Industrial Minerals : Stockyard Exploration Target and ML Application

For personal use only

ASX ANNOUNCEMENT

6th June 2022

ABN 87 648 183 297

STOCKYARD PROJECT UPDATE

MAIDEN EXPLORATION TARGET

AND

MINING LEASE APPLICATION

Highlights

• Maiden Exploration Target estimate following successful targeted exploration programs across ~ 20% of the greater Stockyard Project to date
• More than 50 High Purity Silica Sand (HPSS) deposits have been defined across the Exploration Target area by auger drilling, from surface to an average depth of 1.03 metres
• Further Target Areas to be drilled across the greater Stockyard Project
• Mining Lease application submitted to DMIRS to minimise critical path to project development
  o ML application within single Private Property with Access Agreement in place
  o Proposed disturbance areas on existing farming land and avoid the need for clearing of Native Vegetation
• Mining Lease area represents ~ 5% of the greater Stockyard Project footprint
• Scoping Study and Mineral Resource Estimate progressing in support of Stockyard Project

www.industmin.com	Suite 38, 460 Stirling Highway
	Peppermint Grove, WA, 6011 Australia

For personal use only

ASX ANNOUNCEMENT

6th June 2022

ABN 87 648 183 297

Industrial Minerals Ltd (ASX: IND or the Company) is pleased to provide an update on its flagship 100%-owned Stockyard Silica Sand Project, located 35 kilometres southeast of Eneabba, in Western Australia.

Maiden Exploration Target

The Company is pleased to announce a Maiden Exploration Target of 8Mt to 15Mt with an average grade range of 96.0% to 99.4% SiO2 contained within a small portion of the Stockyard project where extensive auger drilling has been completed by the Company since it listed on the ASX in July 2021.

The Exploration Target is set out below:

Stockyard Exploration Target - June 2022

	Lower Range	Upper Range
Quantity (Tonnes)	8M	15M
Grade (SiO2)	96.0%	99.4%

The potential quantity and grade of the Exploration Target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.

The Exploration Target has been developed based upon the current geological understanding of the geometry of mineralised zones at the Stockyard Project. This understanding has been developed through extensive exploration drilling completed to date, and regional geological mapping.

This Exploration Target has utilised auger drilling results completed to date with more than 1161 auger holes for 1194 metres having intersected high purity silica sand at the project. Industrial Mineral's auger drilling at Stockyard has intersected a total of 55 high purity silica sand deposits from surface to an average depth of 1.03 metres.

Auger drill intercepts to date have returned an average grade of 98.9 % SiO2 over a combined surface area spanning 700 hectares, refer to ASX releases dated 17 Nov 2021, 6 April 2022, and 26 May 2022 for further details on drilling completed by the Company.

Following compilation and review of all auger drilling completed in 2021, Industrial Minerals has used the below parameters in calculating the Exploration Target:

•	Cumulative Surface Area:	700 hectares (or 7.0 km2)
•	Average depth:	1.03 metres
•	Bulk Density:	1.62 (t/m³)

The average grade of mineralisation is 98.9% SiO2 and therefore a range of 96.0% and 99.4% is provided around that to account for uncertainty.

www.industmin.com	Suite 38, 460 Stirling Highway
	Peppermint Grove, WA, 6011 Australia

For personal use only

ASX ANNOUNCEMENT

6th June 2022

ABN 87 648 183 297

Mining Lease Application

The Company is also pleased to announce that it has submitted a Mining Lease application to the Department of Mines, Industry Regulation and Safety (DMIRS) for the first Silica Sand mine within the Stockyard Project. As part of the Scoping Study being conducted at the Stockyard Project, the Mining Lease application area has been selected to support the Company's rapid development strategy with the aim of minimizing roadblocks to progressing the project to production and first shipment to potential customers.

The Mining Lease area is entirely within a single private property of which IND has an Access Agreement and strong working relationship with the owner. The proposed disturbance footprint consists of cleared farmland which avoids the need to disturb Native Vegetation, specifically that which is crucial to endangered Carnaby's Cockatoo. Due to the simple mining and processing route proposed to produce a DSO Silica Sand product, along with the small scale of this initial Mining Lease, IND believe it will be able to move swiftly to receive final approvals required to commence operations.

IND's Scoping Study is progressing well and is focused on the Mining Lease application area, while also taking into account the current and future exploration across the greater Stockyard Project area.

• All drilling assays have now been included in the database allowing the Maiden Mineral Resource Estimate to be finalised in Q3 2022. Refer to ASX releases dated 13 May 2022 and 26 May 2022.
• Composite samples for each deposit across the Mining Lease application area have been submitted to KeyPointe Pty Ltd for Metallurgical testwork.
• Desktop and Level 1 Environmental surveys have been conducted and are to be included in the Mining Proposal and Mine Closure Plan for the Mining Lease.
• Ground Water Licence approved with suitable allocation for proposed mining and processing requirements.
• Mining Engineering and Site Planning is taking place in conjunction with the resource modelling which will allow Mining, Processing and Logistics tenders to be released to select parties in Q3 of 2022.

IND's Managing Director Jeff Sweet commented,

www.industmin.com	Suite 38, 460 Stirling Highway
	Peppermint Grove, WA, 6011 Australia

For personal use only

ASX ANNOUNCEMENT

6th June 2022

ABN 87 648 183 297

"This Exploration Target along with the Mining Lease application are significant milestones for the Stockyard Project, coming on the back of very successful drilling in 2021. The announcement provides investors with a clear insight as to the ability of the Company to rapidly develop the Stockyard Project while seeing broader growth potential of the greater Stockyard Project."

"If we are successful in converting a significant portion of this Exploration Target into Mineral Resources, we have a clear pathway to deliver substantial growth at the Stockyard Project."

Importantly, the extent of High Purity Silica Sand mineralisation is yet to be fully tested across the broader portfolio of High Purity Silica Sand Projects, with the Company now set to expand its exploration activities and drill test additional silica sand bodies as identified by the IND technical team as high priority exploration target areas.

IND's low impact and low-cost rapid exploration and resource definition technique gives the Company a significant advantage in its efforts to rapidly explore and develop its highly prospective tenure and pipeline of quality silica sand projects.

The Company looks forward to providing further updates as results come to hand.

This announcement has been approved by the Industrial Minerals Board.

For enquiries regarding this release please contact:

Mr, Jeff Sweet Managing Director [phone]

Website: www.industmin.com

Contact: [e-mail]

www.industmin.com	Suite 38, 460 Stirling Highway
	Peppermint Grove, WA, 6011 Australia

For personal use only

ASX ANNOUNCEMENT

6th June 2022

ABN 87 648 183 297

Competent Person

The information in this announcement that relates to the Exploration Target at the Stockyard Project is based on and fairly represents information compiled by Ms Melanie Leighton, an experienced geologist engaged by Industrial Minerals Ltd. Ms Leighton is a Member of the Australasian Institute of Geologists (MAIG) and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which she has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms Leighton consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Forward-looking Statements

Certain statements contained in this document may be 'forward-looking' and may include, amongst other things, statements regarding production targets, economic analysis, resource trends, pricing, recovery costs, and capital expenditure. These 'forward-looking' statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by IND, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'believe', 'expect', 'anticipate', 'indicate', 'target', 'plan', 'intends', 'budget', 'estimate', 'may', 'will', 'schedule' and others of similar nature. IND does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements as they are not a guarantee of future performance.

Disclaimer

No representation or warranty, express or implied, is made by IND that the material contained in this document will be achieved or proved correct. Except for statutory liability and the ASX Listing Rules which cannot be excluded, IND and each of its directors, officers, employees, advisors and agents expressly disclaims any responsibility for the accuracy, correctness, reliability or completeness of the material contained in this document and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person through use or reliance on any information contained in or omitted from this document.

www.industmin.com	Suite 38, 460 Stirling Highway
	Peppermint Grove, WA, 6011 Australia