VANCOUVER, British Columbia,
Dec. 5, 2011 /PRNewswire/ --
i-minerals inc. (TSX.V: IMA; Pink Sheets: IMAHF) ("the
Company") is pleased to announce estimated inferred Mineral
Resources of 38.4 million short tons and the accompanying results
of its Preliminary Economic Assessment Study ("PEA") for its Bovill
Kaolin-Halloysite-Quartz-K-Spar Project (the "Bovill Kaolin
Project"). Based upon a 26 year mine model, the PEA yielded
an after tax NPV of US$155 million and an IRR of 29% .The PEA
supporting the Mineral Resource estimate presented in this press
release was managed by SRK Consulting (US) Inc. ("SRK") in
Lakewood, Colorado, who also
completed the Mineral Resource estimation. Tetra Tech ("TT")
was commissioned by the Company to complete environmental,
geotechnical, and site reclamation engineering and design.
Roberts & Schaefer ("R&S) was commissioned to
complete the design for the planned processing and product
packaging facilities.
Dr. Bart Stryhas constructed the
geologic and resource model reported below. He is responsible
for the resource estimation methodology and the resource statement.
Dr. Stryhas is independent of the issuer applying all of the
tests in Section 1.4 of NI 43-101.
The PEA is being completed by SRK, TT, and R&S and will be
filed on SEDAR (at www.sedar.com) in its entirety as required.
All values presented in this press release are in US imperial
units and 4Q 2011 US dollars.
Statement of Mineral Resources
The Mineral Resources are reported in Table 1 at a cut-off grade
of 20% clay. The primary clay material is comprised of an
aggregate of halloysite, kaolin, quartz and k-spar with estimated
mass percentages as follows: halloysite 6.6%, kaolin 16.7%, quartz
29.7% and 13.0% K-spar, with a weighted average product price of
US$240 per ton.
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Table 1: Statement of
Mineral Resources, i-minerals' Primary Clay Project (as of 30
November 2011)
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Resource
Area
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Inferred
Resource (kst)
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Waste
(kst)
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Total
Material (kst)
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WBL Pit
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2,228
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947
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3,175
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Middle Ridge
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6,667
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1,861
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8,528
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Kelly's Hump
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3,958
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1,184
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5,142
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Scablands
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25,549
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5,821
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31,370
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Total
Resource
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38,402
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9,813
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48,215
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1. Resources assume 100%
mining recovery at 0% dilution. LoM Stripping ratio for WBL
Primary Clay deposit is 0.26st waste : 1.00st ore.
2. Resource is based on
Loss on 20% primary clay cut-off grade. Primary clays are
halloysite and kaolinite
3. Primary Clay tons are based
on consolidated mass recovery of 23.6%.
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Results of the Preliminary Assessment
The PEA assumed a weighted average price of primary clay
products - halloysite, kaolin, metakaolin, quartz and K-spar of -
of $240/ton as supported by a market
studies completed by i-minerals, and preliminary studies being
undertaken by a European company specializing in halloysite
research and a major international marketing and research firm.
Resources can support a mine life of well in excess of 50
years; however initial indicative economics were performed assuming
a 25+-year market for primary clay products. Production
highlights are tabulated below.
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Table 2: Production
Highlights
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Parameter
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Value
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Mineral
Resources
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38,402 kst
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Average Annual Production
Rate
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228 kst
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Process Throughput Rate
(nominal)
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876 tons ore per
day
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Overall (all products)
Process Recovery
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65.8%
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Stripping Ratio
(waste:ore)
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0.34:1
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Mine Life (market
limited)
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25+ years
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On an after-tax basis, technical-economics indicate an NPV6% of
US$155 million with an IRR of 29%.
Payback will occur 3 years from the start of production.
Economic results are summarized below.
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Table 3: Economic
Results(1)
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Description
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LoM Value
(US$000s)
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Unit Cost
(US$/ton product
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Gross
Revenue
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$937,000
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$240
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Marketing
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($4,000)
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($1.00)
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Royalties (3%
sales)
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($28,000)
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($7.20)
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Gross
Income
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$905,000
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$232
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Mining
Costs
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($65,500)
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($16.80)
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Processing
Costs
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($179,500)
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($46.00)
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G&A
Costs
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($6,000)
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($1.50)
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Operating
Costs
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($251,000)
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($64.40)
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Mine
Capital
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($1,400)
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-
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Process
Capital
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($52,500)
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-
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Tailings
Capital
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($8,700)
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-
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Owner
Capital
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($2,200)
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-
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LoM
Capital
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($64,800)
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-
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Taxes
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($211,600)
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-
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Subtotal
Capital & Tax
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($275,750)
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-
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CASH
FLOW
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$378,100
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-
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NPV6%
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$155,000
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-
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IRR
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29%
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-
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1. Differences in totals and
subtotals are due to rounding, and are not material to the results
presented.
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i-minerals' Bovill Kaolin Project is a development stage project
located in north-central Idaho.
The primary clay resources represent the largest deposits of
high quality feldspar, quartz, kaolin and halloysite in the
Western United States. This
preliminary assessment is preliminary in nature and includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable such resources to be categorized as mineral
reserves, and there is no certainty that the preliminary assessment
will be realized.
"Over the past few years there have been significant
technological advances in composites materials for applications
such as solar glass and other green energy technologies, plastics
and polymers, cosmetics and other life sciences applications that
is creating increasing demand for our high value mineral products,"
commented Thomas Conway President
and CEO of i-minerals inc. "Given the more robust economics
associated with the Bovill Kaolin Project, greater shareholder
value can be created through the development of the these assets in
preference over the Kelly's Basin soda-spar quartz deposit.
Accordingly the Bovill Kaolin Project will be the Company's
focus for the foreseeable future."
i-minerals inc.
per: "Thomas M.
Conway"
Thomas M. Conway,
President & CEO
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Contact:
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i-minerals inc.
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Encompass Communications
Inc.
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Barry Girling
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877-303-6573 or
604-303-6573
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877-566-6592 or
604-630-0770
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Email: info@imineralsinc.com
Or visit our website at
www.imineralsinc.com
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Email: info@encompassinc.ca
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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 NEWS RELEASE.
This News Release includes certain "forward looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Without limitation, statements
regarding potential mineralization and resources, exploration
results, and future plans and objectives of the Company are forward
looking statements that involve various risks. Actual results could
differ materially from those projected as a result of the following
factors, among others: changes in the world wide price of mineral
market conditions, risks inherent in mineral exploration, risk
associated with development, construction and mining operations,
the uncertainty of future profitability and uncertainty of access
to additional capital. .
SOURCE i-minerals inc.