Perth, Aug 10, 2009 AEST (ABN Newswire) - Image Resources (ASX:IMA)(PINK:IMATF) is pleased to announce a significant upgrade to the Atlas resource at Cooljarloo. The major highlights include a change in resource category of heavy minerals and mineralisation, to Indicated from a mix of Inferred and Indicated. Over 120% increase in tonnes of contained zircon from 46,000 tonnes to 102,000 tonnes.
A 40% Increase in tonnes of contained heavy minerals from 650,000 to 910,000 tonnes and an 11% increase in grade from 5.8%HM to 6.2%HM.
The following tables compare the updated resource with the initial estimate announced in May 2008.
Table 1
Atlas: Resource Estimate Heavy Minerals and Mineralisation
--------------------------------------------------Category Cut Off Tonnes Grade Slimes t HM Grade %HM %HM %--------------------------------------------------August 2009--------------------------------------------------Indicated 2.5 14,600,000 6.2 15.6 910,000--------------------------------------------------May 2008--------------------------------------------------Inferred 2.5 1,900,000 4.7 13.5 90,000Inferred 2.5 9,700,000 5.8 13.8 560,000Ind + Inf 2.5 11,600,000 5.6 13.7 650,000--------------------------------------------------
Table 2
Atlas: Resource Estimate Heavy Mineral Suite
--------------------------------------------Category Ilmenite Leucoxene Zircon Other + Rutile--------------------------------------------August 2009--------------------------------------------Inferred 555,000t 66,000t 102,000t 186,000tInferred 61.0% 7.3% 11.2% 20.4%--------------------------------------------May 2008--------------------------------------------Inferred 350,000t 61,000t 46,000t 70,000tInferred 53.8% 9.4% 7.1% 10.8%--------------------------------------------
These changes represent a significant upgrade to the Atlas resource, which is expected to markedly increase the net present value of the project. Atlas is 7km long and up to 400m wide and is one of the better high grade resources identified in the North Perth Basin project to date.
The sample density is sufficient to support an indicated resource category for the tonnes of heavy mineral and mineralised material. However, as there is limited mineral assemblage data available, the tonnes of contained ilmenite, rutile, and zircon are classified as Inferred. Many more samples will be analysed, allowing the resource estimate for the mineral suite to be upgraded to Indicated. Systematic analysis of the suitability of the Atlas ilmenite for synthetic rutile feed will also be addressed.
Whilst the Atlas resource represents the company's most advanced resource, it is only a small portion of its resource base which is targeted to expand by a factor of at least two after the company drills out the remaining 300km of targets identified to date.
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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