Image Resources NL (ASX:IMA) Quarterly Report For The Period Ended 31 December 2009
Perth, Feb 1, 2010 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (PINK:IMREF) is pleased to provide a Quarterly Activities Report For The Period Ended 31 December 2009.
NORTH PERTH BASIN
COOLJARLOO (Image 70%)
Following additional detailed ground magnetic surveys in the south eastern part of the Cooljarloo heavy mineral project (Image 70%) a revised interpretation has more clearly defined drilling targets along strike from existing defined resources. The potential to increase these resources is substantial because the total length of the target strand lines is now 6.8km compared to the 1.1km strike length of the known mineralisation within the existing resources.
This major target (previously referred to as the "new high grade strand" in ASX release 12 April 2007) is now called Rhea. The adjacent targets to the west of Rhea are the northwest extension of Tiwest's Middle Strand resource and will retain that name. The drill hole results from this area are summarised in the 12 April 2007 ASX release.
A 6,000m drilling programme on 100m line spacings is proposed on those parts of the target strands currently accessible. Permitting for this drilling is in progress. This drill density should be adequate to define measured resources within the mineralised strands. In addition, four new channel targets are planned to be tested in the proposed programme, following up previous drilling on known channels where thick intersections up to 72m @1.6% heavy minerals occur.
The strand targets form part of the group of interpreted strand lines that have been magnetically mapped in detail and which have associated mineralisation indicated from previous drilling by Image Resources or other explorers.
Infill drilling has commenced at Image's high grade Atlas deposit at Cooljarloo. The drilling is designed to upgrade the resource to measured status by increasing the drillhole density from 200m by 20m to 100m by 20m. Approximately 400 holes will be drilled, with completion of drilling expected by mid February.
The drilling is focussed on the high grade mineralisation, including high grades of zircon of up to 20.8% of the heavy minerals, within unallocated crown land in the southern part of the deposit. The identification of this high grade zone has resulted in a significant resource upgrade of 260,000t of heavy minerals, increasing the contained zircon to 102,000t (ASX release 10 August 2009). Given the current price of zircon of US$900/t and the good zircon grades, any further resource upgrades have the potential to add significant value to Atlas.
Mineralogical composite samples from Atlas have been prepared and sent to partieswho have signed memoranda of understanding for analysis. In addition, Image is conducting its own mineralogical analyses. These tests will complement the work completed to date (ASX release 27 May 2009). When complete, this data will be used to update the resource estimate and to further the studies Image is undertaking on the commercialisation of its North Perth Basin resources.
Atlas Resource Estimate Heavy Minerals and Mineralisation----------------------------------------------------------Category Cut Off Grade Tonnes Grade Slimes% t HM %HM %HM ----------------------------------------------------------Indicated 2.5 14,600,000 6.2 15.6 910,000----------------------------------------------------------Atlas Resource Estimate Heavy Mineral Suite---------------------------------------------------Category Ilmenite Leucoxene+ Zircon Other Rutile---------------------------------------------------Inferred 555,000t 66,000t 102,000t 186,000tInferred 61.0% 7.3% 11.2% 20.4%---------------------------------------------------
GINGIN
A 52-hole, 1,525m aircore drilling programme was completed during the quarter. The
holes tested magnetic targets along strike from Iluka's Gingin mine. 298 samples
were submitted for laboratory processing.
Gingin Aircore Drilling Results----------------------------------------------------Hole MGA MGA From To Interval %Number East North m m m HM----------------------------------------------------GG166 393887 6532420 18 20 2 2.1GG168 393814 6532398 6 10 4 2.9GG173 393602 6532702 6 8 2 3.6GG178 393838 6531957 18 20 2 2.3GG183 394214 6531821 14 16 2 2.2GG195 393558 6531604 20 24 4 2.2GG196 393523 6531599 18 24 6 3.1GG197 393484 6531602 18 20 2 2.3GG201 393597 6531360 22 24 2 2.1GG202 393667 6531324 22 26 4 3.0GG211 394294 6531076 12 14 2 2.9GG217 393554 6531599 20 24 4 3.3----------------------------------------------------
During the quarter Image appointed a team of experienced management consultants and engineers to assist in advancing the commercialisation of Image's heavy mineral assets in the North Perth Basin. Image's current key objective is to build the value of its North Perth Basin assets through expansion of its resource base and the determination of the optimal path for the development and mining of these resources in order for Image to liberate that value to its shareholders, whether by mining the resources itself or through some other transaction.
EUCLA BASIN (Image 100%)
As previously reported, Image Resources completed a 402-hole, 16,308m aircore drilling programme at Serpentine Lakes in the Eucla Basin, following up its earlier drilling which intersected significant thicknesses of zircon-rich heavy minerals. Zircon comprises up to 45% of the HM assemblage (ASX releases 11 February 2009 and 27 October 2009) and is of great significance because it is the highest value mineral normally found in heavy mineral deposits (approximately 10 times the value of ilmenite).
In addition, the material has a very low slime content (range1.8-7.6%, average 4.2%).
Low slime content is important because the material is easier to treat and operating costs of mining are reduced.
Results for all samples selected for laboratory processing have now been received.
Most of the more recent sample results, are from areas above and adjacent to the higher grade core of the mineralisation. As a result, most of the new intersections are from holes that were reported previously, but which now have greater thicknesses. Within the Cyclone Extended, the average thickness of mineralisation has increased from 8m to 10m representing an overall increase in mineralisation thickness of 25%. As most of the increased thickness is in the upper part of the mineralisation, it is likely that the overburden ratio will reduce.
Two distinct zones of mineralisation are recognised within Cyclone Extended which abuts Diatreme Resources' Cyclone resource to the north. Based on the drilling completed to date, the main body of the western zone is some 2km long and 800m wide, with a 200m-wide extension to the south for a further 750m. The eastern zone is about 800m wide, remains open to the south and could extend for up to 4.5km in length within the Image tenements. Additional mineralisation has been identified about 1.5km east of the eastern zone that warrants more drilling to define its extent.
These new results continue to highlight that Cyclone Extended is a potentially economic zircon discovery, particularly when considered with Diatreme's contiguous Cyclone deposit. The strike length of the two deposits extends for some 10km, which is a significant size in a global context and which compares favourably with Iluka's Jacinth-Ambrosia deposits further east in the Eucla Basin.
As previously reported, some 20km east of Cyclone Extended further HM mineralisation has been identified at the Monsoon prospect.
Now that sample processing is complete, mineral assemblage studies and resource estimation have commenced. It is anticipated that the grades and continuity of mineralisation indicated from the drilling to date will allow the estimation of inferred resources for Cyclone Extended and Monsoon. Following this it is anticipated that a scoping study will be carried out to assess the economic potential of the project.
Further drilling may then be undertaken to outline the full extent of the mineralisation and to investigate the mineralisation potential of the paleo-shorelines between Cyclone Extended and Monsoon where a 10km-long target area has been identified.
Image Resources continues to be most encouraged by the drilling results received to date which point to potential for extensive zircon-rich mineralisation with significant high titanium leucoxene and rutile credits.
For the complete Image Resources Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62187-ASX-IMA-478318.pdf
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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