Boonanarring/Atlas Bankable Feasibility Study
The Company's primary focus during the quarter was completion of a bankable feasibility study (BFS) on its 100%-owned, high-grade Boonanarring and Atlas mineral sands projects in the North Perth Basin in WA.
Highlights from the BFS announced 30 May 2017 are:
- 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.
Project Capital Financing
On 31 May 2017, the Company announced the unanimous approval by the Board of Directors to accept the recommendation in the BFS and to seek project financing. This approval triggered the following:
- the Company's finance consultant, PCF Capital, established a data room and initiated contact with potential tier-1 financial institutions to seek interest in providing debt capital; and
- executive directors embarked on road-shows to seek interest from sophisticated and institutional investors in providing equity capital.
Completion of Land Purchase Option
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.
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 from that reported in 2013 to 20M tonnes at 7.2% heavy minerals (HM) with 22.4% zircon in the HM.
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 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 at 8.1% HM in the 'probable' category.
Potential Boonanarring Extension
On 26 June 2017, the Company confirmed that the Boonanarring high grade extension included zircon grades ranging from 16.4% to 22.2% of the HM content which included outstanding high-grade intersections of 8m @ 23.8% HM in drill hole IX00245, 8m @ 21.1% HM in IX00244 and 8m @ 16.3% HM in IX00250.
Fund Raising During the Quarter
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.
In accordance with a change of year end, the Annual Report for the six-month period ended 31 December 2016 was filed on 28 March 2017 and the Annual Report was approved by Shareholders at the Annual General Meeting held on 31 May 2017.
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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 (ASX:IMA) Issues Contract for Construction of Boonanarring Site Entry Intersection