North Perth Basin High Grade Resources

Boonanarring (Image 100%)

In early 2012 the Image project team identified the Boonanarring deposit as having the best prospects for a rapid low risk path to production. Drilling of Blocks B and C in the 2012 – 2013 financial year had shown that the at least 5.5 km of the potential 7.7km extension north of the Boonanarring Mining Lease (M70/1194) contained a high grade HM deposit with excellent Zircon content. Exploration work for the year was concentrated on proving up the resources north and south of the original Boonanarring Mining Lease (M70/1194) to JORC Indicated status (Figure 5). Image defined a 2.0km strike extension to the mineralisation in Block A and a further 0.8km to the south of Block D, bringing the total strike extent of the Boonanarring deposit to 10.5km.  In March 2013 Image was granted a new Mining Lease M70/1311 over the mineralisation to the north of M70/1194, covering the entire high grade resources in Blocks A, B and C. Only the remaining 0.8km of strike south of M70/1194 remains within the Regans Ford South exploration licence E70/3041.

During the year a total of 483 holes for 24 069m were drilled on the northern and southern sections of the Boonanarring deposit (see Figure 9), bringing the total drilling tally over the Boonanarring deposit to 797 holes for 37 066m.

Results of the drilling were very positive with a continuous high grade core identified over the full strike length of Blocks A, B, C and D, as shown in Figures 10 to 13.

Mineral assemblage studies confirmed the high value of the Boonanarring mineral assemblages with Zircon grades varying between 7% and 60% of HM in the mineralised zones, resulting in an average of 21% Zircon for the total JORC Resource (see Table 7).

The total resource estimate for the Boonanarring deposit was completed in May 2013 and the results released on 31 May 2013. The total JORC resource now stands at 21.5 million tonnes at 8.3% HM, containing 1.7 million tonnes of HM at a 2.5% HM cut-off. This resource has an overall Zircon content of 21% HM and Ilmenite content of 49%, giving a contained 370,000 tonnes of Zircon and 870,000 tonnes of Ilmenite. The resource is has principally been defined to Indicated status, with approximately 14% classified as Measured and 20% as Inferred status. Table  5 details the total resources by individual category and Table 6 details the resources by Block and Table 7 the mineralogy breakdown.

Table 5: Overall Boonanarring HM Resource 31 May 2013
Classification HM Cutoff
(%)
Volume
(M cubic metre)
Tonnage
(Mt)*
HM
(%)
VHM
(%)
Slimes
(%)
HM
(kt)
Measured 2.5 1.6 3.0 7.8 5.5 10.1 230
Indictaed 2.5 7.0 14.3 9.0 7.2 17.2 1,270
Inferred 2.5 2.1 4.2 6.5 5.4 17.4 270
Total 2.5 10.7 21.5 8.3 6.6 16.2 1,770

*Note Values rounded to reflect accuracy of estimates.

Table 6: Boonanarring HM Resource by Block 31 May 2013
Resources
@ 2.5 % HM cut-off
HM Cutoff
(%)
Volume
(M cubic metre)
Tonnage
(Mt)*
HM
(%)
VHM
(%)
Slimes
(%)
HM
(kt)
Block D Measured 2.5 1.6 3.0 7.8 5.5 10.1 230
Sub-total Measured 2.5 1.6 3.0 7.8 5.5 10.1 230
Block A Indicated 2.5 0.6 1.4 18.2 15.4 21.5 250
Block B 2.5 3.6 7.2 7.2 5.7 15.0 510
Block C 2.5 2.5 5.1 9.4 7.5 19.3 480
Block D 2.5 0.1 0.2 5.9 3.5 13.5 20
Block E 2.5 0.2 0.4 4.6 2.9 9.5 10
Sub-total Indicated 2.5 7.0 14.3 9.0 7.2 17.2 1,270
Total Measured and Indicated 2.5 8.6 17.3 8.8 6.9 15.8 1,500
Block A Inferred 2.5 0.4 0.8 10.6 8.8 17.5 80
Block C Inferred 2.5 1.7 3.4 5.6 4.6 17.4 190
Sub-total Inferred 2.5 2.1 4.2 6.5 5.4 17.4 270
Total Boonanarring Resource 2.5 10.7 21.5 8.3 6.6 16.2 1,770

Table 7: Boonanarring HM Resource by Block 31 May 2013, % Mineral Content
Resources
@ 2.5 % HM cut-off
HM
Contained (kt)1
Ilmenite
(%)
Leucoxene
(%)
Rutile
(%)
Zircon
(%)
VHM Total
(%)
Block D Measured 230,000 49 1 3 17 70
Sub-total Measured 230,000 49 1 3 17 70
Block A Indicated 250,000 55 2 2 26 85
Block B 510,000 49 10 3 17 79
Block C 480,000 45 5 4 26 80
Block D 20,000 45 2 3 10 60
Block E 10,000 46 3 3 10 62
Sub-total Indicated 1,270,000 49 6 3 22 80
Total Measured and Indicated 1,500,000 49 6 3 21 79
Block A Inferred 80,000 51 5 2 25 83
Block C Inferred 190,000 51 9 9 15 83
Sub-total Inferred 270,000 51 8 7 18 83
Total Boonanarring Resource 1,770,000 49 6 4 21 79

Notes:  Total tonnage values rounded to reflect uncertainty of estimates.

These tables highlight the very high grade nature of the mineralisation intersected in Block A at the northern end of the resource.

20131111 HM Drilling Overview

Figure 9: Drilling and resources

Figure 10: Section on Line 35 000N (refer Figure 9 for location)

Figure 11: Section on Line 33 050N (refer Figure 9 for location)

Figure 12: Section on Line 31 200N (refer Figure 9 for location)

Figure 13: Section on Line 27 600N (refer Figure 9 for location)

 

Atlas (Image 100%)

The Atlas Resource is located approximately 170km north of Perth and 18km east of Cervantes. It is located to the north and west of the Tronox Cooljarloo mine. Access is gained on the unsealed Wongonderrah Road which extends from the Brand Highway to the southern edge of the main Atlas resource located 21 km to the west.

Image began exploring the deposit in 2006 and by February 2010 had infill drilled most of the deposit to 100m x 20m drill spacing, as shown on Figure 14. The deposit consists of a series of overlapping strands formed on a stable shoreline during a period of sea level retreat from the Late Pleistocene high stand marked by the Gingin Scarp to the east. The strands are formed in fine to medium, well sorted sands and clay sands, with an average thickness of 4m and 3m of barren cover. However, depth of cover varies from 0m up to 15m deep. Figures 15 to 17 show typical cross-sections from the southern half of the deposit.

A total of 79 mineralogy composites were analysed to determine the mineral content of the deposit. The Atlas strandlines increase in Zircon grade to the south with the southern 2.5km containing over 10% Zircon in HM correlating with higher HM grades in this area, as shown on Figure 18.

The JORC Resource was estimated by Lynn Widenbar of Widenbar & Associates in April 2011 as containing a total Measured and Indicated Resource of 10.8Mt at 7.8%HM, using a 2.5% HM cut-off. The Resource is detailed in Table 8 with the mineral content shown in Table 9.

Table 8: Atlas HM Resource dated 18th April 2011
Category HM Cut-off Volume
(M BCM)
Tonnes
(Mt)
HM
(%)
VHM
(%)
Slimes
(%)
OS
(%)
HM
(kt)
Indicated 2.5 0.5 1.1 3.2 2.6 19.2 3.8 34
Measured 2.5 4.8 9.7 8.3 6.4 15.3 4.5 810
Total 2.5 5.3 10.8 7.8 6.1 15.7 4.4 844

Table 9: Altas HM Resource, % Mineral Content of HM
Category HM Cut-off HM Tonnes
Zircon
(%HM)
Ilmenite
(%HM)
Hi Ti
(%HM)
Leucoxene
(%HM)
Rutile
(%HM)
VHM
(%HM)
Indicated 2.5 34,000 6.8 63.8 3.6 1.3 6.7 82.1
Measured 2.5 810,000 10.9 55.5 3.0 1.1 7.1 77.5
Total 2.5 844,000 10.7 55.8 3.0 1.1 7.0 77.7
 

Metallurgical testwork has been carried out on a series of bulk samples from the deposit. Analysis of the testwork results and the Ilmenite product specifications indicates that the Ilmenite  product may be suitable as Synthetic Rutile (SR) feed, with TiO2 content of 59.3% and combined U+Th averaging 120ppm.

Table 10: Atlas Reserves July 2013
 Category Reserves
  kt HM kt %HM Zircon in HM% VHM in HM % % Slimes
 Probable  9,600  780  8.1%  11.0% 74.1%  15.5%
 Excluded Resources
 Inferred  50  5  8.9%  9.1% 80.7%  8%

Note: 17kt of ‘Unclassified’ material at 0.7%HM is treated as planned dilution at Atlas

South of the Wongonderrah Road Image has identified magnetic targets that appear to extend the Atlas deposit by at least 700m This is further discussed under Atlas South in the Exploration Projects section.

Figure 14: Atlas Drilling and Resources

Figure 15: Atlas Cross-Section on Line 6 617 800N (Refer to Figure 14 for location)

Figure 16: Atlas Cross-Section on Line 6 618 400N (Refer to Figure 14 for location)

Figure 17: Atlas Cross-Section on Line 6 619 700N (Refer to Figure 14 for location)

Figure 18: Comparison of Zircon Grades and HM Grades at Atlas

 

Boonanarring and Atlas Development Project

The company completed the environmental and hydrological studies to support applications for the required environmental approvals and water licences. The associated submissions have been made; starting the approvals processes which are expected to take until mid 2014 to be completed.

In August 2014 the Western Australian Minister for Environment granted environmental approval for the Company’s Boonanarring Mineral Sands Project.

Process testwork on samples of the mineralisation from both Boonanarring and Atlas, confirmed the amenability of the material to conventional wet and dry processing and produced samples of final product quality for analysis. Analysis and feedback from prospective customers has confirmed that the Ilmenite material is of high quality, coarse grained low in contaminants and suitable for a wide range of downstream applications
The proposed new minerals sands project, based initially on the Boonanarring deposit 90km north of Perth, has several major competitive advantages.

  • Low sovereign risk
  • Known mineral field and mineralogy
  • High grade resources in terms of Valuable Heavy Mineral (VHM) content
  • Unusually high in-situ Zircon grades and ore value per tonne
  • Low U+Th coarse grain Ilmenites
  • Established road and rail logistics
  • Several multi user ports in the region
  • Existing power and gas infrastructure crossing the main project area
  • Proximity to existing mineral separation and SR plants (operated by other companies)
  • Availability of a pool of experienced mineral sands technical and operational staff in the region around the project.


The last point above is critical to successful start-ups of new mineral sands operations. This advantage has already been clearly demonstrated by the contributions made by the project development team during the BCFS phase. We are confident that the same team will carry the project successfully through development and into production.

Work has continued during the year to establish good contacts and open communication with the Traditional Owners at the Atlas deposit (over section of which Native Title exists), the local communities and landowners in the Gingin and Dandaragan Shires, local and state government agencies and a number of non-government organisations.

With the environmental approval process completed the company is now in the early stages of confidential discussions with a number of third parties with the intention to be able to bring the North Perth Basin Project into production as quickly and cost effectively as practicable. Proposals are currently incomplete and negotiations are continuing.

Cooljarloo North, Hyperion & Helene (Image 100%)
The Cooljarloo North project comprises E70/2892, E70/3328 and P70/1540, about 18 km east of the town of Cervantes and about 180 km north-northwest of Perth. The project is on the Swan Coastal Plain west of and abutting the Gingin Scarp.

Ground magnetic surveys and follow up drilling at Cooljarloo North have confirmed the presence of numerous, north-northwesterly trending magnetic anomalies representing mineralized paleostrandlines. Of these, two highly mineralized strandline systems (Hyperion and Helene) each extend continuously for more than 4.5 km (Figure 19).

Figure 19: The Cooljarloo North and Cooljarloo projects, looking south


Helene, in the north of the exploration area, comprises three subparallel strandlines (Figure 20) and has produced consistently high-grade drill intersections mostly in excess of 5% HM with a maximum around 20% HM.

Current JORC Resources for Helene are 11.5 Mt at 4.5% HM for 520 kt HM containing 55,000t Zircon (0.5%), 19,000t Rutile + Leucoxene, and 390,000t Ilmenite.

Current JORC Resources for Hyperion are estimated at 3.7Mt at 7.8% HM for 290,000t HM containing 21,000t Zircon, 18,000t Rutile + Leucoxene, and 160,000t Ilmenite.
CN0004 - Helene  Hyperion Strandlines Webstie

Figure 20: The Hyperion and Helene strandlines at Cooljarloo North

 

 

Gingin South (Image 100%)

The Gingin South resource is located approximately 60km north of Perth and between 5km and 10.5km south of the town of Gingin in Western Australia. It is held under two tenements, Mining Lease M70/448, which was acquired from Iluka Resources and Exploration Licence E70/3032, as shown on Figure 21. Both of these tenements are owned 100% by Image.

The deposit extends for 5.5km, with the southern 4km having been identified from ground magnetic surveys. All except for 1.4km of the deposit has been drilled to a density of 100m line spacing and on 20m hole centres. The remainder is drilled at approximately 200m x 20m.

The Gingin South deposit and its extension consist of two strands deposited in a shoreline environment along the Gingin Scarp when it was formed by transgression of the ocean in the Pleistocene.  The western strandline occurs at an elevation of 64m RL and rises sharply to the east to between 72m and 74m RL.  The easternmost shoreline occurs at 74m RL with a gentle westerly dip.  In some areas the 74m RL strand appears to merge with the 64m RL strand.  Widths vary between 40m and 250m and average 120m. The deposits lie on a base of grey clays, silts and sands interpreted to be Cretaceous Coolyena Group.  Figures 22 to 26 show typical drill cross-sections along the deposit.

The total JORC Resource has been estimated by Widenbar & Associates using a combined database comprising Iluka drilling for M70/1194 and Image drilling for the remainder of the deposit. The total JORC Resource is summarised in Table 11 and the mineral assemblage breakdown in Table 12.

Table 11: Gingin South HM Resource 18th July 2011
Classification HM Cutoff
(%)
Volume
(cubic metre)
Tonnes

HM
(%)
Slimes
(%)
HM
(Tonnes)
Measured 2.5 870,000 1,530,000 4.4 7.2 67,000
Indictaed 2.5 3,240,000 5,820,000 6.5 7.1 380,000
Inferred 2.5 400,000 730,000 6.5 8.4 48,000
Total 2.5 4,513,000 8,079,000 6.1 7.3 495,000
 
Table 12: Gingin South Resources Mineral Content as % of HM 18th July 2011
Resource
Category
HM
(Tonnes)
VHM
(%)
Ilmenite
(%)
Leucoxene
(%)
Rutile
(%)
Zircon
(%)
Measured 67,000 79.0 51.0 15.0 6.0 8.0
Indictaed 380,000 91.0 68.0 10.0 5.0 8.0
Inferred 48,000 92.0 67.0 8.0 6.0 11.0
Total 495,000 89.0 65.0 10.0 5.0 8.0
 

 

Figure 21: Gingin South Drilling and Resource

Figure 22: Gingin South Cross-Section on Line 6 525 750N (Refer to Figure 21 for location)

Figure 23: Gingin South Cross-Section on Line 6 524 260N (Refer to Figure 21 for location)

Figure 24: Gingin South Cross-Section on Line 6 523 200N (Refer to Figure 21 for location)

Figure 25: Gingin South Cross-Section on Line 6 522 000N (Refer to Figure 21 for location)

Gingin North (Image 100%)

The Gingin North resource is located approximately 75km north of Perth and between 7km and 8.5km north-west of the town of Gingin in Western Australia. It is held under Mining Lease M70/1193, which Image acquired from Iluka Resources in March 2011. Image’s 100% owned Regans Ford South Exploration Licence E70/3041 surrounds the Mining Lease (see Figure 26).  The project is located some 12km south of the proposed Boonanarring plant site.

The resource has been drilled by Iluka Resources at between 200m and 400m line spacing with holes at 40m centres, closing down to 20m over the strands. The geology is similar to the other deposits in the area with a basement of Mesozoic Leederville formation overlain by Yoganup Formation marine sands that contain the mineralisation. These are in turn overlain by 5m to 10m of poorly sorted sandy clay of the Guildford formation. The mineralisation is contained in two main strands the eastern strand of which is defined for 1.4km and between 60m and 100m wide. It is open to both the north and south. The western strand is between 100m and 180m wide and 800m long. It is open to the south.

The total JORC Resource has been estimated by Widenbar & Associates using a combined database comprising Iluka drilling applying a 2.5%HM cut-off to create a block model. The resources are summarised in Table 13 and the mineral content in Table 14.

Table 13: Gingin North HM Resource @ 2.5%HM cut-off
Classification BCM Tonnes HM
(%)
Slimes
(%)
HM
(Tonnes)
Indictaed 680,000 1,320,000 5.7 15.7 80,000
Inferred 580,000 1,090,000 5.2 14.0 60,000
Total 1,260,000 2,410,000 5.5 15.0 140,000

Table 14: Gingin North Resource Mineral Content as % of HM
Resource
Category
HM
(Tonnes)
VHM
(%)
Ilmenite
(%)
Leucoxene
(%)
Rutile
(%)
Zircon
(%)
Indictaed 80,000 75.0 57.0 9.0 3.0 5.0
Inferred 60,000 78.0 57.0 11.0 4.0 6.0
Total 140,000 77.0 57.0 10.0 3.0 6.0

 

 GGN001 Drilling and Resources

Figure 26: Gingin North Drilling and Resources

Red Gully (Image 100%)

The Red Gully project is located approximately 100km north of Perth and between 33km and 42km north of the town of Gingin in Western Australia (Figure 27). In 2011 Image acquired a 100% interest in the Red Gully mining lease (M70/1192) from Iluka Resources (ASX Release 9 March 2011). The identified resource extends over 8km in length making it one of Image’s longest heavy mineral (HM) deposits.

In the 2011 Scoping Study (ASX Release 25 August 2011) Red Gully was identified as a priority deposit and consequently Image initiated a drill programme to increase the drill density on the accessible northern half of the deposit (Indicated Resource) to 200m x 20m and to compare the Image drilling results with the Iluka results. This drilling program was completed in December 2011 with 179 holes totalling 6,431m. In addition, the southern half which has been sparsely drilled was surveyed by Image’s ground magnetic team. This survey has confirmed the continuity of the mineralisation and highlighted the potential for high grade zones to be defined in this area. With the shift in focus to the Boonanarring deposit in mid-2012, no further work has been undertaken on Red Gully. However, with the completion of the BCFS Image has now begun to re-assess the deposit and is reviewing the drilling results with particular focus on the Central and South area where the ground magnetic response is significantly enhanced.

The Red Gully deposit consists of two strands deposited in a shoreline environment along the Gingin Scarp when it was formed by transgression of the ocean in the Pleistocene. The deposit occurs in a sequence of sands and clayey sands of the Yoganup Formation and sits on a basement of Leederville Formation micaceous clayey sands and clays. A typical cross-section is shown in Figure 28.

Using Iluka’s drilling results Image has estimated a combined Indicated and Inferred Resource of 6.0Mt @ 7.7%HM containing 460,000t of HM, as detailed in Table 15 and 16.

Table 15: Red Gully HM Resource at 2.5%HM cut-off 18 April 2012
Resource
Category
Tonnes BCM HM
(%)
Slimes
(%)
HM
(Tonnes)
Indicated 1,930,000 3,400,000 7.8 11.5 270,000
inferred 1,455,000 2,600,000 7.5 10.7 190,000
Total 3,385,000 6,000,000 7.7 11.2 460,000

Table 16: Red Gully Resource Mineral Content as % of HM 18 April 2012
Resource
Category
HM
(Tonnes)
VHM
(%)
Ilmenite
(%)
Leucoxene
(%)
Rutile
(%)
Zircon
(%)
Indiciated 270.000 90.0 66.0 8.0 3.0 12.0
Inferred 190,000 90.0 66.0 8.0 3.0 12.0
Total 460,000 90.0 66.0 8.0 3.0 12.0

 

20131111 Red Gully - IMA Drilling

Figure 27: Red Gully Drilling Results

Figure 28: Red Gully Drill Section, Line 31 (see Figure 23 for location)