As reported in Image's December 2008 quarterly report, an infill aircore drilling programme has been carried out on the southern extent of the Atlas resource at Cooljarloo (Image 70%) with the aim of closing the drill spacing to 200m x 20m to provide greater confidence in the grade and continuity of the mineralisation and to upgrade the status of the resources.
The Atlas resource currently comprises an Inferred Resource of 9.7Mt at 5.8% HM (2.5% HM cut off) and an Indicated Resource of 1.9Mt at 4.9% HM (2.5% HM cut off) containing a total of 660,000t of HM. Approximately one third of the samples from a 370-hole, 4,535m drilling programme have been received, including some high-grade results summarised in the attached table.
A substantial proportion of the high grade results occur outside the current Atlas resource model and covers a strike length of about 1.6km, indicating the likelihood of a significant increase in both the size and grade of the presently identified resource.
The remaining two thirds of the samples, covering a strike length of about 2.2km, are expected to be processed over the next month with a further release of results expected at that time. Following receipt of all the results, it is planned to carry out further test work on the Atlas mineral assemblage, followed by an update of the Atlas resource model, which is expected to be completed during the June 2009 quarter.
In addition to the drilling described above, Image has completed a further 60 aircore holes at Atlas to test additional infill and new parallel targets. Drilling has now commenced at Cataby West (some 50km south of Cooljarloo) to test a number of new targets identified by ground geophysical surveys. The Cataby West drilling forms part of Image's ongoing systematic testing of numerous targets totalling some 292km of strike identified to date on the North Perth Basin project.
About Image Resources NL
Image Resources NL (ASX:IMA) is an emerging Mineral Sands producer focused on the development of its high-grade Boonanarring Project in the North Perth Basin while continuing to expand its resources and reserves base.
Image Resources NL