I-Minerals Inc. (the "Company") announces it has commenced an infill drill program with the objective of upgrading the Probable Reserve as set out in the Company's Pre-Feasibility Study to a Proven Reserve, (see I-Minerals Press Release of January 3, 2013 or the full 43-101 report filed on the Company's website and SEDAR).
The current Probable Reserve of 3.995 million tons ("mt") containing 2.243 mt of high purity quartz sands, 0.897 mt of k-feldspar sand, 0.709 mt of kaolinite clay and 0.147 mt of halloysite clays was based upon drilling at 200 foot centres. The process of upgrading the reserve to a Proven Reserve requires the drill spacing to be reduced to 100 foot centres. This will require up to 160 holes being completed. However given that the targeted horizon is areas where the underlying Thatuna Granodiortite has been weathered to a sand/clay-like material referred to as "primary clay", all of the holes will be short, with most less than 100 feet. Drilling is expected to take up to 90 days with the Proven Reserve estimate expected to be completed in Q1 2014
The second objective of the drill program is to identify areas of the primary clay that contain increased percentages of halloysite. The prefeasibility study which estimated an after tax NPV6 of $150 million with a 28% IRR, 3 year payback and only $67 million in initial capital costs ($84 million including life of mine sustaining capital), assumed the halloysite reserves were sufficient to support only about 10 years of production. Hence, if all other inputs into the Pre-Feasibility Study remained unchanged, success in identifying additional halloysite clay reserves could be expected to improve the valuations in the Pre-Feasibility Study. The Company has reassessed core from early reconnaissance level drilling in an area known as "Kelly's Hump" which indicates higher halloysite concentrations in this area. Several holes will also test this area as it is closer to the proposed mill site.
"Upgrading the reserve to a Proven Reserve is a critical step in the completion of our full Feasibility Study on the Bovill Kaolin Project," stated Tom Conway, President and CEO of I-Minerals Inc. "Given much of our forecast production will ultimately be sold into markets related to US housing and consumer products -- sectors of the economy which are on the rebound we are very optimistic about the future prospects of I-Minerals Inc."
A. Lamar Long, CPG, is a qualified person ("QP") for I-Minerals Inc. and has reviewed and approved the contents of this release.
I-Minerals Inc.
Per: "Thomas M. Conway"
Thomas M. Conway,
President & CEO
Source: http://www.imineralsinc.com/