Perth, May 27, 2009 AEST (ABN Newswire) - Image Resources (ASX:IMA) identifies a high grade zircon sone at the Atals deposit. Mineral assemblage analysis of selected samples from the high-grade zone at the Atlas deposit at Cooljarloo (Image 70%) has identified some unexpectedly high grades of zircon ranging from 18.1% to 20.8% of the heavy mineral suite, well above the previous estimate of an average zircon grade of 7%. The presence of high-grade zircon has the potential to add significant further value to the Atlas resource.
In the context of the reported resource, analysis of the step out drilling results reported 11 May 2009 and the preliminary mineral assemblage work reported here, suggests the following likely positive outcomes, namely, the:
1. value of the heavy mineral concentrate is likely to increase (zircon having a higher value than the other minerals in the assemblage ie zircon US$850/t, rutile US$650/t and ilmenite US$130/t) because the zircon content is likely to comprise a greater proportion of the HM concentrate;
2. grades in the updated resource are likely to increase significantly, based on a review of the reported May 2008 resource grades compared to the more recently announced grades;
3. bulk density of the resource is likely to increase because the grades are likely to be higher, resulting in an increased resource tonnage;
4. areal extent of the resource is likely to expand because much of the high-grade zone reported 11 May 2009 lies outside the area of the May 2008 resource.
Grain count analyses of three 1-metre samples from three of the drill holes reported on 23 February 2009 have been received and returned the following mineral assemblages:
---------------------------------------Hole Number 1574 1677 1711---------------------------------------Depth (m) 9-10 5-6 9-10% Heavy Mineral (HM) 41.1 42.1 46.4Zircon % 20.8 20.3 18.1Ilmenite % 65.1 66.4 64.4Rutile + Leucoxene % 4.2 5.5 5.6Other % 9.9 7.8 11.9Valuable Heavy Mineral % 90.1 92.2 88.1---------------------------------------
These zircon values are much higher than the 7% average zircon content of HM previously estimated for Atlas.
The in-ground percentage of zircon (as opposed to the percentage of zircon contained in HM ) for each of these samples exceeds 8% whereas the May 2008 resource estimate for Atlas contains an average in-ground zircon content of only 0.8% (inferred resource plus indicated resource at a 2.5% HM cut-off). Iluka's Jacinth and Ambrosia zircon deposits have average in-ground zircon values of about 3.4% (Iluka Resource Ltd website; Jacinth-Ambrosia site visit 24 April 2009). Inground heavy mineral grade estimates provide a clearer guide to the value of a heavy mineral deposit compared to simply quoting the tenor of the HM assemblage.
The samples were selected to give a preliminary indication of the likely mineral assemblage in those parts of Atlas where no historical information was available. As these grain count results are from only three selected samples taken from the highgrade HM zone, they cannot be taken to be representative of the entire resource.
Further detailed work is required in order to provide representative estimates of the mineral assemblage and product chemistry for the entire resource, particularly for the higher grade southern half. However, these early and very limited results are considered to be extremely encouraging.
Further samples are being taken for mineral assemblage work as part of the Atlas resource update which is due for completion in July.
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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