IMAGE RESOURCES NL — Capital/Financing Update 2013

Dec 22, 2013

ASX
Release 23
December
2013

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ASX
Code:
IMA 23
December
2013

Suite 4a, 5 Mumford Place Balcatta WA 6021 PO Box 1075 Balcatta WA 6914 Telephone 08 9485 2410 Facsimile 08 9240 7845 www.imageres.com.au

ABN 57 063 977 579

**ZIRCON

AND
ILMENITE
SALES
OFF
TAKE
DISCUSSIONS
ADVANCING MARKETING
SAMPLES
BEING
PREPARED**

• ü Zircon
  cleaning
  testwork
  completed

• ü Results
  demonstrate
  ability
  to
  produce
  high
  quality
  zircon
  products

• ü Chemical
  treatment
  requirements
  and
  costs
  in
  line
  with
  forecasts ü Off-­‐take
  and
  finance
  discussions
  are
  progressing

_________________

IMA Image
Resources
NL
(ASX: )
has
commenced
zircon,
rutile
and
ilmenite
sales
off-­‐take discussions
for
the
North
Perth
Basin
Mineral
Sands
Project
with
zircon
marketing
samples now
being
prepared
to
be
sent
to
potential
customers
in
the
New
Year.
Ilmenite
and
rutile samples
have
been
dispatched
previously.

Image
recently
completed
testwork
on
zircon
from
its
high-­‐grade
Boonanarring
deposit,
90 km
north
of
Perth,
which
confirmed
that
the
zircon
can
be
cleaned
to
produce
first
class quality
and
high
value
products.

The
test
work
also
suggests
the
level
of
cleaning
and
associated
reagent
costs
would
be
in line,
or
possibly
lower,
than
those
previously
ascribed
in
its
economic
studies.
These
studies highlighted
amongst
the
lowest
zircon
inducement
prices
in
the
world
and
a
project
internal rate
of
return
approaching
90%
(see
ASX
announcement
4
November
2013).

In
November,
Image
estimated
a $40M
capital
spend
and
peak
funding
requirement
of $70M
to
build
a
3Mtpa
plant
capable
of
producing
180ktpa
of
finished
products
and undertake
operations
through
to
positive
cashflow.
In
the
early
years,
thirty
per
cent
of
the tonnes
produced
(but
75%
of
value)
will
be
from
high
priced
zircon
and
rutile.

The
Boonanarring
deposit
has
amongst
the
highest
in
ground
value
per
tonne
of
mineral sands
assemblages
being
evaluated
globally
(8%
HM,
6.5%
VHM),
given
that
almost
18%
of the
HM
in
the
Boonanarring
JORC
Reserves
contains
high
value
zircon.

Confidentiality
agreements
are
now
in
place
with
a
number
of
major
banks.
Due
diligence processes
will
commence
early
in
the
New
Year.

ASX
Release 23
December
2013

For
more
information
visit
www.imageres.com.au Please
direct
enquiries
to:

Peter
Davies George
Sakalidis Managing
Director Executive
Director
-­‐
Exploration Phone
+61
8
9485
2410 Phone
+61
8
9485
2410 Mob
+61
409
296
676 Mob
+61
411
640
337

COMPETENT PERSON’S STATEMENT – TECHNICALSTUDIES

The information in this presentation that relates to technical studies is based on information compiled by Peter Davies BSc Eng (Hons) ARSM, C.Eng. MIMMM, MAICD, FAusIMM, FRSA, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Davies consents to the inclusion of this information in the form and context in which it appears in this report.

FORWARD LOOKING STATEMENTS

Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results, growth prospects and the outlook of Image’s operations contain or comprise certain forward looking statements regarding Image’s operations, economic performance and financial condition. Although Image believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

Accordingly, results could differ materially from those set out in the forward looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes that could result from future acquisitions of new exploration properties, the risks and hazards inherent in the mining business (including industrial accidents, environmental hazards or geologically related conditions), changes in the regulatory environment and other government actions, risks inherent in the ownership, exploration and operation of or investment in mining properties, fluctuations in prices and exchange rates and business and operations risks management, as well as generally those additional factors set forth in our periodic filings with ASX. Image undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.