Over 6 Million Tonnes Heavy Mineral Estimated At Image Resources NL (ASX:IMA) Cyclone And Cyclone Extended
Perth, July 23, 2010 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (PINK:IMREF) has completed its maiden resource estimate for the Cyclone Extended heavy mineral (HM) project in the Eucla Basin, which abuts the Cyclone deposit held by Diatreme Resources (ASX:DRX). Following a data swap with Diatreme, Image has completed a global estimate for both Cyclone and Cyclone Extended in order to properly set its Cyclone Extended resource in context with the whole mineral deposit. The estimates presented here are solely those of Image, and are not necessarily endorsed by Diatreme, which is preparing its own resource estimate for the project. The tables (see link at the bottom) summarise the resource estimates by category for various HM cut-off grades. These resources have been estimated in accordance with the JORC guidelines.
Figure 1 (see link at the bottom) shows the outline of mineralisation at a 1%HM cut-off, which consists of two arms that total 13km in aggregate strike length and which vary from 400m - 600m in width. The deposit ranges in thickness from 1 to 26 metres. The mineralised area is large at over 7.4sq km in extent, equivalent to an area 100 times the size of the MCG. Typical cross sections of Cyclone Extended are shown in Figure 2 (see link at the bottom).
Diatreme has previously estimated its Cyclone resource at 98.4Mt at 2.88%HM (1%HM cut-off) containing 2.8Mt of heavy mineral (DRX ASX release of 23 September 2009). The variance from the estimates is mainly a result of the inclusion of more recent grade data in the Image estimate of the global resource, particularly from the dune deposits which overlie the resource and which are now recognised to contain significant mineralisation. The presence of mineralisation in the dune material has the potential to significantly improve the project economics in reducing overburden removal and by increasing the mineral inventory. Clearly, the resources at Cyclone and Cyclone Extended offer a number of possible development options ranging from lower tonnage and higher grades to large tonnage and lower grades, depending on how the dune material and cut-off grade is treated.
At Cyclone Extended and based on wide spaced scout drilling, Image has identified an area of 30sq km prospective for further discoveries. In addition, some of the mineralisation at Cyclone Extended has not been closed off and further drilling may result in further increases to the resource.
The interpreted geology used to constrain the global resource model comprises 5 main elements; the Dune, Beach, Surf, Near Shore and Offshore zones. The combined deposit is interpreted to be a series of regressive shorelines where the Beach, Surf, Near Shore and Offshore sediments were deposited. The Dune sediments on top of the Beach zone were deposited later. These geological units have been identified on the basis of sedimentary features such as grain size, sorting and HM grade and can be traced throughout the deposit.
Indicated and Inferred Resources have been estimated for each of the main geological units at Cyclone and Cyclone Extended using a wire framed block model and inverse distance squared method. At the 1%HM cut-off the Dune, Beach, Surf and Near Shore zones contain 13%, 48%, 12% and 27% respectively of the resource tonnes. The Beach and Surf zones contain the higher HM grades. The bulk density was determined by formula, and averages 1.733t/m3 for the 1%HM cut-off resource.
For the complete Image Resources announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63373-ASX-IMA-498476.pdf
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused miner and supplier of critical minerals titanium dioxide, zircon and monazite containing rare earth elements for sale into global markets. The Company has a demonstrated track record of successful project development and operations at its Boonanarring project located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring was a high-grade, high-zircon, low capital cost mine development that was constructed on-time and on-budget in CY2018 and then ramped up to name plate capacity in the second month of operation and went on to operate profitably through Q3 2023. Debt for the project was paid off early in February 2021 and the Company paid dividends to shareholders in April 2021 and April 2022.
Image completed critical construction of the Atlas project in January 2025 and started commissioning and achieved first HMC production in February 2025 and will be ramping up production and revenue from Atlas in Q2 CY2025.
Chapter 1 operating strategy for Image involved the transition from advanced explorer to active miner in CY2018, operating a single mine and producing a single product (HMC) sold into a single jurisdiction (China). Chapter 2 strategy (post Atlas) will focus on the Company's growth and sustainability ambitions which includes the operation of multiple mines in parallel, producing multiple products (separating HMC), and selling into a global market.
The Company is also investigating a significant value adding step of upgrading its ilmenite to synthetic rutile using a lower GHG emissions, innovative process which Image has provisionally patented, and aims to demonstrate the technical and economic feasibility of this novel process in CY2025-26.
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