Perth, Dec 18, 2008 AEST (ABN Newswire) - Image Resource NL (ASX:IMA)(PINK:IMREF) is pleased to announce a new joint venture on a 107sq km tenement (E70/2742) with unlisted Derby Mines Pty Ltd, increasing its tenement holdings in the North Perth Basin to approximately 2,330sq km.
The joint venture tenement is strategically located on the productive Gingin Scarp between Iluka's (ASX:ILU) operating Gingin mine and the Bullsbrook heavy mineral (HM) deposit. The Gingin Scarp is a major feature of the Perth Basin, reflecting an extensive paleo coastline known to host major HM deposits such as Eneabba and those at Capel.
Significantly, the joint venture tenement is believed to host potentially economic mineralisation at the Muchea HM deposit where previous work outlined a mineralised zone with dimensions of 100m x 1,500m and a depth of 10m, reported to contain 2.25 million tonnes averaging 8.5%HM (Westralian Sands Limited Technical Report TR-99/21 March 1999). Image has yet to verify these estimates but is most encouraged by the potential of the area.
Image is planning geophysical surveys to define the extent of the mineralisation and other targets within this prospective Gingin shoreline. Also of significance is the close proximity of the large Tiwest operation at Chandala, comprising a dry separation plant and a synthetic rutile plant.
Image now has five projects in the vicinity including Chandala E70/2742, Gingin E70/3032, McKinley E70/3033, Bootine E70/3192 and Bryalana E70/3494. A drilling programme has commenced at Gingin and is planned to continue in the New Year.
Under the terms of the agreement Image has the right to earn an 80% interest in the joint venture tenement by expenditure of A$350,000 within a six year period, subject to completing certain access agreements. Discussions with landowners regarding access is underway.
The outlook for heavy minerals remains positive with expected price increases for both zircon and high grade titanium products in the short to medium term, due to supply not keeping pace with the demand (TZMI conference, Singapore, November 2008).
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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