Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Image Resources Applies For Mining Lease Over Boonanarring Northern Extension

Image Resources (ASX: IMA) has lodged a Mining Lease application covering the major northern extension of its Boonanarring mineral sands project in the North Perth Basin, Western Australia.

Application ML 70/1311 covers all Boonanarring resources north of the existing ML 70/1194.

Drilling had confirmed a new resource of 7.4 million tonnes at 7% for 530,000 tonnes of heavy minerals at a 2.5% cut-off. This also increased the average zircon resource to 17.4% of the heavy minerals, up from previous estimates of 11%.

This increased the total Boonanarring inventory to 10.5 million tonnes at 7% for 740,000 tonnes of heavy minerals at a 2.5% cut-off.

Resource upgrades are expected to bring the Boonanarring deposit alone to 15 to 25 million tonnes, depending on the cut-off grade used.

Environmental and heritage studies are continuing together with other work related to land access.

Bankable Feasibility Study

Image is also making good progress on the Bankable Feasibility Study on its Boonanarring and Atlas mineral sands projects.

Besides the expected resource upgrade, drilling of Block A is scheduled to start in January while results of wet testwork on the Boonanarring bulk sample is being assessed.

Wet testwork of the Atlas bulk sample is set to begin in January. Work is also continuing to produce final product samples of ilmenite and zircon by mid-January, for customer testing.

Detailed mine planning and scheduling has commenced on Block B to provide a basis for review of mining concepts and costs.

Hydrological testwork is scheduled to commence in January while seasonal flora and fauna surveys at Boonanarring have been completed and contracts have been placed for all other major environmental studies.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.