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IMAGE RESOURCES NL — Interim / Quarterly Report 2014
Oct 30, 2014
65117_rns_2014-10-30_34d89ec8-1408-4e05-875c-bef033751cf2.pdf
Interim / Quarterly Report
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QUARTERLY REPORT – for the quarter ended 30 September 2014
Image Resources NL
ABN 57 063 977 579
ASX Code
IMA
Contact Details 5 Mumford Place Balcatta WA 6021
T +61 8 9485 2410 E: [email protected]
W: imageres.com.au
Issued Capital
Shares – Quoted 157,590,129 Options – Unquoted 5,040,000 (various terms)
Cash at end of quarter $1.528 million
Board & Management John Jones
(NED Chairman)
Peter Thomas
(Non-Executive Director) George Sakalidis
(Exploration Director)
Collis Thorp
(Chief Executive Officer)
Jeff Williams
(Non-Executive Director)
Highlights
Corporate
- During September The Company announced that it had raised $1.2 million (before costs) through a placement of 10.43 million shares at $0.115 each, primarily to a number of sophisticated and institutional investors.
The placement was managed by Morgan’s Corporate Limited and was completed in one tranche; The new shares were allotted pursuant to the Company’s existing capacity under Listing Rule 7.1. This Capital raising was consistent with the Company’s strategy of strengthening its shareholder base and increasing its profile in financial markets.
The funds raised will strengthen Image’s financial position allowing it to:
(i) kick off its fully funded resources extension drilling programme at the North Perth Basin Project (“NPB” or “the Project”) (refer June Quarterly Activities Report lodged with the ASX on 31 July 2014);
(ii) finalise the review and representation of the base case feasibility study;
(iii) undertake additional studies indicated as required or prudent by the review;
(iv) support the delivery of increased JORC Compliant resources at the Boonanarring Project.
-
The Company held cash at bank of $1.528 million at 30 September 2014
-
On 2 October 2014, the Company announced that Mr Collis Thorp had been appointed as Chief Executive Officer.
-
On the 29 October 2014 the company announced John Jones as the new Chairman and Peter Thomas as Non-Executive Director
-
We are in early stage confidential discussions with a number of third parties with the intention to be able to bring the North Perth Basin Project into production as quickly and cost effectively as practicable. Proposals are currently incomplete and negotiations are continuing.
Operational activities
- The Minister for Environment has granted environmental approval under Part IV of the Environmental Protection Act 1986 for Image Resources’ Boonanarring Mineral Sands Project, located north-west of Gingin. The project involves open cut mineral sands mining, processing through primary and secondary concentration plants to produce heavy minerals concentrate and further treatment through a dry mill to produce ilmenite, rutile, zircon and leucoxene.
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The Minister's approval extends to the construction and operation of associated mine infrastructure such as offices, workshops, fuel storage, roads, solar drying cells and water bores, and to the modification to the intersection of Brand Highway with Wannamal West Road to provide safe access to and from the project site.
Exploration activities
-
Despite several days delay due to heavy rain, the Stage 1 257 hole air core drilling programme is due to commence within November. This programme is designed to make Boonanarring a standalone operation and concurrently expand other areas into potential parallel operations for Image or other producers. All holes planned in this programme will be within the Red Gully-Boonanarring-Gingin-Chandala region.
-
Results are pending for the recently undertaken botanic surveys completed at locations on the Woolka, Winooka, Chandala, Munbinea and Red Gully tenements in preparation for the Stage 2 air core drilling programmes.
-
A mineral resource estimate JORC compliance review has been completed to ensure that our resource reporting is kept updated and ready for review by any potential funding institution as we move towards financing the construction of the project. This will be ongoing as we add further resources as a result of our planned exploration programs.
-
Ground magnetic surveys have been completed on the Munbinia West, Mullering and Harris Bridge tenements and the results have been incorporated into regional models for further exploration assessment.
-
Land access negotiations with the landowners throughout the project area have been progressing during the quarter and will be ongoing as we further move to secure our land position for the project and for the Stage 2 drilling programme.
For more information visit imageres.com.au
Please direct enquiries to:
George Sakalidis Collis Thorp Exploration Director Chief Executive Officer M: +61 411 640 337 M: +61 413 705 075 E: [email protected] E: [email protected]
COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS AND MINERAL RESOURCES AND RESERVES
The information in this report that relates to Exploration Results, Mineral Resources and Mineral Reserves 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.
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 | KING(ERAYINIA JV) | 16.1% diluting | 16.1% diluting |
| WA | E28/2071 | Granted | TALC LAKE(ERAYNIA JV) | 16.1% diluting | 16.1% diluting |
| WA | E69/2034 | Granted | SERPENTINE LAKES | 100% | 100% |
| WA | E70/2636 | Granted | COOLJARLOO | 100% | 100% |
| WA | E70/2742 | Granted | CHANDALA(DerbyMines JV) | Earned 80% | Earned 80% |
| WA | E70/2825 | Granted | BIDAMINNA STH | 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 | E70/3086 | Granted | GABY'S PEAK | 100% | 100% |
| WA | E70/3100 | Granted | QUINNS HILL | 100% | 100% |
| WA | E70/3192 | Granted | BOOTINE | 100% | 100% |
| WA | E70/3292 | Granted | COOLJARLOO(Matilda Minerals JV) | Earning70% | Earning70% |
| WA | E70/3298 | Granted | BIDAMINNA -PARK | 90% | 90% |
| WA | E70/3328 | Granted | VERNE HILL(COOLJARLOO) | 100% | 100% |
| 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 | E70/4129 | Granted | MULLERING SOUTH | 100% | 100% |
| WA | E70/4130 | Granted | MULLERING NORTH | 100% | 100% |
| WA | E70/4244 | Granted | WOOLKA | 100% | 100% |
| WA | E70/4245 | Granted | WINOOKA | 100% | 100% |
| WA | E70/4549 | Granted | HARRIS BRIDGE | 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 | P70/1540 | Granted | CADDA SPRINGS | 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 | R69/0001 | Granted | SERPENTINE LAKES | 100%pending grant | 100% |
| WA | M70/1305 | Application | ATLAS | 100%pending grant | 100%pending grant |
| WA | P70/1520 | Application | COOLJARLOO | 100%pending grant | 100%pending grant |
| WA | E70/4572 | Application | YARDARINO | 100%pending grant | 100%pending grant |
| WA | E70/4583 | Application | TUTUNUP | 100%pending grant | 100%pending grant |
| WA | E70/4631 | Application | MUNBINIA WEST | - | 100%pending grant |
| WA | E70/4656 | Application | WINOOKA NORTH | - | 100%pending grant |
| WA | E70/4663 | Application | BIBBY SPRINGS | - | 100%pending grant |
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| Mining Tenements acquired during the Quarter | Mining Tenements acquired during the Quarter | Mining Tenements acquired during the Quarter | Mining Tenements acquired during the Quarter | ||
|---|---|---|---|---|---|
| WA | E70/4631 | Application | MUNBINIA WEST | - | 100% pending grant |
| WA | E70/4647 | Application | WINOOKA | - | - |
| WA | E70/4656 | Application | WINOOKA NORTH | - | 100% pending grant |
| WA | E70/4663 | Application | BIBBY SPRINGS | - | 100% pending grant |
| Mining Tenements disposed during the Quarter | |||||
| WA | E70/4647 | Withdrawn | WINOOKA | - | - |
Table 1 – North Perth Basin Resources
| Reserve Summary | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Project Area | HM Tonnes Category Volume Tonnes % HM % SLIMES |
VHM Ilmenite Leucoxene Rutile Zircon |
|||||||||
| (%) (%) (%) (%) (%) |
|||||||||||
| Boonanarring Atlas |
Probable 7,160,000 14,420,000 8.3% 17.0% 1,190,000 Probable 4,760,000 9,600,000 8.1% 15.5% 780,000 |
80.3% 46.9% 5.5% 3.3% 24.5% 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 | % SLIMES HM TONNES Resource Category BCM TONNES % HM |
VHM Ilmenite Leucoxene Rutile Zircon (%) (%) (%) (%) (%) |
|||||||||
| 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 |
Table 2 – North Perth Basin Reserves
| 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 |
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