Half Year Accounts
REVIEW AND RESULTS OF OPERATIONS
The total loss from continuing operations for the half-year ended 30 June 2017 was $3,870,237 (2016: $2,008,034).
The Company's activities during the six month period are summarised in this report which, unless otherwise stated, should be read as if dated 30 June 2017.
Activities during the six months have been primarily focused on the completion of a bankable feasibility study focused on the development of the Company's 100%-owned high-grade Boonanarring/Atlas Project in the North Perth Basin while continuing to expand the resources and reserves base. Achievements during this period include:
On 14 December 2016, the Company announced plans to conduct a non-renounceable, fully underwritten rights issue to offer 5 new shares for every 12 shares held on 19 December 2016. The shares were offered at $0.04 per share to raise a total of $6.325M before costs. The offer was scheduled to close on 12 January 2017 but was subsequently extended and closed on 19 January 2017. Total amount raised was $6.325M before costs.
Update of Mineral Resources for Boonanarring
On 13 January 2017, the Company announced the update of Mineral Resources for Boonanarring in accordance with the JORC Code (2012) which resulted in a doubling of total tonnes of resources, albeit at lower heavy mineral (HM) grade and mineral assemblage. Updated mineral resources reported were 43.7M tonnes at 5.6% HM content and 18.1% zircon in the HM.
Potential Boonanarring Extension
On 8 March 2017, the Company announced drilling results confirming a 5.6km northern extension of the Boonanarring high-grade mineralisation. Outstanding high-grade intersections included 8m @ 23.8% HM in IX00245, 8m @ 21.1% HM in IX00244 and 8m @ 16.3% HM in IX00250. Even though this limited 10-hole drilling programme demonstrated that the high-grade eastern strand is present over 5.6km, further drilling is required to outline additional Mineral Resources, as in some cases only 1 to 2 holes were drilled every 200-400m. Land access for additional drilling is currently being negotiated.
Update of Boonanarring Ore Reserves
On 10 April 2017, the Company announced an update of the Ore Reserves for Boonanarring in accordance with the JORC Code (2012), which resulted in a 39% increase in the total tonnes of ore. Updated Ore Reserves reported were 20M tonnes at 7.2% HM and 22.4% zircon in the HM.
Completion of Land Purchase
On 21 April 2017, the Company completed the purchase of a 550-hectare section of land at Boonanarring that will encompass the initial box-cut for open pit mining operations, the location of the ore processing plant and a supply of ore for up to two and a half years of processing.
Update of Atlas Mineral Resources and Ore Reserves
On 8 May 2017, the Company announced an update of the Mineral Resources for Atlas in accordance with the JORC Code (2012), which resulted in a 68% increase in the total tonnes of Mineral Resources from that previously reported in 2013 to 18.1M tonnes at 6.0% HM. On 30 May 2017, the Company announced the updated Ore Reserves for Atlas were 9.5M tonnes of ore at 8.1% HM in the 'probable' category.
Bankable Feasibility Study Results - Boonanarring and Atlas Projects
During the period, the Company completed a Bankable Feasibility Study (BFS) on its 100%- owned, High-Grade Boonanarring and Atlas Mineral Sands Projects located in the North Perth Basin in WA. Highlights from the BFS announced 30 May 2017 are as follows:
- Low project capital cost estimate of A$52M inclusive of ~$8M for resalable land;
- Project Pre-Tax NPV of A$135M at 8% discount rate;
- Project Pre-Tax IRR of 64%; Payback period of 22 months;
- Off-Take Agreement for 100% of products/revenue in place;
- Relocatable capital equipment to produce HMC already acquired; and
- First production targeted for March 2018.
Commencement of Project Financing.
On 31 May 2017, the Board of Directors approved the recommendation in the BFS to seek project financing and continue with the development of the Boonanarring/Atlas Project.
SIGNIFICANT EVENTS SUBSEQUENT TO REPORTING DATE
Other than the following matters there have been no material significant events subsequent to the reporting date:
- On 12 July 2017, the Company announced that it had received commitments to subscribe for a placement of 33,648,356 new shares at a price of 9 cents each, to raise $3,028,352 (before costs). The funds are intended to be used to continue to fast-track development of the Boonanarring project in advance of full project capital funding.
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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