A recent metallurgical test work program, carried out by Amdel in Perth, showed an increase in anticipated overall yield from previous test work programs to around 28.5%.
Notably, this includes the ability to beneficiate mill feed to around 35% iron through dry magnetic separation on crushed product, delivering a sizeable reduction in estimated operating costs.
The testwork also showed the potential for a high grade, low impurity magnetite concentrate of above 68.5% iron at relatively coarse grind size of 75 to 80 micron (P80).
An alternative coarse direct sinter feed product at 65% iron can still be produced with the same flow sheet giving the option to maximise project returns.
Neil Meadows, managing director, commented: "The updated test work indicates a significant improvement in yield, a key economic driver for any magnetite project, over the yield used in our Concept Study.
"In addition, the ability to have a mill feed averaging 35% iron following coarse cobbing, delivers a sizeable reduction in anticipated operating costs.
"These metallurgical test work results, together with the proximity to the infrastructure already in use for our Cairn Hill operation, support the potential for an economic development of the project and IMX remains committed to generating value from the Mt Woods Magnetite Project, for which we are actively seeking a partner."
The additional metallurgical testing was carried out on diamond drill core samples from six spatially distributed drill holes from the Snaefell Resource at Mt Woods.
The drill intersections were selected to reasonably represent the inferred magnetite Resource at Snaefell, currently 569 million tonnes at 27.1% iron using an 18% cut-off, which has been the subject of previous metallurgical testing and an internal Concept Study.
The previous metallurgical test work program carried out in 2011 was carried out on reverse circulation drill chips that introduce a natural bias due to the drilling technique, which is not present when testing material from diamond drilling.
IMX is focused on generating value from the development of its Mt Woods Project and has maintained clear tenure over the iron rights to the project.
The company is well funded to achieve this via cash flow from its Cairn Hill operations, which currently generates around A$4.2 million per month.
IMX had $11.7 million in cash reserves at the end of December 2012, and a substantial reduction in operating costs at Cairn Hill during 2012 and improved iron ore prices has reduced the company's immediate need for additional funding.
The company continues to actively seek a partner to develop the Mt Woods Project.
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