Diatreme, Image to form zircon JV

Sep. 22, 2010 - Image Resources NL has moved to join a joint venture between a Chinese party and Diatreme Resources Ltd to potentially develop the Cyclone and Cyclone Extended heavy mineral sands deposits in Western Australia.
Shares in Image had jumped 4.5 cents, or 11.25 per cent, to 44.5 cents by 1240 AEST while Diatreme's shares had risen 0.8 cents, or 10.67 per cent, to 8.3 cents.
Diatreme and Image said on Wednesday that they had signed a memorandum of understanding (MoU) to cooperate at the Cyclone tenements in the Eucla Basin.
The tenements are rich in zircon, which is used in ceramic tiles.
"The parties have indicated their agreement to cooperate with each other with the aim of entering into a joint venture agreement, or similar arrangement, in respect of the two deposits which are contiguous," Diatreme said in a statement.
"The purpose of the transaction is to initially advance the assets to feasibility and, if warranted, to production.
"Such cooperation may include collective negotiations with third parties who may wish to enter into an agreement or arrangement to invest in or purchase the assets".
Diatreme last month entered into an MoU with China's largest manufacturer BaoTi Group Ltd, whereby BaoTi would take a stake in Diatreme and jointly develop the Cyclone project with the Queensland-based company.
BaoTi Group has an 80 per cent share of China's zircon and titanium fabrication market.