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 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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