Indicator Minerals Inc.

Indicator Minerals Inc.

October 27, 2006 09:30 ET

Indicator Minerals Reports Initial Diamond Results from Darby

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 27, 2006) - Indicator Minerals Inc. (TSX VENTURE:IME) announced today that it has received diamond results from the first two holes drilled into the Iceberg kimberlite located on the Darby Project. A total of 24 diamonds, including 3 macro-diamonds, were recovered from 462 kilograms of kimberlite. Results from four other kimberlites drilled on the property this year are expected by the end of November.

The 462kg sample from Iceberg was submitted to SRC Geoanalytical Laboratories for micro-diamond analysis using caustic fusion. A total of 21 micro-diamonds and three macro-diamonds (defined as greater than or equal to 0.50mm in 2 dimensions) were recovered (see table below). The three largest diamonds measure as follows: 1.22mm x 0.86mm x 0.78mm, 1.22mm x 0.96mm x 0.52mm and 1.10mm x 0.90mm x 0.90 mm.

Sample 0.075mm 0.106mm 0.150mm 0.212mm 0.300mm 0.425mm 0.600mm Total
Diamonds(i) 3 4 6 6 2 0 3 24
(i) As reported by Saskatchewan Research Council

"We remain enthusiastic about the Darby Project," says Bruce Counts, President and CEO of Indicator Minerals. "We will be releasing more results later this year from the Prince, Stealth, Inferno and Skyy kimberlites which have been submitted for diamond analysis."

Drilling on Darby was confined to approximately 10% of the property where airborne geophysical data had been collected in 2005. Airborne geophysical coverage was extended to 40% of the property this year and 23 high-confidence targets remain untested within the area surveyed. Prospecting on the property has identified 95 float occurrences, representing several visually distinct types of kimberlite.

Mr. Counts said the data indicate that there are many more kimberlites on the property and that an aggressive exploration campaign in 2007 is warranted. Plans for Darby in 2007 include the analysis of select kimberlite float occurrences, completing airborne geophysical coverage of the property and drill testing a minimum of ten new targets.

The Darby Project includes more than 400,000 acres of mineral claims and prospecting permits and is located approximately 120 kilometres southwest of the community of Kugaaruk in Nunavut Territory. The project is currently under option to Teck Cominco Limited, which can earn a 51% interest by spending $14 million over four years. The Hunter Exploration Group has a 20% interest in the project. Indicator Minerals is operating the project at the request of Teck Cominco under a service agreement that is renewable on an annual basis.

The technical content of this news release has been reviewed by Bruce Counts, P.Geoph., a qualified person for the purposes of National Instrument 43-101.

Indicator Minerals Inc. is a Canadian exploration company focused on the discovery of economic diamond deposits. Founded in 2004, the company has assembled a highly qualified technical team, experienced in worldwide diamond exploration. Indicator is exploring more than six million acres of targeted ground in the Canadian arctic and has two key projects in the Franklin District of Nunavut: Darby and Barrow. Indicator's management has positioned the company to be a sophisticated player in both Canadian and international diamond exploration by forming strategic partnerships, acquiring highly prospective properties and conducting systematic and efficient exploration programs.

On behalf of the Board

Indicator Minerals Inc.

Bruce Counts, P.Geoph., President & CEO

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.
    Bruce Counts
    President & CEO
    1-877-331-4605 or (604) 331-4605
    (604) 331-4654 (FAX)