Preliminary Works Commence at Atlas
Perth, June 11, 2024 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (I5R:FRA) is pleased to announce the commencement of minor or preliminary works ("Preliminary Works") activities for its 100%-owned Atlas mineral sands project ("Atlas") located 170km north of Perth in the North Perth Basin.
The Board of Directors has approved continuing with budgeted expenditures for permitted Preliminary Works for the Atlas project development. Preliminary Works include, but are not limited to, construction of the Atlas accommodation camp and deconstruction of the wet concentration plant ("WCP") at Boonanarring in preparation for transport to Atlas.
The Board remains committed to the Atlas development based on (1) positive project economics; (2) significant capital expenditure having already been made for the development of Atlas; (3) the absence of a superior project development option within the same time frame, and (4) the funding of Atlas on-ground construction from cash reserves.
On-ground construction of civils, erection of processing equipment, mining box cut and supporting infrastructure at Atlas are scheduled to commence in Q3 2024 following receipt of secondary approvals which includes Works Approval, Water Abstraction Licence, Mining Proposal and Management Plan, as well as Commonwealth approval under the EPBC Act.
Managing Director and CEO Mr Patrick Mutz commented:
"We continue to advance pre-development activities for Atlas, and it is gratifying to be able to see the light at the end of the tunnel leading to the commencement of on-ground construction activities.
We have an aggressive construction schedule with ambitions for first HMC production late in Q4 2024 or early Q1 2025, leading to first revenue in Q1 2025."
Construction of the accommodation camp at Atlas is permitted under the EPA's 'Notice of Decision to Consent to Minor or Preliminary Works' received in June 2023. Construction commenced in Q2 2024, prior to the 22 May 2024 receipt of Ministerial approval under Part IV of the Environmental Protection Act. The camp is being constructed on Image-owned private land, under an approved development application with the local Shire. Deconstruction of the Boonanarring WCP and associated equipment is scheduled to commence in June 2024.
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused miner and supplier of critical minerals titanium dioxide, zircon and monazite containing rare earth elements for sale into global markets. The Company has a demonstrated track record of successful project development and operations at its Boonanarring project located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring was a high-grade, high-zircon, low capital cost mine development that was constructed on-time and on-budget in CY2018 and then ramped up to name plate capacity in the second month of operation and went on to operate profitably through Q3 2023. Debt for the project was paid off early in February 2021 and the Company paid dividends to shareholders in April 2021 and April 2022.
Image completed critical construction of the Atlas project in January 2025 and started commissioning and achieved first HMC production in February 2025 and will be ramping up production and revenue from Atlas in Q2 CY2025.
Chapter 1 operating strategy for Image involved the transition from advanced explorer to active miner in CY2018, operating a single mine and producing a single product (HMC) sold into a single jurisdiction (China). Chapter 2 strategy (post Atlas) will focus on the Company's growth and sustainability ambitions which includes the operation of multiple mines in parallel, producing multiple products (separating HMC), and selling into a global market.
The Company is also investigating a significant value adding step of upgrading its ilmenite to synthetic rutile using a lower GHG emissions, innovative process which Image has provisionally patented, and aims to demonstrate the technical and economic feasibility of this novel process in CY2025-26.
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