Perth, Oct 13, 2008 AEST (ABN Newswire) - As previously announced (June 2008 quarterly report), Image Resources NL (ASX:IMA)(PINK:IMREF) is carrying out a scoping study on the company’s existing Indicated and Inferred Resources totaling 6.4 million tonnes of heavy minerals in the North Perth Basin. Mining industry consultants have been engaged to identify potential mining options for the resources, with a brief to address both dry mining and dredging methods.
The scoping study was scheduled to be completed before now but has been delayed by difficulties in obtaining verifiable up to date commodity pricing information and by recent exchange rate fluctuations necessitating changes to economic models. These changes are anticipated to have a significant overall positive impact on the project economics.
Preliminary results from the study have been encouraging and highlight the Atlas resource as very promising and warranting infill drilling to bring it to Indicated Resource status. Drilling to achieve this objective is expected to commence in the December quarter.
The study also emphasises the economic significance of Image's high-TiO2 ilmenite (SR ilmenite) which is suitable as feed for synthetic rutile(SR) production. There are five SR ilmenite processing plants in the mid west and south west of Western Australia, which produce 86% of the world's synthetic rutile. Further mineralogical and chemical test work will be carried out on bulk samples to determine the proportion of SR ilmenite in each of Image's resources.
The study identifies that the Atlas and Hyperion resources, originally considered suitable for dry mining, may be amenable to dredging, which would be more profitable. Geotechnical test work is planned on the resources to assess their suitability for dredging. Image is also investigating other low cost mining options, particularly for the Calypso and Titan resources where the thickness of mineralisation reaches 80metres, commencing near surface.
The scoping study is expected to be completed before the end of the quarter and a further release is anticipated at this time.
For more information on the company visit www.imageres.com.au
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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