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IMAGE RESOURCES NL — Interim / Quarterly Report 2016
Apr 28, 2016
65117_rns_2016-04-28_14068cce-0a2c-4eb6-927a-e3c83966cd47.pdf
Interim / Quarterly Report
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IMAGE RESOURCES NL
Ground Floor, 23 Ventnor Ave West Perth WA 6005 PO Box 469 West Perth WA 6872 Telephone 08 9485 2410 www.imageres.com.au ABN 57 063 977 579
Quarterly Report – for the quarter ended 31 March 2016
Image Resources NL ABN 57 063 977 579
ASX Code IMA
Contact Details
Ground Floor, 23 Ventnor Avenue, West Perth WA 6005
T +61 8 9485 2410 E: [email protected] W: imageres.com.au
Issued Capital
Shares – Quoted 216,400,129
Options – Unquoted 2,600,000 (expire 21/12/16)
Cash at end of quarter $675,000
Board & Management
John Jones (Non-Executive Chairman) Peter Thomas (Non-Executive Director) George Sakalidis (Exploration Director) Collis Thorp (Chief Executive Officer) Aaron Chong Veoy Soo (Non-Executive Director)
Corporate
Activities during the quarter have been focused on completion of the agreements with Murray Zircon Pty Ltd (Murray Zircon) and Guangdong Orient Zirconic Ind Sci & Tech Co Limited (Orient Zirconic). On 9 February 2016, the Company announced that, following the completion of extensive due diligence, it had executed a binding agreement with Murray Zircon Pty Ltd (Murray Zircon) and its parent, Guangdong Orient Zirconic Ind Sci & Tech Co Ltd (Orient Zirconic), in relation to a series of transactions directed towards fast-tracking the development of Image’s flagship, 100%-owned, high-grade Boonanarring mineral sands project in Western Australia (Boonanarring). The notice of meeting was despatched to shareholders in early April, with a unanimous recommendation from the directors for shareholders to approve the transaction. The shareholder meeting is to be held on 12th May and, if the transaction receives shareholder approval, the deal is expected to complete in by 26 May 2016. The details of the transaction can be found on Image Resources NL website.
The acquisition of a wet concentration plant and associated assets from Murray Zircon; combined with a $4 million loan, zircon offtake agreement and US$8 million prepayment facility; represents a significant step forward for the Company in plans to develop the Boonanarring and Atlas deposits.
The Company is looking forward to the support of Murray Zircon and Orient Zirconic in moving our project towards production. Post-merger activity will likely focus on the key elements of the previous feasibility that require updating, and that are most likely to have a significant impact on project economics, including geotechnical work, resources/reserves update, mining costs and commodity price (and foreign exchange) expectations.
On 1 February 2016 the Company announced the retirement of Mr Jeff Williams as a non-executive director to take up executive roles in other resource companies.
On 1 March 2016 the Company issued 16 million shares at 5 cents to raise $800,000 before costs for working capital primarily directed towards completion of the transaction with Murray Zircon and Orient Zirconic.
Exploration activities Boonanarring, Blue Lake and Quinns Hill Projects A 17 hole programme was completed in January 2016 on Blue Lake and Boonanarring testing both ground magnetic targets and an area just west of the existing Boonanarring Resource. Assays from this programme are expected to be analysed soon. A 10 km infill ground magnetic survey has been completed over the Quinns Hill area. Recent interpretation of this ground magnetic survey has shown further drilling is warranted to test further magnetic targets, which are subject to access.
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IMAGE RESOURCES NL
A 21 hole programme due to start late April is initially contemplated to test two separate areas at Boonanarring West and Blue Lake. The close proximity of these new targets to the Boonanarring deposit augers well for the potential to add significant extra mine life.
Boonanarring South and Gingin
An 8 hole programme was completed in January 2016 on the Gingin tenement testing southern extensions of the previously mined Iluka “Gingin” mine; showing a promising 1.5km+ stretch of anomalous area based on visual logging. These samples will be assayed by the laboratory soon. A further 5 holes are included in the upcoming drill programme.
In addition 36 AC holes for both infill and extension drilling over a 6.4km distance is being planned directly south of the 9.5km long Boonanarring Deposit (Fig.2). The infill drilling is designed to look for higher grades in the vicinity of some drill intersections including [email protected]% HM from 39m in hole GG1019 Easting 389983mE Northing 6542860mN and 11m @ 4.5% HM from 31m in hole GG977 Easting 389452mE Northing 6544040mN. Whilst the extension drilling is within new areas where sparse historical drilling has been completed along the scarp, where laterite noise is common. All the drilling costs for the above AC holes have been pre-paid by a placement to a major WA drilling company. This drilling agreement is now expiring on 31[st] December 2016 with 9,276 m available for future drilling programmes.
The drilling programmes at Boonanarring and Boonanarring South are designed to assist Image to build a 10 year mine life for the Boonanarring Deposit.
Regans Ford West (E70/3966)
A small 7km ground magnetic program was conducted on the tenement to test for targets amidst surficial noise from agricultural infrastructure.
King Project (Gold)
Silver Lake Ltd has withdrawn from the Erayinia Joint Venture covering E28/1895 and E28/2071. Image is reviewing the gold results over this project and will report back when completed.
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IMAGE RESOURCES NL
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Figure 1 Drilling programmes completed and planned on Image Resources Gingin to Red Gully region in the North Perth Basin
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IMAGE RESOURCES NL
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Figure 2 Boonanarring West planned drilling (highlighted yellow)
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IMAGE RESOURCES NL
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Figure 3 Gingin Project with planned drilling (highlighted in yellow)
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IMAGE RESOURCES NL
Table 1 Planned Drilling May 2016
| Project Title | Tenement ID | DH's | Metres |
|---|---|---|---|
| Gingin | E70/3032 | 5 | 150 |
| Regans Ford South & Boonanarring |
E70/3041 & M70/1194 |
36 | 1,956 |
| Boonanarring West |
E70/4689 | 13 | 390 |
| Blue Lake | E70/3720 | 8 | 408 |
| 62 | 2,904 |
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For more information visit imageres.com.au
Please direct enquiries to:
George Sakalidis Exploration Director M: +61 411 640 337 E: [email protected]
Collis Thorp Chief Executive Officer M: +61 413 705 075 E:[email protected]
COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS AND MINERAL RESOURCES AND RESERVES
Information in this report that relates to Exploration Results, Mineral Resources is based on information compiled by George Sakalidis BSc (Hons) who is a member of the Australasian Institute of Mining and Metallurgy. At the time that the Exploration Results, Mineral Resources and Mineral Reserves were compiled, George Sakalidis was a director of Image Resources NL. He 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’. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.
COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES
The information in this report that relates to mineral resources and is based on information compiled by Lynn Widenbar BSc, MSc, DIC MAIG, MAusIMM employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar 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 of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in.
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.
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Tenement Schedule in accordance with ASX Listing Rule 5.3.3
Tenements held at the end of the Quarter
| Location | Tenement | Nature of Interest |
Project | Equity (%) held at start of Quarter |
Equity (%) held at end of Quarter |
|---|---|---|---|---|---|
| WA | E28/1895 | Granted | ERAYINIA | 16.1% diluting | 16.1% diluting |
| WA | E28/2071 | Granted | TALC LAKE | 16.1% diluting | 16.1% diluting |
| WA | E70/2636 | Granted | COOLJARLOO | 100% | 100% |
| WA | E70/2844 | Granted | BIDAMINNA NTH | 100% | 100% |
| WA | E70/2898 | Granted | COOLJARLOO | 100% | 100% |
| WA | E70/3032 | Granted | GINGIN | 100% | 100% |
| WA | E70/3041 | Granted | REGANS FORD SOUTH | 100% | 100% |
| WA | E70/3100 | Granted | QUINNS HILL | 100% | 100% |
| WA | E70/3192 | Granted | BOOTINE | 100% | 100% |
| WA | E70/3298 | Granted | BIDAMINNA -PARK | 90% | 90% |
| WA | E70/3411 | Granted | REGANS FORD | 100% | 100% |
| WA | E70/3418 | Granted | BELL | 100% | 100% |
| WA | E70/3494 | Granted | BRYALANA | 100% | 100% |
| WA | E70/3720 | Granted | BLUE LAKE | 100% | 100% |
| WA | E70/3892 | Granted | CHAPMAN HILL | 100% | 100% |
| WA | E70/3966 | Granted | REGANS FORD WEST | 100% | 100% |
| WA | E70/3997 | Granted | MUNBINIA | 100% | 100% |
| WA | E70/4077 | Granted | DARLING RANGE | 100% | 100% |
| WA | E70/4244 | Granted | WOOLKA | 100% | 100% |
| WA | E70/4245 | Granted | WINOOKA | 100% | 100% |
| WA | M70/0448 | Granted | GINGIN SOUTH | 100% | 100% |
| WA | M70/1192 | Granted | RED GULLY | 100% | 100% |
| WA | M70/1193 | Granted | GINGIN NORTH | 100% | 100% |
| WA | M70/1194 | Granted | BOONANARRING | 100% | 100% |
| WA | P70/1516 | Granted | COOLJARLOO | 100% | 100% |
| WA | M70/1311 | Granted | BOONANARRING | 100% | 100% |
| WA | G70/0250 | Granted | BOONANARRING | 100% | 100% |
| WA | R70/0051 | Granted | COOLJARLOO NORTH | 100% | 100% |
| WA | M70/1305 | Application | ATLAS | 100%pending grant | 100%pending grant |
| WA | P70/1520 | Application | COOLJARLOO | 100%pending grant | 100%pending grant |
| WA | E70/4631 | Granted | MUNBINIA WEST | 100% | 100% |
| WA | E70/4656 | Granted | WINOOKA NORTH | 100% | 100% |
| WA | E70/4663 | Granted | BIBBY SPRINGS | 100% | 100% |
| WA | E70/4689 | Granted | BOONANARRING | 100% | 100% |
| WA | E70/4779 | Application | MIMEGARRA | 100% | 100%pending grant |
| WA | E70/4794 | Application | REGANS FORD NORTH | 100% | 100%pending grant |
| WA | E70/4795 | Application | BIDAMINNA SOUTH | 100% | 100%pending grant |
| WA | E70/4796 | Application | CALADENIA | 100% | 100%pending grant |
| Mining Tenements acquired during the Quarter | |||||
| NIL | |||||
| Mining Tenements disposed during the Quarter | |||||
| NIL |
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Table 6 – North Perth Basin Resources and Reserves
| Reserve Summary | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Project Area | Category | Volume | Tonnes | % HM | % SLIMES | HM Tonnes | VHM | Ilmenite | Leucoxene | Rutile | Zircon |
| (%) | (%) | (%) | (%) | (%) | |||||||
| Boonanarring | Probable | 7,160,000 | 14,420,000 | 8.3% | 17.0% | 1,190,000 | 80.3% | 46.9% | 5.5% | 3.3% | 24.5% |
| Atlas | Probable | 4,760,000 | 9,600,000 | 8.1% | 15.5% | 780,000 | 74.1% | 55.0% | 1.0% | 7.0% | 11.0% |
| Total NPB Reserve | 11,920,000 | 24,020,000 | 8.2% | 16.4% | 1,970,000 | 77.8% | 50.1% | 3.7% | 4.8% | 19.1% | |
| Mining Inventory (incl Inferred) | 13,330,000 | 26,880,000 | 8.0% | 16.5% | 2,135,000 | 78.3% | 50.1% | 4.2% | 5.1% | 19.0% |
| Reserve Summary | Reserve Summary | Reserve Summary | Reserve Summary | Reserve Summary | Reserve Summary | Reserve Summary | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| HM Tonnes Project Area Category Volume Tonnes % HM % SLIMES |
VHM Ilmenite Leucoxene Rutile Zircon |
||||||||||
| (%) (%) (%) (%) (%) |
|||||||||||
| Boonanarring Probable 7,160,000 14,420,000 8.3% 17.0% 1,190,000 80.3% 46.9% 5.5% 3.3% 24.5% Atlas Probable 4,760,000 9,600,000 8.1% 15.5% 780,000 74.1% 55.0% 1.0% 7.0% 11.0% |
|||||||||||
| Total NPB Reserve 11,920,000 24,020,000 8.2% 16.4% 1,970,000 77.8% 50.1% 3.7% 4.8% 19.1% |
|||||||||||
| Mining Inventory (incl Inferred) 13,330,000 26,880,000 8.0% 16.5% 2,135,000 78.3% 50.1% 4.2% 5.1% 19.0% |
|||||||||||
| High Grade Resources @ 2.5% | HM Cut-off | ||||||||||
| Resource | VHM Ilmenite Leucoxene Rutile Zircon (%) (%) (%) (%) (%) % SLIMES HM TONNES Resource Category BCM TONNES % HM |
||||||||||
| Atlas Atlas |
Measured Indicated |
4,810,000 520,000 |
9,700,000 1,080,000 |
8.5 3.2 |
15.3 19.2 |
820,000 34,000 |
76 74 |
52 53 |
5 8 |
8 7 |
11 6 |
| Atlas Total | 5,330,000 | 10,780,000 | 7.9 | 15.7 | 854,000 | 76 | 52 | 5 | 8 | 10 | |
| Boonanarring Boonanarring |
Measured | 1,680,000 | 3,000,000 | 7.8 | 10.1 | 230,000 | 70 | 49 | 1 | 3 | 17 |
| Indicated | 7,000,000 | 14,300,000 | 9 | 17.2 | 1,270,000 | 80 | 49 | 6 | 3 | 22 | |
| Boonanarring | Inferred | 2,100,000 | 4,200,000 | 6.5 | 17.4 | 270,000 | 83 | 51 | 8 | 7 | 18 |
| Boonanarring Total | 10,780,000 | 21,500,000 | 8.3 | 16.2 | 1,770,000 | 79 | 49 | 6 | 4 | 21 | |
| Gingin Nth | Indicated | 680,000 | 1,320,000 | 5.7 | 15.7 | 80,000 | 75 | 57 | 9 | 3 | 5 |
| Gingin Nth | Inferred | 580,000 | 1,090,000 | 5.2 | 14 | 60,000 | 78 | 57 | 11 | 4 | 6 |
| Gingin Nth Total | 1,260,000 | 2,410,000 | 5.5 | 15 | 140,000 | 77 | 57 | 10 | 3 | 6 | |
| Gingin Sth | Measured | 870,000 | 1,530,000 | 4.4 | 7.2 | 67,000 | 79 | 51 | 15 | 6 | 8 |
| Gingin Sth | Indicated | 3,240,000 | 5,820,000 | 6.5 | 7.1 | 380,000 | 91 | 68 | 10 | 5 | 8 |
| Gingin Sth | Inferred | 400,000 | 730,000 | 6.5 | 8.4 | 48,000 | 92 | 67 | 8 | 6 | 11 |
| Gingin Sth Total | 4,510,000 | 8,080,000 | 6.1 | 7.3 | 495,000 | 89 | 65 | 10 | 5 | 8 | |
| Helene | Indicated | 5,600,000 | 11,500,000 | 4.6 | 18.6 | 520,000 | 84 | 70 | 1 | 3 | 11 |
| Hyperion | Indicated | 1,800,000 | 3,700,000 | 7.8 | 19.3 | 290,000 | 71 | 56 | 0 | 6 | 9 |
| Cooljarloo Nth Total | 7,400,000 | 15,200,000 | 5.3 | 18.7 | 810,000 | 79 | 64 | 0 | 4 | 9 | |
| Red Gully | Indicated | 1,930,000 | 3,410,000 | 7.8 | 11.5 | 270,000 | 90 | 66 | 8 | 3 | 12 |
| Red Gully | Inferred | 1,455,000 | 2,570,000 | 7.5 | 10.7 | 190,000 | 90 | 66 | 8 | 3 | 12 |
| Red Gully Total | 3,385,000 | 5,980,000 | 7.7 | 11.2 | 460,000 | 90 | 66 | 8 | 3 | 12 | |
| Grand Total | 32,665,000 63,950,000 7.1% 13.9% 4,529,000 80 57 6 5 13 |
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| Dredge Resources at 1.0% HM cut-off | Dredge Resources at 1.0% HM cut-off | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Project Area | Resource Category | Volume | TONNES | % | % | HM | VHM | Ilmenite % Leucoxene % | Rutile | Zircon | Ilmenite | Leucoxene | Rutile | Zircon | VHM Tonnes | |
| HM | Slime | TONNES | % | % | % | |||||||||||
| Titan | Indicated | 10,300,000 | 21,200,000 | 1.8 | 22.1 | 380,000 | 84.4 | 71.9 | 2.0 | 1.0 | 9.5 | 270,000 | 7,000 | 5,000 | 36,000 | 318,000 |
| Titan | Inferred | 58,500,000 | 115,400,000 | 1.9 | 18.9 | 2,210,000 | 84.3 | 71.8 | 2.0 | 1.0 | 9.5 | 1,592,000 | 45,000 | 22,000 | 210,000 | 1,869,000 |
| Titan | Total | **68,800,000 ** | 136,600,000 | 1.9 | 19.4 | 2,590,000 | 84.4 | 71.9 | 2.0 | 1.0 | 9.5 | 1,862,000 | 52,000 | 27,000 | 246,000 | 2,187,000 |
| Telesto | Indicated | 1,700,000 | 3,500,000 | 3.8 | 18.4 | 130,000 | 82.6 | 67.5 | 3.4 | 2.2 | 9.5 | 100,000 | 5,000 | 3,000 | 13,000 | 121,000 |
| Calypso | Inferred | 27,100,000 | 51,500,000 | 1.7 | 13.7 | 850,000 | 84.6 | 68.8 | 3.5 | 1.6 | 10.6 | 585,000 | 30,000 | 14,000 | 90,000 | 719,000 |
| Sub Total | Indicated | **12,000,000 ** | 24,700,000 | 2.1 | 21.6 | 510,000 | 86.1 | 72.5 | 2.4 | 1.6 | 9.6 | 370,000 | 12,000 | 8,000 | 49,000 | 439,000 |
| Sub Total | Inferred | **85,600,000 ** | **166,900,000 ** | 1.8 | 17.3 | 3,060,000 | 84.6 | 71.1 | 2.5 | 1.2 | 9.8 | 2,177,000 | 75,000 | 36,000 | 300,000 | 2,588,000 |
| Cooljarloo Total | **97,600,000 ** | **191,600,000 ** | 1.9 | 17.8 | 3,570,000 | 84.8 | 71.3 | 2.4 | 1.2 | 9.8 | 2,547,000 | 87,000 | 44,000 | 349,000 | 3,027,000 | |
| Bidaminna | Inferred | 26,300,000 | 44,600,000 | 3.0 | 3.6 | 1,350,000 | 96.0 | 82.4 | 7.2 | 1.0 | 5.4 | 1,113,000 | 97,000 | 13,000 | 73,000 | 1,296,000 |
| Total Dredge | **123,900,000 ** | **236,200,000 ** | 2.1 | 15.1 | 4,920,000 | 84.3 | 65.6 | 4.6 | 2.9 | 11.3 | 3,660,000 | 184,000 | 57,000 | 422,000 | 4,323,000 |
1 Refer to the 31 May 2013 release http://www.asx.com.au/asxpdf/20130531/pdf/42g6v9v0jxn3hg.pdf for full details of the Boonanarring Mineral Resource/Reserve Estimate for full details of the Boonanarring Mineral Resource/Reserve Estimate
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