Exhibit 99.2
Press Release Source: Industrial Minerals Inc.
Industrial Minerals receives positive results from prelimary economic assessment
on its Bissett Creek crystal flake graphite deposit Wednesday November 21, 10:34
am ET TORONTO, Nov. 21 /PRNewswire-FirstCall/ - Industrial Minerals Inc. -
OTCBB: IDSM - (or "the Company") is pleased to announce that it has received a
draft technical report that was prepared under, and is compliant with, National
Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
from Geostat Systems International Inc. ("Geostat"), a leading international
engineering and geological services firm. The qualified persons signing this
technical report are Gilbert Rousseau Eng. and Claude Duplessis, Eng., Manager
of Geostat Systems International Inc, both of whom have reviewed and approved
this press release. Geostat is independent of the Company within the meaning of
NI 43-101.
The highlights of the Preliminary Assessment NI 43-101 (draft) report are as
follows:
- A crystalline graphite flake resource estimate has been identified
consisting of 327,700 tonnes of graphite in the indicated category plus
397,900 tonnes of graphite in the inferred category, above a 1.5%
graphitic carbon cut-off grade. This resource estimate covers less than
10% of the property, and is based on historical data from 158 previous
diamond drill holes and a 6-hole drill validation program completed in
August, 2007.
- Based on the NI 43-101 resource estimate, and using a projected plant
capacity of 2,500 tonnes per day, the mine life is estimated to be 35+
years. The conceptual open pit mine plan recovers 91% of the above
resources. This review has also confirmed that the flake size within
the deposit is evenly distributed across the ore body and that the
graphitic gneiss is sub-horizontal and has a maximum known thickness of
70m.
- Geostat also carried out a series of new metallurgical and geological
tests on the ore body in 2007. These tests confirmed consistent
recovery of approximately 70% (by weight) of the large flake +48 mesh
fraction. It was also found that the purity levels of the graphite were
in the 95%+ range. Both of these are significant results given that
large, high purity flake typically commands significantly higher prices
in the graphite marketplace.
- Bissett Creek has been further characterized by its structure as a
crystalline flake ore body that is free of many of the chemicals or
contaminants often found in such deposits. This makes the flake more
suitable for upgrade and purification applications that can command
additional premium prices in the graphite marketplace.
- Average grades of total graphitic carbon in the resources range between
2.2% and 3.1% (for a 1.5% and 2.8% cut-off, respectively). Testing to
develop these results was performed using the LECO (actual graphitic
carbon) methodology. The LECO test methodology assists in ensuring a
truer confirmation of the graphitic grade.
- Geostat has concluded that Bissett Creek should prove to be
economically viable. Applying a discount rate of 10% which yields a NPV
(Net Present Value) of approximately $88.1 million, and a corresponding
projected IRR (Internal Rate of Return) of approximately 28% before
taxes. The payback period in the base case is 4 years. It should also
be noted that Geostat carried out a detailed economic sensitivity
analysis that modified prices, costs and graphite recoveries over a +/-
25% range producing a corresponding of IRR range between 13-42%.
- Within the parameters of this economic and resource profile, it is the
recommendation of Geostat that the Company proceed with a feasibility
study on the project.
Based on these results, and strong market fundamentals, the Company plans to
accelerate the next phase of its mine development, including the installation of
a pilot plant in early 2008. In this regard, the Company has received a proposal
for a bankable feasibility study and expects to execute a contract in the coming
weeks. The Company also plans to carry out further drilling to confirm the
existence of additional large flake graphite on known areas of the remaining 90%
of the property. As noted, graphite market growth is projected to remain strong
as traditional and emerging market applications increase demand and product
prices. The Company therefore feels this is an excellent time to be proceeding
with all of its mine development and marketing plans.
The final version of the entire NI 43-101 technical report will become available
for the public within 45 days; interested investors are encouraged to review the
Company's website at www.industrialmineralsinc.com or filings at www.edgar.com
About Industrial Minerals, Inc.
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Industrial Minerals Inc. through its wholly owned subsidiary Industrial Minerals
Canada Inc., headquartered in Oakville, Ontario, Canada, owns 100% of the
undivided interest in the Bissett Creek Graphite patented mineral lease,
containing a resource of 327,700 tonnes indicated plus 397,900 tonnes inferred
of flake graphite based on approximately 10% of the patented mineral leases that
have been drilled to date. The property is comprised of 28 claims covering an
area of approximately 1,315 hectares (3,250 acres). It has been the subject of
substantial earlier exploration drilling, trenching and metallurgical test work
by KHD Canada, Kilborn Engineering, Pincock Alan and Holt and Cominco
Engineering Services. The property is located in Maria Township in the Province
of Ontario, Canada. The Company believes the property is one of the largest and
purest natural flake graphite deposits in the world. Its goal is to become the
leading producer of large flake crystalline graphite in North America and a
prominent market participant internationally.
Safe Harbor Statement
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All statements contained herein, as well as oral statements that may be made by
the Company or by officers, directors or employees of the Company acting on the
Company's behalf that are not statements of historical fact, constitute
"forward-looking statements" and are made pursuant to the Safe-Harbor provisions
of the Private Securities Litigation Reform Act of 1995. In addition, estimates
of mineral reserves and resources may constitute forward looking statements to
the extent they involve estimates of the mineralization that will be encountered
if the property is developed. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause the actual
results of the company to be materially different from the historical results or
from any future results expressed or implied by such forward-looking statements.
Such risks and uncertainties are outlined in the Company's Annual Report on Form
10-KSB for 2006 as filed with the Securities and Exchange Commission. There can
be no assurance that future developments affecting the Company will be those
anticipated by management, or set forth in this news release. The Company is not
obligated, and assumes no obligation, to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise after the
date of this release.
Information Concerning Mineralization and Resources
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All mineral resources have been estimated in accordance with the definition
standards on mineral resources and mineral reserves of the Canadian Institute of
Mining, Metallurgy and Petroleum referred to in National Instrument 43-101,
commonly referred to as NI 43-101. U.S. reporting requirements for disclosure of
mineral properties are governed by the United States Securities and Exchange
Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are
substantially different. This press release uses the terms "indicated" and
"inferred" resources. We advise investors that while those terms are recognized
and required by Canadian regulations, the SEC does not recognize them. Inferred
mineral resources are considered too speculative geologically to have economic
considerations applied to them that enable them to be categorized as mineral
reserves.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY
HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.