Perth, Dec 30, 2008 AEST (ABN Newswire) - Image Resource NL (ASX:IMA)(PINK:IMREF) is pleased to report that following separate Memoranda of Understanding (MOUs) being reached with two local mineral sands producers, Image has agreed to release composite samples from, and resource models of, its North Perth Basin project to enable the producers to further assess these resources.
Image considers that the MOUs endorse the project, confirm industry interest therein and establish a sound basis on which to engage in discussion with the producers about the possible commercialisation of the project.
The objective of the MOUs is to facilitate the formulation and negotiation of possible transactions. Image's scoping study (released 1 December 2008) demonstrated that Image's significant resources can potentially be exploited:
1 on a standalone basis; or
2 by an established producer(s); or
3 a combination of the above.
Existing West Australian producers, with established infrastructure and expertise, have diminishing reserves but an apparent limited ability to replace the same from their local exploration endeavours thus presenting a compelling case for them and Image to examine how to best take advantage of the parties' respective competitive advantages.
The producers not only have significant infrastructure (which, if not already underutilised, is likely in the near term to become under-utilised) but they also have mining and processing expertise all of which could deliver real cost savings in any mining of Image's large (and likely expanding) resource base.
The MOUs limit the producers' freedom to acquire Image shares, however, each producer may at any time acquire up to 5% of Image's issued capital. Image considers that the MOUs potentially represent 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 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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