Applied Minerals, Inc. (OTCBB:AMNL), a leading global producer of Halloysite Clay from its Dragon Mine property in Utah, is pleased to announce the release of the following statement from its consulting geologist, Dr. Ian Wilson, regarding the results of certain drilling activities:
UPDATE ON HALLOYSITE RESOURCES AT DRAGON MINE, UTAH
Twenty-six boreholes totalling 4,770ft have been drilled at Dragon Mine in an area that was not previously mined or explored by the company.
The core has been taken and characterised for its mineralogical, chemical and physical properties.
The detailed drilling, with average spacing of 45 ft from one borehole to another, covering an area of 3.40 acres, contains a Measured Resource of 415,000 tons upon processing.
Average clay content from the area is 84% with 61% Halloysite, 17% Kaolinite and 6% illite-smectite.
Some of the Halloysite values are as high as 100%.
The Company has commenced mining to an area 40ft from the surface that contains over 2,000 tons of 93% Halloysite.
This clay will be mined and processed to generate a higher value product grade for customers.
It has been determined that the current dry milling plant on site can be utilized for the processing of this material due to its purity.
Any material requiring wet processing will be carried out at KaMin LLC.'s processing facilities in Georgia.
A further one acre is being drilled and evaluated and to date contains an Inferred Resource of 150,000 tons with Halloysite values up to 57.6% and Kaolinite up to 58.9% with an average of 48.4% Halloysite and 51.6% Kaolinite.
Further boreholes will be carried out in the near future.
To date, a Measured Resource of 415,000 tons and an Inferred Resource of 150,000 tons, totalling 565,000 tons, have been identified in this area.
In light of these results, an additional 15 boreholes have been proposed, and are in progress in the immediate vicinity.
Once all boreholes have been drilled and evaluated, an overall Measured Resource statement for the whole 4.4 acres will be prepared in accordance with JORC Code.
This statement is presented in accordance with the JORC Code.
About Applied Minerals, Inc.
| Dr Ian Wilson
| Consultant Geologist
| BSc, MSc, PhD, MIMMM, C.Eng, C Geol, FGS, CSci
| May 17 th 2010
Applied Minerals, Inc. is a leading global producer of Halloysite Clay from its wholly- owned Dragon Mine Property in Utah. Halloysite is an aluminosilicate clay that forms naturally occurring nanotubes. In addition to serving the traditional Halloysite markets for use in technical ceramics and catalytic applications, the Company has targeted niche applications that it feels will benefit from the tubular morphology of its Halloysite. These applications include, but are not limited to, carriers of active ingredients in paints, coatings and building materials, agricultural applications and high-performance fillers in plastic composites.