Industrial Minerals Announces First 1,000 Tons of High-Quality Chromite

COOS BAY, Ore., Aug. 29, 2011 /PRNewswire/ -- Industrial Minerals ("IMC") (OTCQX: ILMCY) (ASX: IDM), a minerals processing company focused on developing the Southern Oregon Mineral Sands Project, announced today that it has processed and shipped the first 1,000 tons of its high-quality chromite to North American and European customers from its Coos Bay processing facility. The extraction and processing is undertaken by IMC's wholly owned subsidiary, Oregon Resources Corp. (ORC), and is the only chromite sand operation in the U.S.

Principal customers for SpheriChrome™ include Westmont, IL-based HA International, and German headquartered Possehl-Erzkontor.  SpheriChrome is a zircon substitute for the foundry and specialty casting market and commands premium pricing over conventional South African foundry grade chromite, noted Philip Garratt, chief executive officer of Industrial Minerals Corp.

"Our first shipments of SpheriChrome mark an important milestone for Industrial Minerals for a variety of reasons. Not only do they represent initial revenue, but also enable an increasing number of foundries to experience the value added benefits of SpheriChrome such as reduction of chemical binders and gas emissions coupled with quality finishes in castings which are akin or better than what can be achieved in using zircon sand," Garratt said. "These shipments also represent the culmination of years of planning and preparation and we look forward to continuing to provide a stable future for our employees and adding value to the community while demonstrating to the industrial world the value of this truly unique chromite product."

Chromite is used by iron and steel foundries worldwide and is primarily sourced from mines in South Africa. The unique SpheriChrome product found in the Coos Bay area is unlike any other chromite sand due to its natural attributes of roundness, narrow particle size and cleanness. When used in the creation of quality castings it enables foundries to achieve a casting finish superior to other chromite sand.  

When working at full capacity in the coming months, the Coos Bay project is expected to produce 95,000 tons of chromite a year, along with smaller quantities of hi-iron ilmenite, garnet and zircon.

SpheriChrome was officially launched at the 12th International Foundry Trade Fair (GIFA) in Dusseldorf, Germany June 28-July 2, 2011.

About Industrial Minerals Corporation

Industrial Minerals Corporation Ltd, through its wholly-owned subsidiary Oregon Resources Corporation, is developing the 2,600-acre Southern Oregon Mineral Sands Project for heavy minerals near Coos Bay, Oregon. Plant commissioning is underway and producing a suite of heavy minerals such as zircon, ilmenite and garnet with the principal product being a unique premium grade chromite called SpheriChrome™, destined for the international foundry markets.

For more information, visit | www.imcl.com.au | www.oregonresources.net

Contacts:  

Industrial Minerals Corporation
Scott Mison
www.industrialmineralscorp.com.au

Allen & Caron Inc
Rudy Barrio (Investors)
[email protected]
+1 212 691 8087

Len Hall (Media)
[email protected]
+1 949 4744300

SOURCE Industrial Minerals