Indicator Minerals Inc.
TSX VENTURE : IME

Indicator Minerals Inc.

October 25, 2005 13:49 ET

Indicator Completes 2005 Nunavut Exploration Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 25, 2005) - Indicator Minerals Inc. (TSX VENTURE:IME) announced today that it has completed its 2005 exploration program on its properties in eastern Nunavut. The following is a summary of this year's activities.

Franklin District Projects

The highlight of this season's field program was the discovery of multiple kimberlite boulder trains on two of IME's key properties (Barrow and Darby) located in the newly identified Franklin Diamond District. These projects are Indicator's most advanced and are scheduled for drilling in 2006.

Barrow

Barrow (80% IME) is comprised of approximately 110,000 acres of mineral claims located 15km south of the community of Kugaaruk in the Kitikmeot Region of the Nunavut Territory. Kimberlite indicator minerals with diamond inclusion (DI) chemistry have been recovered in till samples on the property and the interpretation of airborne geophysical data has identified high priority targets up-ice from these mineral anomalies.

Kimberlite float was discovered on the Barrow Project this season while following up a geophysical target. A 6.7kg sample of the material was sent to an independent laboratory for rock type classification and indicator mineral analysis. A macrodiamond was recovered from the float during the extraction of indicator minerals, a process not specifically designed for the recovery of diamond. Mineral chemistry results from the float occurrence are expected within the next few weeks. The program on Barrow included the collection of 233 heavy mineral samples, prospecting and ground geophysics.

Darby

The Darby Project (80% IME), consists of 77 mineral claims covering more than 197,000 acres, and is located approximately 120 km southwest of the hamlet of Kugaaruk in Nunavut Territory. Kimberlite indicator minerals with DI chemistry were recovered from samples that are isolated to an area of the project where there is apparent up-ice closure.

Over the course of the 2005 summer program, several kimberlite float occurrences, including one which yielded a 3kg peridotitic mantle nodule, were identified in three distinct trains located within the central portion of the Darby claim block. Samples of kimberlite float were collected and sent to Mineral Services for petrographic classification and analysis of the mineral chemistry. The program on Darby included more than 2200 line-km of high-definition airborne geophysical surveying, 211 heavy mineral samples, prospecting and ground geophysics.


Grassroots Projects

IME has several projects at various stages of grassroots exploration. The following is a summary of the regional work performed on these projects with emphasis on those projects where kimberlite indicator minerals with compelling chemistry have been recovered.

Sanagaak

The Sanagaak Project (80% IME) consists of approximately 1.1 million acres of prospecting permits located on the Boothia Peninsula, northwest of the community of Taloyoak, Nunavut. Kimberlite indicator minerals, some with DI chemistry, were recovered in five spatially separate areas on the property from heavy mineral samples collected in 2004. During the 2005 summer program 99 heavy mineral samples were collected to follow up the anomalous samples. Results from this year's sampling will be used to position airborne geophysical surveys designed to locate the source of the kimberlite indicator minerals.

Borden

The Borden Project is located on western Baffin Island and is comprised of more than 700,000 acres of prospecting permits. Heavy mineral samples collected in 2004 yielded kimberlite indicator minerals in one area of the property. 30 heavy mineral samples were collected in an effort to identify the source area(s) for these indicator minerals. The Borden Project is part of an option agreement between Committee Bay Resources (CBR: TSX-V) and IME, whereby Indicator can earn up to a 70% interest in the diamond rights to Committee Bay's 3 million acre land package in Nunavut.

Baumann

The Baumann Project (80% IME) is comprised of approximately 2.8 million acres of Prospecting Permits on Ellesmere Island. Regional heavy mineral sampling conducted on the project in 2004 by the Hunter Exploration Group identified kimberlite indicator minerals with DI chemistry. In March 2005 Stornoway Diamond Corporation (SWY: TSX-V) optioned the project and can earn a 41% interest by spending $1.0 million by 31st December, 2009. During the summer field season, Stornoway collected 123 heavy mineral samples to follow up the high interest kimberlite indicator mineral chemistry.

Other Projects

IME conducted regional sampling on its other grassroots projects located in geologically favourable terrains. A total of 541 heavy mineral samples were collected on these projects in an effort to evaluate their prospectivity for diamonds. Results from these samples will be used to guide follow up work in 2006.

Indicator Minerals Inc. (TSXV: IME) is a well financed, Canadian diamond exploration company focused on the discovery of economic diamond deposits. The Company has one of the most experienced technical teams in Canada and is committed to the efficient and systematic evaluation of its projects. Indicator is currently exploring more than 11 million acres of targeted ground in the Canadian Eastern Arctic and Botswana. The Company also has an exclusive exploration agreement with Hunter Exploration.

Stock Options

The Company announced the granting of 1,200,000 stock options as of October 24, 2005 at an exercise price of $0.32. 700,000 of these options are been granted to directors and officers of the Company with the remaining 500,000 to consultants.

There is a map available on CCNMatthews' website at:

http://www.ccnmatthews.com/docs/1025IMEmap.pdf

On behalf of the Board

Indicator Minerals Inc.

/s/"Bruce Counts" P.Geoph.

President & CEO

IME: TSX-V 05-24

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • Indicator Minerals Inc.
    Bernie Kennedy
    Investor Relations Manager
    1-888-331-2269 or (604) 331-2269
    Website: www.indicatorminerals.com