Image Resources Nl · ASX:IMA
Image Resources Nl — Noosa Mining & Exploration Conference 2016
42 slides from Image Resources Nl's conference presentation, Jul 22, 2016
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank?
1 Boonanarring Mineral Sands Project: The next cab off the mineral sands rank? Noosa Mining & Exploration Conference 21-22 July 2016 Noosa, QLD Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statement
Forward Looking Statement 2 Certain statements made 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 t
Slide 3: Australia's next mineral sands miner?
3 Australia’s next mineral sands miner?
Slide 4: The Image you know: Advanced Explorer
ForwardThe Image Looking you know Statement 4 ADVANCED EXPLORER LOCATION? QUALITY RESOURCES? RESOURCES UPSIDE? INFRASTRUCTURE? WORK FORCE? COMMUNITY SUPPORT? PROJECT APPROVALS? FEASIBILITY STUDY?
Slide 5: Advanced Explorer: Location
ForwardThe Image Looking you know Statement 5 ADVANCED EXPLORER LOCATION North Perth Basin in WA; proven mineral sands address; home of majors Iluka and Tronox. QUALITY RESOURCES? RESOURCES UPSIDE? INFRASTRUCTURE? WORK FORCE? COMMUNITY SUPPORT? PROJECT APPROVALS? FEASIBILITY STUDY?
Slide 6: Advanced Explorer: Quality Resources
ForwardThe Image Looking you know Statement 6 ADVANCED EXPLORER LOCATION QUALITY RESOURCES High HM grade, high VHM, high zircon RESOURCES UPSIDE? INFRASTRUCTURE? WORK FORCE? COMMUNITY SUPPORT? PROJECT APPROVALS? FEASIBILITY STUDY?
Slide 7: Advanced Explorer: Resources Upside
ForwardThe Image Looking you know Statement 7 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE 900 km2 with significant potential for extensions of known resources and discovery of new deposits. INFRASTRUCTURE? WORK FORCE? COMMUNITY SUPPORT? PROJECT APPROVALS? FEASIBILIT
Slide 8: Advanced Explorer: Infrastructure
ForwardThe Image Looking you know Statement 8 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE Paved roads, power, gas pipeline and water available to/on mining lease. WORK FORCE? COMMUNITY SUPPORT? PROJECT APPROVALS? FEASIBILITY STUDY?
Slide 9: Advanced Explorer: Work Force
ForwardThe Image Looking you know Statement 9 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE WORK FORCE Experienced work force available in immediate area due to downturn in commodities market; 80 km from Perth. COMMUNITY SUPPORT? PROJECT APPROVALS? FEAS
Slide 10: Advanced Explorer: Community Support
ForwardThe Image Looking you know Statement 10 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE WORK FORCE COMMUNITY SUPPORT Community of Gingin experienced with and supportive of mineral sands industry. PROJECT APPROVALS? FEASIBILITY STUDY?
Slide 11: Advanced Explorer: Project Approvals
ForwardThe Image Looking you know Statement 11 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE WORK FORCE COMMUNITY SUPPORT PROJECT APPROVALS Mining and general purpose leases, Environmental, EPBC and groundwater approvals in hand. FEASIBILITY STUDY?
Slide 12: Advanced Explorer: Feasibility Study
ForwardThe Image Looking you know Statement 12 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE WORK FORCE COMMUNITY SUPPORT PROJECT APPROVALS FEASIBILITY STUDY Original FS announced 16 July 2013 with $145m NPV and $64m capital; study is out of date and cu
Slide 13: The Image you know: Advanced Explorer
ForwardThe Image Looking you know Statement 13 ADVANCED EXPLORER LOCATION QUALITY RESOURCES RESOURCES UPSIDE INFRASTRUCTURE WORK FORCE COMMUNITY SUPPORT PROJECT APPROVALS FEASIBILITY STUDY
Slide 14: Development Projects
Development Projects 14 High VHM and very high Zircon grade at Boonanarring Ore HM Slimes VHM Zircon Rutile Leucoxene Ilmenite Probable Reserves (Mt) (%) (%) (%) (%) (%) (%) (%) Boonanarring1 14.4 8.3 17.0 80 24 3 6 47 Atlas1 9.7 8.1 15.5 74 11 7 1 55 TOTAL 24.1 8.2 16.4 78 19 5 4 19 Ore HM Slimes V
Slide 15: Boonanarring Project Comparison
Boonanarring Project Comparison 15 High HM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% Image Resources (IMA) VHM Grade Zircon % Boonanarring project 12.0% 21.5Mt @ 8.3% HM and up to 24.5% Zircon 20% 10.0% 15% 8.0% 6.0% 10% 4.0% H 5% 2.0% 0.0% 0% WT
Slide 16: Boonanarring Project Comparison
Boonanarring Project Comparison 16 Low Capital Cost relative to peers $500 Capital Cost (A$million) Startup capex $400 $300 $200 $100 $0 Boonanarring Keysbrook D3 Toliara Cyclone Thunderbird Kwale Grande Cote IMAGE IMA MZI Sierra Rutile WTR DRX SFX BSE MDL Source: Released on 4th May 2015 – Morgan’s
Slide 17: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 17 Seeking to extend mine life beyond 10 years – 60km prospective target zone Boonanarring North Targeting potential 5.2km extension; drilling1.3km north of the deposit includes14m @ 18% HM & 8m @ 22% HM; 50 drill holes planned (subject to access). Boonanarring to G
Slide 18: Project Approvals
Project Approvals 18 Project approvals are well-advanced Mining Lease & General Purpose Lease Part IV, Environmental Protection Act (WA) – PER EPBC Act (Commonwealth) Landowner agreements Groundwater Abstraction Licence (Dept of Water and Dept Parks & Wildlife) Project Management Plan/Radi
Slide 19: Tronox Royalty
Tronox Royalty 19 Potential near term royalty cash flows from Mullering Royalty deal and extension potential A$50,000 cash payment has been received; Sliding-scale royalty: – at 2.5% average grade the royalty will be 1.25% – at 3.0% average grade the royalty will be 2.50% – at 3.5% average grade
Slide 20: Key Growth and Transition Milestone
Key Growth and Transition Milestone 20 Effective 8 June 2016 Asset Sale and Purchase Agreement transaction completed with Murray Zircon Pty Ltd and Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd Completion of this transaction allows Image to tick the boxes on a number of critical project develo
Slide 21: The NEW Image Resources
The NEW Image Resources 21 CAPITAL EQUIPMENT? • All plant & equipment and internal infrastructure items necessary to construct a complete heavy mineral recovery operation; from slurry unit in the mine to wet concentration plant for HMC. SHORT TERM FUNDS? $4M Short-Term loan funds with very fav
Slide 22: The NEW Image
The NEW Image 22 MINERAL SEPARATION SERVICES? Access to mineral separation services in China; Purchase option for a Mineral Separation Plant in SA; and Local toll-processing option; CORNERSTONE SHAREHOLDER? New cornerstone shareholder with 20 years zircon processing and global zirconium
Slide 23: The NEW Image
The NEW Image 23 EXPERIENCED MANAGEMENT? Project development and operations experienced senior management team; MINORITY SHAREHOLDER PROTECTIONS? Contracted protections for two years; No interference with 3 incumbent Directors or replacements; No vote on merger related issues; Mandator
Slide 24: Plant and Equipment (select examples)
Plant and Equipment (select examples) 24 Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers Mine Slurry Unit HMC Stackers Plus much, much more.
Slide 25: Current Focus: Bankable Feasibility Study
Current Focus 25 Bankable Feasibility Study Re-assess resources model in accordance with JORC 2012; Incorporate additional resources delineated since 2013; Conduct geotechnical assessment to optimise pit wall slopes; Optimise mine design based on new resource model, geotechnical analysis and
Slide 26: Boonanarring Project Development Schedule
Boonanarring Project Development Schedule 26 Targeting first production in early 2018* 2016 2017 2018 May May May Nov Nov Mar Mar Aug Dec Aug Dec Apr Apr Apr Oct Oct Sep Feb Sep Feb Jun Jun Jun Jan Jan Jul Jul Jul Finalisation of Transaction Complete BFS Project Approvals HMC Toll Processing Agreeme
Slide 27: Corporate Snapshot
Corporate NEW ImageSnapshot Corporate Snapshot 27 Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.08* Bob Besley – Independent Chairman 12 Month Price Range: A$0.05 – 0.11 Patrick Mutz – Managing Director Shares on Issue: 379.5m Chaodian Chen - Non-Ex
Slide 28: Contact
Contact For further information 28 Patrick Mutz Managing Director Image Resources NL info@imageres.com.au Office: +61 8 9485 2410 Ground Floor, 23 Ventnor Avenue West Perth, WA 6005 PO Box 469, West Perth, WA 6872 www.imageres.com.au
Slide 29: Additional Information
Contact 29 Additional Information
Slide 30: Murray Zircon Pty Ltd
Murray Zircon Pty Ltd 30 Owner/operator Mindarie Minerals Sands Project, Murray Basin, South Australia; Successfully redeveloped, commissioned and operated Mindarie 2011-2015 followed by rapid and successful mine rehabilitation; Developed strong relations with landowners, community, regulators
Slide 31: Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd
Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd 31 One of China’s largest zircon processing companies with one of the most diverse range of zirconium products in the world; Global sales of zirconium products ranging from bulk commodities to nuclear grade zirconium sponge for nuclear reactors;
Slide 32: Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd
Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd 32 Orient Zirconic headquarters, Shantou, Guangdong, China
Slide 33: Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd
Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd 33 Orient Zirconic factory locations in China
Slide 34: Directors
APPENDICES Directors 34 Mr Robert Besley – Independent Chairman Robert Besley is a Director of KBL Mining Limited (ASX:KBL) and Chairman of Silver City Minerals Ltd (ASX:SCI) and has more than 40 years’ experience in the mining industry. Mr Besley has served in a number of Government advisory roles
Slide 35: Directors
APPENDICES Directors 35 Mr Chaodian Chen – Non-Executive Director Mr Chen founded Orient Zirconic in 1995 and has built the company into a leading company in the zirconium industry. He served as President and Chairman of the company until mid-2013 when China National Nuclear Corporation (CNNC) becam
Slide 36: Directors
APPENDICES Directors 36 Mr Fei (Eddy) Wu – Non-Executive Director Mr Wu has solid operational experience in the Australian resource and mining industry. He specialises in combining the strengths of Australian upstream mining with Chinese downstream processing and end use to optimise the strategy for
Slide 37: Key Management
APPENDICES Key Management 37 Collis Thorp (FAICD) – Chief Development Officer Collis joined Image in May 2014. He has enjoyed a career of over 45 years in the resources industry, encompassing a broad range of commodities. His 18 years of mineral sands experience includes seven years as Managing Dire
Slide 38: Reserves
Reserves 38 PROBABLE RESERVES (2.5% cut off) ORE HM GRADE CONTAINED HM ZIRCON IN HM Mt HM % kt % Zircon Boonanarring 14.4 8.3% 1,200 24.5% Atlas 9.7 8.1% 800 11.0% TOTAL JORC RESERVES 24.1 8.2% 2,000 19.1% Refer to the 31 May ASX release http:// 1 Refer to the 31 May ASX release http://www.asx.com.a
Slide 39: Resources (1/3)
Resources (1/3) 39 BOONANARRING/RED GULLY PROJECT (2.5% CUT OFF) Ore HM Slimes HM VHM Ilmenite Leucoxene Rutile Zircon (t) (%) (%) (t) (%) (%) (%) (%) (%) Boonanarring Deposit Measured 3,000,000 7.8 10.1 230,000 70 49 1 3 17 Indicated 14,300,000 9.0 17.2 1,270,000 80 49 6 3 22 Inferred 4,200,000 6.5
Slide 40: Resources (2/3)
Resources (2/3) 40 ATLAS/COOLJARLOO PROJECT (2.5% CUT OFF) Ore HM Slimes HM VHM Ilmenite Leucoxene Rutile Zircon (t) (%) (%) (t) (%) (%) (%) (%) (%) Atlas Measured 9,700,000 8.5 15.3 820,000 76 52 5 8 11 Atlas Indicated 1,080,000 3.2 19.2 34,000 74 53 8 7 6 TOTAL 10,780,000 7.9 15.7 854,000 76 52 5
Slide 41: Resources (3/3)
Resources (3/3) 41 COOLJARLOO NORTH PROJECT (2.5% CUT OFF) Ore HM Slimes HM VHM Ilmenite Leucoxene Rutile Zircon (t) (%) (%) (t) (%) (%) (%) (%) (%) Helene Indicated 11,500,000 4.6 18.6 520,000 84 70 1 3 11 Hyperion Indicated 3,700,000 7.8 19.3 290,000 71 56 0 6 9 TOTAL 15,200,000 5.4 18.8 810,000 8
Slide 42: Competent Person's Statement
APPENDICES Competent Person’s Statement 42 COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS The information in this presentation that relates to exploration results is based on information compiled by George Sakalidis who is a member of the Australasian Institute of Mining and Metallurgy. At the t
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