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Industrial Minerals Announces 640,000-tonne Mineral Reserve

July 13, 2002
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Industrial Minerals Inc. recently announced that the area that has been investigated for mining potential contains a reserve of 20,000,000 tonnes of mineral containing 640,000 tonnes of flake graphite.

Industrial Minerals Inc. recently announced, through a summary review and geological report completed by Ben Ainsworth, P. Eng., that the area that has been investigated for mining potential contains a reserve of 20,000,000 tonnes of mineral containing 640,000 tonnes of flake graphite. The qualification of reserves used in this report was made by Kilborn Engineering Ltd. and used by KHD (Canada) in a positive feasibility study in 1989. 700 m (2310 ft) of trenching and 2100 m (7000 ft) of diamond drilling were completed for a drill total of 7232 m (23,900 ft) in 160 holes. Percussion drilling was carried out with 82 drill holes totaling 1207 m (4000 ft). The drilling was carried out on a grid with a spacing of 64 x 64 m (215 x 215 feet) with infill in higher grade areas at 23 x 23 m (76 x 76 ft). The potential for further reserves exists on the property as the work programs delineating reserves to date have only covered approximately 20% of the known graphitic gneiss zone. Geological mapping of this zone reveals a continuous strike length of approximately 7000 ft, with an average width of approximately one-half mile. A production rate was proposed in the feasibility study of about 20,000 tonnes of flake graphite per annum. This tonnage could be supplied for more than 30 years from the initial reserve.

Copies of the summary report may be obtained by calling (416) 979-4621.

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