For personal use only

Quarterly Report

For the Period ending 30 June 2022

ABN 87 648 183 297

Quarterly Activities Report

For the period ending 30 June 2022

Highlights

  • Latest auger drilling results successful in defining substantial new areas of High Purity Silica Sand at the Stockyard Project
  • Maiden Exploration Target announced for the Stockyard Project
  • Mining Lease application submitted and Scoping Study advancing for the Stockyard Project
  • Metallurgical testwork successful in reducing iron oxide content to 185ppm Fe2O3, confirming suitability of Stockyard Project silica sand for HPSS Market
  • Changes to the Board supporting the Company's Strategic Growth

Industrial Minerals Ltd (ASX: IND or the Company) is pleased to provide an update on its activities during the June 2022 Quarter.

IND's Managing Director Jeff Sweet commented,

"This quarter saw sustained progress at the Stockyard Project with further positive auger assay results enabling IND to release a Maiden Exploration Target. Work on the Maiden Mineral Resource estimate and Scoping Study are progressing well and on track to be released in Q3 2022."

Stockyard Exploration Target

During the period, the Company received assay results from 362 auger samples, returning an average grade of 99.1% SiO2 (reported above 98.5% SiO2). Refer to ASX release dated 26 May 2022. These results in conjunction with previous significant results have allowed IND to estimate a Maiden Exploration Target for the Stockyard Project of:

  • 8Mt to 15Mt with an average grade range of 96.0% to 99.4% SiO2

Importantly, the Exploration Target is 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.

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 using spatial datasets.

www.industmin.com

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Quarterly Report

For the Period ending 30 June 2022

ABN 87 648 183 297

The 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.

Mining Lease Application and Scoping Studies

The Company also announced 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 (refer to ASX release dated 6 June 2022). 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 considering the current and future exploration across the greater Stockyard Project area.

Workstreams underway as part of the Stockyard Scoping Study are listed below:

  • Assays for drilling completed to date have now been received and compiled into a master database, allowing the Maiden Mineral Resource Estimate to be finalised in Q3 2022.
  • Composite samples for High Purity Silica Sand mineralised bodies within the Mining Lease application area have been submitted to KeyPointe Pty Ltd for Metallurgical testwork. Results to date have seen key contaminant, Fe2O3, can be reduced to 185 ppm after heavy liquid separation and attritioning (refer to ASX release dated 19 July 2022).
  • 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 sufficient allocation of water for proposed mining and processing requirements.

www.industmin.com

Suite 38, 460 Sterling Hwy Peppermint Grove, WA 6008

For personal use only

Quarterly Report

For the Period ending 30 June 2022

ABN 87 648 183 297

  • Mining Engineering and Site Planning is advancing in conjunction with resource modelling which will allow Mining, Processing and Logistics tenders to be released to selected parties in Q3 of 2022.

Figure 1. Stockyard Project displaying Exploration Target and Mining Lease application

www.industmin.com

Suite 38, 460 Sterling Hwy Peppermint Grove, WA 6008

For personal use only

Quarterly Report

For the Period ending 30 June 2022

ABN 87 648 183 297

Board Changes Support IND's Exploration Strategy

In May 2022, the Company made several changes to its Board to support the continued development and growth of the Company in line with its current strategy. Mr Jeff Sweet was promoted to Managing Director while Mr Ashley Pattison stepped back from his role as Executive Chair to continue as Non- Executive Chair of Industrial Minerals. The Company also appointed Ms Melanie Leighton as Non- Executive Director. Ms Leighton is a highly experienced Mining Professional, having worked in technical, management and corporate roles over the past 23 years. Ms Leighton is currently a Non- Executive Director of Greater Boulder Resources Ltd and provides geological and corporate services to several ASX listed companies, including Industrial Minerals. Ms Leighton has been engaged by the Company as a technical consultant since February 2022. Refer to ASX release dated 9 May 2022.

IND's Managing Director Jeff Sweet commented,

"With the continued support of Ashley Pattison and the addition of Melanie Leighton to the Board, the Company is in a strong position to move the Stockyard Project towards production and continue to explore its other priority projects."

Non-Executive Chair - Ashley Pattison

Mr Pattison has over 20 years' experience in the resources sector from both a corporate finance and operational perspective. A qualified chartered accountant, he has extensive experience in operations, finance, strategy and corporate finance. Having lived and worked in several countries, he has gained substantial exposure to exploration and producing operations in Australia and South America. Ashley has been the Managing Director of a number of listed and private mining companies over the past 10 years and also CEO of a listed mining service Company.

Managing Director - Jeff Sweet

Mr Sweet has over 24 years' quality experience in the quarry, mining and logistics industries primarily in operations management roles. Mr Sweet had a practical start to his career working for owner operator and contracting companies in resource sectors including Gold, Iron Ore, Phosphate and Construction Materials. Mr Sweet has complimented his broad experience with a Master of Science (Mineral Economics).

Non-Executive Director- Alex Neuling

Mr Neuling is a chartered accountant and chartered company secretary with over 20 years corporate and financial experience, including more than 15 years as company secretary, CFO &/or a Director of various ASX listed companies in the Oil & Gas, Mineral Exploration, Biotech & Mining Services sectors. Prior to these roles, Alex worked at Deloitte in London and in Perth.

www.industmin.com

Suite 38, 460 Sterling Hwy Peppermint Grove, WA 6008

For personal use only

Quarterly Report

For the Period ending 30 June 2022

ABN 87 648 183 297

Non-Executive Director- Melanie Leighton

Melanie is a geologist with over 20 years' experience in the mining industry, spanning multiple commodities and deposit types. Ms Leighton is a founding Director of Leighton Geoservices Pty Ltd, a consulting firm providing corporate and geological services to the mineral resources sector with the mantra of bridging the gap between technical, corporate and investor. Melanie has held management and senior geological roles with Hot Chili Limited, Harmony Gold and Hill 50 Gold, gaining practical and management experience within the areas of exploration, mining and resource development. Melanie also has considerable experience in the areas of stakeholder engagement and investor relations.

Company Landholdings

During the quarter, changes to the status of the Company's tenement holdings consisted of the grant of E70/6041 (Mindarra) and E70/6065 (Narrikup). Both projects are prospective for High Purity Silica Sand, with the Narrikup Project located in close proximity to the Albany Port. Refer to Appendix A for the full tenement holdings.

Figure 2. Narrikup Project (E70/6065) Location Map.

www.industmin.com

Suite 38, 460 Sterling Hwy Peppermint Grove, WA 6008

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Industrial Minerals Ltd. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 22:31:01 UTC.