Perth, July 31, 2008 AEST (ABN Newswire) - Image Resources (ASX:IMA)(PINK:IMREF) Announce the Quarterly Report For The Quarter Ended 30 June 2008
HIGHLIGHTS
- Initial resources outlined in the North Perth Basin currently stand at 260 million tonnes containing 6.4 million tonnes of heavy minerals.
- These resources have a high valuable heavy mineral content of 87% and contain:
340,000 tonnes of leucoxene and rutile
4,500,000 tonnes of ilmenite
545,000 tonnes of zircon
390,000 tonnes of garnet
- The resources outlined to date are contained within 60km of defined exploration targets with a further 250km of targets remaining to be drill tested.
- More than 60% of Image's North Perth Basin project area remains to be assessed, with significant upside for further discoveries.
- Image is strategically positioned to take advantage of existing infrastructure (separation plants, synthetic rutile plants and pigment plants) faced with declining local feedstock sources.
- Six North Perth Basin exploration licences were granted, and one additional licence was applied for, bringing Image's tenement holding to 2,349sq km (including tenements targeting phosphate).
NORTH PERTH BASIN MINERAL SANDS
Activities during the quarter comprised completion of the initial resource models, commencement of a scoping study, assessment of drilling results completed during the previous quarters and negotiations.
INITIAL RESOURCES
As reported during the quarter (ASX releases of 8 May 2008 and 14 May 2008) Image completed its initial heavy mineral (HM) resource estimates on those parts of the North Perth Basin project where substantial drilling had been completed. The resources comprise Indicated and Inferred Resources (JORC standard) which are divided into two groups; those shallow deposits amenable to dry mining and those more suited to dredging.
The new surface resources amenable to dry mining (load and haul) are situated at Cooljarloo and Cooljarloo North and are summarised in Table 1 (2.5% HM cut off). Image is encouraged by the grade and mineral assemblage of these resources which compare favourably with other dry mining operations in Australia. In particular the average grade of 5.5% HM in its initial resources compare favourably with the average grades of about 4% HM mineral at the adjacent Cooljarloo dry mining operation.
The dredge resources are situated at Bidaminna and at the thicker sand deposits at Cooljarloo and are summarised in Table 2 (1% HM cut off). Dredges (floating dredge and concentrator) typically have significantly lower unit operating costs than dry mining and can economically mine much lower grades. By way of comparison, the average grades mined at the Tiwest dredge operation at Cooljarloo are typically around 2.2% HM and Consolidated Rutile's Yarraman dredge operation at Stradbroke Island profitably mines grades between 0.7% and 0.9% HM.
The initial global heavy mineral resources currently stand at 260 million tonnes containing 6.4 million tonnes of heavy minerals and further subdivided as shown in Table 3. Figure 1 shows the locations of the resources identified to date.
The resource estimates (except for the historical Bidaminna resources) are based on air core drilling carried out by Image Resources plus historical air core drilling using a 1m or 2m sample interval with processing of samples at Western GeoLabs in Perth using a heavy liquid separation method to produce a heavy mineral concentrate.
Indicated Resources were estimated using drill spacing in the range from 10m x 100m up to 60m x 200m. Inferred Resources were estimated using drill spacing in the range from 20m x 200m up to 80m x 800m. Block models of the resources were constructed using an inverse distance squared method of grade interpolation. In total, Image processed 29,949 samples and utilised results from approximately 18,000 historical samples to define the resources.
Overall, the defined resources contain a total of:
340,000 tonnes of leucoxene and rutile
4,500,000 tonnes of ilmenite
545,000 tonnes of zircon
390,000 tonnes of garnet.
Most of the ilmenite appears to be suitable for chloride route processing and synthetic rutile production (precise amounts yet to be determined).
U308 and ThO2 levels aggregate to less than 175 ppm in composite heavy mineral samples produced from the drilling completed to date, well within normal limits for transport of heavy mineral concentrates.
Image holds (or is entitled to hold) granted exploration licences over all the resources with the exception of part of the Bidaminna resource which is held under exploration licence application. Access and compensation agreements have been signed on the Hyperion and Helene deposits. The Atlas and Bidaminna resources occur on crown land or vacant crown land and are subject to normal environmental permitting for uncleared bush. Parts of Telesto, Titan and Calypso are yet to have access and compensation agreements finalised.
SCOPING STUDY
Image has commissioned a scoping study to identify the potential mining options for the North Perth Basin resources defined so far. The study will include both dry mining and dredging options and is anticipated to be completed by the end of the September quarter.
COOLJARLOO NORTH
During the quarter, 1714 laboratory processing results were received, all from Cooljarloo North prospects at Helene, Hyperion and Target 7. The results will be used in a resource update later in the year. The results are, on average, 15% greater than the visually estimated mineral content.
TENEMENT STATUS
Six exploration licence applications were granted: E70/2844, 3068, 3086, 3092, 3093 and 3328. A new application, E70/3494 was made near Gingin. The total tenement area held by Image Resources in the North Perth Basin now totals 2,349sq km. Drilling of HM exploration targets already outlined on the recently granted tenements will commence when land access agreements and the necessary permitting has been completed.
PHOSPHATE PROJECT (Image 100%)
A study of open file information has indicated that the favourable stratigraphy hosting the Dandaragan Trough phosphate sands are likely to extend for a strike length of more than 50km within Image's Exploration tenements (ASX release 16 June 2008).
Reported outcrops of phosphate sand on Image's tenements, together with results from water bores and previous exploration drilling in the Dandaragan Trough suggests potential for extensive, shallow phosphate bearing sediments within Image's tenements. In particular the favourable stratigraphy is expected to be closest to the surface or sub-out cropping along the western margin of the Upper Cretaceous sediments where they are often obscured by shallow alluvium or laterite.
Upon grant of the tenements and following permitting and land access agreements Image plans to carry out a programme of scout air core drilling within the prospective parts of its tenements. The initial phase of the drilling is anticipated to commence in the September quarter.
EUCLA BASIN
A heritage survey over the Serpentine Lakes area (E69/2033, 2034 and 2035) was completed during the quarter. No areas of cultural significance were found to impact on the prospective area and access clearing will begin in August. Drilling is expected to commence in mid-September along strike from the Cyclone heavy mineral discovery.
The Forrest Lakes project area has been reduced in size from 742sq km to 100sq km to exclude the Great Victoria Desert Nature Reserve. Three of the four tenement applications were withdrawn and the last was amended.
Image's other tenements in the Eucla basin are awaiting grant, including South Australian applications 2004/921 and 2004/265, (the latter in joint venture with Mithril Resources), and E69/2434 in WA. Image's tenement holding within the Eucla Basin now totals 2,580sq km.
WOODLINE JV (Image 100%, diluting)
Geochemical sampling adjacent to one of the three Image tenements comprising this Joint venture (E28/1328) has outlined a sizeable anomaly (termed Crysippus) which appears to trend into the Image tenement. Drilling of this trend together with geochemical anomalies at the Zeno and Epicuris prospects are scheduled to be drilled in the September quarter.
The information in this report that relates to exploration results is based on information compiled by Scott Carruthers BSc,MSc. Scott Carruthers is a full time employee of Image Resources NL. The information in this report that relates to mineral resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC MAusIMM employed by Widenbar & Associates who are consultants to the Company. Messrs Carruthers and Widenbar have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Messrs Carruthers and Widenbar consent to the inclusion of this information in the form and context in which it appears in this report.
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused mining company operating an open-cut mine and ore processing facility at its 100%-owned, high-grade, zircon-rich Boonanarring Project, located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring is arguably one of the highest grade, zircon-rich mineral sands projects in Australia. Construction and project commissioning were completed on-time and on-budget in 2018. Production commenced in December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation.
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