ISSUES CONTRACT FOR CONSTRUCTION OF BOONANARRING SITE ENTRY
Perth, Mar 5, 2018 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (IMREF:OTCMKTS) ("Image" or "the Company") is pleased to advise the Company is finalising the issue of a contract to BMD Constructions for the construction of the site entry road intersection for its 100%-owned, high-grade, zircon-rich Boonanarring Mineral Sands Project located in the infrastructure-rich North Perth Basin, located 80km north of Perth, Western Australia.
The issue of this contract will be the first project construction related contract for Boonanarring, signalling the impending start of site activities, in line with the Company's continuing focus to fast-track the development of the Boonanarring project.
This contract authorises BMD Constructions to immediately finalise its planning, and schedule mobilisation to Boonanarring to initiate construction of a new site entry intersection between Wannamal Road West and the planned site entry road. This move reflects the confidence of the Board of Directors in the Company's efforts to finalise the overall project capital funding for the development of Boonanarring.
The decision to issue this contract comes on the heels of an announcement on 27 February 2018 by Iluka Resources Limited (Iluka), that Iluka will increase its Zircon Reference Price by nearly 15% to US$1,410 per tonne effective 1 April 2018. This price increase further enhances the overall economics of the Boonanarring project in that:
1. Iluka's price for premium grade zircon in China will be used to determine the market price for Image's HMC product;
2. This new zircon price is 8% higher than the zircon price forecast in Image's BFS for pricing its HMC product to be produced and sold in 2018; and
3. Zircon represents more than 70% of total revenue from the Boonanarring Project.
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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