Image Resources (ASX:IMA) Quarterly Report for Period Ending 31 March 2010
Perth, May 3, 2010 AEST (ABN Newswire) - Image Resources (
ASX:IMA) Quarterly Report for Period Ending 31 March 2010 and includes the following:
NORTH PERTH BASIN
Cooljarloo (Image 70%)
As previously foreshadowed, Image Resources has completed a drill out of its Atlas deposit at Cooljarloo, designed to bring the resource to Measured status. A 388-hole, 4,268m aircore drilling was completed during the quarter bringing the resource drilling at Atlas to a total of 1,721 holes for 22,130m, at an average spacing of 100m x 20m.
In addition 31 drill holes were completed at the nearby Titan deposit together with geotechnical core holes to assess mineability at Atlas and Titan.
The resource drilling confirmed the shallow high grades discovered previously, are summarised in the attached full report.
Composite samples from this extensive drilling programme are currently undergoing metallurgical testing to provide mineral assemblage information and to test the suitability of the Atlas ilmenite as synthetic rutile feedstock.
There are currently five synthetic rutile plants situated in the Perth Basin, with an overall significant underutilisation of capacity. Estimation of a Measured Resource at Atlas has commenced, with an updated estimate expected to be available in June.
A review of drilling and geophysical data in the areas to the east of Atlas revised interpretation, with new targets generated.
Drilling of the high-grade strand, now termed Rhea, together with other targets situated in the south east part of the project area will commence when permitting and heritage surveys have been completed.
Gingin (Image 100%) and Chandala (Image earning up to 80%)
Aircore drilling has commenced on a series of high amplitude magnetic targets over a 4km strike length on the Gingin (E70/3032) and Chandala (E70/2742) tenements. Results from this drilling will be reported as they come to hand.
Images' testing of its highly prospective mineral sand targets in the North Perth Basin is expected to significantly upgrade the existing 6.7million tonnes of Indicated and Inferred Resources of contained heavy minerals. A number of high priority targets will be tested in the next six months as part of Images' accelerated drilling programme to assess the 300km strike length of targets indentified in the region.
EUCLA BASIN (Image 100%)
During the quarter Image received the remaining sample processing results from its previous 402-hole, 16,308m aircore drilling programme at Serpentine Lakes. The drilling results continued to confirm a zircon-rich assemblage, with zircon comprising up to 45% of the heavy mineral assemblage. This is of great significance because zircon is the highest value mineral normally found in heavy mineral deposits (approximately 10 times the value of ilmenite). In addition, the material has a very low slime content (range 1.8% - 7.6%, average 4.2%). Low slime content is important because the material is easier to treat thus reducing the operating costs of mining.
The recent sample results are summarised in Table 3. These samples are from areas above and adjacent to the higher grade core of the mineralisation. As a result most of the new intersections are from holes that were reported previously, but which now have greater thicknesses. Within the Cyclone Extended area shown in Figure 4 (attached report), the average thickness of mineralisation has increased from 8m to 10m representing an overall increase in mineralisation thickness of 25%. As most of the increased thickness is in the upper part of the mineralisation, it is likely that the overburden ratio will reduce.
Two distinct zones of mineralisation are recognised within Cyclone Extended which abuts Diatreme Resources' Cyclone resource to the north. Based on the drilling completed to date, the main body of the western zone is some 2km long and 800m wide, with a 200m-wide extension to the south for a further 750m. The eastern zone is about 800m wide, remains open to the south and could extend for up to 4.5km in length within the Image tenements.
Additional mineralisation has been identified about 1.5km east of the eastern zone that warrants more drilling to define its extent.
The drill holes shown in Figure 4 are coloured by metal factor (intersected thickness x HM grade in m%HM). The metal factors are based on a mix of laboratory and visual estimates at this stage. Metal factors greater than 40m% are shown in magenta, 20 - 40m% in red, 7- 20m% in orange, 2 -7m% in green, and less than 2m% in blue. Sections showing some of the increased mineralisation thicknesses, ranging up to 20m thick (1% HM cut off), are shown in Figure 5 (in attached report).
These new results continue to highlight that Cyclone Extended is a potentially economic zircon discovery, particularly when considered with Diatreme's contiguous Cyclone deposit.
The strike length of the two deposits extends for some 10km, which is a significant size in a global context and which compares favourably with Iluka's Jacinth-Ambrosia deposits further east in the Eucla Basin.
As previously reported, some 20km east of Cyclone Extended further HM mineralisation has been identified at the Monsoon prospect as shown in Figure 6 (in attached report). The area between Cyclone Extended and Monsoon remains prospective for additional mineralisation and further drilling is planned in this area.
Now that sample processing is complete, mineral assemblage studies and resource estimation have commenced. It is anticipated that the grades and continuity of mineralisation indicated from the drilling to date will allow the estimation of inferred resources for Cyclone Extended and Monsoon. Following this it is anticipated that a scoping study will be carried out to assess the economic potential of the project. Further drilling may then be undertaken to outline the full extent of the mineralisation and to investigate the mineralisation potential of the paleo-shorelines between Cyclone Extended and Monsoon where a 10km-long target area has been identified.
Image Resources continues to be most encouraged by the drilling results received to date which point to potential for extensive zircon-rich mineralisation with significant high titanium leucoxene and rutile credits.
The full Quarterly Report including images and tables is at:
http://www.abnnewswire.net/media/en/docs/62764-ASX-IMA-489316.pdf
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused mining company operating an open-cut mine and ore processing facility at its 100%-owned, high-grade, zircon-rich Boonanarring Project, located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring is arguably one of the highest grade, zircon-rich mineral sands projects in Australia. Construction and project commissioning were completed on-time and on-budget in 2018. Production commenced in December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation. The Company achieved profitability in Q1 2019 and was cashflow positive in Q2 2019 and is now at steady state production.
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