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IMAGE RESOURCES NL Regulatory Filings 2021

Mar 30, 2021

65117_rns_2021-03-30_db7f9bc6-ceb9-4790-93c3-4f84f0e3f5d1.pdf

Regulatory Filings

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31 March 2021

==> picture [110 x 75] intentionally omitted <==

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PROJECT ‘MORE’ UPDATE BOONANARRING AND ATLAS PROJECT AREAS

_____________________

Highlights:

  •  Total Mineral Resources at Boonanarring and Atlas Project areas increase by 22% in tonnes, 5% in total heavy minerals (“HM”) grade and 27% in contained HM.

  •  New Mineral Resources at Boonanarring North Extension, Boonanarring Northwest and Gingin North total 13 million tonnes at 6.1% HM and with 11% zircon in the HM.

  •  No new Ore Reserves at Boonanarring to extend current mine-life due to infrastructure challenges, extra time required for permitting and need to develop lower cost mining model.

  • Potential future Ore Reserves at Boonanarring to be considered for mining as smaller scale satellite operations.

  •  Potential Ore Reserves at Helene and Hyperion in the Atlas Project area under assessment for added mine-life for Atlas Project area operations or as parallel satellite operations.

Image Resources NL (ASX: IMA) (“Image” or “the Company”) provides the following update on results from Project ‘MORE’ efforts on newly identified and updated Mineral Resources near the Company’s 100%-owned Boonanarring and Atlas Mineral Sands Projects located north of Perth in the North Perth Basin .

Optiro Pty Ltd (“ Optiro” ) has completed Mineral Resources estimates for various project areas in the vicinities of the currently operating Boonanarring Project and the Company’s next mining location at the Atlas Project area. The Mineral Resource estimates are reported and classified in accordance with the guidelines of the JORC Code (2012).

When compared to the Mineral Resources estimates reported as at 31 December 2020 (Table 2) for the Boonanarring deposit and its satellite deposits at Gingin North, Boonanarring North Extension and Boonanarring Northwest (Boonanarring Project area) (see Figure 1 location map), and for the Atlas deposit and its vicinity deposits at Helene and Hyperion (Atlas Project area) (see Figure 2 location map), the new and updated Mineral Resources as at 30 March 2021 (Table 1) have increased by 22% in tonnes, 5% in total HM grade and 27% in contained HM tonnes. The Boonanarring and Atlas deposits Mineral Resources are reported unchanged from 31 December 2020 so that changes in total Mineral Resources as at 30 March 2021 are reflective of Project ‘MORE’ efforts.

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

Page 1 of 39

The most significant increase in Mineral Resources are the inaugural Mineral Resources estimated at the Boonanarring North Extension and Boonanarring Northwest deposits and the updated Mineral Resources at Gingin North for a total of 13 million tonnes of new Mineral Resources at 6.1% total HM and 11% zircon in the HM.

While the objective of Project ‘MORE’, which was to rapidly assess areas with potential Ore Reserves within economic pumping or hauling distance of the current location of the wet concentration plant (WCP) at Boonanarring, was achieved, the goal of identifying additional Ore Reserves in time to extend the mine-life at Boonanarring was not achieved. At this time, no new Ore Reserves have been identified in any of the potential extension areas around Boonanarring.

The Boonanarring North Extension is clearly an extension of the high-grade, zircon-rich eastern strandline of the main Boonanarring deposit. It extends for up to 5 km north of currently mined Block A, however, it is largely located beneath the Brand Highway and in close proximity to two high pressure gas pipelines. Therefore, the timing and costs associated with gaining access to these Mineral Resources (and potential Ore Reserves) does not fit the window of completion of mining and processing of currently remaining Ore Reserves at Boonanarring.

Similarly, the lower HM grades and zircon content of the Boonanarring Northwest and Gingin North deposits, do not allow conversion to Ore Reserves due to the cost of transport of this material to the current location of the WCP. In addition, the time required to secure permitting is greater than the remaining life of the current Ore Reserves at Boonanarring.

New Mineral Resources within the Boonanarring Project area will be assessed using a lower cost mining model to determine if any of these Mineral Resources can be converted to Ore Reserves using a smaller scale satellite mining and processing model operating in parallel with full-scale mining and processing at the Atlas Project area.

In the absence of any new Ore Reserves at Boonanarring, the Company is moving forward with its original plans, as contemplated in the 2017 Bankable Feasibility Study, to relocate the WCP to the Atlas Project area following the completion of mining and processing of remaining Ore Reserves at Boonanarring. Current Ore Reserves are scheduled to be depleted at the end of the September quarter 2022.

Planning for relocating mining and the WCP to the Atlas deposit is well-advanced. In addition, the updated Mineral Resources at the Helene and Hyperion deposits are being assessed to determine potential Ore Reserves for extending the overall mine life at the Atlas Project area, or to be mined using the smaller scale satellite mining and processing model being assessed for Boonanarring satellite deposits.

Relocation of the dry mining fleet, associated infrastructure and the WCP from Boonanarring to Atlas is anticipated to have a transition period of three months with no HMC production and at an estimated cost of $25 million which will be paid from cash reserves. It is anticipated that some sales of final HMC inventory from Boonanarring will be made during the transition period.

Summary details of Optiro’s Mineral Resource estimates for the satellite deposits within the Boonanarring Project area are presented in Schedule 1 and summary details for the Helene and Hyperion deposits within the Atlas Project area are presented in Schedule 2. JORC 2012 Table 1 information for the satellite deposits within the Boonanarring Project area is presented in Appendix 1 and JORC 2012 Table 1 information for the Helene and Hyperion deposits within the Atlas Project area is presented in Appendix 2.

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 | F: 08 9486 8312 www.imageres.com.au

Page 2 of 39

Table 1. 30 March 2021 Mineral Resources update reported above a 2.0% total HM cut-off grade

Project / deposit Total HM
Slimes
Oversize
%
%
%
Million
tonnes
Category		 Total HM
Slimes
Oversize
%
%
%
Million
tonnes
Category		 Total HM
Slimes
Oversize
%
%
%
Million
tonnes
Category		 Total HM
Slimes
Oversize
%
%
%
Million
tonnes
Category		 % of total heavy mineral
Zircon
Rutile
Leucoxene
Ilmenite
Boonanarring Measured
7.4
7.3
13
5.0		 19
3.1
4.0
51
Indicated
7.1
5.4
17
5.4		 18
4.7
8.3
48
Inferred
1.4
3.5
18
7.8		 16
4.1
5.0
53
Total
15.9
6.1
15
5.5		 19
3.8
5.7
50
Boonanarring
North Extension		 Indicated
2.5
12
17
7.1		 16
2.7
12
41
Inferred
0.2
4.7
17
8.4		 16
2.5
11
39
Total
2.7
11
17
7.2		 16
2.7
11
41
Boonanarring
Northwest		 Indicated
3.1
5.1
11
1.2		 10
6.8
30
35
Inferred
1.2
5.0
10
0.8		 8
7.4
36
27
Total
4.3
5.1
11
1.1		 9
6.9
32
33
Gingin North Indicated
6.6
4.7
16
4.5		 7
4.5
15
50
Inferred
2.0
4.7
13
5.3		 6
5.4
23
41
Total
8.7
4.7
15
4.7		 7
4.7
17
48
Boonanarring
Project
Total		 Measured
7.4
7.3
13
5.0		 19
3.1
4.0
51
Indicated
19.3
6.0
16
4.6		 14
4.4
14
45
Inferred
4.8
4.4
14
5.1		 9.1
5.5
22
40
Total
31.6		 6.0 15 4.8 15
4.2
12
46
Atlas Measured
9.9
7.9
16
5.8		 11
7.2
4.2
49
Indicated
6.4
3.7
17
5.2		 7
4.7
3.4
42
Inferred
1.8
4.0
20
7.2		 5
4.4
3.3
29
Total
18.1
6.0
17
5.7		 9
6.5
4.0
46
Hyperion Indicated
3.6
8.3
19
2.6		 8
6.7
8.1
36
Inferred
0.03
5.9
17
4.3		 7
5.0
4.9
31
Total
3.6
8.3
19
2.6		 8
6.7
8.1
36
Helene Indicated
12.1
4.9
18
1.4		 7
5.1
14
47
Inferred
1.0
4.0
15
1.1		 8
5.7
16
45
Total
13.1
4.8
18
1.4		 7
5.2
14
47
Atlas Project
Total		 Measured
9.9
7.9
16
5.8		 11
7.2
4.2
49
Indicated
22.1
5.1
18
2.7		 7
5.5
10.4
43
Inferred
2.8
4.0
18
5.1		 6
4.8
7.7
34
Total
34.8
5.8
18
3.8		 9
6.1
7.9
45
Boonanarring and
Atlas Projects
Grand Total		 Measured
17.3
7.7
15
5.5
 14
5.5
4.1
50
Indicated
41.4
5.5
17
3.6

 11
4.9
12
44
Inferred
7.7
4.3
15
5.1
 8
5.3
17
38
Total
66.4
5.9
16
4.3		 12
5.2
9.9
46

Note: All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

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 | F: 08 9486 8312 www.imageres.com.au

Page 3 of 39

Table 2. 31 December 2020 Mineral Resources reported above a 2.0% total HM cut-off grade

Project / deposit Total HM
Slimes
Oversize
%
%
%
Category
Million
tonnes		 % of total heavy mineral
Zircon
Rutile
Leucoxene
Ilmenite
Boonanarring Measured
7.4
7.3
13
5.0		 19
3.1
4.0
51
Indicated
7.1
5.4
17
5.4		 18
4.7
8.3
48
Inferred
1.4
3.5
18
7.8		 16
4.1
5.0
53
Total
15.9
6.1
15
5.5		 19
3.8
5.7
50
Boonanarring
North Extension		 Indicated
Inferred
Total
Boonanarring
Northwest		 Indicated
Inferred
Total
Gingin North Indicated
1.3
5.7
16
4.5		 6
3.2
9.3
57
Inferred
1.1
5.2
14
5.3		 6
3.7
11.3
57
Total
2.4
5.5
15
4.7		 6
3.4
10.2
57
Boonanarring
Project Total		 Measured
7.4
7.3
13
5.0		 19
3.1
4.0
51
Indicated
8.4
5.4
17
5.3		 16
4.5
8.5
49
Inferred
2.5
4.2
16
6.7		 11
3.9
8.4
55
Total
18.3
6.0
15
5.4		 17
3.8
6.2
51
Atlas Measured
9.9
7.9
16
5.8		 11
7.2
4.2
49
Indicated
6.4
3.7
17
5.2		 7
4.7
3.4
42
Inferred
1.8
4.0
20
7.2		 5
4.4
3.3
29
Total
18.1
6.0
17
5.7		 9
6.5
4.0
46
Hyperion Indicated
5.0
6.3
19		 7
6.3
0.0
56
Inferred
Total
5.0
6.3
19		 7
6.3
0.0
56
Helene Indicated
13.2
4.3
19		 11
3.6
0.0
75
Inferred
Total
13.2
4.3
19		 11
3.6
0.0
75
Atlas Project
Total		 Measured
9.9
7.9
16
5.8		 11
7.2
4.2
49
Indicated
24.6
4.6
18
5.2		 9
4.6
0.7
62
Inferred
1.8
4.0
20
7.2		 5
4.4
3.3
29
Total
36.3
5.4
18
5.7		 9
5.6
2.2
56
Boonanarring
and Atlas
Projects
Grand Total		 Measured
17.3
7.6
15
5.5		 14
5.5
4.1
50
Indicated
33.0
4.8
18
5.2		 11
4.6
3.0
59
Inferred
4.3
4.1
18
6.9		 8
4.1
6.3
45
Total
54.6
5.6
17
5.6		 12
5.0
3.7
54

Note: All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

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 | F: 08 9486 8312 www.imageres.com.au

Page 4 of 39

Figure 1: Boonanarring Project area location map

==> picture [426 x 604] intentionally omitted <==

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

www.imageres.com.au

Page 5 of 39

Figure 2: Atlas Project area location map

==> picture [386 x 593] intentionally omitted <==

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

www.imageres.com.au

Page 6 of 39

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 80 km 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, while investigating development of a second operating centre in parallel with current operations.

This document is authorised for release to the market by:

Patrick Mutz

Managing Director +61 8 9485 2410 [email protected] www.imageres.com.au

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.

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 | F: 08 9486 8312 www.imageres.com.au

Page 7 of 39

COMPETENT PERSONS’ STATEMENTS

The information in this report that relates to the estimation of Mineral Resources is based on information compiled by Mrs Christine Standing, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and the Australian Institute of Geoscientists (AIG). Mrs Standing is a full-time employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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’. Mrs Standing consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

The information in this report that relates to Exploration has been approved by George Sakalidis who is the Head of Exploration of Image Resources NL. George Sakalidis is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and 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 has given his prior written consent to the inclusion in this report of the Mineral Resources and Ore Reserves statement in the form and context in which it appears.

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 | F: 08 9486 8312 www.imageres.com.au

Page 8 of 39

Schedule 1

Boonanarring Project area Mineral Resource estimates – 30 March 2021

Optiro Pty Ltd (Optiro) has provided assistance to Image Resources NL (Image) with Mineral Resource estimates for the Boonanarring Northwest, Boonanarring North Extension and Gingin North Heavy Mineral Sands deposits. These deposits are part of Image’s Boonanarring Mineral Sands Project located in the north of the Perth Basin, Western Australia, approximately 120 km north of Perth. The Boonanarring Northwest, Boonanarring North Extension and Gingin North Heavy Mineral Sands deposits are collectively referred to as the Boonanarring Satellite deposits. Boonanarring North Extension and Boonanarring Northwest are located to the north of Image’s operating mineral sands mine at Boonanarring, and Gingin North is located to the south of the Boonanarring operations.

The mineral sands concentrations at the Boonanarring Satellite deposits are hosted by the Pliocene Yoganup Formation, a buried pro-graded shoreline deposit, with dunes, beach ridge and deltaic facies. This formation lies unconformably over the Lower Cretaceous Leederville Formation and is overlain by the Pleistocene Guildford Formation and the Quaternary Bassendean Sand. The mineralisation at all three deposits was interpreted within strandlines using a nominal cut-off grade of 2% total heavy minerals (HM). Within one of the strandlines at Boonanarring North Extension and both of the strandlines Boonanarring Northwest a high-grade core of mineralisation was interpreted using a nominal cut-off grade of 10% total HM. The interpretations excluded areas where optical examination of the heavy mineral concentrates from drill samples indicated zones with high (>40%) iron oxide contents.

At Boonanarring Northwest, two mineralised strandlines were interpreted with strike lengths of 1.9 km and 2.1 km, both of which contain high-grade cores of mineralisation. The eastern strandline has an average thickness of 6.5 m and the top of the strandline ranges in depth from 3 m to 16.5 m and the mineralisation extends to a maximum depth of 24 m. The western strandline has an average thickness of 7.8 m and the top of the strandline ranges in depth from 4 m to 21 m and the mineralisation extends to a maximum depth of 27 m.

Three mineralised strandlines were interpreted at Boonanarring North Extension. The main, eastern strandline, which contains a high-grade core of mineralisation, has a strike length of 4 km and an average thickness of 5.3 m. The top of the strandline ranges in depth from 22 m to 49 m and the mineralisation extends to a maximum depth of 54 m. Two additional strandlines have been interpreted to the west with strike lengths of 0.9 to 1.0 km. The top of the westernmost strandline ranges in depth from 12 m to 20 m and the mineralisation extends to a maximum depth of 22 m. The central strandline is deeper than the western strandline and ranges in depth from 23 to 38 m.

At Gingin North, four mineralised strandlines and three shallow zones of mineralisation, close to the top or just above the Yoganup Formation, have been interpreted. The four mineralised strandlines have strike lengths of 0.5 to 3.1 km and the overlying mineralisation has strike lengths of 0.9 to 1.8 km. The interpreted mineralisation has an average thickness of 4.2 m and a maximum thickness of 15 m. The top

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 | F: 08 9486 8312 www.imageres.com.au

Page 9 of 39

of the strandlines ranges in depth from 0 m to 29 m and the mineralisation extends to a maximum depth of 34 m.

The drill data that was used to define the Mineral Resources at the Boonanarring Satellite deposits was obtained from vertical reverse circulation (RC) drillholes (aircore). The samples (generally from one metre intervals) were split at the rig using a rotary splitter attached to the cyclone and the total heavy mineral, slimes and oversize contents were determined by screening, weighing and heavy liquid separation.

The Boonanarring Northwest database comprises data from 219 drillholes, for a total of 5,861 m. A total of 3,238 samples, taken over a total of 3,264.5 m, have been assayed for total HM. The nominal drill spacing is approximately 10 m to 20 m across strike on section lines spaced at 100 m along strike. Within two areas the drill sections are at wider spacings of 300 m and 600 m.

The database used for the Boonanarring North Extension Mineral Resource comprises data from 274 drillholes, for a total of 10,492 m. A total of 3,925 samples, taken over a total of 4,046 m, have been assayed. Within the eastern strandline, the nominal drill spacing is approximately 10 m across strike on section lines spaced at 100 m along strike. Within the southern area, the drill lines are at a spacing of up to 600 m. Within the western and central strandlines, the nominal drill spacing is approximately 20 m across strike on section lines spaced at 200 m along strike.

The database used for the Gingin North Mineral Resource comprises data from 611 drillholes, for a total of 16,309 m. A total of 8,800 samples, taken over a total of 8,820 m, have been assayed. The nominal drill spacing is approximately 20 m across strike (with some infill holes at a closer spacing of 5 m to 15 m) on section lines spaced at or 200 m along strike (with some infill section lines at 100 m spacing).

The heavy mineral assemblages were determined by Image using Quantitative Evaluation of Minerals by Scanning Electron Microscopy (QEMSCAN) analysis. The QEMSCAN rules for the titanium mineral determination at all three deposits are ilmenite: 50 to 70% TiO2; leucoxene: 70 to 95% TiO2, and rutile: >95% TiO2. At Boonanarring Northwest, 39 composite samples (from 95 drillholes totalling 765 m) were analysed, and at Boonanarring North Extension, 24 composite samples (from 29 drillholes totalling 133 m) were analysed. The Gingin North Mineral Resource includes the results of 33 composite samples (from 94 drillholes totalling 457 m) of which 31 samples were analysed by Image using QEMSCAN analysis and two samples were analysed by Iluka using magnetic separation followed by density separation.

The resource models were constructed using a parent block size of 5 mE by 25 mN on 1 m benches; the parent blocks were allowed to sub-cell down to 1.25 mE by 6.25 mN by 0.25 mRL to more accurately represent the geometry and volumes of the geological and mineralisation horizons. A soil horizon of 0.5 m was incorporated into all three resource models.

Block grades for total HM were estimated using both ordinary kriging and inverse distance cubed (ID3) techniques and slimes and oversize were estimated using ordinary kriging techniques. Top-cut grades

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 | F: 08 9486 8312 www.imageres.com.au

Page 10 of 39

were applied to the slimes and oversize data at all three deposits. Block grades were estimated for the mineral assemblage components (ilmenite, rutile, leucoxene and zircon) using ID3 techniques. A combination of lithology and grades (total HM and slimes) was used to determine the density values for the resource model.

The Mineral Resources at Boonanarring Northwest, Boonanarring North Extension and Gingin North have been classified, according to the definitions of the JORC Code (2012), into Indicated and Inferred Mineral Resources, taking into account data quality, data density, geological continuity, grade continuity, confidence in estimation of heavy mineral content and mineral assemblage.

At Boonanarring Northwest the majority of the resources are classified as Indicated. Indicated Mineral Resources are defined within the mineralised strandlines where the drilling is at 10 m or 20 m and on 100 m spaced section lines and the mineral assemblage composites are on 100 m to 300 m spaced sections. An Inferred classification has been assigned to areas with wider spaced drilling of 300 m and 600 m and thus lower confidence in the mineralisation interpretation, and the northern extent of the western strandline where there is only one drillhole intersection.

At Boonanarring North Extension, the majority of the eastern strandline is classified as Indicated where the drilling is on a nominal spacing of 10 mE by 100 mN and the mineral assemblage composites are on 400 m spaced sections. Indicated Resources are also defined within the southern area of the central strandline and within the western strandlines in the vicinity (within 300 m) of the mineral assemblage composite samples. Inferred Resources are defined along strike from the mineral assemblage data.

At Gingin North, the majority of the Mineral Resources are classified as Indicated. Within the mineralised domains the drilling is at 20 m (or less) and on 200 m spaced section lines and the mineral assemblage composites are on 200 m to 400 m spaced sections. An Inferred classification has been assigned to areas with no mineral assemblage data, areas with wide-spaced drilling and thus lower confidence in the mineralisation interpretation, and areas were there may be high iron oxide contents.

The Mineral Resource estimates for the Boonanarring Satellite Mineral Sands deposits have been reported in Table 1 above a 2.0% total HM cut-off grade. This cut-off grade was selected by Image based on technical and economic assessment and it is assumed that open pit mining methods will be used, similar to those currently in use at Image’s Boonanarring deposit. Based on this technical and economic assessment, and taking into consideration the thickness, grades and depth of the deposits, it is considered that the entire Boonanarring Northwest, Boonanarring North Extension and Gingin North deposits have reasonable prospects of eventually being mined. Mining factors such as dilution and ore loss have not been applied.

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 | F: 08 9486 8312 www.imageres.com.au

Page 11 of 39

Table 1 Boonanarring Satellite deposits – Mineral Resources as at 30 March 2021 reported above a cut-off grade of 2.0% total heavy minerals

i lifii
Million
Total HM
Slimes
Oversize
% of total heavy mineral
Depost Casscaton
tonnes
%
%
%		 Zircon
Rutile
Leucoxene
Ilmenite
Indicated
3.1
5.1
11
1.2		 9.6
6.8
30
35
Boonanarring
Ntht		 Inferred
1.2
5.0
10
0.8		 8.3
7.4
36
27
orwes Total
4.3
5.1
11
1.1		 9.2
6.9
32
33
Boonanarring
North Extension		 Indicated
2.5
11.8
17
7.1
Inferred
0.2
4.7
17
8.4		 16.4
2.7
12
41
16.0
2.5
11
39
Total
2.7
11.2
17
7.2		 16.4
2.7
11
41
Gingin North Indicated
6.6
4.7
16
4.5
Inferred
2.1
4.7
13
5.3		 7.2
4.5
15
50
5.5
5.4
23
41
Total
8.7
4.7
15
4.7		 6.8
4.7
17
48
Total Indicated
12.2
6.3
15
4.2
Inferred
3.4
4.8
12
4.0		 12.2
4.3
17
44
7.2
5.9
27
36
Total
15.6
5.9
14
4.1		 10.5
4.6
19
43

Notes: 1. Reported above a cut-off grade of 2.0% total heavy minerals (HM).

  1. Mineral Resources have been classified and reported in accordance with the guidelines of JORC Code (2012).

  2. Estimates of the mineral assemblage (zircon, ilmenite, rutile and leucoxene) are presented as percentages of the total HM component of the deposit, as determined by QEMSCAN methods (and magnetic and density separation for two samples at Gingin North). QEMSCAN rules used for titanium mineral determination are: ilmenite: 50 to 70% TiO2; leucoxene: 70 to 95% TiO2; rutile: >95% TiO2.

  3. All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

The eastern strandline at Boonanarring North Extension has been extended to the south and along strike from the main area of drilling, where an Exploration Target has been defined. This was estimated using the same parameters and estimation methodologies as were used for the Mineral Resource. The Exploration Target is estimated to comprise 1.4 to 1.6 million tonnes with an average grade of 12 to 13 % total HM, and 16 to 17% slimes and 7 to 8% oversize contents and that the total HM contains 35 to 40% ilmenite, 1.5 to 2.0% rutile, 9 to 10% leucoxene and 11 to 12% zircon. The potential quantity and grade of the Exploration Target is conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Consistent with this, all tonnages and grades are approximations.

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 | F: 08 9486 8312 www.imageres.com.au

Page 12 of 39

Schedule 2

Atlas Project area Mineral Resource estimates – 30 March 2021

Optiro Pty Ltd (Optiro) has provided assistance to Image Resources NL (Image) with Mineral Resource estimates for the Helene and Hyperion Heavy Mineral Sands deposits. These deposits are located in the north of the Perth Basin, Western Australia, approximately 175 km north of Perth and are part of Image’s Atlas Heavy Mineral Sands Project which also includes the Atlas deposit. The heavy mineral sands concentrations at Helene and Hyperion are hosted by the Pliocene Yoganup Formation, a buried pro-graded shoreline deposit, with dunes, beach ridge and deltaic facies.

The Helene mineralisation was interpreted using a nominal cut-off grade of 2% total heavy minerals (HM). Four mineralised strandlines and two shallow zones of mineralisation close to the top of the Yoganup Formation have been interpreted. The four mineralised strandlines have strike lengths of 3.4 to 4.6 km and the total strike length of the overlying shallow mineralisation is 0.6 km. The interpreted mineralisation has an average thickness of 5.9 m and a maximum thickness of 15 m. The top of the strandlines ranges in depth from 2 m to 34 m and the mineralisation extends to a maximum depth of 38 m.

The mineralisation at Hyperion was interpreted using a nominal cut-off grade of 1.5% total HM. The heavy minerals have been concentrated in two main strandlines that are continuous over a strike length of 4.2 km. The northern strandline has a strike length of 3.5 km and ranges in width from 45 m to 230 m. The southern strandline has a strike length of 0.7 km and ranges in width from 18 m to 66 m. The strandlines are up to 14 m thick and have an average thickness of 5.5 m.

The database used for the Helene Mineral Resource comprises data from 1,195 vertical reverse circulation (aircore) drillholes, for a total of 30,269.7 m. A total of 6,476 samples, taken over a total of 10,356.5 m, have been assayed. The nominal drill spacing is approximately 20 m (with some holes at a 10 m to 60 m spacing) across strike on section lines spaced at approximately 100 m along strike. The database used for the Hyperion Mineral Resource comprises data from 336 vertical reverse circulation (aircore) drillholes, for a total of 6,947.6 m. A total of 2,126 samples, taken over a total of 2,906.6 m, have been assayed. The nominal drill spacing is approximately 20 m across strike on section lines spaced at 100 m along strike.

Samples (generally from one metre intervals) are split at the rig using a rotary splitter attached to the cyclone. The total heavy mineral, slimes and oversize contents by screening, weighing and heavy liquid separation. The heavy mineral assemblages at Helene and Hyperion were determined using Quantitative Evaluation of Minerals by Scanning Electron Microscopy (QEMSCAN) analysis. The QEMSCAN rules for the titanium mineral determination are ilmenite - 50 to 70% TiO2; leucoxene - 70 to 95% TiO2, and rutile - >95% TiO2. The Helene Mineral Resource includes the results of 54 composite samples (from 103 drillholes totalling 653 m) and the Hyperion Mineral Resource includes the results of 32 composite samples (from 69 drillholes totalling 372 m).

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Page 13 of 39

The resource models were constructed using a parent block size of 10 mE by 50 mN on 1 m benches; the parent blocks were allowed to sub-cell down to 2.5 mE by 12.5 mN by 0.25 mRL to more accurately represent the geometry and volumes of the geological and mineralisation horizons. A soil horizon of 0.5 m was incorporated into the models.

Block grades for total HM were estimated using both ordinary kriging and inverse distance cubed (ID[3] ) techniques and slimes and oversize were estimated using ordinary kriging techniques. Top-cut grades were applied to the oversize data at both deposits and to the slimes at Hyperion. Block grades were estimated for the mineral assemblage components (ilmenite, rutile, leucoxene and zircon) using ID[3] techniques. A combination of lithology and grades (total HM and slimes) were used to determine the density values for the resource model.

The Mineral Resources at Helene and Hyperion have been classified, according to the definitions of the JORC Code (2012), into Indicated and Inferred Mineral Resources, taking into account data quality, data density, geological continuity, grade continuity, confidence in estimation of heavy mineral content and mineral assemblage.

At Helene the majority of the Mineral Resources within the four main strandlines have been classified as Indicated. Within the main four strandlines the majority of the drilling is on a grid of approximately 20 m by 100 m and mineral assemblage data is from representative composite samples from section lines at 200 m to 400 m spacing. The overlying mineralisation has been classified as Inferred due to the limited drill data and absence of mineral assemblage data. The southernmost line is historical drilling (RGC) with low confidence and Inferred Resources are defined within the southern area of the four main strandlines. In addition, Inferred Resources are defined within the southern area of the westernmost strandline, where the interpretation is based on limited on-section drill intersections, and two areas within the central eastern strandline where the drillhole data indicates there are gaps in the strandline mineralisation and the extent of the mineralisation is not known between the drill lines.

At Hyperion the main strandline and the northern area of the southern strandline are classified as Indicated. Within the main strandline the majority of the drilling is on a 20 m by 100 m grid and mineral assemblage data is from analysis of representative composite samples from section lines at 100 m to 360 m spacing. Inferred Resources are defined within a small area within the southern area of the south strandline where the strandline interpretation is based on a single drillhole.

The Mineral Resource estimate for the Helene and Hyperion Heavy Mineral Sands deposits have been reported in Table 1 above a 2.0% total HM cut-off grade. This cut-off grade was selected by Image based on technical and economic assessment and it is assumed that open pit mining methods will be used, similar to those currently in use at Image’s Boonanarring deposit. Based on this technical and economic assessment, and taking into consideration the thickness, grades and depth of the deposit, it is considered that the entire Helene and Hyperion deposits have reasonable prospects of eventually being mined. Mining factors such as dilution and ore loss have not been applied.

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 | F: 08 9486 8312 www.imageres.com.au

Page 14 of 39

Table 1 Helene and Hyperion Mineral Resource as at 30 March 2021 reported above a cut-off grade of 2.0% total heavy minerals

i lifii
Million
Total HM
Slimes
Oversize
% of total heavy mineral
Depost Casscaton
tonnes
%
%
%		 Zircon
Rutile
Leucoxene
Ilmenite
Indicated
12.1
4.9
18
1.4		 7.4
5.1
14
47
Helene Inferred
1.0
4.0
15
1.1		 7.5
5.7
16
45
Total
13.1
4.8
18
1.4		 7.4
5.2
14
47
Hyperion Indicated
3.6
8.3
19
2.6
Inferred
0.03
5.9
17
4.3		 8.0
6.7
8
36
7.3
5.0
5
31
Total
3.6
8.3
19
2.6		 8.0
6.7
8
36
Total Indicated
15.7
5.6
18
1.7
Inferred
1.0
4.0
15
1.2		 7.6
5.7
12
43
7.5
5.7
16
44
Total
16.7
5.5
18
1.7		 7.6
5.7
12
43

Notes: 1. Reported above a cut-off grade of 2.0% total heavy minerals (HM).

  1. Mineral Resource has been classified and reported in accordance with the guidelines of JORC Code (2012).

  2. Estimates of the mineral assemblage (zircon, ilmenite, rutile and leucoxene) are presented as percentages of the total HM component of the deposit, as determined by QEMSCAN methods. QEMSCAN rules used for titanium mineral determination are: ilmenite: 50 to 70% TiO2; leucoxene: 70 to 95% TiO2; rutile: >95% TiO2.

  3. All tonnages and grades have been rounded to reflect the relative uncertainty of the estimate, thus sum of columns may not equal.

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 | F: 08 9486 8312 www.imageres.com.au

Page 15 of 39

Appendix A

JORC Code Table 1 criteria – Boonanarring Project area

The table below summaries the assessment and reporting criteria used for the Boonanarring Project area Mineral Resources estimates and reflects the guidelines in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling
techniques		 • Nature and quality of sampling. These
examples should not be taken as
limiting
the
broad
meaning
of
sampling.
• Include reference to measures taken to
ensure sample representivity and the
appropriate
calibration
of
any
measurement tools or systems used.
• Aspects of the determination of
mineralisation that are Material to the
Public Report.		 • Sampling of the deposits has been by a vertical reverse-
circulation air-core method (RCAC). This is a mineral sands
industry-standard drilling technique.
• For resource definition drilling, subsamples of approximately
15% - 20% of the sample stream were taken using a rotary
splitter on the rig cyclone and submitted for analysis. The
remainder of the sample stream was retained as a bulk sample
for future testwork.
• Samples were riffle split from both the subsample and bulk
sample for QAQC analysis.
Drilling
techniques		 • Drill type (eg core, reverse circulation,
open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc) 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).		 • All Image RCAC drillholes at the Boonanarring Satellite deposits
(Boonanarring North Extension, Boonanarring Northwest and
Gingin North) are drilled vertically using an NQ-sized (76 mm
diameter) drill bit.
• Historical data was obtained by Iluka at the three Satellite
deposits and by Westralian Sands at Boonanarring North
Extension.
• All Iluka and Westralian Sands RCAC drillholes are vertical and
were drilled using a BQ-sized drill bit (60 mm diameter).
• Water injection is used to convert the sample to a slurry so it
can be incrementallysampled bya rotarysplitter.
Drill sample
recovery		 • Method of recording and assessing
core and chip sample recoveries and
results assessed.
• Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
• Whether a relationship exists between
sample
recovery
and
grade
and
whether
sample
bias
may
have
occurred due to preferential loss/gain
of fine/coarse material.		 • At the drill site, Image’s geologist estimates sample recovery
qualitatively (as good, moderate or poor) for each 1 m down
hole sampling interval. Specifically, the supervising geologist
visually estimates the volume recovered to sample and reject
bags based on prior experience as to what constitutes good
recovery.
Logging • Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate
Mineral
Resource
estimation,
mining
studies
and
metallurgical studies.
• Whether logging is qualitative or
quantitative
in
nature.
Core
(or
costean, channel, etc) photography.
• The total length and percentage of the
relevant intersections logged.		 • Image’s supervising geologist logs the sample reject material at
the rig and pans a small sub-sample of the reject, to visually
estimate the proportions of sands, heavy mineral (HM) sands,
‘slimes’ (clays), and oversize (rock chips) in each sample, in a
semi-quantitative manner.
• The geologist also logs colour, grain size, an estimate of
induration (a hardness estimate) and sample ‘washability’ (ease
of separation of slimes from sands by manual attrition).
• To preclude data entry and transcription errors, the logging data
is captured into a digital data logger at the rig, which contains
pre-set loggingcodes.

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 | F: 08 9486 8312 www.imageres.com.au

Page 16 of 39

• No photographs of samples are taken. HM concentrates are
retained.
• The digital logs are downloaded daily and emailed to Image’s
head office for data security and compilation into the main
database server.
• Samples visually estimated by the geologist to contain more
than 0.5% HM (by weight) are despatched for analysis along
with the 1 m intervals above and below the mineralised
interval.
• All of the drill samples have been logged by Iluka, Westralian
Sands or Image. The level and detail of logging is of sufficient
qualityto support Mineral Resource estimates.
Sub-sampling
techniques and
sample
preparation		 • If core, whether cut or sawn and
whether quarter, half or all core taken.
• 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
representivity 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 being
sampled.		 • Over 98% of the samples sent for analysis from the
Boonanarring Northwest deposit have been taken over intervals
of 1 m. Almost 56% of these samples were analysed for total
HM, slimes and oversize.
• Almost 98% of the data used for the Boonanarring Northern
Extension resource estimate has been obtained by Image.
Almost 38% of samples were analysed for total HM, slimes and
oversize and almost 98% of the samples sent for analysis have
been taken over intervals of 1 m.
• Over 99% of the Gingin North samples sent for analysis have
been taken over intervals of 1 m. Almost 54% of samples were
analysed for total HM, slimes and oversize.
• The Image samples from the internal RC rods is directed to a
cyclone and then through a ‘rotating-chute’ custom-built
splitting device. This device allows different fraction splits from
the cyclone sample stream to be directed to either 25 cm by 35
cm calico bags (as the laboratory despatch samples) or to large
plastic polyweave bags for the sample rejects. The rotary
splitter directs≈10 increments from the stream to the
laboratory despatch samples, for a specified sampling interval.
• Sample tickets with the interval’s unique sample ID are placed
in each bag.
• For resource definition drilling, two splits are collected from the
rotary splitter into a pre-numbered calico bag (1/8 mass) and
pre-numbered polyweave bag (7/8 mass) for each 1 m down
hole interval. A selection of the replicate samples are later
collected and analysed to quantify field sampling precision, or
as samples contributing to potential future mineral assemblage
composites.
• To monitor sample representation and sample number
correctness, Image weighs the laboratory despatch samples
prior to despatch. The laboratory then weighs the received
sample and reports the mass to Image. This identifies any
potential mix up of sample numbers and is also a proxy for
sample recovery.
• Image considers the nature, quality and size of the sub-samples
collected are consistent with best industry practises of mineral
sands explorers in the Perth Basin region.
• Iluka reports having submitted a 25% split for analysis (Iluka
Geological Resource Summary Report 2010, unpublished), albeit
no records are available to support this assertion.
• Details of the sampling procedures used by Westralian Sands
are not available.

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Page 17 of 39

Quality of assay
data and
laboratory tests		 • The
nature,
quality
and
appropriateness of the assaying and
laboratory
procedures
used
and
whether the technique is considered
partial or total.
• For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make
and model, reading times, calibrations
factors applied and their derivation,
etc.
• Nature of quality control procedures
adopted
(eg
standards,
blanks,
duplicates, external laboratory checks)
and whether acceptable levels of
accuracy (ie lack of bias) and precision
have been established.		 • Image, Westralian Sands and Iluka used industry standard
approaches to estimating the contents of total HM, slimes and
oversize involving screening to remove oversize, washing slimes
from samples and then extracting the heavy minerals from the
residual sands using heavy media.
• Image engaged Western GeoLabs and Diamantina Laboratories
for sample preparation and analysis. Both being specialist HM
analysis laboratories.
• Iluka used their Narngulu Laboratory to analyse their drill
samples.
• Image inserted standards for drilling undertaken during 2015 to
2020.
• Iluka submitted 346 duplicate samples to their assay laboratory
for data from their Gingin project (Iluka 2010). No other QAQC
sampling is mentioned.
• QAQC procedures used by Westralian Sands are not known.
• Image collected duplicate samples including field-duplicates of
the primary sample and laboratory re-submission duplicates to
the original or alternative laboratories.
• Analysis of total HM QAQC data for the drilling programmes
indicates that it is of high quality and supports Mineral
Resource estimation.
• The mineral assemblage used for the resource estimate data at
Boonanarring Northwest and North Extension was determined
using QEMSCAN by ALS. ALS used XRF data to verify the
QEMSCAN data.		 • Image, Westralian Sands and Iluka used industry standard
approaches to estimating the contents of total HM, slimes and
oversize involving screening to remove oversize, washing slimes
from samples and then extracting the heavy minerals from the
residual sands using heavy media.
• Image engaged Western GeoLabs and Diamantina Laboratories
for sample preparation and analysis. Both being specialist HM
analysis laboratories.
• Iluka used their Narngulu Laboratory to analyse their drill
samples.
• Image inserted standards for drilling undertaken during 2015 to
2020.
• Iluka submitted 346 duplicate samples to their assay laboratory
for data from their Gingin project (Iluka 2010). No other QAQC
sampling is mentioned.
• QAQC procedures used by Westralian Sands are not known.
• Image collected duplicate samples including field-duplicates of
the primary sample and laboratory re-submission duplicates to
the original or alternative laboratories.
• Analysis of total HM QAQC data for the drilling programmes
indicates that it is of high quality and supports Mineral
Resource estimation.
• The mineral assemblage used for the resource estimate data at
Boonanarring Northwest and North Extension was determined
using QEMSCAN by ALS. ALS used XRF data to verify the
QEMSCAN data.
Verification of
sampling and
assaying		 • The
verification
of
significant
intersections by either independent or
alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data
entry procedures, data verification,
data storage (physical and electronic)
protocols.
• Discuss any adjustment to assay data.		 • At Gingin North Image drilled two twin holes adjacent to Iluka
holes. Comparisons of total HM grades and slimes and oversize
trends are acceptable.
• Image did not drill twin holes at the other Satellite deposits.
Twin holes will be considered for the next stage of resource
definition drilling.
• Image collected primary data on hard copy logs and also used a
data logger. Data from laboratories was provided in digital form
and compiled in Microsoft Access databases and spreadsheets.
• Composite samples prepared by Image were analysed by
QEMSCAN and XRF, which was used to verify the QEMSCAN
mineral counts.
Location of
data points		 • Accuracy and quality of surveys used to
locate drillholes (collar and down-hole
surveys), trenches, mine workings and
other
locations
used
in
Mineral
Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic
control.		 • Drillhole collars have been surveyed using hand-held GPS and
RTK DGPS methods, with the latter method deemed most
accurate.
• The survey ground controls have been tied to the Landgate
GOLA database by a registered surveyor.
• The topographic surface for all of these deposits is based on
LiDAR survey. All collars for the Mineral Resource estimate have
been adjusted to this LiDAR topographic model.
• Data has been surveyed in MGA Zone 50 GDA94. The Mineral
Resource has been estimated in a local grid system based on a
two-point transformation.
Data spacing
and distribution		 • Data
spacing
for
reporting
of
Exploration Results.
• Whether
the
data
spacing
and
distribution is sufficient to establish the
degree
of
geological
and
grade
continuity appropriate for the Mineral
Resource and Ore Reserve estimation		 • Drillhole spacing
Deposit
Spacing
Boonanarring
North
Extension
Nominally 10 m across strike (with some
holes at a wider spacing of 5 m to 15 m) on
section lines spaced at 100 m along strike.
Within the southern area, where an
Exploration Target has been defined, the
Deposit Spacing
Boonanarring
North
Extension		 Nominally 10 m across strike (with some
holes at a wider spacing of 5 m to 15 m) on
section lines spaced at 100 m along strike.
Within the southern area, where an
Exploration Target has been defined, the

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Page 18 of 39

procedure(s)
and
classifications
applied.
• Whether sample compositing has been
applied.		 drill lines are at a spacingof upto 600 m..
Boonanarring
Northwest		 Nominally 10 m to 20 m across strike on
section lines spaced at 100 m along strike.
Within two areas the drill sections are at a
wider spacingof 300 m and 600 m.
Gingin North Nominally 20 m across strike (with some
infill holes at a closer spacing of 5 m to 15
m) on section lines spaced at or 200 m
along strike (with some infill section lines at
100 m spacing).
Orientation of
data in relation
to geological
structure		 • Whether the orientation of sampling
achieves unbiased sampling of possible
structures and the 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.		 • All drillholes are vertical and intersect sub-horizontal strata. This
is appropriate for the orientation of the mineralisation and will
not have introduced a bias.
Sample security • The measures taken to ensure sample
security.		 • All samples are collected from site by Image’s staff as soon as
practicable once drilling is completed and then delivered to
Image’s locked storage sheds.
• Image’s staff deliver samples to the laboratory and collect heavy
mineral floats from the laboratory, which are also stored in
Image’s locked storage.
• Image considers there is negligible risk of deliberate or
accidental contamination of samples. Occasional sample mix-
ups are corrected using Images checking and quality control
procedures.
Audits or
reviews		 • The results of any audits or reviews of
sampling techniques and data.		 • The results and logging have been reviewed internally by
Image’s senior exploration personnel including checking of
masses despatched and delivered, checking of standard results,
and verification logging of significant intercepts.
• In 2019 audits were conducted at Diamantina and Western
GeoLabs byImage contractors.

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 | F: 08 9486 8312 www.imageres.com.au

Page 19 of 39

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral
tenement and
land tenure
status		 • Type,
reference
name/number,
location
and
ownership
including
agreements or material issues with
third parties such as joint ventures,
partnerships,
overriding
royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
• The security of the tenure held at the
time of reporting along with any
known impediments to obtaining a
licence to operate in the area.		 • The Boonanarring Northern Extension deposit is within granted
Exploration Licence E70/3100 and the Boonanarring Northwest
deposit is within granted Exploration Licences E70/3100 and
E70/3720, held 100% by Image Resources.
• Image has purchased the two freehold properties that these
deposits sit on.
• The Gingin North deposit sits within granted Exploration Licence
E0/3041, held 100% by Image Resources. It sits on freehold Lots
201, 202, 764 and 1364 and Image has exploration access
agreements with the landowners for these properties.
Exploration
done by other
parties		 • Acknowledgment and appraisal of
exploration by other parties.		 • The Boonanarring North Extension and Northwest deposits
were discovered by Image Resources NL. Iluka drilled one line
of holes located to the south of the Boonanarring Northwest
deposit and Iluka and Westralian Sands drilled holes to the
north and south of Boonanarring North Extension.
• The Gingin North deposit was discovered byIluka Resources.
Geology • Deposit type, geological setting and
style of mineralisation.		 • Mineralisation at these deposits is hosted in the Perth Basin, in
the Pliocene Yoganup Formation on the eastern margin of the
Swan Coastal Plain.
• The Yoganup Formation is a buried pro-graded shoreline
deposit, with dunes, beach ridge and deltaic facies. This
formation lies unconformably over the Lower Cretaceous
Leederville Formation and is overlain by the Pleistocene
Guildford Formation and the Quaternary Bassendean Sand.
• The Yoganup Formation consists of unconsolidated poorly
sorted sands and gravels, with local interstitial clay and heavy
minerals that occur sporadically along the Gingin Scarp, which is
interpreted to be an ancient shoreline that was stable during a
period of marine regression.
• Boonanarring North Extension has three strandlines and
Boonanarring Northwest has two strandlines of heavy minerals
within the Yoganup Formation.
• Gingin North has at least four strandlines of heavy minerals in
the Yoganup Formation and three additional areas of
mineralisation near the contact of the Yoganup and Guildford
Formations.
• The basement to the strandline mineralisation is identified by
the increased slimes content of the Leederville Formation or at
the base of the YoganupFormation.
Drillhole
information		 • A summary of all information material
to
the
understanding
of
the
exploration
results
including
a
tabulation of the following information
for all Material drillholes:
o easting and northing of the drillhole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres) of
the drillhole collar
o dip and azimuth of the hole
o down hole length and interception		 • Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource areas.

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Page 20 of 39

depth
o hole length.
Data
aggregation
methods		 • In
reporting
Exploration
Results,
weighting
averaging
techniques,
maximum and/or minimum grade
truncations (eg cutting of high grades)
and cut-off grades are usually Material
and should be stated.
• Where aggregate intercepts incorporate
short 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 clearly stated.





• Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource areas.
• There are no metal equivalent values assumptions applied in
the Mineral Resource reporting.
Relationship
between
mineralisation
widths and
intercept
lengths		 • These relationships are particularly
important
in
the
reporting
of
Exploration Results.
• If the geometry of the mineralisation
with respect to the drillhole angle is
known, its nature should be reported.		 • The geometry of the mineralisation is effectively horizontal and
the vertical drillholes used to define the Mineral Resources give
the approximate true thicknesses of mineralisation.
Diagrams • Appropriate maps and sections and
tabulations of intercepts should be
included for any significant discovery
being reported		 • Refer to diagrams in announcement.
Balanced
reporting		 • Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low
and high grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.		 • Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource areas.
Other
substantive
exploration
data		 • Other exploration data, if meaningful
and material, should be reported
including
(but
not
limited
to):
geological observations; geophysical
survey results; geochemical survey
results; bulk samples – size and
method of treatment; metallurgical
test results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.		 • Bulk density is determined by a proprietary formula that uses a
combination of lithology and grades (total HM and slimes) to
determine the bulk density values.
Further work • The nature and scale of planned
further work (eg tests for lateral
extensions or depth extensions or
large-scale step-out drilling).
• Diagrams clearly highlighting the areas
of possible extensions, including the
main geological interpretations and
future drilling areas, provided this
information
is
not
commercially
sensitive.		 • At the Boonanarring North Extension Image intends to conduct
pit optimisation and mining studies to determine project
economics and definition of Ore Reserves. Dependant on the
results of Ore Reserve definition studies, Metallurgical and
Environmental/Permitting studies may commence.
• The two strands at the Boonanarring Northwest deposit are
separated by a high voltage power line and Image is currently
seeking to drill within the power line corridor to test if the two
strands extend into it. The presence of a wetland to the west of
the BoonanarringNorthwest strands andpartiallycoveringthe

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strands has restricted drilling access, including to the high-grade areas. Permission for drilling within this area is being sought and drilling is planned to better define the western extent and upgrade the Inferred Resource areas. Preliminary economic assessment, including pit optimisation will be used to guide the extent of future drilling.

  • The Gingin North deposit has been drilled to a sufficient level to allow preliminary economic assessment via pit optimisation and mining studies. No further field work is planned until the results of these studies are available to guide drilling priorities.

Section 3 Estimation and Reporting of Mineral Resources


Criteria
JORC Code explanation
Commentary
Commentary
Commentary
Commentary
Database
integrity		 • Measures taken to ensure that data
has not been corrupted by, for
example, transcription or keying errors,
between its initial collection and its use
for
Mineral
Resource
estimation
purposes.
• Data validation procedures used.		 • The drillhole database is managed by Image. Maintenance of
the database includes internal data validation protocols by
Image.
• For the Mineral Resource estimates the drillhole data was
extracted
directly
from
the
Access
drillhole
database
maintained by Image.
• Data was further verified and validated by Optiro using mining
software (Datamine) validation protocols, and visually in plan
and section views.
Site visits • Comment on any site visits undertaken
by the Competent Person and the
outcome of those visits.		 • Mrs Christine Standing (CP for the Mineral Resource estimates)
has not visited the Boonanarring Satellite deposits the subject
of this report. She has visited other mineral sands deposits in
the North Perth Basin including Image’s Boonanarring deposit
duringDecember 2016.
Geological
interpretation		 • Confidence in (or conversely, the
uncertainty
of)
the
geological
interpretation of the mineral deposit.
• Nature of the data used and of any
assumptions made.
• The effect, if any, of alternative
interpretations on Mineral Resource
estimation.
• The use of geology in guiding and
controlling
Mineral
Resource
estimation.
• The factors affecting continuity both of
grade and geology.		 • Three stratigraphic (Bassendean/Guildford, Yoganup and
Leederville Formations) units within the deposit area were
defined using a combination of total HM, slimes and oversize
data and drillhole lithological logs.
• These units were used in combination with grade criteria
(nominal grade cut-off of 2% total HM) to define mineralised
strandlines within the Yoganup Formation. High-grade cores of
mineralisation were interpreted within the strandlines at
Boonanarring Northwest and Boonanarring North Extension
using a nominal cut-off grade of 10% total HM. Three areas of
overlying mineralisation close to the contact of the Yoganup
and Guildford Formations were also interpreted at Gingin
North.
• There is good confidence in the geological interpretation of the
mineralised strandlines.
Dimensions • The extent and variability of the
Mineral Resource expressed as length
(along strike or otherwise), plan width,
and depth below surface to the upper
and lower limits of the Mineral
Resource.		 • The dimensions of the mineralised strandlines at each deposit
are summarised below:
Deposit
Strandline
Strike
Length
Average
Thickness
Boonanarring
North
Extension
Main,Eastern
4 km
5.3 m
Central
0.9 km
2.5 m
Western
1.1 km
3.0 m
Boonanarring
Northwest
Eastern
1.9 km
6.5 m
Western
2.1 km
7.8 m
Gingin North
Central Surface
1.8 km
3.4 m
Southern
Surface
900 m
7.4 m
East
3.1 m
3.3 m
Deposit Strandline Strike
Length		 Average
Thickness
Boonanarring
North
Extension		 Main,Eastern 4 km 5.3 m
Central 0.9 km 2.5 m
Western 1.1 km 3.0 m
Boonanarring
Northwest		 Eastern 1.9 km 6.5 m
Western 2.1 km 7.8 m
Gingin North Central Surface 1.8 km 3.4 m
Southern
Surface		 900 m 7.4 m
East 3.1 m 3.3 m

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Central East Central East 2.7 km 2.7 km 7.4 m
Central West 1.9 km 2.7 m
West 500 m 4.3 m
Deposit Strandline Depth to top
Boonanarring
North Extension		 Main,Eastern 22 m – 49 m
Central 23 m – 34 m
Western 12 m – 20 m
Boonanarring
Northwest		 Eastern 3 m – 16.5 m
Western 4 m – 21 m
Gingin North Central Surface 0 m – 15 m
Southern Surface 7 m – 20 m
East 15 m – 29 m
Central East 10 m – 28 m
Central West 3 m – 26 m
West 17 m – 25 m
Estimation and
modelling
techniques		 • The nature and appropriateness of the
estimation technique(s) applied and
key assumptions, including treatment
of extreme grade values, domaining,
interpolation
parameters
and
maximum distance of extrapolation
from data points. If a computer
assisted
estimation
method
was
chosen
include
a
description
of
computer software and parameters
used.
• The availability of check estimates,
previous
estimates
and/or
mine
production records and whether the
Mineral
Resource
estimate
takes
appropriate account of such data.
• The
assumptions
made
regarding
recovery of by-products.
• Estimation of deleterious elements or
other non-grade variables of economic
significance (e.g. sulphur for acid mine
drainage characterisation).
• In
the
case
of
block
model
interpolation, the block size in relation
to the average sample spacing and the
search employed.
• Any assumptions behind modelling of
selective mining units.
• Any assumptions about correlation
between variables.
• Description of how the geological
interpretation was used to control the
resource estimates.
• Discussion of basis for using or not
using grade cutting or capping.
• The process of validation, the checking
process used, the comparison of model
data to drillhole data, and use of		 • Image used Surpac software to develop string files of the
geological interpretation. Mineralisation interpretation, data
analysis and estimation were undertaken by Optiro using
Snowden Supervisor and Datamine software.
• Optiro assessed the robustness of the mineralised domains by
critically examining the geological interpretation and by using a
variety of measures, including statistical and geostatistical
analysis. The domains are considered geologically robust in the
context of the resource classification applied to the estimate.
• Drillhole sample data was flagged from the three-dimensional
interpretation of the mineralised horizons.
• HM grade was estimated using ordinary kriging (OK) and inverse
distance cubed (ID3) into blocks of 5 mE by 25 mN by 1 mRL.
Slimes and oversize quantities were estimated using ordinary
kriging (OK) into blocks of 5 mE by 25 mN by 1 mRL.
• Block dimensions were selected from kriging neighbourhood
analysis and reflect the variability of the deposit and the
model’s practicality for future mine planning. Sub-cells to a
minimum dimension of 1.25 mE by 6.25 mN by 0.25 mRL were
used to represent volume.
• Zircon, leucoxene, rutile and ilmenite percentages within the
HM fraction were estimated using inverse distance (cubed) into
the parent blocks.
• The majority of the total HM and slimes, total HM and oversize,
and slimes and oversize data is uncorrelated.
• All variables were estimated separately and independently.
• Grade capping was applied to slimes % and oversize %. The top
cut levels were determined using a combination of top cut
analysis tools, including grade histograms, log probability plots
and the coefficient of variation.
• Variogram analysis was undertaken to determine the kriging
estimation parameters used for OK estimation of HM, slimes
and oversize and the search dimensions used for ID estimation
of HM and mineral assemblage components.
• Kriging neighbourhood analysis was performed in order to
determine the block size, sample numbers and discretisation
levels.

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Page 23 of 39

reconciliation data if available. • Three estimation passes were used for HM; the first search was
based upon the variogram ranges; the second search was
double the initial search with reduced sample numbers required
for estimation and the third search was expanded to completed
grade estimation within each of the mineralised domains (up to
eight times the second search).
• The HM, slimes and oversize estimated block model grades
were visually validated against the input drillhole data and
comparisons were carried out against the declustered drillhole
data and by northing, easting and elevation slices.
• The estimated block model grades for zircon, ilmenite,
leucoxene and rutile were visually validated against the input
drillhole data and comparisons were carried out against the
drillhole data and by northing and easting slices.
Parameters and observations unique to each deposit are
summarised below.
Boonanarring North Extension
• The nominal drill spacing is approximately 10 m across strike
(with some holes at a wider spacing of 5 m to 15 m) on section
lines spaced at 100 m along strike (with some infill section lines
at 100 m spacing). Within the southern area, where an
Exploration Target has been defined, the drill lines are at a
spacing of up to 600 m.
• All but one of the Boonanarring North Extension deposit
samples that have been analysed for total HM have been taken
over intervals of 1 m. One sample was taken over an interval of
1.5 m. The total HM, slimes and oversize assay data was
composited to downhole intervals of 1 m.
• Extrapolation of up to 50 m along strike and approximately half
the drill spacing across strike was used for the interpretation.
• Correlation coefficients of the mineral assemblage data indicate
a moderate positive correlation between leucoxene and rutile, a
moderate negative correlation between leucoxene and zircon, a
poor positive correlation between ilmenite and rutile and poor
negative correlations between ilmenite and zircon and between
rutile and zircon. Leucoxene and ilmenite are not correlated.
• Variogram analysis was undertaken to determine the kriging
estimation parameters used for OK estimation of HM, slimes
and oversize and the search dimensions used for ID estimation
of HM and mineral assemblage components.
• Total HM mineralisation continuity was interpreted from
variogram analyses to have continuity ranges of 665 m along
strike, 42 m across strike and 3.7 m vertical.
• Of the three estimation passes that were used for HM;
approximately 73% of the total HM block grades were
estimated in the first search pass, 19% within the second search
pass and the remaining 8% estimated in the third search pass.
• No production has occurred from the deposit and no previous
Mineral Resources have been estimated for the Boonanarring
North Extension deposit.
Boonanarring Northwest
• The nominal drill spacing is approximately 10 m to 20 m across
strike on section lines spaced at 100 m along strike. Within two
areas the drill sections are at a wider spacingof 300 m and

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600 m.
• Samples are from intervals of 1 m and 1.5 m. As the majority of
samples (over 98%) are from intervals of 1 m the data was
composited to 1 m downhole intervals for resource estimation.
• Extrapolation of up to 25 m along strike and approximately half
the drill spacing across strike was used for the interpretation.
• Correlation coefficients of the mineral assemblage data indicate
astrong positive relationship between ilmenite and leucoxene,
a moderate positive relationship between ilmenite and zircon, a
moderate negative relationship between leucoxene and zircon,
and a poor negative correlation between ilmenite and rutile.
• Total HM mineralisation continuity was interpreted from
variogram analyses. Within the eastern strandline maximum
continuity ranges of 380 m along strike, 28 m across strike and
3.6 m vertical were interpreted and within the western
strandline maximum continuity ranges of 365 m along strike, 30
m across strike and 4.2 m vertical.
• Along strike ranges of 300 m, 330 m, 300 and 440 m were
interpreted
for
zircon,
ilmenite,
rutile
and
leucoxene
respectively and across strike ranges of 100 m, 200 m, 220 and
190 m were interpreted for zircon, ilmenite, rutile and
leucoxene respectively. As the composite samples consist of
material collected and combined within drillholes, it was not
possible to investigate the continuity of the mineral assemblage
components in the vertical direction.
• Of the three estimation passes that were used for HM;
approximately 78% of the total HM block grades were
estimated in the first search pass, 15% within the second search
pass and the remaining 7% estimated in the third search pass.
• No production has occurred from the deposit and no previous
Mineral Resources have been estimated for the Boonanarring
Northwest deposit.
Gingin North
• The nominal drill spacing is approximately 20 m across strike
(with some infill holes at a closer spacing of 5 m to 15 m) on
section lines spaced at or 200 m along strike (with some infill
section lines at 100 m spacing).
• Samples are from intervals of 0.5 m, 1 m, 1.5 m and 2 m. As
the majority of samples (over 99%) are from intervals of 1 m
the data was composited to 1 m downhole intervals for
resource estimation.
• Extrapolation of up to 50 m along strike and approximately half
the drill spacing across strike was used for the interpretation.
• Correlation coefficients of the mineral assemblage data
indicate a poor positive relationship between leucoxene and
zircon, a moderate negative correlation between ilmenite and
rutile and poor negative correlations between ilmenite and
zircon and between ilmenite and leucoxene.
• Total HM mineralisation continuity was interpreted from
variogram analyses to have continuity ranges of 255 m to 360
m along strike, 25 m to 50 m across-strike and 3.8 m to 9 m
within the vertical direction.
• The along strike continuity of the zircon and the titanium
minerals was interpreted from variogram analyses to have
alongstrike ranges of 880 m,980 m,890 m and 990 m and

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across strike ranges of 150 m, 190 m, 180 m and 190 m for
zircon, ilmenite, rutile and leucoxene respectively. As the
composite samples consist of material collected and combined
within drillholes, it was not possible to investigate the
continuity of the mineral assemblage components in the
vertical direction.
• Of the three estimation passes that were used for HM;
approximately 63% of the total HM block grades were
estimated in the first search pass, 31% within the second
search pass and the remaining 6% estimated in the third search
pass.
• Indicated and Inferred Mineral Resources were estimated for
the Gingin North deposit in 2010 by Iluka. A total Mineral
Resource of 2.8 Mt at 5.0% total HM, containing 141 kt of total
HM was reported. The total 2020 resource tonnes have
increased by 342% and the total HM grade has decreased by
11%. Zircon, rutile and leucoxene have all increased (by 32%,
41% and 56% respectively) and ilmenite has decreased by 12%.
These changes are in-line with the resource extension and
Image’s additional drilling and mineral assemblage data.
• Noproduction has occurred from the deposit.
Moisture • Whether the tonnages are estimated
on a dry basis or with natural moisture,
and the method of determination of
the moisture content.		 • Tonnages are estimated on a dry basis.
Cut-off
parameters		 • The basis of the adopted cut-off
grade(s) or quality parameters applied.		 • The Mineral Resource estimates for each of the deposits have
been reported at a 2.0% HM cut-off. This cut-off grade was
selected by Image based on technical and economic assessment
and current mining practises at the Boonanarring Project,
located between the Boonanarring North Extension and Gingin
North deposits.
Mining factors
or assumptions		 • Assumptions made regarding possible
mining methods, minimum mining
dimensions
and
internal
(or,
if
applicable, external) mining dilution. It
is always necessary as part of the
process of determining reasonable
prospects
for
eventual
economic
extraction to consider potential mining
methods, but the assumptions made
regarding
mining
methods
and
parameters when estimating Mineral
Resources may not always be rigorous.		 • Open pit mining methods will be used, similar to those currently
in use at Image’s Boonanarring deposit.
• Mining factors such as dilution and ore loss have not been
applied.
Metallurgical
factors or
assumptions		 • The
basis
for
assumptions
or
predictions
regarding
metallurgical
amenability. It is always necessary as
part of the process of determining
reasonable prospects for eventual
economic
extraction
to
consider
potential metallurgical methods, but
the
assumptions
regarding
metallurgical treatment processes and
parameters made when reporting
Mineral Resources may not always be
rigorous.		 • The mineral assemblage data within the Mineral Resource
estimates has been sourced from QEMSCAN analysis (and Iluka
used magnetic and density separation for two samples at Gingin
North). The rules for the QEMSCAN data used for the definition
of the titanium mineral determination are as follows:
o
ilmenite: 50 to 70% TiO2
o
leucoxene: 70 to 95% TiO2
o
rutile: >95% TiO2.
• Image considers there are no metallurgical factors which are
likely to affect the assumption that the deposit has reasonable
prospects for eventual economic extraction.

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Environmental
factors or
assumptions		 • Assumptions made regarding possible
waste and process residue disposal
options. It is always necessary as part
of
the
process
of
determining
reasonable prospects for eventual
economic extraction to consider the
potential environmental impacts of the
mining andprocessing operation.		 • There are no known significant environmental impediments to
the any of the projects’ viability from the currently available
information.
Bulk density • Whether assumed or determined. If
assumed,
the
basis
for
the
assumptions.
If
determined,
the
method used, whether wet or dry, the
frequency of the measurements, the
nature, size and representativeness of
the samples.
• The bulk density for bulk material must
have been measured by methods that
adequately account for void spaces
(vugs, porosity, etc), moisture and
differences
between
rock
and
alteration zones within the deposit.
• Discuss assumptions for bulk density
estimates used in the evaluation
process of the different materials.		 • A combination of lithology and grades (total HM and slimes)
were used to determine the density values for the resource
models.
• Bulk density formulae were developed by Image during 2019 for
the Boonanarring deposit (also in the Perth Basin) using bulk
density measurements from a geotechnical drilling programme
and in-pit density measurements. The formulae were verified
and adjusted where required using data obtained at
Boonanarring during 2020. These formulae have been applied
at each of the deposits for density estimation.
Classification • The basis for the classification of the
Mineral
Resources
into
varying
confidence categories.
• Whether appropriate account has been
taken of all relevant factors (ie relative
confidence
in
tonnage/grade
estimations, reliability of input data,
confidence in continuity of geology and
metal values, quality, quantity and
distribution of the data).
• Whether
the
result
appropriately
reflects the Competent Person’s view
of the deposit.		 • The estimates have been classified according to the guidelines
of the JORC Code (2012), Indicated and Inferred Resources
taking into account data quality, data density, geological
continuity, grade continuity and confidence in estimation of
heavy mineral content and mineral assemblage. In plan,
polygons were used to define zones of different classification
within each of the mineralised domains.
Boonanarring North Extension:
• The mineralisation to the south, where there is wide-spaced
drilling and low confidence in the strandline interpretation has
been classified as an Exploration Target.
• The majority of the eastern strandline is classified as Indicated
where the drilling is on a nominal spacing of 10 mE by 100 mN
and the mineral assemblage composites are on 400 m spaced
sections.
• The southern area of the Mineral Resource within the eastern
strandline, where there is sparser drilling, is classified as
Inferred.
• Within the western and central strandlines, the drilling is on a
nominal spacing of 20 mE by 200 mN and the mineral
assemblage is based on results from one mineral assemblage
composite within each domain. Indicated Resources are
defined within the central and western strandlines, in the
vicinity (within 300 m) of the mineral assemblage composite
samples. Inferred Resources are defined along strike from the
mineral assemblage data.
Boonanarring Northwest:
• Within the mineralised domains the drilling is at 10 m or 20 m
and on 100 m spaced section lines and the mineral assemblage
composites are on 100 m to 300 m spaced sections. The

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Page 27 of 39

majority of the resources are classified as Indicated.
• An Inferred classification has been assigned to areas with wider
spaced drilling of 300 m and 600 m and thus lower confidence
in the mineralisation interpretation, and the northern extent of
the western strandline where there is only one drillhole
intersection.
Gingin North:
• Within the mineralised domains the drilling is at 20 m (or less)
and on 200 m spaced section lines and the mineral assemblage
composites are on 200 m to 400 m spaced sections. The
majority of the resources are classified as Indicated.
• An Inferred classification has been assigned to areas with no
mineral assemblage data, areas with wide-spaced drilling and
thus lower confidence in the mineralisation interpretation, and
areas were there maybe high iron oxide contents
Audits or
reviews		 • The results of any audits or reviews of
Mineral Resource estimates.		 • The Mineral Resources have been reviewed internally as part of
normal validation processes by Optiro.
• No external audit or review of the current Mineral Resources
has been conducted.
Discussion of
relative
accuracy/
confidence		 • Where appropriate a statement of the
relative accuracy and confidence level
in the Mineral Resource estimate using
an approach or procedure deemed
appropriate by the Competent Person.
• The statement should specify whether
it relates to global or local estimates,
and, if local, state the relevant
tonnages, which should be relevant to
technical and economic evaluation.
Documentation
should
include
assumptions made and the procedures
used.
• These statements of relative accuracy
and confidence of the estimate should
be compared with production data,
where available.		 • The assigned classifications of Indicated and Inferred reflect the
Competent Person’s assessment of the accuracy and confidence
levels in the Mineral Resource estimates.
• The confidence levels reflect production volumes on an annual
basis.
• No production has occurred from any of the deposits.

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Page 28 of 39

Appendix B

JORC Code Table 1 criteria – Atlas Project area

The table below summaries the assessment and reporting criteria used for the Atlas Project area Mineral Resources estimates and reflects the guidelines in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling
techniques		 • Nature and quality of sampling. These
examples should not be taken as
limiting
the
broad
meaning
of
sampling.
• Include reference to measures taken to
ensure sample representivity and the
appropriate
calibration
of
any
measurement tools or systems used.
• Aspects of the determination of
mineralisation that are Material to the
Public Report.		 • Sampling of the deposit has been by a vertical reverse-
circulation air-core method (RCAC). This is a mineral sands
industry-standard drilling technique.
• Samples are split at the rig using a rotary splitter attached to the
cyclone.
• Sample quality is visually monitored by the supervising
geologist.
• Holes have been drilled by Image, Iluka and RGC.
•
Drilling
techniques		 • Drill type (eg core, reverse circulation,
open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc) 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).		 • All Image RCAC drillholes are drilled vertically using an NQ-sized
(76 mm diameter) drill bit.
• Water injection is used to convert the sample to a slurry so it
can be incrementally sampled by a rotary splitter.
• All Iluka RCAC drillholes are vertical and were drilled using a BQ-
sized drill bit (60 mm diameter).
• All RGC drill holes are drilled vertically using an NQ-sized drill bit
Drill sample
recovery		 • Method of recording and assessing
core and chip sample recoveries and
results assessed.
• Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
• Whether a relationship exists between
sample
recovery
and
grade
and
whether
sample
bias
may
have
occurred due to preferential loss/gain
of fine/coarse material.		 • At the drill site, Image’s geologist estimates sample recovery
qualitatively (as good, moderate or poor) for each down hole
sampling interval. Specifically, the supervising geologist visually
estimates the volume recovered to sample and reject bags
based on prior experience as to what constitutes good recovery.
Logging • Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate
Mineral
Resource
estimation,
mining
studies
and
metallurgical studies.
• Whether logging is qualitative or
quantitative
in
nature.
Core
(or
costean, channel, etc) photography.
• The total length and percentage of the
relevant intersections logged.		 • Image’s supervising geologist logs the sample reject material at
the rig and pans a small sub-sample of the reject, to visually
estimate the proportions of sands, heavy mineral (HM) sands,
‘slimes’ (clays), and oversize (rock chips) in each sample, in a
semi-quantitative manner.
• The geologist also logs colour, grain size, an estimate of
induration (a hardness estimate) and sample ‘washability’ (ease
of separation of slimes from sands by manual attrition).
• To preclude data entry and transcription errors, the logging data
is captured into a digital data logger at the rig, which contains
pre-set logging codes.
• No photographs of samples are taken. HMC concentrates are
retained.
• The digital logs are downloaded dailyand emailed to Image’s

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Page 29 of 39

head office for data security and compilation into the main
database server.
• Samples visually estimated by the geologist to contain more
than 0.5% HM (by weight) are despatched for analysis along
with the 1 m intervals above and below the mineralised
interval.
• At Hyperion almost 93% of the drilling has been logged and at
Helene almost 76% of the drilling has been logged. The level
and detail of logging is of sufficient quality to support Mineral
Resource estimates.
Sub-sampling
techniques and
sample
preparation		 • If core, whether cut or sawn and
whether quarter, half or all core taken.
• 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
representivity 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 being
sampled.		 • The majority of the Hyperion samples (over 63%) are from 1 m
intervals and 42% of samples were analysed for total HM, slimes
and oversize.
• At the Helene deposit almost 37% of the samples sent for
analysis have been taken over intervals of 1 m, 6% were taken
over intervals of 1.5 m and 57% were taken over intervals of
2 m. Almost 36% of samples were analysed for total HM, slimes
and oversize.
• The sample from the internal RC rods is directed to a cyclone
and then through a ‘rotating-chute’ custom-built splitting
device. This device allows different fraction splits from the
cyclone sample stream to be directed to either 25 cm by 35 cm
calico bags (as the laboratory despatch samples) or to large
plastic polyweave bags for the sample rejects. The rotary
splitter directs≈10 increments from the stream to the
laboratory despatch samples, for a specified sampling interval.
• Sample tickets with the interval’s unique sample ID are placed
in each bag.
• Iluka reports having used a similar procedure (ILU Report TR
T10348 WAMEX A73211), albeit no records are available to
support this assertion.
• To monitor sample representation and sample number
correctness, Image weighs the laboratory despatch samples
prior to despatch. The laboratory then weighs the received
sample and reports the mass to Image. This identifies any
potential mix up of sample numbers and is also a proxy for
sample recovery.
• Image considers the nature, quality and size of the sub-samples
collected are consistent with best industry practices of mineral
sands explorers in the Perth Basin region.
Quality of assay
data and
laboratory tests		 • The
nature,
quality
and
appropriateness of the assaying and
laboratory
procedures
used
and
whether the technique is considered
partial or total.
• For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make
and model, reading times, calibrations
factors applied and their derivation,
etc.
• Nature of quality control procedures
adopted
(eg
standards,
blanks,
duplicates, external laboratory checks)
and whether acceptable levels of		 • Image used industry standard approaches to estimating the
contents of total HM, slimes and oversize involving screening to
remove oversize, washing slimes from samples and then
extracting the heavy minerals from the residual sands using
heavy media.
• Image engaged two laboratories (Western GeoLabs and
Diamantina Laboratory) for sample preparation and analysis.
• No records are available for Iluka or RGC QAQC procedures.
• Analysis of QAQC data for the drilling programmes indicates
that it is of moderate to high quality and supports Mineral
Resource estimation.

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Page 30 of 39

accuracy (ie lack of bias) and precision
have been established.
Verification of
sampling and
assaying		 • The
verification
of
significant
intersections by either independent or
alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data
entry procedures, data verification,
data storage (physical and electronic)
protocols.
• Discuss any adjustment to assay data.		 • At Hyperion Image drilled seven twin holes. The twin holes
demonstrated good reproducibility of results compared to the
original drillholes.
• At Helene Image drilled seven twin holes testing both Image
and Iluka original holes. The results are sufficiently comparable
for this level of resource estimation.
• Image collected primary data on hard copy logs and also used a
data logger. Data from laboratories was provided in digital form
and compiled in Microsoft Access databases and spreadsheets.
• All of the composite samples were analysed by QEMSCAN and
XRF,which was used to verifytheQEMSCAN mineral counts.
Location of
data points		 • Accuracy and quality of surveys used to
locate drillholes (collar and down-hole
surveys), trenches, mine workings and
other
locations
used
in
Mineral
Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic
control.		 • Drillhole collars at both Helene and Hyperion have been
surveyed using hand-held GPS and RTK DGPS methods, with the
latter method deemed most accurate.
• The collar coordinates and survey ground controls have been
tied to the Landgate GOLA database by a registered surveyor.
• The topographic model for the deposits is based on LiDAR
survey. All collars for the Mineral Resource estimate have been
adjusted to this LiDAR topographic model.
• Data has been surveyed in MGA Zone 50 GDA94.
• The Helene Mineral Resource has been estimated using a local
grid system based on a two-point transformation.,
Data spacing
and distribution		 • Data
spacing
for
reporting
of
Exploration Results.
• Whether
the
data
spacing
and
distribution is sufficient to establish the
degree
of
geological
and
grade
continuity appropriate for the Mineral
Resource and Ore Reserve estimation
procedure(s)
and
classifications
applied.
• Whether sample compositing has been
applied.		 • Drillhole spacing:
Deposit
Spacing
Hyperion
Nominal 20 m (with some holes at a 10 m to
60 m spacing) across strike on section lines
spaced at 100 m alongstrike.
Helene
Nominal 20 m (with some holes at a 10 m to
60 m spacing) across strike on section lines
spaced at 100 m along strike. Drill lines in two
orientations, one approx. perpendicular to
strike,one approx. 30° to strike.
• HM assemblage composites
Deposit
Number of
Composites
Number of
Drillholes
Composite
metres
Hyperion
32
69
372
Helene
54
103
653
• The data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the
Mineral Resource estimation procedure and classification
applied.
Orientation of
data in relation
to geological
structure		 • Whether the orientation of sampling
achieves unbiased sampling of possible
structures and the 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.		 • All drillholes are vertical and intersect sub-horizontal strata. This
is appropriate for the orientation of the mineralisation and will
not have introduced a bias.
Sample security • The measures taken to ensure sample
security.		 • All samples are collected from site by Image’s staff as soon as
practicable once drilling is completed and then delivered to
Image’s locked storage sheds.

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Page 31 of 39

• Image’s staff deliver samples to the laboratory and collect heavy
mineral floats from the laboratory, which are also stored in
Image’s locked storage.
• Image considers there is negligible risk of deliberate or
accidental contamination of samples. Occasional sample mix-
ups are corrected using Images checking and quality control
procedures.
Audits or
reviews		 • The results of any audits or reviews of
sampling techniques and data.		 • The results and logging have been reviewed internally by
Image’s senior exploration personnel including checking of
masses despatched and delivered, checking standard results,
and verification logging of significant intercepts.
• In 2019 audits were conducted at both the Diamantina and
Western GeoLabs facilities byImage contractors.
Section 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral
tenement and
land tenure
status		 • Type,
reference
name/number,
location
and
ownership
including
agreements or material issues with
third parties such as joint ventures,
partnerships,
overriding
royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
• The security of the tenure held at the
time of reporting along with any
known impediments to obtaining a
licence to operate in the area.		 • The Hyperion and Helene deposits are within granted Retention
Licence R70/051, held 100% by Image Resources. The Hyperion
deposit lies on freehold lots 1 and 3752 and Winja Road, a shire-
controlled road reserve. The Helene deposit lies on freehold
lots, 3748 and 3753, and Cadda Road, a shire-controlled road
reserve. No native heritage or historical sites are known.
• R70/051 was granted on 5/02/2014 and expires on 4/02/2025.
Image is not aware of any impediment to it being renewed at
that date, or to the grant of a Mining Lease to enable
exploitation.
Exploration
done by other
parties		 • Acknowledgment and appraisal of
exploration by other parties.		 • The Hyperion deposit was discovered by RGC, who drilled three
lines of holes over the main strandline.
• Tronox and Iluka drilled holes to the west of the Hyperion
strandlines.
• The Helene deposit was discovered by RGC and was
subsequentlydrilled byIluka, prior to Image acquiringit.
Geology • Deposit type, geological setting and
style of mineralisation.		 • The Hyperion and Helene deposits are hosted in the Perth
Basin, in the Pliocene Yoganup Formation on the eastern margin
of the Swan Coastal Plain.
• The Yoganup Formation is a buried pro-graded shoreline
deposit, with dunes, beach ridge and deltaic facies. This
formation lies unconformably over the Lower Cretaceous
Leederville Formation.
• The Yoganup Formation consists of unconsolidated poorly
sorted sands and gravels, with local interstitial clay and heavy
minerals that occur sporadically along the Gingin Scarp, which is
interpreted to be an ancient shoreline that was stable during a
period of marine regression.
• Heavy minerals at Hyperion are concentrated within two
strandlines that are interpreted to have been deposited during
the Pleistocene.
• Helene has four major strandlines of heavy minerals and two
smaller overlying horizons heavy mineral concentrations. These
are interpreted to have been deposited during the Pleistocene
in a notch in the local basement rock that may represent an
ancient sea cliff. Lower grade mineralisation is present in the
sands overlyingthe higher-grade strandlines.

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Page 32 of 39

• The basement to the strandline mineralisation is identified by
the increased slimes content of the Leederville Formation or at
the base of the YoganupFormation.
Drillhole
information		 • A summary of all information material
to
the
understanding
of
the
exploration
results
including
a
tabulation of the following information
for all Material drillholes:
o easting and northing of the drillhole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres) of
the drillhole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.		 • Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource area.
Data
aggregation
methods		 • In
reporting
Exploration
Results,
weighting
averaging
techniques,
maximum and/or minimum grade
truncations (eg cutting of high grades)
and cut-off grades are usually Material
and should be stated.
• Where aggregate intercepts incorporate
short 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 clearly stated.





• Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource area.
• There are no metal equivalent values assumptions applied in
the Mineral Resource reporting.
Relationship
between
mineralisation
widths and
intercept
lengths		 • These relationships are particularly
important
in
the
reporting
of
Exploration Results.
• If the geometry of the mineralisation
with respect to the drillhole angle is
known, its nature should be reported.		 • The geometry of the mineralisation in both deposits is
effectively horizontal and the vertical drillholes used to define
the Mineral Resource give the approximate true thicknesses of
mineralisation.
Diagrams • Appropriate maps and sections and
tabulations of intercepts should be
included for any significant discovery
being reported		 • Refer to diagrams in announcement.
Balanced
reporting		 • Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low
and high grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.		 • Not relevant – Mineral Resource defined. Exploration results are
not being reported for the Mineral Resource area.
Other
substantive
exploration
data		 • Other exploration data, if meaningful
and material, should be reported
including
(but
not
limited
to):
geological observations; geophysical
survey results; geochemical survey
results; bulk samples – size and		 • Bulk density is determined using a proprietary formula that uses
a combination of lithology and grades (total HM and slimes) to
determine the bulk density values.

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Page 33 of 39

method of treatment; metallurgical
test results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
Further work • The nature and scale of planned
further work (eg tests for lateral
extensions or depth extensions or
large-scale step-out drilling).
• Diagrams clearly highlighting the areas
of possible extensions, including the
main geological interpretations and
future drilling areas, provided this
information
is
not
commercially
sensitive.		 • Two small drilling programs are planned at both deposits to
refine the resource models.
• The next major step is the assessment of the economic
potential of the deposits via mining and pit optimisation studies.
Section 3 Estimation and Reporting of Mineral Resources
Criteria JORC Code explanation Commentary
Database
integrity		 • Measures taken to ensure that data
has not been corrupted by, for
example, transcription or keying errors,
between its initial collection and its use
for
Mineral
Resource
estimation
purposes.
• Data validation procedures used.		 • The drillhole database is managed by Image. Maintenance of
the database includes internal data validation protocols by
Image.
• For the Mineral Resource estimate the drillhole data was
extracted
directly
from
the
Access
drillhole
database
maintained by Image.
• Data was further verified and validated by Optiro using mining
software (Datamine) validation protocols, and visually in plan
and section views.
Site visits • Comment on any site visits undertaken
by the Competent Person and the
outcome of those visits.		 • Mrs Christine Standing (CP for the Mineral Resource estimate)
has not visited the Hyperion deposit. She has visited other
mineral sands deposits in the North Perth Basin including the
Image’s Boonanarringdeposit duringDecember 2016.
Geological
interpretation		 • Confidence in (or conversely, the
uncertainty
of)
the
geological
interpretation of the mineral deposit.
• Nature of the data used and of any
assumptions made.
• The effect, if any, of alternative
interpretations on Mineral Resource
estimation.
• The use of geology in guiding and
controlling
Mineral
Resource
estimation.
• The factors affecting continuity both of
grade and geology.		 • At Hyperion, two stratigraphic (Yoganup and Leederville
Formations) units within the deposit area were defined using a
combination of total HM, slimes and oversize data and drillhole
lithological logs. These units were used in combination with
grade criteria (nominal grade cut-off of 1.5% total HM) to define
two mineralised strandlines.
• Three stratigraphic (Bassendean/Guildford, Yoganup and
Leederville Formations) units within the Helene deposit area
were defined using a combination of total HM, slimes and
oversize data and drillhole lithological logs. These units were
used in combination with grade criteria (nominal grade cut-off
of 2% total HM) to define four mineralised strandlines and two
smaller areas of overlying mineralisation.
• There is good confidence in the geological interpretation of the
mineralised strandlines.
Dimensions • The extent and variability of the
Mineral Resource expressed as length
(along strike or otherwise), plan width,
and depth below surface to the upper
and lower limits of the Mineral
Resource.		 Hyperion:
• The heavy minerals have been concentrated in two main
strandlines that are continuous over a strike length of 4.2 km.
The northern strandline has a strike length of 3.5 km and ranges
in width from 45 m to 230 m. The southern strandline has a
strike length of 0.7 km and ranges in width from 18 m to 66 m.
• The strandline mineralisation extends from surface to 16 m
depth, has an average thickness of 5.5 m and a maximum
thickness of 14 m. The topof the strandlines ranges in depth

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Page 34 of 39

from surface to 13 m.
Helene:
• Four mineralised strandlines and two shallow zones of
mineralisation close to the top of the Yoganup Formation have
been interpreted.
• The four mineralised strandlines have strike lengths of 3.4 to
4.6 km and the total strike length of the overlying mineralisation
is 0.6 km.
• The interpreted mineralisation has an average thickness of
5.9 m and a maximum thickness of 15 m.
• The top of the strandlines ranges in depth from 2 m to 34 m and
the mineralisation extends to a maximum depth of 38 m.
Estimation and
modelling
techniques		 • The nature and appropriateness of the
estimation technique(s) applied and
key assumptions, including treatment
of extreme grade values, domaining,
interpolation
parameters
and
maximum distance of extrapolation
from data points. If a computer
assisted
estimation
method
was
chosen
include
a
description
of
computer software and parameters
used.
• The availability of check estimates,
previous
estimates
and/or
mine
production records and whether the
Mineral
Resource
estimate
takes
appropriate account of such data.
• The
assumptions
made
regarding
recovery of by-products.
• Estimation of deleterious elements or
other non-grade variables of economic
significance (e.g. sulphur for acid mine
drainage characterisation).
• In
the
case
of
block
model
interpolation, the block size in relation
to the average sample spacing and the
search employed.
• Any assumptions behind modelling of
selective mining units.
• Any assumptions about correlation
between variables.
• Description of how the geological
interpretation was used to control the
resource estimates.
• Discussion of basis for using or not
using grade cutting or capping.
• The process of validation, the checking
process used, the comparison of model
data to drillhole data, and use of
reconciliation data if available.		 • Image used Datamine and Surpac software to develop string
files and 3d wireframes of the geological and mineralisation
interpretation. Data analysis and estimation was undertaken by
Optiro using Snowden Supervisor and Datamine software.
• Optiro assessed the robustness of the mineralised domains by
critically examining the geological interpretation and by using a
variety of measures, including statistical and geostatistical
analysis. The domains are considered geologically robust in the
context of the resource classification applied to the estimate.
• Drillhole sample data was flagged from the three-dimensional
interpretation of the mineralised horizons.
• Kriging neighbourhood analysis was performed in order to
determine the block size, sample numbers and discretisation
levels.
• Block dimensions for Helene and Hyperion were selected from
kriging neighbourhood analysis and reflect the variability of the
deposit and the model’s practicality for future mine planning.
Parent blocks of 10 mE by 50 mN by 1 mRL were selected and
sub-cells to a minimum dimension of 2.5 mE by 12.5 mN by
0.25 mRL were used to represent volume.
• Variogram analysis was undertaken to determine the kriging
estimation parameters used for OK estimation of total HM,
slimes and oversize and the search dimensions used for ID
estimation of HM and mineral assemblage components.
• HM grade was estimated using ordinary kriging (OK) and inverse
distance cubed (ID3) into the parent blocks.
• Slimes and oversize quantities were estimated using OK into the
parent blocks.
• Zircon, leucoxene, rutile and ilmenite percentages within the
HM fraction were estimated using inverse distance (cubed) into
the parent blocks.
• All variables were estimated separately and independently.
• The total HM, slimes and oversize estimated block model grades
were visually validated against the input drillhole data and
comparisons were carried out against the declustered drillhole
data and by northing, easting and elevation slices.
• The estimated block model grades for zircon, ilmenite,
leucoxene and rutile were visually validated against the input
drillhole data and comparisons were carried out against the
drillhole data and by northing, easting and elevation slices.
Details specific to each deposit are described below.
Hyperion:
• Samples are from intervals of 0.6 m, 1 m and 2 m. As the
majorityof samples(63%)from within the mineralised

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Page 35 of 39

strandlines are from intervals of 1 m the data was composited
to 1 m downhole intervals for resource estimation.
• The drillhole spacing is generally 20 m (with some hole spacing
ranging from 10 m to 60 m) across strike on section lines spaced
at approximately 100 m along strike.
• Extrapolation of up to 100 m along strike and approximately
half the drill spacing across strike was used for the
interpretation.
• Grade capping was applied to slimes % and oversize %. The top
cut levels were determined using a combination of top cut
analysis tools, including grade histograms, log probability plots
and the coefficient of variation.
• Three estimation passes were used for HM; the first search was
based upon the variogram ranges; the second search was
double the initial search with reduced sample numbers required
for estimation and the third search was expanded to completed
grade estimation within each of the mineralised domains (up to
six times the second search). Over 99% of the total HM block
grades were estimated in the first search pass, 0.4% within the
second search pass and the remaining 0.1% estimated in the
third search pass.
• Total HM mineralisation continuity was interpreted from
variogram analyses to have maximum continuity ranges of
360 m along strike, 65 m across strike and 4.1 m vertical.
• Along strike ranges of 690 m, 620 m, 330m and 970 m were
interpreted
for
zircon,
ilmenite,
rutile
and
leucoxene
respectively and across strike ranges of 95 m, 70 m, 70 m and
150 m were interpreted for zircon, ilmenite, rutile and
leucoxene respectively. As the composite samples consist of
material collected and combined within drillholes, it was not
possible to investigate the continuity of the mineral assemblage
components in the vertical direction.
• Correlation coefficients of the mineral assemblage data indicate
a indicate a high positive relationship between ilmenite and
zircon and between leucoxene and rutile and a moderate
positive relationship between ilmenite and leucoxene, ilmenite
and rutile, leucoxene and zircon and between rutile and zircon.
• The majority of the total HM and slimes, total HM and oversize,
and slimes and oversize data is uncorrelated.
• Compared to the September 2019 resource estimate, the
tonnage of the 2019 resource has increased by 190% and the
average total HM grade has decreased by 36%. This is
consistent with the lower cut-off grade that has been used for
interpretation of the mineralised strandlines. The contained
zircon has not changed, the combined rutile and leucoxene has
increased by 121% and the contained ilmenite has decreased by
37%. QEMSCAN data was used for the 2020 resource which
replaced the limited grain counting data used for the 2019
resource estimate.
• No production has occurred from the deposit.
Helene:
• Samples are from intervals of 1 m and 1.5 m and 2 m. As the
majority of samples (56%) within the mineralised strandlines
are from intervals of 2 m the data was composited to 2 m
downhole intervals for resource estimation.
• Drillinghas occurred on two orientations;the first on lines

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Page 36 of 39

spaced at approximately 200 m along MGA northings and the second set at generally 100 m spacing along the local grid northings. The drillholes are generally spaced at approximately 20 m (with some holes at a 10 m to 60 m spacing) across strike on the section lines. • Extrapolation of up to 50 m along strike and approximately half the drill spacing across strike was used for the interpretation. • Grade capping was applied to oversize %. The top cut levels were determined using a combination of top cut analysis tools, including grade histograms, log probability plots and the coefficient of variation. • HM mineralisation continuity was interpreted from variogram analyses. Maximum continuity ranges of 470 m to 500 m along strike, 35 m to 62 m across strike and 4.2 m to 6.3 m vertical were interpreted. • The mineral assemblage data was interpreted from variogram analyses to have along strike ranges of 1,050 m, 1,200 m, 1,220 m and 1,050 m for zircon, ilmenite, rutile and leucoxene respectively and across strike ranges of 100 m, 135m, 170 m and 100 m were interpreted for zircon, ilmenite, rutile and leucoxene respectively. As the composite samples consist of material collected and combined within drillholes, it was not possible to investigate the continuity of the mineral assemblage components in the vertical direction. • Three estimation passes were used for HM; the first search was based upon the variogram ranges; the second search was double the initial search with reduced sample numbers required for estimation and the third search was expanded to completed grade estimation within each of the mineralised domains (up to five times the second search). Approximately 91% of the total HM block grades were estimated in the first search pass, almost 8% within the second search pass and the remaining 2% estimated in the third search pass. • The majority of the total HM and slimes, total HM and oversize, and slimes and oversize data is uncorrelated. • Correlation coefficients of the mineral assemblage data indicate a moderate positive relationship between ilmenite and zircon, and between rutile and zircon, a poor positive relationship between leucoxene and rutile, and a moderate negative correlation between ilmenite and leucoxene. • Compared to the September 2019 resource estimate, the tonnage of the 2019 resource has decreased by 1%, and the average total HM grade has increased by 11%. This is consistent with re-interpretation of the mineralised strandlines. The contained zircon has decreased by 22%, the combined rutile and leucoxene has increased by 486% and the contained ilmenite has decreased by 28%. QEMSCAN data was used for the 2020 resource which replaced the limited grain counting data used for the 2019 resource estimate. • No production has occurred from the deposit. Validation • The HM, slimes and oversize estimated block model grades were visually validated against the input drillhole data and comparisons were carried out against the declustered drillhole data and by northing, easting and elevation slices. • The estimated block model grades for zircon, ilmenite,

Image Resources NL ABN 57 063 977 579 | PO Box 469 West Perth WA 6872 T: 08 9485 2410 | F: 08 9486 8312 www.imageres.com.au

Ground Floor, 23 Ventnor Ave West Perth WA 6005 | PO Box 469 West Perth WA 6872

Page 37 of 39

leucoxene and rutile were visually validated against the input
drillhole data and comparisons were carried out against the
drillhole data and bynorthingand eastingslices.
Moisture • Whether the tonnages are estimated
on a dry basis or with natural moisture,
and the method of determination of
the moisture content.		 • Tonnages are estimated on a dry basis.
Cut-off
parameters		 • The basis of the adopted cut-off
grade(s) or quality parameters applied.		 • The Mineral Resource estimates for the Hyperion and Helene
deposits have been reported at a 2.0% HM cut-off. This cut-off
grade was selected by Image based on technical and economic
assessment.
Mining factors
or assumptions		 • Assumptions made regarding possible
mining methods, minimum mining
dimensions
and
internal
(or,
if
applicable, external) mining dilution. It
is always necessary as part of the
process of determining reasonable
prospects
for
eventual
economic
extraction to consider potential mining
methods, but the assumptions made
regarding
mining
methods
and
parameters when estimating Mineral
Resources may not always be rigorous.		 • Open pit mining methods will be used, similar to those currently
in use at Image’s Boonanarring deposit.
• Mining factors such as dilution and ore loss have not been
applied.
Metallurgical
factors or
assumptions		 • The
basis
for
assumptions
or
predictions
regarding
metallurgical
amenability. It is always necessary as
part of the process of determining
reasonable prospects for eventual
economic
extraction
to
consider
potential metallurgical methods, but
the
assumptions
regarding
metallurgical treatment processes and
parameters made when reporting
Mineral Resources may not always be
rigorous.		 • Mineral assemblage data within the Mineral Resource estimates
has been sourced from QEMSCAN analysis. The rules for the
QEMSCAN data used for the definition of the titanium mineral
determination are as follows:
o
ilmenite: 50 to 70% TiO2
o
leucoxene: 70 to 95% TiO2
o
rutile: >95% TiO2.
• Image considers there are no metallurgical factors which are
likely to affect the assumption that the deposit has reasonable
prospects for eventual economic extraction.
Environmental
factors or
assumptions		 • Assumptions made regarding possible
waste and process residue disposal
options. It is always necessary as part
of
the
process
of
determining
reasonable prospects for eventual
economic extraction to consider the
potential environmental impacts of the
mining andprocessing operation.		 • There are no known significant environmental impediments to
the project’s viability from the currently available information.
Bulk density • Whether assumed or determined. If
assumed,
the
basis
for
the
assumptions.
If
determined,
the
method used, whether wet or dry, the
frequency of the measurements, the
nature, size and representativeness of
the samples.
• The bulk density for bulk material must
have been measured by methods that
adequately account for void spaces
(vugs, porosity, etc), moisture and
differences
between
rock
and		 • A combination of lithology and grades (total HM and slimes)
were used to determine the density values for the resource
model.
• Bulk density formulae were developed by Image during 2019 for
the Boonanarring deposit (also in the Perth Basin) using bulk
density measurements from a geotechnical drilling program and
in-pit density measurements. The formulae were verified and
adjusted where required using data obtained at Boonanarring
during 2020. These formulae have been applied at Hyperion
and Helene for density estimation.

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 | F: 08 9486 8312 www.imageres.com.au

Page 38 of 39

alteration zones within the deposit.
• Discuss assumptions for bulk density
estimates used in the evaluation
process of the different materials.
Classification • The basis for the classification of the
Mineral
Resources
into
varying
confidence categories.
• Whether appropriate account has been
taken of all relevant factors (ie relative
confidence
in
tonnage/grade
estimations, reliability of input data,
confidence in continuity of geology and
metal values, quality, quantity and
distribution of the data).
• Whether
the
result
appropriately
reflects the Competent Person’s view
of the deposit.		 • The Mineral Resource estimates have been classified according
to the guidelines of the JORC Code (2012), into Indicated and
Inferred Resources taking into account data quality, data
density, geological continuity, grade continuity and confidence
in estimation of heavy mineral content and mineral assemblage.
Hyperion:
• The main strandline and the northern area of the southern
strandline are classified as Indicated. Inferred Resources are
defined within a small area within the southern area of the
south strandline where the strandline interpretation is based on
a single drillhole.
• In plan, a polygon was used to define the area within the
mineralised domain with an Inferred classification.
• The assigned classification of Indicated and Inferred reflects the
Competent Persons’ assessment of the accuracy and confidence
levels in the Mineral Resource estimate.
Helene:
• Indicated Resources are generally defined within the four main
strandlines where drilling is at approximately 20 m on 100 m
lines.
• The overlying mineralisation is classified as Inferred.
• Inferred Resources are defined within the southern area of the
four main strandlines where the interpretation is based on
historical RGC data.
• Inferred Resources are also defined within the southern area of
the westernmost strandline, where the interpretation is based
on limited on-section drill intersections, and two areas within
the central eastern strandline where the drillhole data indicates
there are gaps in the strandline mineralisation and the extent of
the mineralisation is not known between the drill lines.
Audits or
reviews		 • The results of any audits or reviews of
Mineral Resource estimates.		 • The Mineral Resources have been reviewed internally as part of
normal validation processes by Optiro.
• No external audit or review of the current Mineral Resources
have been conducted.
Discussion of
relative
accuracy/
confidence		 • Where appropriate a statement of the
relative accuracy and confidence level
in the Mineral Resource estimate using
an approach or procedure deemed
appropriate by the Competent Person.
• The statement should specify whether
it relates to global or local estimates,
and, if local, state the relevant
tonnages, which should be relevant to
technical and economic evaluation.
Documentation
should
include
assumptions made and the procedures
used.
• These statements of relative accuracy
and confidence of the estimate should
be compared with production data,
where available.		 • The assigned classification of Indicated and Inferred at Hyperion
and Helene reflects the Competent Persons’ assessment of the
accuracy and confidence levels in the Mineral Resource
estimates.
• The confidence levels reflect production volumes on an annual
basis.
• No production has occurred from the deposits.

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 | F: 08 9486 8312 www.imageres.com.au

Page 39 of 39

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