i-minerals inc.

i-minerals inc.

August 31, 2010 09:30 ET

i-minerals Completes Infill Drilling of Halloysite-Kaolinite Bearing Primary Clay at WBL; Second Zone of Primary Clay Confirmed on Adjacent Ridge

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2010) - i-minerals inc. (TSX VENTURE:IMA)(PINK SHEETS:IMAHF) has completed a 10 hole drilling program, totaling approximately 1200 feet, in the primary clay deposits that include the WBL Pit area. All holes intersected primary clay with thicknesses as much as 124 feet. The purpose of the program was to build upon prior results where primary clay was intersected over a very large area by tightening up the drilling in the most prospective areas such that the first resource calculation can be undertaken.

Half of the holes completed as part of the 2010 program were in the immediate vicinity of an old pit that had been the subject of historic mining efforts, the WBL Pit area. The other five holes were drilled in an adjacent ridge, referred to as Middle Ridge. During prior mining the composition of the primary clays was not well understood as the potassium feldspar and quartz fraction was wasted and no effort was made to differentiate the kaolinite and the halloysite. As noted in the Company's press release of August 4, 2010, i-minerals has made significant progress in separating and recovering these minerals.

The five holes completed in the WBL Pit area were generally about 200 feet apart resulting in an area of about 30 acres being tested by the 2010 and prior drill programs in this area. The average thickness of primary clay encountered was 52 feet with the thickest intercept being 73 feet. In the five holes drilled on Middle Ridge, the average thickness was 72 feet with a maximum intercept of 124 feet, over a prospective area of about 63 acres. The narrowest intercept was only eight feet when one hole encountered a narrow zone of primary clay prior to entering a vertical basaltic dyke where it remained for the balance of the hole. 

Whole rock geochemistry results have been received and are viewed as very encouraging, but results from clay separations to determine kaolinite versus halloysite concentrations are ongoing. Once the complete clay characterization results have been received i-minerals will undertake a resource calculation that will shortly thereafter be folded into a Preliminary Economic Analysis (PEA) to assess the potential of one or two of several primary clay deposits located on the property.

"The 2010 and prior drilling programs have done much to prove our geological model of the areas of primary clay deposits," stated Lamar Long, Exploration Manager of i-minerals inc. "This drilling has identified significant volumes of primary clay, while our metallurgical work has demonstrated we can separate and recover the various minerals. We will incorporate this work into a PEA to assess the economic viability of the deposits as we believe the primary clay deposits on our Helmer-Bovill property have the potential to develop into one of the largest domestic sources of halloysite with significant co-product value from the kaolin, quartz and k-spar."

A. Lamar Long, CPG, is the Qualified Person ("QP") for the Helmer-Bovill project under NI 43-101 standards. He oversees the quality control and quality assurance program and the selection and preparation of all samples for metallurgical analysis and reviews all analytical results prior to public disclosure.

i-minerals inc.

Roger Kauffman, President & CEO

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: changes in the world wide price of mineral market conditions, risks inherent in mineral exploration, risk associated with development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additional capital.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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