Perth, Jan 30, 2009 AEST (ABN Newswire) - Image Resource NL (ASX:IMA)(PINK:IMREF) is pleased to report that a Memorandum of Understanding (MOU) has been signed with the China Hainan Provincial Bureau of Geological Exploration (HPBGE) regarding its North Perth Basin mineral sands project.
Image has agreed to release composite samples, resource models and scoping study results from its North Perth Basin project to enable HPBGE to further assess these resources and to establish a sound basis on which to engage in discussion with HPBGE about the possible commercialisation of the project.
Established in 1988, HPBGM is a Chinese provincial government organisation with a staff of 1,800 people. There are 16 branches and subsidiary entities engaging in mineral exploration, hydro geological exploration, environmental geological surveys and mineral development aimed at HPBGM becoming an industrial enterprise spanning exploration, development, mining and mineral production.
HPBGE has extensive experience and advanced technology in the exploration, development and processing of mineral sand resources. Since its establishment, HPBGE has completed over 1000 geological projects. Importantly, HPBGE has existing mineral sand mining and processing operations on Hainan Island in China.
The objective of the MOU is to facilitate the formulation and negotiation of possible transactions. Image's scoping study (released 1 December 2008) demonstrated that Image's significant inferred and indicated resources can potentially be exploited:
1. on a standalone basis; or
2. by an established producer(s); or
3. by a combination of the above.
The MOU limits HPBGE's freedom to acquire Image shares, however, it may at any time acquire up to 5% of Image's issued capital. Image considers that the MOU represents a significant step towards the commercialisation of its North Perth Basin resources while keeping open the option of developing the resources on a stand alone basis.
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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