ASX ANNOUNCEMENT

19th July 2022

ABN 87 648 183 297

STOCKYARD PROJECT METALLURGICAL UPDATE

METALLURGICAL RESULTS INDICATE REDUCED IRON OXIDE
CONTENT TO 185PPM FE2O3 - SUITABLE FOR HPSS MARKET

Highlights
• Metallurgical Testwork program progressing on composite bulk samples across each silica
sand deposit within the Stockyard Project Mining Lease Application
• Initial test achieved promising results, with key impurity Fe2O3 reduced to 185 ppm resulting
from Heavy Liquid Separation and Attritioning
• The results support the promotion of IND’s High Purity Silica Sand to potential customers

Industrial Minerals Ltd (ASX: IND or the Company) is pleased to provide an update on the Metallurgical
Testwork program for the Stockyard Project. The Company has engaged KeyPointE Pty Ltd (KeyPointE)
to complete a program designed to determine the quality of High Purity Silica Sand that can be
achieved from the Stockyard Project. The samples were subject to a series of tests designed to remove
impurities to achieve a high purity silica sand product.

IND’s Managing Director Jeff Sweet commented,

“The initial results from the sighter testwork completed by KeyPointE have been very positive. To have
reduced iron oxide to 185 ppm Fe2O3 presents an opportunity to access a wider market for our High
Purity Silica Sand. We look forward to seeing the results for all individual deposits within the Mining
Lease application area, with a key aim of the testwork program designed to enable IND to present its
product to potential customers.”
Table 1. Stockyard Project Sighter Testwork Results Summary
Screen at 1mm and Deslime at 75µm + Gravity Separation of Sand Fraction + Attritioning
Stream Mass SiO2 Al2O3 Fe2O3 MgO TiO2 LOI
% % ppm ppm ppm ppm %
>1 mm Oversize 4.47 99.40 452 616 69 1173 0.36
< 75 µm Slimes 10.15 97.90 3033 2222 194 9857 0.37
HLS Sink 0.27 17.54 137367 68268 3814 426366 0.00
Float <75 µm Att Slimes 2.40 99.00 0 0 0 0
Float Att Sand 82.71 99.70 276 185 41 1021 0.11
Total 100.00 99.26 933 593 67 3067 0.14

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Metallurgical Sample Details

An initial ~150kg bulk sample (MET0002) was taken from within the proposed Pit 2 area, located within
the Stockyard Mining Lease Application. The sample was taken from a depth of 1.0 to 1.5 metres which
included some organic material and is considered representative of ROM (run of mine) ore material.
A ~3kg Headfeed sub-sample was split from the bulk sample and provided to KeyPointE for initial
sighter testwork.

Figure 1. Stockyard Project proposed infrastructure layout displaying pit locations and metallurgical sample taken from pit 2

Sighter Testwork

The series of testwork procedures involved were performed sequentially and are listed below:

1. The screening of the ROM headfeed sample at 1 mm to reject and oversize

2. Desliming the <1 mm fraction at 75 microns to reject a slimes fraction
3. A heavy liquid separation (2.9 sg) of the sand fraction (<1 mm >75 µm) to remove a heavy
mineral sink fraction (this step is used as a proxy for gravity separation)
4. The attritioning of the heavy liquid float fraction with water

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Figure 2. Schematic diagram illustrating Stockyard Metallurgical Sighter Testwork procedure

Mineral Analysis

The resulting samples produced at each stage of the process were sent to Intertek Genalysis for
mineral analysis. The >2.9sg sample was tested by XRF to account for the heavy mineral content, while
the remaining samples were tested by ICP/OES.

Results

Results from the initial bulk sample sighter testwork show a potential DSO product with 99.5% SiO2
and 417 ppm Fe2O3. IND will be able to achieve this result by processing the ore through a wet
screening plant and desliming with a cyclone. Modular sand washing plants required for this process
are readily available within Australia.
Table 2. Stockyard Project Sighter Testwork Results – DSO Product
Screened <1mm and Deslime at 75µm – DSO Product
Stream % Mass SiO2 Al2O3 Fe2O3 MgO TiO2 LOI
% ppm ppm ppm ppm %
>1 mm Oversize 4.47 99.40 452 616 69 1173 0.36
< 75 µm Slimes 10.15 97.90 3033 2222 194 9857 0.37
> 75 µm Sand (DSO Product) 85.38 99.50 501 417 185 1896 0.16
Total (Headgrade) 100.00 99.33 756 609 181 2672 0.19

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With the addition of gravity separation (using the heavy liquid separation result as a proxy) and
attritioning, the results show that the key contaminant, Fe2O3, can be reduced to 185 ppm. This is
important as it indicates the high quality of product that IND’s potential customers can achieve.
Table 3. Stockyard Project Sighter Testwork Results – HLS + Attritioning
Screened <1mm and Deslime at 75µm + Gravity Separation of Sand Fraction + Attritioning
Stream Mass SiO2 Al2O3 Fe2O3 MgO TiO2 LOI
% % ppm ppm ppm ppm %
>1 mm Oversize 4.47 99.40 452 616 69 1173 0.36
< 75 µm Slimes 10.15 97.90 3033 2222 194 9857 0.37
HLS Sink 0.27 17.54 137367 68268 3814 426366 0.00
Float <75 µm Att Slimes 2.40 99.00 0 0 0 0
Float Att Sand 82.71 99.70 276 185 41 1021 0.11
Total 100.00 99.26 933 593 67 3067 0.14

Further Testwork

Composite samples have been prepared for the remaining Pits across the Stockyard Mining Lease
application area. KeyPointE has completed the metallurgical testwork program for these composites
and the samples have been submitted for mineral analysis. Once received, the results will be used to
develop a range of Product Specifications for the project.

Next Steps and Upcoming News flow

• Stockyard Mineral Resource estimate nearing completion

• Further metallurgical testwork being completed over other proposed pit areas to assess
variability of DSO product
• DSO Product shipment to potential offtake partners
• Mining Licence Application- key workstreams underway
• Further exploration drilling to test identified targets and expand the currently defined
mineralisation footprint

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
(08) 6270 6316

Website: www.industmin.com

Contact: [email protected]

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Competent Person
The information in this announcement that relates to the metallurgical results 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.

Appendix 1: Table of Results

Table 1 – Metallurgical Sample Location
Sample Easting Northing
MET0002 334,217 6,673,604

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Appendix 2: JORC Tables 1 and 2

JORC Table 1 – Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling • Nature and quality of sampling (e.g. cut channels, • The bulk metallurgical sample was obtained
techniques random chips, or specific specialised industry using a hand shovel
standard measurement tools appropriate to the • Sampling techniques and quality are considered
minerals under investigation, such as downhole appropriate for this style of mineralisation.
gamma sondes, or handheld XRF instruments,
etc). These examples should not be taken as
limiting the broad meaning of sampling.
• Include reference to measures taken to ensure
sample representivity and the appropriate
calibration of any measurement tools or systems
used.
• Aspects of the determination of mineralisation that
are Material to the Public Report.
• In cases where ‘industry standard’ work has been
done this would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay’). In other cases, more
explanation may be required, such as where there
is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation
types (e.g. submarine nodules) may warrant
disclosure of detailed information.
Drilling • Drill type (e.g. core, reverse circulation, open-hole • No Drilling undertaken
techniques hammer, rotary air blast, auger, Bangka, sonic,
etc) and details (e.g. core diameter, triple or
standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is oriented
and if so, by what method, etc).
Drill sample • Method of recording and assessing core and chip • No Drilling undertaken
recovery sample recoveries and results assessed.
• Measures taken to maximise sample recovery and
ensure representative nature of the samples.
• Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of
fine/coarse material.
Logging • Whether core and chip samples have been • No logging undertaken
geologically and geotechnically logged to a level of
detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical
studies.
• Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc)
photography.
• The total length and percentage of the relevant
intersections logged.
Subsampling • If core, whether cut or sawn and whether quarter, • The subsampling technique is described in the
techniques half or all core taken. body of the announcement
and sample • If non-core, whether riffled, tube sampled, rotary • The metallurgical sample size taken is
preparation split, etc and whether sampled wet or dry. appropriate for the sand being targeted.
• For all sample types, the nature, quality and
appropriateness of the sample preparation
technique.
• Quality control procedures adopted for all
subsampling stages to maximise representivity of
samples.

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Criteria JORC Code explanation Commentary

• Measures taken to ensure that the sampling is
representative of the in-situ material collected,
including for instance results for field
duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality of • The nature, quality and appropriateness of the • Bulk samples were submitted to KeyPointE, and
assay data assaying and laboratory procedures used and subsamples sent to Intertek Laboratory in
and whether the technique is considered partial or Maddington, Perth, Western Australia.
laboratory total. o The assay method for multi-element
tests • For geophysical tools, spectrometers, handheld analysis consisted of four-acid digest
XRF instruments, etc, the parameters used in including hydrofluoric, nitric, perchloric and
determining the analysis including instrument hydrochloric acids in Teflon beakers with
make and model, reading times, calibrations inductively coupled plasma (ICP)-optical
factors applied and their derivation, etc. (atomic) emission spectrometry finish.
• Nature of quality control procedures adopted (e.g. Silica is reported by difference.
standards, blanks, duplicates, external laboratory o The assay method for the Heavy Mineral
checks) and whether acceptable levels of fraction consisted of XRF with Nickel
accuracy (i.e. lack of bias) and precision have Crucible Fusion OES Individual Elements.
been established.
Verification of • The verification of significant intersections by • No Significant intersections reported.
sampling and either independent or alternative company
assaying personnel.
• The use of twinned holes.
• Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
• Discuss any adjustment to assay data.
Location of • Accuracy and quality of surveys used to locate drill • The position of the metallurgical sample location
data points holes (collar and downhole surveys), trenches, was determined by a GPS model Garmin GPS
mine workings and other locations used in Mineral Map 64s with an accuracy of 5 m.
Resource estimation.
• Specification of the grid system used. • The Grid system used was GDA2020 Zone 50.
• Quality and adequacy of topographic control.
Data spacing • Data spacing for reporting of Exploration Results. • Bulk metallurgical samples have been collected
and • Whether the data spacing and distribution is across each of the proposed pits at Stockyard,
distribution sufficient to establish the degree of geological and results for these samples will be released as they
grade continuity appropriate for the Mineral come to hand.
Resource and Ore Reserve estimation
procedure(s) and classifications applied.
• Whether sample compositing has been applied.
Orientation of • Whether the orientation of sampling achieves • It is expected that the sand stratum sampled is
data in unbiased sampling of possible structures and the relatively flat dipping and as such is
relation to extent to which this is known, considering the representative of that layer of sediment.
geological deposit type.
structure • If the relationship between the drilling orientation • There is not considered to be any mineralised
and the orientation of key mineralised structures is structures that would cause any sampling bias
considered to have introduced a sampling bias, from the orientation of drilling utilised.
this should be assessed and reported if material.
Sample • The measures taken to ensure sample security. • Metallurgical samples have been bagged and
security removed from site under the care of the contract
senior geologist and field sampling supervisor.
• Metallurgical samples were delivered to
KeypointE Perth.
Audits or • The results of any audits or reviews of sampling • An audit of sampling techniques and data has not
reviews techniques and data. been undertaken.

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JORC Table 1 – Section 2: Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral • Type, reference name/number, location and • The Stockyard project is 100% held by Industrial
tenement and ownership including agreements or material Minerals. The underlying land is held as pastoral
land tenure issues with third parties such as joint ventures, freehold land and IND has entered into an
status partnerships, overriding royalties, native title agreement with the landowner to access and
interests, historical sites, wilderness or national explore the property.
park and environmental settings. • There were no impediments on a licence to operate
• The security of the tenure held at the time of at time of reporting.
reporting along with any known impediments to
obtaining a licence to operate in the area.
Exploration • Acknowledgment and appraisal of exploration • Past exploration by others targeting heavy mineral
done by other by other parties. sands, IND is the first company to explore for silica
parties sands at the project.
Geology • Deposit type, geological setting and style of • Unconsolidated Quaternary coastal sediments,
mineralisation. part of the Perth Basin. Aeolian quartz sand dunes
overlying Pleistocene limestones and paleo-
coastline.
Drill hole • A summary of all information material to the • Exploration Results are not being reported.
information understanding of the exploration results
including a tabulation of the following
information for all Material drillholes:
− easting and northing of the drillhole collar
− elevation or RL (Reduced Level – elevation
above sea level in metres) of the drillhole
collar
− dip and azimuth of the hole
− downhole length and interception depth
− hole length.
• If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent
Person should clearly explain why this is the
case.
Data • In reporting Exploration Results, weighting • No Significant intercepts are being reported.
aggregation averaging techniques, maximum and/or
methods minimum grade truncations (e.g. cutting of high
• No metal equivalents were reported.
grades) and cut-off grades are usually Material
and should be stated.
• Where aggregate intercepts incorporate short
lengths of high-grade results and longer lengths
of low-grade results, the procedure used for
such aggregation should be stated and some
typical examples of such aggregations should
be shown in detail.
• The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship • These relationships are particularly important in • Not applicable.
between the reporting of Exploration Results.
mineralisation • If the geometry of the mineralisation with
widths and respect to the drillhole angle is known, its nature
intercept should be reported.
lengths
• If it is not known and only the downhole lengths
are reported, there should be a clear statement
to this effect (e.g. ‘downhole length, true width
not known’).

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Criteria JORC Code explanation Commentary

Diagrams • Appropriate maps and sections (with scales) • Plan views illustrating drilling completed and
and tabulations of intercepts should be included significant intercepts are included in body of report.
for any significant discovery being reported
These should include, but not be limited to a
plan view of drillhole collar locations and
appropriate sectional views.
Balanced • Where comprehensive reporting of all • All results were included in the body of this report.
reporting Exploration Results is not practicable,
representative reporting of both low and high
grades and/or widths should be practiced to
avoid misleading reporting of Exploration
Results.
Other • Other exploration data, if meaningful and • All information is included in body of report.
substantive material, should be reported including (but not • No substantive exploration data not already
exploration limited to): geological observations; geophysical mentioned in the announcement has been used.
data survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work • The nature and scale of planned further work • Further metallurgical testwork programs are
(e.g. tests for lateral extensions or depth underway to test the variability and repeatability of
extensions or large-scale step-out drilling). metallurgical testwork results for the Stockyard
• Diagrams clearly highlighting the areas of project to date.
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.

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