International Minerals Corporation Pty Limited (Imcor) has completed a $340,000 Conceptual Study for a significant high quality silica-magnesium project near Barraba in New South Wales. The results of the study reveal sound financial indicators based on the production of 22,500tpa of magnesium and 35,200tpa of high value silica products. The project will be situated amongst a measured stockpile of existing tailings and waste rock that has been independently evaluated to have a high content of silicon dioxide and magnesium oxide (estimated at a total of 77%) from which Imcor intends to produce high value silica products and magnesium.

By converting tailings and waste dump materials into high value products, Imcor, using proven existing low cost technologies, will create a major, highly profitable, long-term resource project with the necessary support of the local and state governments and environmental agencies.

As Imcor will have access to significant proven stockpiles of resource it will not be required to mine. These stockpiles are made up of above ground tailings and mine waste, and the tailings stockpiles alone are sufficient for a project life of well over 100 years on the basis of forecast throughput. The tailings will not require crushing.

Both the quantity and the composition of the stockpile of tailings are known with a high degree of confidence thereby eliminating the risk normally associated with the determination of mining reserves.

Imcor has access to proven Russian technology and will use processes that are already operating successfully elsewhere in the world for the production of value added silica products and for magnesium.

Imcor will access power from the NSW grid that is relatively low cost power by world standards

Supporting infrastructure and workforce is available in nearby townships

These factors should enable Imcor to become an efficient producer of magnesium with a cost structure in the lowest quartile of international producers. The magnesium chloride feed to magnesium recovery is obtained as a by-product of the silica leaching process at effectively no cost

The revenue from the sale of the silica products is estimated to be almost double the revenue from the sale of magnesium metal

The combination of low cost relatively small scale magnesium production with the production of high value industrial silica products with effectively no raw material cost provides the basis of the long-term financial viability of the Project

Given the quantity and quality of known reserves the Project could be expanded significantly should international demand for the products support such expansion

Pacific Magnesium Limited, an Imcor shareholder, expended more than $2 million investigating the resource for its magnesium potential, including test work in Russia which successfully produced magnesium metal from the tailings. The results of Pacific Magnesium's work have been made available to Imcor and incorporated into the Conceptual Study.

Imcor is currently seeking funding for further detailed test work in Russia and a Feasibility Study to be completed in 2006.