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IMAGE RESOURCES NL — Capital/Financing Update 2021
Mar 1, 2021
65117_rns_2021-03-01_355557c4-0bbb-4f56-9ce2-57d993b62dc4.pdf
Capital/Financing Update
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02 March 2021
IMAGE RESOURCES GOLD FARMIN; THICK SUPERGENE ZONE IDENTIFIED
Image Resources NL (ASX: IMA) (“Image” or “the Company”) is pleased to advise it has entered into a Farmin agreement with the owners of the King Gold Prospect (“King Prospect”) , located in the heart of, and completely surrounded by, Image’s Erayinia gold tenement in Western Australia.
This Farmin represents a low risk, low-cost opportunity for Image to evaluate the King Prospect in stepwise fashion, and if deemed prospective, to earn up to 80% interest with limited expenditure. Understanding the structural and geological model of mineralisation in the King Prospect, which has been shown to contain a thick supergene zone that extends into Image’s Erayinia tenement, could provide insight into the potential for a much larger mineralised system within Erayinia.
The King Prospect appears to have a thickened supergene zone up to 1km in strike length which extends onto Image’s Erayinia tenement and with the thickest intersection of:
- 71m at 1.03g/t Au from 36m in RC hole ROE0782.
Other intersections in the supergene zone are presented in Figure 1 and Table 2 with the following more notable intersections:
-
29m at 1.12g/t Au from 64m in RC hole KNRC012
-
43m at 0.72g/t Au from 36m In RC hole ROE0704
-
35m at 0.66g/t Au from 76m in RC hole KNRC015
-
20m at 1.66g/t Au from 39m in RC hole EYRC01
-
13m at 1.77g/t Au from 41m in RC hole KNRC011
-
17m at 2.0g/t Au from 132m in RC hole ROE0899
Head of Exploration George Sakalidis commented, “The mineralised zone at the King Prospect has strong potential for a near-surface, thick, gold-enriched supergene zone. The project area has 3 or 4 westerly dipping lodes which continue over 1.5km and the grades and thickness can be enhanced within the supergene zone with the thickest intersection of 71m at 1.03g/t from 36m in ROE782.
This central thickened zone is the primary initial target and will be tested with a total of 42 RC holes for 4,260m which will evaluate the near surface potential in the top 100m. In addition, a number of historically drilled areas will be examined for their supergene potential within Image’s Erayinia and Madoonia Downs tenements.
Image Resources NL ABN 57 063 977 579
Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 1 of 21
The King Prospect mineralisation augments the previous RC drilling activities completed by Image at Erayinia and forms a key part of a strongly mineralised zone covering a large 1.5km x 150m area.”
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Figure 1: Hole locations, maximum mineralisation intercepts, enlarged supergene zone (pink shade) and planned drilling on King Prospect
King Prospect Mineralisation
Image has entered into a Farmin Agreement with the holders of the King Prospect (P28/1320 and
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au
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P28/1321), covering 3.7km[2] and which is surrounded by Image’s Erayinia tenement (E28/1895) and is south of Image’s Madoonia Downs tenement (E28/2742) as shown in Figure 2. Execution of the Farmin Agreement enlarges Image’s target exploration area to 120km[2] and provides Image a low risk, low-cost entry into a brownfield’s gold project, which has a previously identified mineralised core zone that will be tested in an initial ‘earn-in’ infill drilling program.
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Figure 2: King Prospect and Image’s Erayinia and Madoonia Downs tenements
The King Prospect contains a consistent, reasonably well-defined, gold-enriched supergene blanket that is greater than 1km in strike length. It is commonly 2-8m thick with some thicker zones and with one zone up to 71m thick, where the supergene zones have
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au
Page 3 of 21
merged with the underlying 3-4 western dipping lodes (Figures 1 and 3-6).
This mineralized shallow blanket has not been the main focus of exploration in the past. With the current price of gold near record Australian dollar levels, this near surface layer could prove to be potentially economic and will be the focus of the low-cost initial earn-in drilling program.
Below this mineralised blanket are a series of three or four moderately west-dipping mineralised lodes as shown in Figures 3–6. This style of mineralisation is coherent and has a pronounced supergene effect evident at shallower depths with thick intersections such as:
-
71m at 1.03g/t from 36m including 7m at 5.63g/t from 40m in ROE0782;
-
29m at 1.41g/t from 64m including 6m at 3.14g/t from 64m in RNRC012;
-
43m at 0.72g/t from 36m including 8m at 2.63g/t from 36m in ROE0704;
and other thick intersections as shown in Table 1.
The exploration results reported in this announcement have been prepared and reported in accordance with the JORC Code 2012.
Planned Drilling
An initial RC program of 42 holes for 4,260m (average depth 101m) is planned to evaluate this promising supergene layer as well as testing for multiple stacked shallow lodes that are also observed down to 150m depth (Table 2).
Some individual holes are also directed at testing the down-dip extension of high-grade intersections within the multiple westerly dipping lodes. These multiple stacked lodes may continue at depth and could potentially be similar to some of the larger deposits in the Kalgoorlie districts that have bulk tonnage.
Detailed 50m spaced cesium vapor ground magnetic surveys are also planned to help map the detailed structure within the King Prospect.
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 4 of 21
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Figure 3: Cross section 1 showing mineralised zones, significant gold intercepts and planned drilling on Image’s Erayinia tenement
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Figure 4: Cross section 2 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au
Page 5 of 21
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Figure 5 : Cross section 3 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect
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Figure 6 : Cross section 4 showing mineralised zones, significant gold intercepts and planned drilling on King Prospect
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 www.imageres.com.au
Page 6 of 21
Two programs of work (POWs) have been applied for covering the King Prospect PLs and the surrounding tenements held by Image. Approvals from DIMRS for the planned drilling shown in blue in Figure 1 are expected within 30 days. Drill spacing will be sufficient to better define the continuity of the three or four moderately west-dipping lodes and the thickened supergene zones to help define a potential maiden mineral resource.
Location within Gold Mining District
Erayinia, Madoonia Downs and the King Prospect are located within an active gold mining district. Silver Lake Resources, who own the Randall’s Mill, have been processing ore from a number of satellite deposits in the nearby area including:
-
Aldiss Mining Centre (includes the nearby Harrys Hill and French Kiss Deposits);
-
Mt Belches; and
-
Daisy Mining Centre.
Randall’s Mill is reportedly operating at 1.2Mt per annum, and this mill may be an option for tolltreating ore from the King Prospect, which is 85km away. The haul road starts at French Kiss, only 20km away from the King Prospect (Figure 7).
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Figure 7: Image and King Prospect tenements and surrounding mined deposits proximal to the operating Randall’s Mill
Key Terms of Farmin Agreement over King Prospect (high level summary)
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 7 of 21
-
Image has the right, but not the obligation, to spend $330k within 24 months to earn 40% interest in the King Prospect.
-
Upon Image earning a 40% interest, a joint venture will be deemed to have been formed with Image as the JV manager.
-
Image will then have the right, but not the obligation, to purchase a further 40% interest (to get to 80%) with a cash payment of $240,000 to the owners within 180 days of the initial 40% interest earn-in date.
-
If Image obtains an 80% interest, the owners then have the right to contribute 20% to future project expenditures to maintain their 20% ownership position, or the owners can elect not to contribute to any expenditures and instead to convert to a 2% net smelter royalty.
-
If the owners convert to a 2% royalty, they also have the right to elect that their royalty be purchased by Image at fair market value as determined by an independent organization agreed by the Image and the owners.
Managing Director Patrick Mutz commented, “Image remains focused on its mineral sands mining and ore processing operations, including exploration under Project ‘MORE’ to identify new Mineral Resources and Ore Reserves to extend the mine life of operations. However, with the Australian gold price at near record levels, Image will utilise resources not associated with mineral sands, to take advantage of this low risk, low-cost opportunity to evaluate the prospectivity of the highly mineralised King Prospect, which could potentially lead to a better understanding of the gold mineralisation model on Image’s much larger Erayinia and Madoonia tenements.
Taking action on the King opportunity is also in line with Image’s 2021 multi-pronged growth strategy developed to take advantage of Image’s current debt-free, cash generating position. This strategy includes continuing to identify ‘MORE’ mineral sand ore reserves at Boonanarring and Atlas; evaluating the potential for a second operating centre within Image’s current mineral sands portfolio; evaluating opportunities for involvement with long-life mineral sands resources or ore reserves outside of Image’s current portfolio; and evaluating the opportunity for potential commodity diversification into gold through currently owned Erayinia and Madoonia tenements and now the associated King Farmin.”
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872 T: 08 9485 2410
www.imageres.com.au
Page 8 of 21
Table 1. Gold Drilling Intercepts; >1ppm (g/t) highlighted pink
| Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
Hole ID Easting Northing RL AHD Dip Azimuth MGAz51 MGAz51 metres degrees degrees RC- Image Resources NL 2-5m composites and 1m splits |
EOH metres |
From metres |
To metres |
Width metres |
Gold ppm |
|---|---|---|---|---|---|---|---|---|---|---|
| EYRC01 | 471965 | 6526902 | 305 | -58 | 98 | 120 | 39 | 42 | 3 | 1.435 |
| EYRC01 | including | 39 | 40 | 1 | 1.314 | |||||
| EYRC01 | including | 41 | 42 | 1 | 2.693 | |||||
| EYRC01 | 47 | 50 | 3 | 2.431 | ||||||
| EYRC01 | 56 | 58 | 2 | 9.915 | ||||||
| EYRC02 | 471880 | including | 304 | -60 | 94 | 120 | 69 | 70 | 1 | 1.178 |
| EYRC02 | 109 | 114 | 5 | 1.056 | ||||||
| EYRC02 | including | 111 | 113 | 2 | 1.941 | |||||
| EYRC03 | 471799 | 6526904 | 305 | -60 | 96 | 120 | 92 | 98 | 6 | 5.914 |
| EYRC03 | including | 92 | 95 | 3 | 11.473 | |||||
| EYRC15 | 471671 | including | 301 | -54 | 89 | 180 | 179 | 180 | 1 | 1.012 |
| EYRC17 | 471816 | 6527025 | 304 | -60 | 90 | 120 | 93 | 97 | 4 | 1.524 |
| EYRC17 | including | 93 | 95 | 2 | 2.575 | |||||
| EYRC18 | 471731 | 6527027 | 304 | -60 | 90 | 140 | 93 | 98 | 5 | 1.456 |
| EYRC18 | including | 93 | 96 | 3 | 2.017 | |||||
| EYRC18 | 115 | 117 | 2 | 0.652 | ||||||
| EYRC18 | 121 | 125 | 4 | 0.763 | ||||||
| EYRC18 | including | 121 | 122 | 1 | 2.244 | |||||
| EYRC19 | 471930 | 6526898 | 304 | -60 | 90 | 120 | 43 | 46 | 3 | 2.226 |
| EYRC19 | including | 43 | 44 | 1 | 5.666 | |||||
| EYRC19 | 53 | 59 | 6 | 2.543 | ||||||
| EYRC19 | including | 53 | 54 | 1 | 1.055 | |||||
| EYRC19 | including | 55 | 57 | 2 | 6.766 | |||||
| EYRC19 | including | 71 | 72 | 1 | 3.438 | |||||
| EYRC19 | 77 | 81 | 4 | 2.291 | ||||||
| EYRC19 | including | 77 | 78 | 1 | 2.659 | |||||
| EYRC19 | including | 80 | 81 | 1 | 5.467 | |||||
| EYRC22 | 471902 | 6526750 | 305 | -60 | 90 | 110 | 84 | 88 | 4 | 0.979 |
| EYRC26 | 471642 | 6527025 | 303 | -53 | 102 | 233 | 127 | 130 | 3 | 0.546 |
| EYRC26 | 200 | 206 | 6 | 0.587 | ||||||
| EYRC26 | including | 201 | 202 | 1 | 1.118 | |||||
| EYRC27 | 471712 | including | 303 | -58 | 91 | 312 | 137 | 138 | 1 | 1.297 |
| EYRC27 | including | 157 | 158 | 1 | 1.594 | |||||
| EYRC27 | including | 167 | 168 | 1 | 2.322 | |||||
| EYRC27 | 180 | 184 | 4 | 0.596 | ||||||
| EYRC27 | including | 180 | 181 | 1 | 1.137 | |||||
| RC- Historical inetercepts | ||||||||||
| KNRC001 | 472040 | 6526570 | 306 | -61 | 90 | 150 | 97 | 98 | 1 | 1.930 |
| KNRC001 | including | 106 | 107 | 1 | 17.390 | |||||
| KNRC001 | 110 | 114 | 4 | 1.503 | ||||||
| KNRC001 | including | 110 | 111 | 1 | 2.200 | |||||
| KNRC001 | including | 112 | 114 | 2 | 1.825 | |||||
| KNRC001 | 117 | 123 | 6 | 2.952 | ||||||
| KNRC001 | including | 117 | 118 | 1 | 1.340 |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 9 of 21
| Hole ID KNRC001 |
Easting MGAz51 |
Northing MGAz51 including |
RL AHD metres |
Dip degrees |
Azimuth degrees |
EOH metres |
From metres 120 |
To metres 123 |
Width metres 3 |
Gold ppm |
|---|---|---|---|---|---|---|---|---|---|---|
| 5.407 | ||||||||||
| KNRC002 | 472120 | 6526570 | 305 | -63 | 90 | 200 | 47 | 48 | 1 | 1.050 |
| KNRC002 | including | 67 | 68 | 1 | 1.680 | |||||
| KNRC002 | including | 72 | 73 | 1 | 2.010 | |||||
| KNRC007 | 472069 | 6526478 | 303 | -56 | 45 | 120 | 85 | 87 | 2 | 1.450 |
| KNRC007 | including | 86 | 87 | 1 | 2.190 | |||||
| KNRC008 | 472095 | 6526458 | 303 | -48 | 45 | 130 | 64 | 65 | 1 | 2.510 |
| KNRC009 | 472147 | 6526430 | 302 | -50 | 45 | 120 | 52 | 56 | 4 | 0.570 |
| KNRC011 | 472410 | 6526085 | 292 | -58 | 55 | 120 | 41 | 50 | 9 | 2.094 |
| KNRC011 | including | 41 | 43 | 2 | 3.860 | |||||
| KNRC011 | including | 44 | 46 | 2 | 3.575 | |||||
| KNRC011 | including | 48 | 49 | 1 | 2.000 | |||||
| KNRC011 | 51 | 54 | 3 | 1.350 | ||||||
| KNRC011 | including | 52 | 54 | 2 | 1.695 | |||||
| KNRC011 | 58 | 61 | 3 | 0.850 | ||||||
| KNRC011 | including | 60 | 61 | 1 | 1.400 | |||||
| KNRC012 | 472391 | 6526068 | 292 | -51 | 61 | 132 | 64 | 70 | 6 | 3.143 |
| KNRC012 | including | 64 | 65 | 1 | 1.190 | |||||
| KNRC012 | including | 66 | 69 | 3 | 5.593 | |||||
| KNRC012 | 84 | 89 | 5 | 1.652 | ||||||
| KNRC012 | including | 84 | 86 | 2 | 3.430 | |||||
| KNRC012 | 90 | 94 | 4 | 1.280 | ||||||
| KNRC012 | including | 90 | 91 | 1 | 1.620 | |||||
| KNRC012 | including | 92 | 93 | 1 | 2.610 | |||||
| KNRC013 | 472435 | 6526059 | 293 | -53 | 64 | 120 | 35 | 36 | 1 | 1.370 |
| KNRC013 | 54 | 56 | 2 | 1.380 | ||||||
| KNRC013 | including | 55 | 56 | 1 | 1.810 | |||||
| KNRC013 | including | 61 | 62 | 1 | 1.030 | |||||
| KNRC014 | 472412 | 6526038 | 293 | -53 | 45 | 96 | 36 | 37 | 1 | 1.660 |
| KNRC014 | 65 | 72 | 7 | 4.083 | ||||||
| KNRC014 | including | 68 | 69 | 1 | 3.730 | |||||
| KNRC014 | including | 70 | 72 | 2 | 11.500 | |||||
| KNRC014 | 84 | 89 | 5 | 0.988 | ||||||
| KNRC014 | including | 86 | 87 | 1 | 1.860 | |||||
| KNRC014 | including | 88 | 89 | 1 | 1.690 | |||||
| KNRC014 | 91 | 93 | 2 | 3.360 | ||||||
| KNRC014 | including | 91 | 92 | 1 | 6.040 | |||||
| KNRC015 | 472390 | 6526018 | 293 | -47 | 45 | 132 | 77 | 78 | 1 | 2.190 |
| KNRC015 | including | 93 | 94 | 1 | 1.720 | |||||
| KNRC015 | 104 | 111 | 7 | 2.274 | ||||||
| KNRC015 | including | 104 | 107 | 3 | 4.597 | |||||
| KNRC015 | 126 | 128 | 2 | 4.370 | ||||||
| KNRC016 | 472461 | 6526028 | 293 | -52 | 63 | 120 | 55 | 56 | 1 | 24.230 |
| KNRC016 | including | 60 | 61 | 1 | 1.130 | |||||
| KNRC017 | 472446 | 6526015 | 293 | -54 | 64 | 120 | 34 | 38 | 4 | 1.335 |
| KNRC017 | including | 34 | 35 | 1 | 1.550 | |||||
| KNRC017 | including | 36 | 38 | 2 | 1.720 |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 10 of 21
| Hole ID KNRC017 |
Easting MGAz51 |
Northing MGAz51 |
RL AHD metres |
Dip degrees |
Azimuth degrees |
EOH metres |
From metres 60 |
To metres 65 |
Width metres 5 |
Gold ppm |
|---|---|---|---|---|---|---|---|---|---|---|
| 4.214 | ||||||||||
| KNRC017 | including | 60 | 61 | 1 | 18.300 | |||||
| KNRC017 | including | 62 | 63 | 1 | 1.400 | |||||
| KNRC017 | 78 | 82 | 4 | 0.663 | ||||||
| KNRC017 | including | 81 | 82 | 1 | 1.530 | |||||
| KNRC018 | 472363 | 6526102 | 291 | -50 | 69 | 130 | 41 | 45 | 4 | 1.585 |
| KNRC018 | including | 42 | 43 | 1 | 4.320 | |||||
| KNRC018 | including | 44 | 45 | 1 | 1.300 | |||||
| KNRC018 | 48 | 54 | 6 | 0.885 | ||||||
| KNRC018 | including | 48 | 50 | 2 | 1.280 | |||||
| KNRC018 | including | 51 | 52 | 1 | 1.510 | |||||
| KNRC018 | including | 80 | 81 | 1 | 1.960 | |||||
| KNRC018 | including | 84 | 85 | 1 | 1.960 | |||||
| KNRC019 | 472389 | 6525955 | 293 | -60 | 45 | 80 | 29 | 34 | 5 | 0.534 |
| KNRC019 | 46 | 50 | 4 | 1.428 | ||||||
| KNRC019 | including | 49 | 50 | 1 | 4.210 | |||||
| KNRC019 | including | 59 | 60 | 1 | 6.970 | |||||
| KNRC020 | 472374 | 6525942 | 292 | -60 | 45 | 100 | 25 | 26 | 1 | 1.260 |
| KNRC021 | 472417 | 6525928 | 294 | -60 | 45 | 80 | 65 | 66 | 1 | 1.990 |
| KNRC021 | 73 | 75 | 2 | 3.025 | ||||||
| KNRC021 | including | 78 | 79 | 1 | 2.740 | |||||
| KNRC023 | 472515 | 6525968 | 293 | -60 | 45 | 100 | 35 | 36 | 1 | 1.400 |
| KNRC023 | 50 | 53 | 3 | 13.143 | ||||||
| KNRC023 | including | 50 | 51 | 1 | 38.610 | |||||
| KNRC024 | 472501 | 6525954 | 293 | -60 | 45 | 120 | 36 | 40 | 4 | 0.510 |
| KNRC024 | 62 | 66 | 4 | 1.443 | ||||||
| KNRC024 | including | 62 | 64 | 2 | 2.150 | |||||
| KNRC024 | 84 | 86 | 2 | 1.975 | ||||||
| ROE0701 | 472246 | 6526157 | 294 | -60 | 90 | 80 | 42 | 44 | 2 | 0.540 |
| ROE0701 | 70 | 72 | 2 | 2.330 | ||||||
| ROE0702 | 472315 | 6526157 | 292 | -60 | 270 | 80 | 42 | 44 | 2 | 4.210 |
| ROE0702 | 68 | 70 | 2 | 2.270 | ||||||
| ROE0703 | 472397 | 6526157 | 292 | -60 | 270 | 130 | 46 | 48 | 2 | 2.470 |
| ROE0704 | 472446 | 6525957 | 293 | -60 | 90 | 80 | 36 | 42 | 6 | 3.447 |
| ROE0704 | 54 | 56 | 2 | 2.460 | ||||||
| ROE0704 | 70 | 72 | 2 | 0.740 | ||||||
| ROE0704 | 76 | 78 | 2 | 0.950 | ||||||
| ROE0705 | 472515 | 6525957 | 293 | -60 | 270 | 80 | 36 | 40 | 4 | 1.260 |
| ROE0705 | including | 38 | 40 | 2 | 1.910 | |||||
| ROE0705 | 70 | 72 | 2 | 1.690 | ||||||
| ROE0705 | 76 | 78 | 2 | 1.390 | ||||||
| ROE0706 | 472597 | 6525957 | 290 | -60 | 270 | 140 | 34 | 36 | 2 | 4.900 |
| ROE0706 | 52 | 54 | 2 | 1.140 | ||||||
| ROE0781 | 472206 | 6526160 | 295 | -60 | 90 | 160 | 98 | 100 | 2 | 0.690 |
| ROE0782 | 472355 | 6526160 | 292 | -60 | 270 | 160 | 40 | 47 | 7 | 5.629 |
| ROE0782 | including | 40 | 43 | 3 | 11.767 | |||||
| ROE0782 | including | 46 | 47 | 1 | 2.330 |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 11 of 21
| Hole ID Easting Northing MGAz51 MGAz51 ROE0782 |
Hole ID Easting Northing MGAz51 MGAz51 ROE0782 |
Hole ID Easting Northing MGAz51 MGAz51 ROE0782 |
RL AHD metres |
Dip degrees |
Azimuth degrees |
EOH metres |
From metres 61 |
To metres 63 |
Width metres 2 |
Gold ppm |
|---|---|---|---|---|---|---|---|---|---|---|
| 10.757 | ||||||||||
| ROE0782 | 67 | 69 | 2 | 0.540 | ||||||
| ROE0782 | 73 | 77 | 4 | 0.913 | ||||||
| ROE0782 | including | 73 | 74 | 1 | 2.034 | |||||
| ROE0782 | including | 76 | 77 | 1 | 1.278 | |||||
| ROE0782 | including | 81 | 82 | 1 | 1.327 | |||||
| ROE0783 | 472406 | 6525960 | 293 | -60 | 90 | 160 | 28 | 29 | 1 | 1.762 |
| ROE0783 | 44 | 47 | 3 | 0.671 | ||||||
| ROE0783 | including | 54 | 55 | 1 | 1.638 | |||||
| ROE0783 | including | 141 | 142 | 1 | 3.326 | |||||
| ROE0898 | 472000 | 6526560 | 307 | -60 | 90 | 160 | 98 | 102 | 4 | 0.545 |
| ROE0898 | including | 98 | 99 | 1 | 1.330 | |||||
| ROE0899 | 472080 | 6526560 | 305 | -60 | 90 | 160 | 42 | 43 | 1 | 2.130 |
| ROE0899 | 132 | 145 | 13 | 2.162 | ||||||
| ROE0899 | including | 132 | 141 | 9 | 2.426 | |||||
| ROE0899 | including | 144 | 145 | 1 | 5.160 | |||||
| ROE0899 | including | 148 | 149 | 1 | 5.330 | |||||
| ROE0899 | including | 159 | 160 | 1 | 1.480 | |||||
| ROE0900 | 472160 | 6526560 | 304 | -60 | 90 | 160 | 55 | 56 | 1 | 6.930 |
| ROE0900 | 81 | 83 | 2 | 0.550 | ||||||
| ROE0901 | 472240 | 6526560 | 303 | -60 | 90 | 160 | 34 | 36 | 2 | 1.740 |
| ROE0901 | including | 35 | 36 | 1 | 2.770 | |||||
| ROE0902 | 472120 | 6526360 | 302 | -60 | 90 | 160 | 89 | 90 | 1 | 1.270 |
| ROE0902 | 99 | 101 | 2 | 1.970 | ||||||
| ROE0902 | including | 99 | 100 | 1 | 3.350 | |||||
| ROE0903 | 472200 | 6526360 | 298 | -60 | 90 | 160 | 32 | 36 | 4 | 0.643 |
| ROE0903 | including | 35 | 36 | 1 | 1.720 | |||||
| ROE0903 | 116 | 118 | 2 | 0.740 | ||||||
| ROE0903 | including | 159 | 160 | 1 | 1.080 | |||||
| ROE0904 | 472280 | 6526360 | 297 | -60 | 90 | 160 | 38 | 39 | 1 | 1.850 |
| ROE0904 | 99 | 101 | 2 | 2.580 | ||||||
| ROE0907 | 472550 | 6525760 | 293 | -60 | 90 | 160 | 144 | 145 | 1 | 1.430 |
| DD- Historical inetercepts | ||||||||||
| ROE1048 | 472330 | including | 292 | -60 | 270 | 150 | 40 | 40.5 | 0.5 | 7.150 |
| ROE1048 | including | 44 | 45 | 1 | 2.130 | |||||
| ROE1048 | including | 87 | 88 | 1 | 1.670 | |||||
| RAB- Historical inetercepts | ||||||||||
| KRR071 | 474357 | 6525157 | 285 | -90 | 360 | 37 | 18 | 24 | 6 | 0.937 |
| AC- Historical inetercepts | ||||||||||
| ROE0339 | 471697 | 6526757 | 306 | -90 | 360 | 40 | 34 | 36 | 2 | 0.610 |
| ROE0356 | 473097 | 6524037 | 284 | -90 | 360 | 47 | 30 | 32 | 2 | 1.360 |
| ROE0599 | 472237 | 6526557 | 303 | -90 | 360 | 39 | 30 | 32 | 2 | 0.880 |
| ROE0608 | 472277 | 6526157 | 293 | -90 | 360 | 35 | 24 | 26 | 2 | 3.220 |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 12 of 21
| Hole ID ROE0611 |
Easting MGAz51 472477 |
Northing MGAz51 6525957 |
RL AHD metres 293 |
Dip degrees -90 |
Azimuth degrees 360 |
EOH metres 46 |
From metres 44 |
To metres 46 |
Width metres 2 |
Gold ppm 0.510 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE0700 | 473637 | 6524557 | 285 | -90 | 360 | 51 | 28 | 30 | 2 | 2.860 |
| SLAC020 | 472010 | 6526890 | 305 | -90 | 0 | 39 | 32 | 33 | 1 | 1.070 |
Table 2. Planned RC Drilling
| Hole_ID | Easting MGAz51 |
Northing MGAz51 |
RL metres |
Depth metres |
Dip degrees |
Azimuth degrees |
Tenement |
|---|---|---|---|---|---|---|---|
| PD001 | 471773 | 6527025 | 304 | 125 | -60 | 90 | E28/1895 |
| PD002 | 471965 | 6527003 | 303 | 85 | -60 | 45 | E28/1895 |
| PD003 | 471907 | 6526949 | 304 | 125 | -60 | 45 | E28/1895 |
| PD004 | 472005 | 6526967 | 304 | 70 | -60 | 45 | E28/1895 |
| PD005 | 471974 | 6526937 | 304 | 80 | -60 | 45 | E28/1895 |
| PD006 | 471948 | 6526904 | 305 | 80 | -60 | 90 | E28/1895 |
| PD007 | 472020 | 6526925 | 304 | 60 | -60 | 45 | E28/1895 |
| PD008 | 472000 | 6526906 | 303 | 70 | -60 | 45 | E28/1895 |
| PD009 | 472092 | 6526939 | 290 | 60 | -60 | 45 | E28/1895 |
| PD010 | 471946 | 6526798 | 305 | 140 | -60 | 45 | E28/1895 |
| PD011 | 472148 | 6526770 | 306 | 60 | -60 | 45 | P28/1320 |
| PD012 | 472091 | 6526715 | 306 | 85 | -60 | 45 | P28/1320 |
| PD013 | 472032 | 6526658 | 306 | 135 | -60 | 45 | P28/1320 |
| PD014 | 472200 | 6526654 | 305 | 60 | -60 | 45 | P28/1320 |
| PD015 | 472158 | 6526614 | 305 | 100 | -60 | 45 | P28/1320 |
| PD016 | 472027 | 6526486 | 305 | 220 | -60 | 45 | P28/1320 |
| PD017 | 472288 | 6526627 | 304 | 60 | -60 | 45 | P28/1320 |
| PD018 | 472070 | 6526418 | 303 | 205 | -60 | 45 | P28/1320 |
| PD019 | 472344 | 6526569 | 298 | 60 | -60 | 45 | P28/1320 |
| PD020 | 472286 | 6526514 | 301 | 70 | -60 | 45 | P28/1320 |
| PD021 | 472230 | 6526460 | 300 | 130 | -60 | 45 | P28/1320 |
| PD022 | 472172 | 6526403 | 301 | 165 | -60 | 45 | P28/1320 |
| PD023 | 472400 | 6526457 | 298 | 60 | -60 | 45 | P28/1320 |
| PD024 | 472396 | 6526400 | 296 | 65 | -60 | 45 | P28/1320 |
| PD025 | 472312 | 6526317 | 295 | 125 | -60 | 45 | P28/1320 |
| PD026 | 472255 | 6526260 | 294 | 155 | -60 | 45 | P28/1320 |
| PD027 | 472199 | 6526211 | 294 | 120 | -60 | 45 | P28/1320 |
| PD028 | 472397 | 6526289 | 295 | 65 | -60 | 45 | P28/1320 |
| PD029 | 472422 | 6526201 | 294 | 65 | -60 | 45 | P28/1320 |
| PD030 | 472387 | 6526165 | 292 | 105 | -60 | 45 | P28/1320 |
| PD031 | 472335 | 6526078 | 291 | 110 | -60 | 45 | P28/1320 |
| PD032 | 472463 | 6526134 | 292 | 80 | -60 | 45 | P28/1320 |
| PD033 | 472434 | 6526105 | 292 | 95 | -60 | 45 | P28/1320 |
| PD034 | 472370 | 6526048 | 292 | 120 | -60 | 45 | P28/1320 |
| PD035 | 472483 | 6526046 | 294 | 75 | -60 | 45 | P28/1320 |
| PD036 | 472421 | 6525988 | 292 | 115 | -60 | 45 | P28/1320 |
| PD037 | 472428 | 6525959 | 293 | 90 | -60 | 90 | P28/1320 |
| PD038 | 472537 | 6525991 | 292 | 70 | -60 | 45 | P28/1320 |
| PD039 | 472586 | 6525870 | 292 | 105 | -60 | 45 | P28/1320 |
| PD040 | 472529 | 6525812 | 292 | 175 | -60 | 45 | P28/1320 |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 13 of 21
| Hole_ID | Easting MGAz51 |
Northing MGAz51 |
RL metres |
Depth metres |
Dip degrees |
Azimuth degrees |
Tenement |
|---|---|---|---|---|---|---|---|
| PD041 | 472643 | 6525814 | 288 | 110 | -60 | 45 | P28/1320 |
| PD042 | 472607 | 6525777 | 289 | 110 | -60 | 45 | P28/1320 |
| Total 42 RC drillholesfor 4,260m |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410
www.imageres.com.au
Page 14 of 21
Image Resources Background Information
Image is Australian’s newest mineral sands mining company, operating open-cut mining and ore processing facilities at its 100%-owned, high-grade, zircon-rich Boonanarring Mineral Sands Project located 80km north of Perth, Western Australia, in the infrastructure-rich North Perth Basin. Boonanarring is arguably one of the highest grade, zircon-rich, mineral sands projects in Australia. The project was constructed and commissioned on-time and on-budget in 2018 and production of HMC ramped-up to exceed name-plate capacity in only the second month of operation (January 2019).
Image has now completed two full years of successful operations with performance meeting or beating market guidance ranges in all categories. The Company is focused on maintaining its strong operational and health, safety and environmental performance and has prioritised the identification of new Mineral Resources and Ore Reserves, to extend the cumulative mine life of Ore Reserves in its portfolio, while investigating the development of a second operating centre in parallel with current operations.
For further information, please contact:
George Sakalidis
Head of Exploration M: +61 411 640 337 [email protected]
This document is authorised for release to the market by:
Patrick Mutz
Managing Director +61 8 9485 2410 [email protected] www.imageres.com.au
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 15 of 21
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.
PREVIOUSLY REPORTED INFORMATION
The information in this report that relates to exploration results for EYRC01, EYRC02 and EYRC03 is extracted from the Company’s ASX release dated 18 September 2018 (‘20m Shallow Gold Intersection at IMA Erayinia Prospect’) and is available to view on www.imageres.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement.
COMPETENT PERSON’S STATEMENT
The information in this report that relates to exploration results (other than EYRC01, EYRC02 and EYRC03) is based on, and fairly reflects, information and supporting documentation prepared by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. Mr Sakalidis is an employee of Image Resources NL. Mr Sakalidis 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’. Mr Sakalidis has provided his prior written consent to the inclusion of this information in the form and context in which it appears in this report. Mr Sakalidis is a shareholder in the Company.
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 16 of 21
JORC Code, 2012 Edition – Table 2 report template
Section 1 Sampling Techniques and Data
| (Criteria | in this | sectionapplyto allsucceeding sections.) | ||
|---|---|---|---|---|
| Criteria | JORC Code explanation | Commentary | ||
| Sampling | | Nature and quality of sampling (eg cut channels, | | Sampling and QAQC procedures are |
| techniques | random chips, or specific specialised industry | carried out using Image’s protocols as per | ||
| standard measurement tools appropriate to the | industry sound practice. | |||
| minerals under investigation, such as down hole | | RC drilling was used to obtain bulk 1 | ||
| gamma sondes, or handheld XRF instruments, etc). | metre samples from which composite 4m | |||
| These examples should not be taken as limiting | samples were prepared by spear | |||
| the broad meaning of sampling. | sampling of the bulk 1m samples. 3kg of | |||
| | Include reference to measures taken to ensure | the composite sample was pulverized to | ||
| sample representation and the appropriate | produce a 10g charge for aqua | |||
| calibration of any measurement tools or systems | regia/ICPMS determination for gold and | |||
| used. | pathfinder elements. The analytical | |||
| | Aspects of the determination of mineralisation | results of the composite samples are | ||
| that are Material to the Public Report. | used to determine which 1m samples | |||
| | In cases where ‘industry standard’ work has been | from the rig’s cyclone and splitter are | ||
| done this would be relatively simple (eg ‘reverse | selected for fire assay. | |||
| circulation drilling was used to obtain 1 m samples | ||||
| from which 3 kg was pulverised to produce a 30 g | ||||
| charge for fire assay’). In other cases more | ||||
| explanation may be required, such as where there | ||||
| is coarse gold that has inherent sampling | ||||
| problems. Unusual commodities or mineralisation | ||||
| types (eg submarine nodules) may warrant | ||||
| disclosure of detailed information. |
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Sampling | | Nature and quality of sampling (eg cut channels, | | Sampling and QAQC procedures are |
| techniques | random chips, or specific specialised industry | carried out using Image’s protocols as per | ||
| standard measurement tools appropriate to the | industry sound practice. | |||
| minerals under investigation, such as down hole | | RC drilling was used to obtain bulk 1 | ||
| gamma sondes, or handheld XRF instruments, etc). | metre samples from which composite 4m | |||
| These examples should not be taken as limiting | samples were prepared by spear | |||
| the broad meaning of sampling. | sampling of the bulk 1m samples. 3kg of | |||
| | Include reference to measures taken to ensure | the composite sample was pulverized to | ||
| sample representation and the appropriate | produce a 10g charge for aqua | |||
| calibration of any measurement tools or systems | regia/ICPMS determination for gold and | |||
| used. | pathfinder elements. The analytical | |||
| | Aspects of the determination of mineralisation | results of the composite samples are | ||
| that are Material to the Public Report. | used to determine which 1m samples | |||
| | In cases where ‘industry standard’ work has been | from the rig’s cyclone and splitter are | ||
| done this would be relatively simple (eg ‘reverse | selected for fire assay. | |||
| circulation drilling was used to obtain 1 m samples | ||||
| from which 3 kg was pulverised to produce a 30 g | ||||
| charge for fire assay’). In other cases more | ||||
| explanation may be required, such as where there | ||||
| is coarse gold that has inherent sampling | ||||
| problems. Unusual commodities or mineralisation | ||||
| types (eg submarine nodules) may warrant | ||||
| disclosure of detailed information. | ||||
| Drilling | | Drill type (eg core, reverse circulation, open‐hole | | Reverse circulation (RC) drilling was |
| techniques | hammer, rotary air blast, auger, Bangka, sonic, etc) | carried out by Image Resources. | ||
| and details (eg core diameter, triple or standard | ||||
| tube, depth of diamond tails, face‐sampling bit or | ||||
| other type, whether core is oriented and if so, by | ||||
| what method,etc). | ||||
| Drill sample | |
Method of recording and assessing core and chip | | RC recoveries are visually estimated |
| recovery | sample recoveries and results assessed. | qualitatively on a metre basis. | ||
| | Measures taken to maximise sample recovery and | | Various drilling additive (including muds | |
| ensure representative nature of the samples. | and foams) have been used to condition | |||
| | Whether a relationship exists between sample | the RC holes to maximize recoveries and | ||
| recovery and grade and whether sample bias may | sample quality. | |||
| have occurred due to preferential loss/gain of | | Insufficient drilling and geochemical data | ||
| fine/coarse material. | is available at the present stage to | |||
| evaluate potential sample bias. Drill | ||||
| samples are sometimes wet which may | ||||
| result in sample bias because of | ||||
| preferential loss/gain of fine/coarse | ||||
| material. | ||||
| Logging | | Whether core and chip samples have been | | RC chips and chip trays are being |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 17 of 21
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| geologically and geotechnically logged to a level of | geologically logged. | |||
| detail to support appropriate Mineral Resource | | Lithology, alteration and veining is | ||
| estimation, mining studies and metallurgical | recorded and imported into the Image | |||
| studies. | Resources central database. The logging | |||
| | Whether logging is qualitative or quantitative in | is considered to be of sufficient standard | ||
| nature. Core (or costean, channel, etc) | to support a geological resource. | |||
| photography. | | Logging of RC drillholes records lithology, | ||
| | The total length and percentage of the relevant | mineralogy, mineralisation, weathering | ||
| intersections logged. | and colour, and is qualitative in nature. | |||
| | All drillholes were logged in full. | |||
| Sub-sampling | |
If core, whether cut or sawn and whether quarter, | ||
| techniques | half or all core taken. | |||
| and sample preparation |
| If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
||
| | For all sample types, the nature, quality and | |||
| appropriateness of the sample preparation | ||||
| technique. | ||||
| | Quality control procedures adopted for all sub‐ | |||
| sampling stages to maximise representation of | ||||
| samples. | ||||
| | Measures taken to ensure that the sampling is | |||
| representative of the in situ material collected, | ||||
| including for instance results for field | ||||
| duplicate/second‐half sampling. | ||||
| | Whether sample sizes are appropriate to the grain | |||
| size of the material beingsampled. | ||||
| Quality of | | The nature, quality and appropriateness of the | | RC samples are assayed using a 50g |
| assay data and laboratory tests |
| assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld |
charge and a fire assay method with an AAS finish which is regarded as appropriate. The technique provides an estimate of the total gold content. |
|
| XRF instruments, etc, the parameters used in | QA/QC measures included repeat | |||
| determining the analysis including instrument | analyses and the use of internal lab | |||
| make and model, reading times, calibrations | standards which indicated acceptable | |||
| factors applied and their derivation, etc. | levels of accuracy and precision although | |||
| | Nature of quality control procedures adopted (eg | in rare cases there is some indication of | ||
| standards, blanks, duplicates, external laboratory | the presence of coarse gold. | |||
| checks) and whether acceptable levels of accuracy | | Industry standard standards and | ||
| (ie lack of bias) and precision have been | duplicates are used by the NATA | |||
| established. | registered laboratory conducting the | |||
| analyses. | ||||
| Verification of | |
The verification of significant intersections by | | Where duplicate analyses of individual |
| sampling and | either independent or alternative company | samples were made the analytical results | ||
| assaying | personnel. | were averaged. | ||
| | The use of twinned holes. | | No twin holes have been drilled. | |
| | Documentation of primary data, data entry | | Primary data is entered into an in‐house | |
| procedures, data verification, data storage | database and checked by the database | |||
| (physical and electronic) protocols. | manager. |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 18 of 21
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| | Discuss any adjustment to assay data. | | No adjustment of assay data other than | |
| averagingof repeat and duplicate assays. | ||||
| Location of | | Accuracy and quality of surveys used to locate drill | | RC drill collars were located using a hand‐ |
| data points | holes (collar and down‐hole surveys), trenches, | held GPS with an accuracy of +‐ 4m. | ||
| mine workings and other locations used in Mineral | |
Grid system: GDA94 | ||
| Resource estimation. | | Topographic control using regional DEM | ||
| | Specification of the grid system used. | data. | ||
| | Qualityand adequacyof topographic control. | |||
| Data spacing | | Data spacing for reporting of Exploration Results. | | RC drilling was carried out at 75m |
| and distribution |
| Whether the data spacing and distribution is sufficient to establish the degree of geological and |
| spacings on two lines 400m apart. Not for ore resource estimation. |
| grade continuity appropriate for the Mineral | | 4m compositing was applied | ||
| Resource and Ore Reserve estimation procedure(s) | ||||
| and classifications applied. | ||||
| | Whether sample compositinghas been applied. | |||
| Orientation of | | Whether the orientation of sampling achieves | | Drilling of inclined (‐60deg) RC holes 90° |
| data in | unbiased sampling of possible structures and the | to east or orthogonal to the target strike. | ||
| relation to geological structure |
| extent to which this is known, considering the deposit type. If the relationship between the drilling orientation |
||
| and the orientation of key mineralised structures | ||||
| is considered to have introduced a sampling bias, | ||||
| this should be assessed and reported if material. | ||||
| Sample | | The measures taken to ensure sample security. | | Samples were taken to the laboratory |
| security | Kalgoorlie depot prior to dispatch to | |||
| Perth using a commercial freight | ||||
| company. | ||||
| Audits or | | The results of any audits or reviews of sampling | | The sampling techniques and results have |
| reviews | techniques and data. | not been subject to audit. |
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Mineral | | Type, reference name/number, location and | | Erayinia is situated on exploration licence |
| tenement and land tenure status |
ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title |
E28/1895 and E28/2242 116.6sqkm and is held by Image Resources NL. Image Resources is earning an interest in the King |
||
| interests, historical sites, wilderness or national | JV tenements P28/1320 and P28/1321 | |||
| park and environmental settings. | 3.7sqkm as described in the section, Key | |||
| | The security of the tenure held at the time of | Terms of Farm‐in of King Prospect. All | ||
| reporting along with any known impediments to | licences are granted with no known | |||
| obtaining a licence to operate in the area. | impediments to obtaining a licence to | |||
| operate. | ||||
| Exploration | | Acknowledgment and appraisal of exploration by | The King prospect area has been subject | |
| done by other | otherparties. | to systematic surface samplingby |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 19 of 21
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary | Commentary |
|---|---|---|---|---|---|
| parties | previous explorers mainly including | ||||
| WMC and Integra. Air‐core drilling was | |||||
| carried out by WMC Resources and a | |||||
| total of 129 holes for 5402 m were | |||||
| drilled at the King and K5 prospects. | |||||
| Integra drilled 25 RC holes for 2860m | |||||
| and 43 AC holes totalling 1600m | |||||
| between 2003‐2007 in the King | |||||
| Prospect. Available historical data has | |||||
| been compiled over all the tenements | |||||
| and the main companies include | |||||
| Goldfields (201 AC & 22 RC), Integra | |||||
| (427 AC & 35 RC)and Newmont(52 AC). | |||||
| Geology | | Deposit type, geological setting and style of | | Erayinia is underlain by a moderate to | |
| mineralisation. | strongly foliated, mafic volcano‐ | ||||
| sedimentary sequence intruded by | |||||
| differentiated dolerites and variably | |||||
| metamorphosed to upper amphibolite | |||||
| facies conditions. Numerous felsic | |||||
| porphyries also intrude the sequence. | |||||
| These Archaean rocks are overlain by | |||||
| sedimentary rocks of Proterozoic to | |||||
| Cainozoic age. The Proterozoic rocks are | |||||
| part of the Woodline Beds and are | |||||
| characterized by carbonate‐pyrite‐ | |||||
| bearing quartz pebble conglomerates. | |||||
| Drill hole | | A summary of all information material to the | | The details of material RC holes | |
| Information | understanding of the exploration results including | completed historically and by Image are | |||
| a tabulation of the following information for all Material drill holes: |
reported in Table1. | ||||
| | easting and northing of the drill hole collar | ||||
| | elevation or RL (Reduced Level – elevation above | ||||
| sea level in metres) of the drill hole collar | |||||
| | dip and azimuth of the hole | ||||
| | down hole length and interception depth | ||||
| | hole length. | ||||
| | If the exclusion of this information is justified on | ||||
| the basis that the information is not Material and | |||||
| this exclusion does not detract from the | |||||
| understanding of the report, the Competent | |||||
| Person should clearlyexplain whythis is the case. | |||||
| Data | | In reporting Exploration Results, weighting | | No | weighting or cutting of gold values, other |
| aggregation methods |
averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and |
than averaging of duplicate and repeat analyses. |
|||
| cut‐off grades are usually Material and should be | | No | metal equivalents have been used. | ||
| stated. | |||||
| | Where aggregate intercepts incorporate short |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
Page 20 of 21
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| lengths of high‐grade results and longer lengths of | ||||
| low‐grade results, the procedure used for such | ||||
| aggregation should be stated and some typical | ||||
| examples of such aggregations should be shown in | ||||
| detail. | ||||
| | The assumptions used for any reporting of metal | |||
| equivalent values should be clearlystated. | ||||
| Relationship | | These relationships are particularly important in | | All vertical aircore holes into the horizontal |
| between mineralisation widths and intercept lengths |
|
the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths |
supergene zones are showing true width intersections. A number of inclined drill holes along the EW cross‐sections shown in Figures 1, 3, 4, 5, and 6 are not true widths because the lines are oblique to the strike |
|
| are reported, there should be a clear statement to | angle and would be over estimating the true | |||
| this effect (e.g., ‘down hole length, true width not | width by 5 to 10%. Drill holes oriented | |||
| known’). | towards 65 degrees would be close to true | |||
| widths. | ||||
| Diagrams | | Appropriate maps and sections (with scales) and | | Refer to text. |
| tabulations of intercepts should be included for | ||||
| any significant discovery being reported These | ||||
| should include, but not be limited to a plan view | ||||
| of drill hole collar locations and appropriate | ||||
| sectional views. | ||||
| Balanced | | Where comprehensive reporting of all Exploration | | Anomalous ranges used are stated in the |
| reporting | Results is not practicable, representative reporting | text. | ||
| of both low and high grades and/or widths should | ||||
| be practiced, to avoid misleading reporting of | ||||
| Exploration Results. | ||||
| Other | | Other exploration data, if meaningful and | | Detailed ground magnetic survey by Image |
| substantive exploration data |
material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk |
Resources. | ||
| samples – size and method of treatment; | ||||
| metallurgical test results; bulk density, | ||||
| groundwater, geotechnical and rock | ||||
| characteristics; potential deleterious or | ||||
| contaminatingsubstances. | ||||
| Further work | | The nature and scale of planned further work | | Detailed infill RC drilling is planned on a |
| ~~(e.g.~~e.g.,tests for lateral extensions or depth | 100mx100m grid over the prospective areas | |||
| extensions or large‐scale step‐out drilling). | mainly within the King JV tenements and | |||
| | Diagrams clearly highlighting the areas of possible | includes 42 RC holes for 4260m. Refer to | ||
| extensions, including the main geological | Figure 1 and Table2. | |||
| interpretations and future drilling areas, provided | ||||
| this information is not commercially sensitive. | Detailed 50m spaced cesium vapor ground | |||
| magnetics over the King JV tenements. |
Image Resources NL ABN 57 063 977 579 Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872
T: 08 9485 2410 www.imageres.com.au
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