Image Resources NL

Image Resources (ASX:IMA)(PINK:IMATF) has begun the second phase drill programme over its 100%-owned Serpentine Lakes tenements in the Eucla Basin. The Image tenements contain the southern extension of Diatreme Resources' (ASX:DRX) Cyclone heavy mineral discovery where DRX has reported an Inferred Resource of 60 Mt at 3.1% HM (DRX ASX release 31 March 2008).

Image Resources (ASX:IMA)(PINK:IMATF) has begun the second phase drill programme over its 100%-owned Serpentine Lakes tenements in the Eucla Basin. The Image tenements contain the southern extension of Diatreme Resources' (ASX:DRX) Cyclone heavy mineral discovery where DRX has reported an Inferred Resource of 60 Mt at 3.1% HM (DRX ASX release 31 March 2008).

Image Resources (ASX:IMA)(PINK:IMATF) is pleased to announce a significant upgrade to the Atlas resource at Cooljarloo. The major highlights include a change in resource category of heavy minerals and mineralisation, to Indicated from a mix of Inferred and Indicated. Over 120% increase in tonnes of contained zircon from 46,000 tonnes to 102,000 tonnes.

During the quarter Image Resources (ASX:IMA) raised A$3,000,309 by issuing 5,455,108 shares at 55cents per share to a combination of sophisticated and professional investors. The raising brings Image's issued capital to 85,099,354 fully paid shares and its cash and liquid assets to A$6.4 million at the end of the quarter. The funds will allow Image to accelerate its exploration and general feasibility work on its core mineral sand assets.

Image Resources (ASX:IMA) identifies a high grade zircon sone at the Atals deposit. Mineral assemblage analysis of selected samples from the high-grade zone at the Atlas deposit at Cooljarloo (Image 70%) has identified some unexpectedly high grades of zircon ranging from 18.1% to 20.8% of the heavy mineral suite, well above the previous estimate of an average zircon grade of 7%. The presence of high-grade zircon has the potential to add significant further value to the Atlas resource.

Image Resources (ASX:IMA)(PINK:IMREF) is raising A$3,000,309 by issuing 5,455,108 shares at 55 cents per share to a combination of sophisticated and professional investors. Following the placement Image will have 85,099,354 fully paid shares on issue and will hold cash and liquid assets of approximately $7 million after payment of the costs of the placement.

Sample processing from Image Resources' (ASX:IMA)(PINK:IMREF) recent drilling programme on the Atlas deposit at Cooljarloo (Image 70%) is now complete. Detailed geological interpretation and resource estimation has now commenced and is expected to be completed by July. The data will be made available to those parties who have signed a memorandum of understanding with Image.

Sample processing from Image Resources' (ASX:IMA)(PINK:IMREF) recent drilling programme on the Atlas deposit at Cooljarloo (Image 70%) is now complete. Detailed geological interpretation and resource estimation has now commenced and is expected to be completed by July. The data will be made available to those parties who have signed a memorandum of understanding with Image.

Image Resources NL (ASX:IMA)(PINK:IMREF) is pleased to announce that another Memorandum of Understanding (MOU) has been signed on its North Perth Basin heavy minerals project. The objective of the MOU is to facilitate a review of Image's North Perth Basin HM project as a step towards the commercialisation of these assets.

Image Resources NL (ASX:IMA)(PINK:IMREF) significant enhancement of the Atlas resource with a 900m-long high-grade zone identified averaging more than 20% HM. A significant part of the new Atlas high-grade zone lies outside the existing resource model, indicating a likely increase in grade and contained HM when the resource is updated in the June quarter, drilling to test 45km of new targets at Gingin in progress.