That wire will work fine.
For mics you need two conductors + shield for ground. You can ground the third conductor with the shield or just snip off the ends of the third conductor and let it be idle.
For balanced interconnects, you could use the third conductor for the ground and tie the shield at the source end so RF drains away from the amplifier stage.
For single ended interconnects, you can do the same thing but use two for signal or snip ends of one and use one for signal and one for ground.
The directional shield design is described in some playback forum threads and there are other references on different sites.