Image Resources Nl · ASX:IMA
Image Resources Nl — Investor Presentation (June 2011)
45 slides from Image Resources Nl's investor presentation, June 2011
Slide 1: Image Resources June 2011
gee [Mage resources june 2011
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forecasts and forward looking statements which are made in good faith and are believed to have reasonable basis. basis However, such forward looking statements are subject bj t tto risks, i k uncertainties t i ti and d other th factors f t which
Slide 3: Directors
DIRECTORS • George Sakalidis Managing Director Geophysicist, 30 yrs exp • Roger Thomson Executive Director, Geologist, +30 yrs exp. Formerly – Delta Gold • Peter Thomas Non Executive Chairman Mining Lawyer, +20 yrs exp.
Slide 4: Company Structure
COMPANY STRUCTURE • IMA: ASX code • 92M: shares (1.2M shares held by Iluka) • 10.7M: 10 7M options ti • $48M: market cap. • Top 10 shareholders hold 45% • $3M: cash • $3.5M: liquid investments • $1.5M: annual spend rate Shareholdings in other companies • 8.6% of Meteoric Resources NL • 10.7% of Magn
Slide 5: Projects Highlights
PROJECTS HIGHLIGHTS • Eleven JORC compliant resources within North Perth Basin. • Commercialisation of the North Perth Basin with appointments pp of development p manager g and managerg of mineral process design • Includes an upgraded resource for the Atlas deposit and f four resources b bought h ff
Slide 6: North Perth Basin Tenements
NORTH PERTH BASIN TENEMENTS e : = = Q 500 ad = KM # a oy WESTERN AUSTRALIA Map Area ® Kalgoorlie MOGUMBAR “31° 31.2 ° [J existing Tenements [314° 05 Ground Geophysical ‘Survey Coverage <= Mineral Sand Deposit Image Resources HM Resource =_ ® Mineral Sand Mine © ~~ Location 31.4% 31.6% -115.2° [7115.
Slide 7: North Perth Basin Resources
NORTH PERTH BASIN RESOURCES • Current: Dry Mining and Measured Resources 43 5Mt @6.4%HM 43.5Mt @6 4%HM which is 2.7Mt 2 7Mt of contained HM • Current: Dry Mining and Dredge Mining Resources 7 5Mt off contained 7.5Mt t i d HM • Target: 10-15Mt contained HM - (short term) • Grade: 6.4% (dry) - 37% of
Slide 8: Commodity Price Increases
COMMODITY PRICE INCREASES F Forecast t Product P d t Pricing P i i 2009 – 2014 ($US/t) Product 2010 2011 2014 Zircon 850 2000 >2300 Rutile 600 1000 >1200 Chloride Ilmenite 110 180 >200
Slide 9: North Perth Basin Dry Mining Resources 2011
NORTH PERTH BASIN DRY MINING RESOURCES - 2011 Dry Mining Inferred - 2.5% HM Cutoff RESOURCE BCM TONNES % HM % SLIMES HM TONNES Gingin Nth 580,000 1,090,000 5 14 57,000 Red Gully 1,455,000 2,570,000 7.5 10.7 192,000 Sub - Total 2,035,000 3,660,000 6.8 11.7 249,000 Dry Mining Indicated - 2.5% HM Cutof
Slide 10: North Perth Basin Dredge Resources 2011
NORTH PERTH BASIN DREDGE RESOURCES - 2011 Cooljarloo Bidaminna Total Ownership % 70-100% 100% 70-100% Tonnes Mt 188 45 233 HM % 1.8% 3.0% 2.0% Total HM Mt 3.4 1.3 4.7 Ilmenite % 72% 83% 75% Zircon % 10% 5% 9% Rutile/Leucoxene % 4% 8% 5% Valuable HM % 86% 97% 89% Slimes % 12-20% 3-4% 3-20% Source: L
Slide 11: North Perth Basin Product Tonnes 2011
NORTH PERTH BASIN PRODUCT TONNES - 2011 Dry Mining Resources Dredge Mining Resources Cooljarloo Gingin Total Cooljarloo Bidaminna Total Total Total HM Mt 18 1.8 09 0.9 27 2.7 34 3.4 14 1.4 48 4.8 75 7.5 Ilmenite Mt 1.04 0.56 1.60 2.4 1.1 3.5 5.1 Zircon t 175,000 108,000 283,000 336,000 73,000 409,00
Slide 12: Cooljarloo
COOl ARLOO —— pSStinnes North ee an es Pairs R cooliarioc Z > _ a \ 7 ANS , » 2 ek Mineral Sand Occurances ? a= . > 9 12x Vertical Exaggeration ae ~ a Ges > - a _ ov _ — -_ 2 7? 34% Gry a i SP _- saes i Pe ch
Slide 13: Cooljarloo Current Resources and Exploration Targets
COOLJARLOO CURRENT RESOURCES AND EXPLORATION TARGETS
Slide 14: Atlas Resource
ATLAS RESOURCE New Measured plus Indicated Resource: • [email protected]%HM • 90% Measured Resource • 822,000t contained HM , • 22,130m in 1721 AC holes • Drill pattern 100mx20m Atlas HM Deposit
Slide 15: Atlas Assemblage
ATLAS ASSEMBLAGE • S Southern th 2 2.5km 5k averages over 10% HM and 10-20% Zircon • 65% of ilmenite suitable for synthetic th ti rutile til • Strategic because of five SR kilns in the Perth Basin, three of which are idle idl • Coatings on grains minimal • Grain size coarse 163 microns
Slide 16: Indicative Ilmenite Quality
INDICATIVE ILMENITE QUALITY ATLAS DEPOSIT Nb2O5 ZrO2+ Fe2O3 Cr2O3 U XRF Al2O3 V2O5 CeO2 SnO2 P2O5 ZrO2 TiO2 SiO2 MgO MnO K2O CaO SO3 FeO HfO Th 5 % % % % % % % % % % % ppm ppm % % % % % % % Primary Ilmenite 56.0 39.8 11.2 0.88 0.54 0.14 0.38 1.22 0.08 0.08 0.03 <10 90 0.16 0.13 0.01 0.04 0.01 0.02 0
Slide 17: Atlas Extension New Tenement
ATLAS EXTENSION NEW TENEMENT
Slide 18: Atlas Extension New Tenement
ATLAS EXTENSION NEW TENEMENT
Slide 19: Cooljarloo North Resources and Targets
COOLJARLOO NORTH RESOURCES AND TARGETS HM Tonnes HM Deposit Grade Mt Kt % Helene 11.5 4.6 470 Hyperion 3.7 7.8 290 Total 15.2 4.8 760
Slide 20: Cooljarloo Panorama
COOLJ ARLOO PANORAMA = Tiwe Cooljarloo Mine = —— % 5 = = Soe * ase > Helene Resource, *- if = = = z 5 as «HyperionResource | Drill Collars - =
Slide 21: Cooljarloo SE
COOLJARLOO SE RHEA,, MIDDLE STRAND AND CHANNELS • The high grade core at Middle Strand extended, grading more than 10% HM over a 1.1km strike length. • Resource upgrades about to commence at Rhea and Middle Strand, each showing potential for both dry mining and dredgeable resources. Hole From To Int
Slide 22: Rhea Cross-Section
RHEA CROSS-SECTION SHOWING THREE LEVELS OF MINERALISATION
Slide 23: Gingin Resource Targets
GINGIN RESOURCE TARGETS
Slide 24: Gingin Resources and High Priority Targets
GINGIN RESOURCES AND HIGH PRIORITY TARGETS • 0.96M tonnes contained HM added to Image’s Image s dry resource base which is now 2.8M tonnes after purchase of assets from Iluka for 1.2M shares and $100,000. • Zircon grade significant at Red Gully and Boonanarring averaging 12 and 15% plus Boonanarring
Slide 25: Gingin South Drilling Summary
GINGIN SOUTH DRILLING SUMMARY • Initial results confirm the high grade nature of the Chandala North deposit with intercepts including 15m at 11.1% HM from surface and 3m @ 25.9% HM from 16m. • The Gingin South deposit has increased in size, with a continuous high grade core of greater than 8% HM ove
Slide 26: Gingin South Cross Sections
GINGIN SOUTH CROSS SECTIONS E voote S| teats : AeOOA z NOON TH | TT ssceo9h 3U00E1 07 | awoeze6e| useepo N 3u092107 ainerae E = in s ‘B40ZZ1 09 :| PTTL ESE99 } 3008140 zsteoo awors eee |— ost & 3 SWOPLLOY| | € 8 aw00166¢| ia 2299 § © i" o © zg Z< | =< /Eg 3 lS8y 3 |qar os Rat E |\8$c \oa> 6zv99 s No
Slide 27: Gingin South Cross Sections
GINGIN SOUTH CROSS SECTIONS 5 3 wowls s é { eae NTA ¥LE0S9 ¢ 3 “TM \ <ee?al| = |lxnceae 6610s9 6 |esveo°* = = a zezoo il I i W091 86¢] E bozos 3 Nw00gszs9| ico. £ S | __9az9 | Worl 86¢| iN a aworrzec| s9L0so = NWO08ZSZS9} 99L0s. cS R | _ 8759 BWOZ186E) awoor26c} 191089 | nwoszszsa a g s9L0so q aca S
Slide 28: Gingin Drilling and Targets
GINGIN DRILLING AND TARGETS • New 5km-long high grade discovery which includes the recently acquired Iluka Gingin South mining lease • Infill drilling results pending • High grade discovery within 16km- long target along Gingin South region Hole MGA MGA From To Interval % Number East North m m m HM
Slide 29: Perspective
PERSPECTIVE • $0.75B sales WA 2007-8 • 2 Pigment Pi t Plants Pl t • 5 Synthetic Rutile Plants of which 3 are idled • 5 Mineral Separation Plants • Reserves - depleting • Image - growing i
Slide 30: Reserve Comparisons - HM (Mt)
RESERVE COMPARISONS - HM (Mt) Reserve Data sourced from latest publicly available Annual Reports - Iluka & Tiwest 2010, Consolidated Rutile 2008 and BeMax 2007.
Slide 31: Corporate Activity
CORPORATE ACTIVITY MINERAL SANDS S SSSECTOR C O • Basin Minerals takeover 2002 130M • Magnetic Minerals takeover 2003 26M • Ticor takeover 2005 460M • Millenium Mill i Ch Chemicals i l ttakeover k 2007 1 3B 1.3B • Bemax takeover 2008 300M • Consolidated C lid d Rutile il takeover k 2009 160M 60 • Me
Slide 32: Memoranda of Understanding
MEMORANDA OF UNDERSTANDING • 2 MOU MOU’s s signed with local WA producers • 1 MOU signed with Chinese Hainan Provincial Bureau of Geological Exploration • 1 MOU signed with Diatreme • Objective to facilitate exchange of Image’s Image s data and samples (for metallurgical testing) to explore potentia
Slide 33: Eucla Basin
EUCLA BASIN 0,500,000 mt 525 000 me 2,500,000 mit A Se SSCS SERPENTINE:LAKES® FORREST@LAKES Date:1170872010 image Heavy Mineral Exploration Tenements Eucla Basin, WA 2778000 mie PO Box sas Topogr mage Wen Pet Topographic Image wader Tel 9485 2430 Recent Applications wrnn mace Can eb 375,000 Ee 22 DU
Slide 34: Cyclone Extended
CYCLONE EXTENDED • Cyclone Extended (Image 100%) initial resource: 148Mt @ 1.5% HM (0.75%HM cut-off), containing 445,000t of zircon i con and 188,000t 188 000t of rutile tile +leucoxene +le co ene o or 86Mt @ 1.9%HM (1% cut-off) containing 345,000t of zircon and 155,000t of rutile + leucoxene. High
Slide 35: High Value Deposit
HIGH VALUE DEPOSIT Source: Diatreme Resources Limited
Slide 36: High Value Deposit
HIGH VALUE DEPOSIT Source: Diatreme Resources Limited
Slide 37: Cyclone Extended
CYCLONE EXTENDED • The Cyclone and Cyclone Extended deposit is 7.4sq km in area with a low clay (slimes) content making it amenable to low cost conventional mineral sands mining and processing techniques • The high levels of zircon and rutile in the Cyclone and Cyclone Extended deposit are very sign
Slide 38: Cyclone Extended Resource Outlines
CYCLONE EXTENDED RESOURCE OUTLINES
Slide 39: Cyclone Extended Section A & B
CYCLONE EXTENDED SECTION A & B
Slide 40: Cyclone Extended 2011 Exploration Target
CYCLONE EXTENDED 2011 EXPLORATION TARGET
Slide 41: Cyclone Extended 2011 Exploration Target
CYCLONE EXTENDED 2011 EXPLORATION TARGET
Slide 42: Work Programme
WORK PROGRAMME • Mar: Gingin drilling completed • May: Rhea and Gingin Resource update • Jun: Eucla Basin drilling • July: New Resource drilling Gingin • Aug: Metallurgical test work North Perth and Eucla Basin • Aug: Pit Design and Environmental work Atlas Hyperion and Helene • Sept: Bidaminna dril
Slide 43: Conclusions
CONCLUSIONS • Differentiator: Image finding it...others consuming it and depleting reserves • Upside: Both corporate (MOU’s) + stand alone • Zircon short supply for at least 3 years. Many Chinese plants do not have enough zircon to operate • Re-rating: mineral sand prices predicted to increase betwe
Slide 44: Contact Details
CONTACT CONTACT DETAILS DETAILS Level 2, 16 Ord Street, West Perth WA 6005 PO Box 644 644, West Perth WA 6872 Ph: 9485 2410 Fax: 9485 2840 g • Email: [email protected] • Web: www.imageres.com.au • ASX: IMA
Slide 45: Image Resources June 2011
gee [Mage resources June 2011
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