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A National Instrument 43-101 technical report regarding the Preliminary Economic Analysis on the Bovill Kaolin Deposit has been filed by i-minerals inc. (TSXV:IMA). A summary of the technical report that was announced on December 5, 2011 highlighted: US$155 million After Tax NPV, $64.8 million total life of mine capital costs, and 38.4 million short tons of resources.
As quoted in the press release:
The Inferred Mineral Resource of 38.4 million short tons is based upon a cut-off grade of 20% clay and represents the largest deposits of high quality feldspar, quartz, kaolin and halloysite in the Western United States. The primary clay material has estimated mass percentages as follows: halloysite (6.6%), kaolin (16.7%), quartz (29.7%) and k-spar (13.0%) yielding a weighted average product price of US$240 per ton. 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. The PEA 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.
The Company has subsequently completed a 66 drill hole program and is undertaking detailed metallurgical work to confirm halloysite and kaolin content. Once completed, the metallurgical results will be folded into a pre-feasibility study along with a re-assessment of the capital and operating cost estimates. As part of the re-assessment of capital and operating costs the Company will look at alternate locations closer to the proposed mine site for the mill facility and tailings storage.
The Company is making significant progress in the marketing of its minerals. A pilot plant run has been completed yielding over 4,000 pounds of quartz products. Portions of this material is currently being fine ground for delivery to prospective customers in a variety of industries including specialty lighting and solar glass for melt tests and other testing. Durtec GmbH has provided halloysite samples to a number of major international corporations for testing in green energy technologies, plastics and polymers, cosmetics and other life sciences applications. Testing by a variety of prospective customers has demonstrated I-Minerals can readily produce and industry leading k-spar product.
Click here to read the i-minerals Inc. (TSXV:IMA) press release
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