Image Resources Nl · ASX:IMA
Image Resources Nl — 17th Annual Informa Mineral Sands Conference 2017
31 slides from Image Resources Nl's conference presentation, Mar 16, 2017
Slide 1: Boonanarring Mineral Sands Project: The next cab off the mineral sands rank?
1 Boonanarring Mineral Sands Project: For personal use only The next cab off the mineral sands rank? 17th Annual Informa Mineral Sands Conference 15-16 March 2017 Hyatt Regency Perth Perth WA 6005 Patrick Mutz Managing Director Image Resources NL ASX: IMA
Slide 2: Forward Looking Statement
Forward Looking Statement 2 For personal use only 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,
Slide 3: Company Description and Focus
Company Forward Description Looking and Focus Statement 3 For personal use only Image Resources NL ASX: IMA Advanced mineral sands exploration company with extensive tenement holdings hosting substantial high-grade mineral resources and ore reserves in the North Perth Basin in Western Australia. The
Slide 4: Project Location
ProjectStatement Forward Looking Location 4 For personal use only LOCATION ➢ North Perth Basin in Western Australia; ➢ 80 km north of Perth CBD; ➢ Proven mineral sands address; ▪ Including majors Iluka and Tronox; ➢ Infrastructure rich; ▪ paved roads, power, gas pipeline water, telecommunications
Slide 5: Mineral Resources and Ore Reserves
Mineral ForwardResources and Ore Reserves Looking Statement 5 For personal use only LOCATION QUALITY RESOURCES/RESERVES ➢ Boonanarring Mineral Resources (2017) JORC Code (2012); ▪ 43.7M tonnes at 5.6%THM; ▪ 18% zircon in THM; ▪ 72% ‘Valuable’ HM in THM ➢ Boonanarring Ore Reserves (2013) JORC Cod
Slide 6: Boonanarring Project Comparison
Boonanarring Project Comparison 6 For personal use only High HM and Zircon grades relative to peers HM grade Zircon grade VHM HM Grade (%) Zircon (%) 14.0% 25% VHM Grade Zircon % Image Resources (IMA) 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%
Slide 7: Mineral Resources and Ore Resources
Mineral Resources and Ore Resources 7 For personal use only High HM, VHM and very high zircon grade at Boonanarring Probable Reserves Ore HM Slimes VHM Zircon Rutile Leucoxene Ilmenite (Mt) (%) (%) (%) (%) (%) (%) (%) Boonanarring1 14.4 8.3 17.0 80 24 3 6 47 Atlas1 9.6 8.1 15.5 74 11 7 1 55 TOTAL 24
Slide 8: Upside Potential
Mineral ForwardResources and Ore Reserves UpsideStatement Looking Potential 8 For personal use only LOCATION QUALITY RESOURCES/RESERVES UPSIDE POTENTIAL ➢ 1000 km2 with significant potential for extensions of known resources and discovery of new deposits;
Slide 9: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 9 For personal use only Seeking to extend mine life beyond 10 years – 60km prospective target zone Boonanarring North ➢ Targeting potential 5.6km extension; drilling1.3km north of the deposit includes14m @ 18% HM & 8m @ 22% HM; 50 drill holes planned (subject to acces
Slide 10: Boonanarring Deposit Extensions
Boonanarring Deposit Extensions 10 For personal use only ASX Announcement 13 March 2017 New Drilling Results (Feb 2017) ➢ Confirm 5.6km northern extension of Boonanarring mineralisation; ➢ Outstanding high-grade intersections: ▪ 8m @ 23.8% HM in IX00245; ▪ 8m @ 21.1% M in IX00244; and ▪ 8m @ 16.3% H
Slide 11: Upside Potential
Upside Potential 11 For personal use only ASX Announcement 20 February 2017 Application Filed for New ELA70/4946 (83 sq. km) ➢ Area will include 100% of Reagans Ford North heavy mineral deposit; ➢ Estimated Mineral Resources of 9.9M tonnes at 9.7% HM (JORC 2004); ➢ Ground magnetic surveys indicate a
Slide 12: Upside Potential
UpsideStatement Forward Looking Potential 12 For personal use only LOCATION QUALITY RESOURCES/RESERVES UPSIDE POTENTIAL
Slide 13: Project Approvals
ProjectStatement Forward Looking Approvals 13 For personal use only LOCATION QUALITY RESOURCES/RESERVES UPSIDE POTENTIAL PROJECT APPROVALS ✓ Mining Lease & General Purpose Lease ✓ Part IV, Environmental Protection Act (WA) – PER ✓ EPBC Act (Commonwealth) ✓ Landowner agreements ✓ Groundwater
Slide 14: Company Highlights: Feasibility Study
Forward Company Highlights Looking Statement 14 For personal use only LOCATION QUALITY RESOURCES & UPSIDE POTENTIAL Project Capital Cost (A$million) PROJECT APPROVALS FEASIBILITY STUDY $500 Startup capex ➢ Original FS announced $400 16 July 2013 with $145m NPV and only $300 $64m capital; $20
Slide 15: Australia's next mineral sands miner?
15 For personal use only Australia’s next mineral sands miner?
Slide 16: Key Growth and Transition Milestone
Key Growth and Transition Milestone 16 For personal use only 8 June 2016 Equity Transaction completed with Murray Zircon Pty Ltd and Guangdong Orient Zirconic Ind Sci & Tech Co., Ltd Completion of transaction allows Image to tick the boxes on a number of critical project development issues and focus
Slide 17: Who is Murray Zircon Pty Ltd?
Who is Murray Zircon Pty Ltd? 17 For personal use only ➢ 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 lan
Slide 18: Who is Orient Zirconic?
Who is Orient Zirconic? 18 For personal use only ➢ 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; ▪ Pr
Slide 19: Orient Zirconic
For personal use only Orient Zirconic 19
Slide 20: Orient Zirconic factory locations in China
Guangdong Orient Zirconic Orient Zirconic Ind Sci & Tech Co., Ltd 20 20 For personal use only Orient Zirconic factory locations in China
Slide 21: Key Benefits of Transaction
Key Benefits of Transaction 21 For personal use only 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
Slide 22: Key Benefits of Transaction
Key Benefits of Transaction 22 For personal use only 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 zirco
Slide 23: Key Benefits of Transaction
Key Benefits of Transaction 23 age For personal use only 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 vot
Slide 24: Plant and Equipment (select examples)
Plant and Equipment (select examples) 24 For personal use only Wet Concentration Plant Mineral Separation Plant (Option) Slurry Booster Stations & pipelines Power poles, wires & transformers HMC Stackers Mine Slurry Unit Plus much, much more.
Slide 25: Development Schedule published July 2016
Development Schedule published July 2016 25 For personal use only Targeting first production in early 2018* 2016 2017 2018 May May May Nov Nov Mar Mar Aug Aug Dec Dec Sep Feb Sep Feb Apr Apr Apr Oct Oct Jun Jan Jun Jan Jun Jul Jul Jul Finalisation of Transaction Complete BFS Project Approvals HMC To
Slide 26: Development Schedule – updated February 2017
Development Schedule – updated February 2017 26 For personal use only Targeting first production in early 2018* * Conditional on feasibility results
Slide 27: Bidaminna Project
Bidaminna Project 27 For personal use only Bidaminna Park (E70/3298), Bidaminna North (E70/2844), Mimegarra (E70/4779) • Potential high volume dredge mining target; mineralisation 15-35 metres thick and located below water table; low slimes (3- 4%); strip ratio <1 and coarse grain size (105 microns)
Slide 28: Tronox Royalty
Tronox Royalty 28 For personal use only 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% –
Slide 29: Corporate Snapshot
Corporate ImageSnapshot Corporate Snapshot 29 For personal use only Diverse and experienced Board and Management Share Code: IMA Board of Directors Share Price: A$0.06* Bob Besley – Independent Chairman 12 Month Price Range: A$0.04 – 0.11 Patrick Mutz – Managing Director Shares on Issue: 537.6m Chao
Slide 30: Competent Person's Statement
Competent Person’s Statement Contact 30 For personal use only COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES Information in this report that relates to Exploration Results, Mineral Resources is based on information compiled by George Sakalidis BSc (Hons) who i
Slide 31: Contact
Contact For further information 31 For personal use only 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
Image Resources NL — 17th Annual Informa Mineral Sands Conference 2017 on 6ix