width not known at this time.

Hole Number Azimuth Inclination Depth (metres)
LH-14-26 106.5° -50° 207
LH-14-27 95.5° -50° 167
LH-14-28 271.5° -45° 124
LH-14-29 344.5° -44° 209

 

Property Geology of the Area

The host rock underlying the property comprise volcanic " volcaniclastic to sedimentary strata correlated to the Rossland and Slocan Groups, respectively.  These strata are interpreted to represent a roof pendant suspended within, and enclosed by, intrusive lithologies corrected to the Nelson Batholith.

There is a history of exploration in the Property area, with underground development of the former “LH mine”.  Mineralization in the workings has been described as a zone 6.1 to 13.7 metres wide, striking nearly east-west and dipping north at about 55 degrees. According to the BC MINFILE database, mineralization is hosted in quartz lenses and veins 30 to 60 centimetres wide and consists of disseminated native gold, arsenopyrite, pyrite and pyrrhotite with minor chalcopyrite and native arsenic.

Previous exploration programs between 1986 " 1988 identified surface geochemical anomalies and subsequent drilling documented gold-bearing intercepts. A drill program completed by International Bethlehem in 2012 comprised a single hole (LH-12-25), drilled to a depth of 246 metres. Significant results are presented in the following table:

Hole Number From (metres) To (metres) Width (metres) Gold (Au) (g/tonne)
LH-12-25        
  37.00 38.00 1.00 14.700
  53.00 92.00 39.00 0.437
including 59.00 65.00 6.00 0.616
including 63.58 64.00 0.42 2.501
and 81.86 90.00 8.14 0.903
including 83.37 86.50 3.13 1.432
and 99.00 124.00 25.00 0.152
  145.04 163.00 17.96 0.466
including 149.00 154.00 5.00 1.277
including 153.23 154.00 0.77 2.555

*True width not known at this time.

Drill hole LH12-25 was drilled in the “Ridge Zone” at the southern margin of the magnetic trend subsequently identified by the 2014 ground geophysical survey.  The geology and associated alteration in the Ridge Zone was mapped for a distance of at least 450 metres north of drill hole LH12-25.  Alteration consists of strong silicification and calc-silicate alteration of host rocks correlated to the Rossland Group.  The zone of alteration, as mapped, trends due north, while the magnetic anomaly trends obliquely to the northeast.  The magnetic anomaly defined associated with the Ridge Zone is very strong, decreasing to the north-northeast where drill holes LH14-26 to 29 were drilled.

As reported by Magnum, the objective of the 2014 drill program was to test the interpretation of an association between magnetic anomalies and the presence of pyrrhotite and, more importantly, associated gold.  The program is considered by Magnum to have been successful, with approximately 37.6% of the core returning gold values in excess of 0.1 gm/tonne and a further 5.5% returned gold values in excess of 0.5 gm/tonne. 

According to Magnum, the results are interpreted to indicate a strong gold-bearing system associated with widespread silicification and calc-silicate alteration.  Furthermore, increased pyrrhotite content, qualitatively based on visual estimates at this time, is associated with increased gold content.

In addition, narrow intercepts of relatively high-grade gold (greater than 1 gm/tonne) may be indicative of high grade veins similar to those reported from the underground workings of the LH Mine.  Therefore, Magnum believes that there may be two gold-bearing targets requiring further evaluation: (1) gold associated with pyrrhotite and skarn-style alteration, and (2) gold-bearing quartz veins.

Magnum’s successful 2014 program utilized the existing road system to minimize reliance on helicopter-use and reduce the cost of the program.  Subsequent drilling to test the stronger, more prominent magnetic anomaly associated with the Ridge Zone, will necessitate helicopter-supported drilling above the existing road network.

Based on its drilling and analytical results to date, Magnum believes the results continue to confirm a potentially significant gold-bearing skarn target associated with the Ridge Zone.

As indicated by Magnum, drill core was split, with one half sent to AGAT Laboratories in Burnaby, BC for initial preparation. The remaining core was returned to the core box, with the core for the 2012 and 2014 programs stored in Crescent Valley, BC.  The samples for analysis were crushed to 75% passing 2 mm and a 250 gram subsample was riffle split then pulverized to 85% passing 75 microns. Each sample was subjected to Aqua Regia digestion and analyzed by Inductively Coupled Plasma " Optical Emission Spectrometry (“ICP-OES”).  Samples returning gold values in excess of 0.5 ppm were re-analyzed using Fire Assay on a 30 gram sample with an Atomic Absorption Spectrometry (“AAS”) finish.  Samples returning gold values in excess of 10 ppm were further analyzed using Fire Assay on a 30 gram sample with a Gravimetric Finish.

This news release has been reviewed and approved by Rick Walker, P. Geo., who is acting as the Company’s Qualified Person for the LH Property project, in accordance with regulations under NI 43-101.

By option agreement dated September 6, 2012, the Company granted an option to Magnum to acquire a 51% interest in the LH Property (the “Option”). Under the Option, Magnum has agreed to incur expenditures on the LH Property totaling $500,000 ($250,000 by November 2014 and an additional $250,000 by November 2015), with approximately $300,000 having been incurred by Magnum to date. As well, Magnum has agreed to issue 3,000,000 shares to International Bethlehem (1,000,000 shares by November 2014 (issued); an additional 1,000,000 shares by November 2015; and an additional 1,000,000 shares upon the LH Property receiving a bankable feasibility report on or before 10 years after the option has been earned in). The LH Property is subject to certain net smelter return royalties (see Magnum’s News Release dated September 21, 2012 for additional details and information regarding the Option and the LH Property).

For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030.

International Bethlehem Mining Corporation
“Douglas L. Mason”
____________________________________
Douglas L. Mason, President and CEO

Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.