Image Resources (ASX: IMA) is poised further expand its Resources after securing a Mining Lease over the major northern extension of its Boonanarring project in the North Perth Basin, Western Australia.
"This has been a good news week for Image," managing director Peter Davies said.
"Grant of the Mining Lease on schedule, coupled with the outstanding new resource figures for Block B released on 8 March, continue to demonstrate that our confidence in Boonanarring as Image's first minerals sands producing operation is well founded."
Boonanarring currently has a Resource of 18.8 million tonnes at 5.9% for 1.1 million tonnes of valuable heavy minerals (VHM) at a 2.5% heavy minerals cut‐off.
The new Mining Lease M70/1131 covers the northern 7.7 kilometres of the Boonanarring project and has a 21 year life.
In conjunction with Mining Lease ML/1194 that was purchased by Image in March 2011, 10.1 kilometres of the full 12 kilometres strike length at Boonanarring is now secured by granted Mining Leases.
Davies added: "The next milestone, due in early April, will be the maiden JORC Resource for the northern Block A, together with the initial economic results for the project."
Image had reached its current Resource at Boonanarring after defining a new Indicated and Inferred resource of 8.5 million tonnes at 6.4% VHM for 540,000 tonnes of contained VHM at Block C, south of the initial resource at Block B.
Drilling has recently been completed in the 2.2 kilometre strike length of the northern Block A and a 1.9 kilometre southern extension in Block E.
Additionally, further infill drilling has been carried out in Blocks D and to the west of Block C, where the initial drilling showed potential for further resources still.
While full assays are not yet available from drilling in these additional areas, the combination of magnetometer results and visual estimates from the drill samples provides a high degree of confidence that similar grades of mineralisation are continuous over the full 12 kilometre strike length at Boonanarring from Block A to Block E.
Once all heavy minerals and mineralogy results have been received, further JORC Indicated Resources are expected to be announced for these blocks, over the full 12 kilometre strike length, in early April 2013.
Boonanarring is well placed to easily meet or exceed Image Resources' target Resource of 15 to 25 million tonnes over a 12 kilometre strike length.
The current 18.8 million tonnes in Block B and Block C already places Boonanarring at the lower end of this target and the upcoming resource upgrades could to take this towards the upper end of the target and beyond.
This will in turn add considerably to the mining life of the project, which is already taking shape as a high grade, low capital cost, rapid payback project.
The extremely high Zircon grades present serves to further boost its attractiveness.
Image is well funded to progress all planned activities through to completion of the Feasibility Study with working capital as of 31 December 2012 of $6.82 million.
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