IMAGE RESOURCES NL ASX : IMA
PROGRESSING TOWARDS HEAVY
MINERALS SANDS PRODUCTION
Roadshow
October 2012
COMPETENT PERSON 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 Resources NL. He has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Leandri consents to the inclusion of this
information in the form and context in which it appears in this presentation.
COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES
The information in this presentation that relates to mineral resources is based on information compiled by Lynn
Widenbar BSc, MSc, DIC MAIG, MAusIMM employed by Widenbar & Associates who is a consultant to the Company.
Lynn Widenbar has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004
edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Lynn
Widenbar consents to the inclusion of this information in the form and context in which it appears in this presentation.
COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION
The information in this presentation that relates to project evaluation is based on information compiled by Peter Davies
BSc Eng (Hons) ARSM, C.Eng. MIMMM, FAusIMM FRSA, who is a Fellow of the Australasian Institute of Mining and
Metallurgy. Peter Davies is Managing Director/Project Manager of Image Resources NL. Peter Davies has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Davies consents to the inclusion of this
information in the form and context in which it appears in this report.
2
FORWARD LOOKING STATEMENT
FORWARD LOOKING STATEMENTS
•
Certain statements made during or 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 the
outlook of Image’s operations contain or comprise certain forward looking statements regarding
Image’s operations, economic performance and financial condition. Although Image believes that
the expectations reflected in such forward-looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct.
•
Accordingly, results could differ materially from those set out in the forward looking statements as
a result of, among other factors, changes in economic and market conditions, success of business
and operating initiatives, changes that could result from future acquisitions of new exploration
properties, the risks and hazards inherent in the mining business (including industrial accidents,
environmental hazards or geologically related conditions), changes in the regulatory environment
and other government actions, risks inherent in the ownership, exploration and operation of or
investment in mining properties, fluctuations in prices and exchange rates and business and
operations risks management, as well as generally those additional factors set forth in our
periodic filings with ASX. Image undertakes no obligation to update publicly or release any
revisions to these forward-looking statements to reflect events or circumstances after today’s date
or to reflect the occurrence of unanticipated events.
3
CORPORATE SUMMARY
Current Cash at Bank
$1M (at 08/10/2012)
Capital Structure
Market Cap
Board and Management
$28.8M
Shares
106.6M
Options
10.9M
(held by Directors. All
at above current share
price)
Peter Thomas
Chairman
Managing Director/
Peter Davies
Project Manager
George Sakalidis Technical Director
Paul Leandri
Exploration Manager
Major Shareholders
Top 20
51.1%
4
THE TEAM
Peter Davies – Image Managing Director/Project Manager
Peter Davies, appointed as Managing Director in May 2012, is a mining engineer with 39 years of global
experience in project evaluation and management of mining, chemicals and mineral sands operations.
From 1995 to 2000 he was Manager/General Manager of the Tiwest Chandala minerals sands and Synthetic
Rutile processing facilities north of Perth. In 2000 he was transferred by Kerr-McGee Chemicals (later
Tronox) to manage the TiO2 pigment plant at Antwerp and from 2001 to 2006 was Director of European
Operations, in charge of the pigment plants at Uerdingen (Germany), and Botlek (The Netherlands).
George Sakalidis– Image) Technical Director (MD until May 2012)
George Sakalidis is an exploration geophysicist with over 30 years’ industry experience and the last 12
years as a Director on a number of ASX listed companies. He has extensive experience in gold, diamond,
base metals and mineral sands exploration. Mr Sakalidis has been involved in a number of significant
mineral discoveries. He was also instrumental in the design of the magnetic surveys and exploration drilling
program that led to the discovery of the large mineral sands resources at Magnetic Minerals Limited's
Dongara Project. Magnetic Minerals were taken over by Ticor in early 2003.
The geophysical techniques used by Image and George Sakalidis’ proven ability to interpret the results in
order to find economic mineralisation which has been missed by other companies, gives Image a significant
competitive advantage in this field.
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THE TEAM
Paul Leandri – Image Exploration Manager
Over 25 years experience in mining and exploration geology, including 8 years working for RGC Mineral
Sands consisting of 5 years mine planning at Capel operations and 3 years exploration around Eneabba
and the Murray Basin. Past 12 years working on mine planning, development and exploration projects for
various mineral sands companies, including 6 years on the Coburn Mineral Sands project and 1.5 years in
Project Generation for Iluka Resources. Joined Image as Exploration Manager in August 2010.
Lynn Widenbar – Widenbar and Associates
Consultant resource geologist with over 40 years experience in the exploration, evaluation and mining of
mineral resources in Australia, Asia, Africa, North, Central and South America and Europe; this includes
more than 10 years involvement in resource estimation mineral sands, mainly in Western Australia, for
companies such as Image Resources, Magnetic Minerals and Diatreme Resources.
Stephen Miller – Red Rock Engineering
With 20 years of mining engineering experience in operations (including 3 years as Mid West Mining
Manager for Iluka) and 7 years in project development, Stephen has the right balance of skills and
experience to be able to work across technical boundaries in order to optimise the full span from resources
to final product.
Per Scrimshaw – Creative Mined
Consultant mining engineer with 14 years experience in technical support for mining operations within
Australia and abroad. Over 10 Years of this has been servicing Mineral Sands clients in the key areas of
optimisation, design, scheduling and economic evaluation. Supported operations have included North Capel
Extended, Stratham West, Gingin, Cataby, Eneabba South Mine, Dardanup / Burekup, Kwale.
6
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 Services and Safety, Health and Environment
Advice for Tiwest Northern Operations. Has worked as a Metallurgist, with Hamersley Iron (Rio), and
Allied Mineral Laboratories and the Readings Group of Companies, and has had exposure to the
planning, prioritising and implementation of various metallurgical test work programs for iron ore
projects and a wide range of industrial minerals.
Steve Benson – Allmineral
Over 33 years experience in Mineral Sands at Allied Eneabba (RGC) and Tiwest Chandala and
Cooljarloo operations. Steve has worked at all levels in Wet Plant and Dry Mill operations up to Plant
Manager and has provided technical support both as an in house specialist and as a specialist with
equipment suppliers. He has strong knowledge of and experience in physical separation techniques
and some unique skills in the assessment of heavy minerals mineralogy.
Maurice Ibbotson – Engineering Manager
Over 47 years experience in the global mining, steelmaking and mineral processing industries. This
includes 15 years in mineral sands processing, 5 years as Engineering Superintendent at Tiwest
(Chandala), 6 years as Project Manager at Iluka Resources (Capel, Narngulu) and 4 years as Major
Project Management Consultant for Kerr McGee/Tronox (Germany, Netherlands).
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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 capital projects including:
–
–
–
–
–
ISK Mineral Sands – Wet and dry mineral sands processing facility at Waroona and Picton WA
MBT (now Bemax) – MBT wet and dry mineral sands processing facility in the Murray Basin
Bemax – Relocation of the Jangardup wet plant floating concentrator to Murray Basin
Rocla – Design and construction of their 1.6mtpa high purity silica sands plant in South Australia
Sons of Gwalia / GAM – Numerous expansions of the Wodgina and Greenbushes tantalum
gravity/grind concentrators valued in excess of $200M.
Jackie Boyer – JASS (Aust) Pty Ltd
Jackie has over 27 years’ experience in statutory approvals management, environmental impact
assessment, environmental planning, environmental management and environmental policy matters. Her
experience has been gained working with a wide range of interests from State and local government,
construction, industry and academic institutions to landowners, community groups and the general public.
Felicity Donaldson - 360 Environmental
Ten years of experience in the resources sector undertaking baseline environmental studies, impact
assessments and State/ Federal approvals under environmental and mining legislation. Recent mining
projects have included iron ore, gold and uranium.
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MINERAL SANDS FOCUS
IN A WORLD CLASS LOCATION
Advantages of the North Perth Basin
Project:
• High grade resources
• Good quality products
• Majority of resources are on cleared
freehold farm land
• Multi-user ports nearby with established
road and rail access
• Existing power and gas infrastructure
nearby
• Proximity to existing Mineral Separation
and SR plants and pool of experienced
potential employees
North Perth Basin is a world class location for a new Mineral Sands operation
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EXTENSIVE TENEMENT HOLDINGS
North Perth Basin Project Resources
• Atlas and Atlas South (part MLA)
• Hyperion
• Helene
• Red Gully (existing ML)
• Boonanarring (existing ML - part)
• Gingin North (existing ML)
• Gingin South (existing ML - part)
Longer Term Projects
• Cooljarloo
• Bidaminna
These tenements have high potential for further exploration discoveries
10
NORTH PERTH BASIN RESOURCES
Current Resources and Targets
Atlas + Atlas
South
Boonanarring
Other NPB
Total
JORC
Resources
Mt
10.7
10.5
31.7
52.9
Total Target
M ining
I nventory
Mt
12
20
28
>60
BASE CASE
Mt
9.6
20
26.3
Average
HM %
%
8.1
9.5
8
8.5
Zircon % in
HM
%
11.0
17.5
11
13.2
Operating
Margin
$/t
13.8
14.9
8.5
11.8
For a breakdown of JORC Resource Categories, please refer to the full table
of Resources (Pgs 21-22).
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BOONANARRING
• JORC resource over 4.6km strike length
of 10.5Mt @ 7.0%HM containing
740kt HM, all Measured and Indicated
(Refer to table of resources on pages 21-22 for full details)
• East Strand on Block B contains 3.8Mt
@9.5% HM with 21.1% of HM as
Zircon (includes higher grade sections)
• Block C has been drilled to Indicated
spacing. Further JORC Resource
statement due in February 2013
• Target Mining Inventory over 12.5km
strike length 15Mt to 25Mt
• Existing Mining Lease over part of the
resource. Northern MLA in progress
• Land access negotiations and
environmental studies in progress
12
CLEARED FARMLAND
Boonanarring is cleared Freehold farmland
13
HIGH QUALITY PRODUCTS
Boonanarring Ilmenite quality is very attractive to
a wide range of customers:
• 55% TiO2 (range of world deposits is between 40% and
60% TiO2)
• Coarse Grained (D50 >200micron)
• U+Th ~ 70ppm
• Low CaO (important for slag plant feed)
• Low Niobium and Vanadium (both <0.15 ppm)
Ilmenite of this quality commands a premium in pricing
in the world market
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ATLAS
• JORC resource of 10.7Mt @
7.8%HM containing 0.84Mt
HM, all Measured and Indicated
• High value mineral assemblage;
53.4% Ilmenite, 5.3%
Leucoxene, 7.8% Rutile,
10.6% Zircon
• Low strip ratio 0.8:1
• Atlas South Extension drilled
• Mining Lease Application in
progress
Shallow, high grade, “jewel in the crown”
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PATH TO PRODUCTION
• First production scheduled for 2014
• Planned 3.3Mtpa single mine and Wet Plant
operation
• Initial production of HMC at Boonanarring planned
for toll treatment or sale
• Second mine and Wet Plant planned for Atlas in
2018
• Construction of Dry Mill to produce finished
products remains an option
16
PROJECT DEVELOPMENT STRATEGY
17
MILESTONES
• Next update on project financial analysis: target
Nov 2012
• Obtain product samples for testing by
customers: target Jan 2013
• Aiming for resource upgrades at Boonanarring
in Feb 2013
• Wet plant process testwork completion expected
Feb 2013
• Land access and environmental approvals: all
approvals scheduled to be in place by Dec 2013 18
UPSIDE POTENTIAL
NPB Project
• Potential for extension to known resources (Atlas, Rhea, Red Gully,
Boonanarring and Gingin South/Chandala)
• Potential for other major new finds south of Atlas (20Mt potential)
Other Projects
• Divest Eucla Basin assets
• Large lower grade targets at Bidaminna and Titan/Cooljarloo which
require further definition drilling
• Wider application of proven geophysical techniques
The NPB Project should provide a robust platform from
which Image can expand to become a major industry
19
player.
CLEAR VISION AND STRATEGY
Image has several competitive advantages:
• World class assets and location
• A strong management/project team, with extensive
mineral sands experience
• A clear planned path to production
• Proven exploration expertise at extremely low costs
• Low barrier to entry
Image has the Vision of becoming a major global
producer of high quality Ilmenite and Zircon
20
NPB DETAILED RESOURCE STATEMENT
High Grade Resources
Resource
Resource
Category
Atlas
Indicated
Atlas
Measured
BCM
TONNES
% HM
% SLIMES
HM TONNES VHM
(%)
Ilmenite
(%)
Leucoxene
(%)
Rutile
(%)
Zircon
(%)
520,000
1,080,000
3.2
19.2
34,000
74
53
8
7
6
4,810,000
9,700,000
8.5
15.3
822,000
76
52
5
8
11
Atlas Total
5,330,000
10,780,000
7.9
15.7
856,000
76
52
5
8
10
Boonanaring Indicated
3,740,000
7,450,000
7.0
14.9
520,000
80
48
11
3
17
Boonanaring Measured
Boonanaring
Total
1,680,000
3,060,000
7.2
9.9
220,000
67
49
1
3
15
5,420,000
10,510,000
7.1
13.4
740,000
76
48
8
3
17
Gingin Nth
Indicated
680,000
1,320,000
5.7
15.7
75,000
75
57
9
3
5
Gingin Nth
Gingin Nth
Total
Inferred
580,000
1,090,000
5.2
14
57,000
78
57
11
4
6
1,260,000
2,410,000
5.5
15.0
132,000
77
57
10
3
6
Gingin Sth
Indicated
3,240,000
5,820,000
6.5
7.1
377,000
91
68
10
5
8
Gingin Sth
Inferred
400,000
730,000
6.5
8.4
48,000
92
67
8
6
11
Gingin Sth
Gingin Sth
Total
Measured
870,000
1,530,000
4.4
7.2
67,000
79
51
15
6
8
4,510,000
8,080,000
6.1
7.3
492,000
89
65
10
5
21
8
NPB DETAILED RESOURCE STATEMENT (cont)
High Grade Resources
Helene
Indicated
5,600,000
11,500,000
4.6
18.6
523,000
84
70
1
3
11
Hyperion
Indicated
1,800,000
3,700,000
7.8
19.3
290,000
71
56
0
6
9
Red Gully
Indicated
1,930,000
3,410,000
7.8
11.5
267,000
90
66
8
3
12
Red Gully
Red Gully
Total
Inferred
1,455,000
2,570,000
7.5
10.7
192,000
90
66
8
3
12
3,385,000
5,980,000
7.7
11.2
459,000
90
66
8
3
12
27,305,000
52,960,000
6.6
14.3
3,492,000
80.4
58.3
6.0
4.7
11.4
Grand Total
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