Image Resources Nl · ASX:IMA
Image Resources Nl — Corporate Update (June 2012)
34 slides from Image Resources Nl's corporate update, June 2012
Slide 1: North Perth Basin Project Status
IMAGE RESOURCES NL ASX : IMA NORTH PERTH BASIN PROJECT STATUS JUNE 2012
Slide 2: Competent Person and Forward Looking Statement
COMPETENT PERSON AND FORWARD LOOKING STATEMENT COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS The information in this presentation is based on information compiled by Paul Leandri BAppSc who is a member of the Australasian Institute of Mining and Metallurgy. Paul Leandri is an employee of Image
Slide 3: Corporate Summary
CORPORATE SUMMARY Cash $2.4M (at 19/06/2012) Capital Structure Board and Management Market Cap $30M Shares 100M Peter Thomas Chairman Managing Director/ Peter Davies Options 10.7M Project Manager George Sakalidis Executive Director Paul Leandri Exploration Manager Major Shareholders Top 20 51% 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS High quality resource • Heavy mineral sands deposits with good grades and processing characteristics and low U+Th levels Well located • Close to transport, infrastructure and potential workforce • Adjacent to successful Tiwest and Iluka operations Ready to go from explore
Slide 5: Quality Resource
QUALITY RESOURCE ANTICIPATED MINERAL SANDS PROJECTS TO GO INTO PRODUCTION OVER NEXT 2 YEARS 12% 10% Percentage Heavy Minerals 8% 6% 4% 2% 0% Source: Deutsche Bank Amongst the highest grades of any near term mineral sands projects 5
Slide 6: Peer Valuations
PEER VALUATIONS EV / HM Resource Company Tonne(A$/t) Stage Feasibility Study completed in January 2010, Gunson Resources 3.3 currently in negotiations with JV partner for funding Announced maiden ore reserve in Feb as part of Diatreme Resources 7.6 Pre-feasibility Study Feasibility study commenced,
Slide 7: NPB Resources and Exploration Targets
NPB RESOURCES AND EXPLORATION TARGETS Current Resources and Exploration Helene Hyperion Atlas + Boonanarring + Red Gingin Total Atlas Gingin North Gully South South Scoping Study Mt 11.5 3.7 10.7 5.5 6.0 8.1 45.5 Resource Resources & Expl Mt 5.6 3.7 12.0 28.7 6.4 6.9 63.3 Targets HM % % 5.3 7.3 8.1
Slide 8: Tenements and Infrastructure
TENEMENTS AND INFRASTRUCTURE 8
Slide 9: NPB – Boonanarring
NPB – BOONANARRING • Not a major project driver in the Scoping Study due to limited resources at that time. • Scoping Study resource over 1.5km strike length of 3.1Mt @ 7.2%HM containing 221Kt HM, all Measured • Potential mineralisation over 12.5km potential strike length >25Mt • Zircon contents up
Slide 10: NPB - Atlas
NPB - ATLAS • Total resource of 10.7Mt @ 7.8%HM containing 0.84Mt HM, comprising 9.7Mt @ 8.5%HM (Measured) 1.1Mt @ 3.2%HM (Indicated) • High value mineral assemblage; 10.6% zircon, 7.8% rutile, 5.3% leucoxene, 53.4% ilmenite Shallow, high grade, “jewel in the crown” 10
Slide 11: Path to Production – Scoping Study Update
PATH TO PRODUCTION – SCOPING STUDY UPDATE • Assumptions: 350tph wet plant feeding HMC at 35tph to a Dry Mill • 3.3Mtpa multi-pit operation over initial 12 year mine life • Staged development with initial production of HMC at Boonanarring for sale or toll treatment • Subsequent Dry Mill construction
Slide 12: Path to Production – Work Completed
PATH TO PRODUCTION – WORK COMPLETED • Feasibility study team, highly experienced in all aspects of minerals sands operations in Western Australia, established. • Land access and environmental work in progress. • Composite testwork and initial product quality/price assessment completed • Preliminary
Slide 13: Path to Production – Next Steps
PATH TO PRODUCTION – NEXT STEPS • Complete drilling and resource estimation at Atlas South and at Boonanarring now that access has been granted to the highly prospective central section • Carry out bulk sampling and process testwork • Produce product samples for customer testing • Continue discussio
Slide 14: Feasibility Time Chart - Fast Track
FEASIBILITY TIME CHART - FAST TRACK 14
Slide 15: Feasibility Time Chart
ann . aus image resources FEASI BILITY TIME CHART | aos North Perth Basin Project Feasibility Study rH Image resources Longer Term Scenario 1 2012 § 2013 EF 2014 EF 2015 FE 2016 HF 2017 HF 2018 # 2019 # 2020 § 2021 | 2022 Bonnanarring Wet Plant Design/ Construction —ITT HMC Production EE Dry Plants
Slide 16: Issues – Non Technical
ISSUES – NON TECHNICAL • Landholder and community consultation and communications is in progress • Discussion with power and gas providers has commenced • Environmental approvals and ML/operating licence applications processes are being closely managed • Land purchase agreement has been concluded co
Slide 17: Issues – Technical
ISSUES – TECHNICAL Current Focus: • Resource upgrades at Boonanarring and Atlas South • Evaluate the opportunity and benefit of mining from more than one project simultaneously • Optimum mining sequences and land access • Obtain product samples for testing by customers • Wet plant process testwork a
Slide 18: Highly Experienced Project Team
HIGHLY EXPERIENCED PROJECT TEAM Minerals Sands projects have characteristics and challenges which are different to most other resource projects. Image Resources recognises that the experience and judgement of the project team will be a critical factor in the success, not only of the Feasibility Stud
Slide 19: Key Project Team Members
KEY PROJECT TEAM MEMBERS Managing Director/Project Manager: Peter Davies Exploration Manager: Paul Leandri Resource Modelling and Estimation: Lynn Widenbar (Widenbar and Associates) Mining Engineering: Stephen Miller (Red Rock Engineering) and Per Scrimshaw (Creative Mined) Process Flowsheet Design:
Slide 20: Strength in Depth
STRENGTH IN DEPTH In addition to the key team members and main consultants, the team also includes a level of independent external review of all the main components of the study. Other consultants are engaged in other work related to community relations, hydrology, logistics, infrastructure, process
Slide 21: The Team
THE TEAM Peter Davies – Image Managing Director/Project Manager Over 35 years experience in the global mining and chemical industries, including 10 years as General Manager of the Tiwest minerals separation and SR plants at Chandala and as Director of European Operations for Kerr McGee/Tronox. Paul
Slide 22: The Team
THE TEAM Eugene Dardengo - Processing Manager Eugene is an accomplished Metallurgist and Operations Manager with over 27 years’ experience in the Australian mining and mineral industry. Eugene has held a number of other diverse roles and was held accountable for Logistics Services, Technical Support
Slide 23: The Team
THE TEAM Peter McSweeney - MSP Engineering Peter has over 25 years experience in delivering industrial minerals projects throughout Australia and overseas. He has been the Managing Director of MSP Engineering for the past 16 years and during this period the company has delivered over $AUD 500M in ca
Slide 24: NPB – Red Gully
NPB – RED GULLY • Total resource of 6.0Mt @ 7.7%HM containing 459Kt HM, comprising 3.4Mt @ 7.8%HM (Indicated); 2.6Mt @ 7.5% HM (Inferred) • 8.5km strike length • Resource upgrade in progress adjacent to Brand Highway 24
Slide 25: NPB – Cooljarloo North (Hyperion and Helene Deposits)
NPB – COOLJARLOO NORTH (HYPERION AND HELENE DEPOSITS) • Total resource of 15.2Mt @ 5.3%HM containing 813Kt HM, comprising Helene 11.5Mt @ 4.6%HM (Indicated); Hyperion 3.7Mt @ 7.8%HM (Indicated); • 4.5km strike length - Helene • 4.3km strike length - Hyperion • Measured Resource upgrade in progress w
Slide 26: NPB - Gingin South
NPB - GINGIN SOUTH • Total resource of 8.1Mt @ 6.1%HM containing 492Kt HM, comprising 0.87Mt @ 4.4%HM (Measured); 3.24Mt @ 6.5%HM (Indicated); 0.4Mt @ 6.5% HM (Inferred) • 5.5km strike length • Resource upgrade in progress further 5km of targets south of Gingin South 26
Slide 27: NPB – Gingin North
NPB – GINGIN NORTH • Total resource of 2.4 Mt @ 5.5%HM containing 132Kt HM, comprising 1.3Mt @ 5.7%HM (Indicated); 1.1Mt @ 5.2% HM (Inferred) • 1.4km strike length • Open to north and south Significant Upside 27
Slide 28: Location
LOCATION Advantages of the North Perth Basin: • Shallow, high grade, quality resources • Mix of vacant crown land and farm land • Multi-user ports nearby • Close to Asian markets • Available energy sources • Abundant groundwater • Proximity to Mineral Separation and SR plants North Perth Basin is a
Slide 29: Location
LOCATION Deposits located adjacent to Tiwest mine and processing plant 29
Slide 30: Appendix - Commodity Price
APPENDIX - COMMODITY PRICE 3000 Zircon 2500 Rutile US$ / Tonne 2000 1500 Synthetic Rutile 1000 500 Ilmenite 0 2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E Source: Deutsche Bank Commodity prices are expected to remain firm 30
Slide 31: NPB Feasibility Study Resource Inventory
APPENDIX NPB FEASIBILITY STUDY RESOURCE INVENTORY Measured : 2.5% HM cut-off Deposit Tonnes HM Slimes Total VHM Mt % % ‘000t Atlas 9.7 7.8 15.7 622 Gingin South 1.5 4.4 7.2 53 Sub Total 11.2 7.3 14.6 675 Indicated : 2.5% HM cut-off Deposit Tonnes % HM & Slimes Total VHM Mt % % ‘000t Atlas 1.1 3.2 19
Slide 32: NPB Global Resource Inventory
APPENDIX NPB GLOBAL RESOURCE INVENTORY Dry Mining Resource Summary (Measured, Indicated and Inferred JORC categories) Cooljarloo Project (2.5% HM Cut-off) Project Area TONNES HM Slime Ilmenite Leucoxene Rutile Zircon VHM Mt % % ’000t ’000t ’000t ’000t ’000t Atlas 10.8 7.9 15.7 449 44 65 89 648 Coolj
Slide 33: NPB Product Tonnes - 2011
APPENDIX 3 NPB PRODUCT TONNES - 2011 Dry Mining Resources Dredge Mining Resources Cooljarloo Gingin Total Cooljarloo Bidaminna Total Total Total HM Mt 1.8 1.3 3.1 3.4 1.4 4.8 7.9 Ilmenite Mt 1.0 0.80 1.8 2.4 1.1 3.5 5.3 Zircon t 175,000 139,000 314,000 336,000 73,000 409,000 723,000 Rutile t 104,000
Slide 34: Resource Summary
RESOURCE SUMMARY NORTH PERTH BASIN (NPB) – formed basis of Scoping Study • Resource inventory total 7.9Mt HM in 11 JORC resources. • Dry Mining resource inventory 3.1Mt HM @ 6.5% HM - focus on high HM grade and enhanced zircon content. • Dry Mining exploration target 5-6Mt HM @ 5-7% HM. • Robust Sco