Mar. 9, 2011 - Image Resources will acquire four granted Mining Leases from Iluka Resources in a deal that will fast track development and mining, and potential commercialisation of its north Perth basin projects in Western Australia.
Under the Mining Act a mining lease will enable Image to mine the land. This will enable Image to fast track of these resources through the permitting process to development, subject to the completion of appropriate agreements with landowners.
Image estimates the Iluka leases will add approximately 955,000 tonnes of contained HM to Image's resource base, which equates to a 55% increase of Dry Mining resources at Image's Cooljarloo Project.
With Heavy mineral commodity price forecasts remaining robust, with the price for Zircon expected to increase to at least US$1300/tonne, Rutile up to US$750/t and Ilmenite up to US$190/t, Image's timing with the deal appears savvy.
The acquisition will significantly increase Image's Dry Mining resource inventory from 1.8M tonnes of heavy mineral sands to 2.8 million tonnes of HM, an increase of 55% and increases the total Dry Mining + Dredge Mining resource to 7.53 million tonnes of HM.
Image is aiming for 5 million tonnes of contained dry mining of heavy minerals within the North Perth Basin.
Tellingly, as a guide, the Tiwest joint venture between Tronox Western Australia Pty Ltd and subsidiaries of Exxaro Australia Sands Pty Ltd produce 0.6 million tonnes of HM per year from its Cooljarloo operations, one of the biggest mineral sand mines in the world and comprises mainly dredge and some dry mining resources.
So the ability for Image to become a significant player in the HM market from its resource inventory and exploration targets has become a reality with this deal with Iluka.
Resources and target zones along the Gingin Scarp under Image tenure are significant, representing a huge and prospective HM target corridor of some 65 kilometres in length extending through Gingin from Muchea to Cataby. The Iluka leases complete Image s coverage of that 65 km corridor.
Image's current resources do not include the mineralisation tested by the recent drilling at Rhea and Middle Strand or any of the drilling currently being completed at Gingin South. In addition at least 30km of high priority ground magnetic targets remain to be drilled at Gingin and Cooljarloo.
Image believes there is potential to significantly increase its resources in the corridor having already identified 22 km of high priority target areas using ground magnetics. Following previously reported high grade drilling results, at Gingin South, 7 km of these high priority targets are being drilled to establish Measured Resource status.
Three of these tenements are surrounded by exploration licences comprising Image's 100%-owned Gingin project, with the fourth adjacent to Image's Cataby West and Quinns Hill projects.
The deal will provide Image with a high grade/high priority target area based on its drilling at Gingin South combined with the high grade 2.5km-long Gingin Mine owned by Iluka.
The deal also gives Image control of a 65km strike length of the Gingin Scarp.
Consideration for the deal is 1.2 million Image shares (subject to a 1 year escrow) and $190,000 cash to Iluka.
Under the Mining Act a mining lease will enable Image to mine the land. This will enable Image to fast track of these resources through the permitting process to development, subject to the completion of appropriate agreements with landowners.
Image estimates the Iluka leases will add approximately 955,000 tonnes of contained HM to Image's resource base, which equates to a 55% increase of Dry Mining resources at Image's Cooljarloo Project.
With Heavy mineral commodity price forecasts remaining robust, with the price for Zircon expected to increase to at least US$1300/tonne, Rutile up to US$750/t and Ilmenite up to US$190/t, Image's timing with the deal appears savvy.
The acquisition will significantly increase Image's Dry Mining resource inventory from 1.8M tonnes of heavy mineral sands to 2.8 million tonnes of HM, an increase of 55% and increases the total Dry Mining + Dredge Mining resource to 7.53 million tonnes of HM.
Image is aiming for 5 million tonnes of contained dry mining of heavy minerals within the North Perth Basin.
Tellingly, as a guide, the Tiwest joint venture between Tronox Western Australia Pty Ltd and subsidiaries of Exxaro Australia Sands Pty Ltd produce 0.6 million tonnes of HM per year from its Cooljarloo operations, one of the biggest mineral sand mines in the world and comprises mainly dredge and some dry mining resources.
So the ability for Image to become a significant player in the HM market from its resource inventory and exploration targets has become a reality with this deal with Iluka.
Resources and target zones along the Gingin Scarp under Image tenure are significant, representing a huge and prospective HM target corridor of some 65 kilometres in length extending through Gingin from Muchea to Cataby. The Iluka leases complete Image s coverage of that 65 km corridor.
Image's current resources do not include the mineralisation tested by the recent drilling at Rhea and Middle Strand or any of the drilling currently being completed at Gingin South. In addition at least 30km of high priority ground magnetic targets remain to be drilled at Gingin and Cooljarloo.
Image believes there is potential to significantly increase its resources in the corridor having already identified 22 km of high priority target areas using ground magnetics. Following previously reported high grade drilling results, at Gingin South, 7 km of these high priority targets are being drilled to establish Measured Resource status.
Three of these tenements are surrounded by exploration licences comprising Image's 100%-owned Gingin project, with the fourth adjacent to Image's Cataby West and Quinns Hill projects.
The deal will provide Image with a high grade/high priority target area based on its drilling at Gingin South combined with the high grade 2.5km-long Gingin Mine owned by Iluka.
The deal also gives Image control of a 65km strike length of the Gingin Scarp.
Consideration for the deal is 1.2 million Image shares (subject to a 1 year escrow) and $190,000 cash to Iluka.
