IMX Resources (ASX: IXR) has provided an update on a number of recent developments at the company including its plans for the expansion of its core iron ore business.
A significant milestone will be achieved in mid October when IMX will ship its one millionth tonne of Cairn Hill ore, achieved in only 11 months.
The company recently announced the appointment of Andrew Steers as Acting CEO following the resignation of Managing Director, Duncan McBain, after five and a half years service. IMX is currently in the process of seeking a new managing director.
The company has announced the proposed distribution of the company’s shares in Uranex NL, to shareholders. The in specie distribution currently equates to an approximate $0.07 dividend and will be subject to shareholder approval and a favorable tax ruling from the ATO.
The company is working towards finalising the distribution before the end of the year and is a key step towards focusing the Company in the iron ore and steel related commodity sector, whilst still allowing our shareholders to participate in the success of Uranex.
The market supported this as a positive step with the share price increasing by 7.5% on the announcement.
The company's ongoing joint venture operations at Cairn Hill are on target with Phase 1 producing at its name plate capacity of 1.7 million tonnes per annum.
The delay in the commissioning of the process plant in Bayuquan has afforded the joint venture the opportunity to ship to a number of alternate customers which IMX hope will ultimately result in diversifying its customer base.
The company's resource pipeline is on track in South Australia with the planned development of the Cairn Hill Phase 2 resource on schedule.
The joint venture team is continuing to finalise the important logistics chain that will allow additional shipments from Phase 2 to commence with the aim of having production commence in the first half of 2012.
In addition, the maiden mineral resource estimate for the core area at Snaefell is expected by the end of the current quarter. Drilling has recommenced with the intent to grow the initial resource with a 30 hole, 6,000 metre program already underway.
IMX continues to hold a significant 37% investment in Continental Nickel (CVE:CNI) as well as its 25% direct share in the Nachingwea Ni-Cu Joint Venture.
This asset has continued to grow in strength and shows true potential in advancing toward a significant deposit and operation.
The Continental board was recently bolstered with the addition of IMX non-executive director, Tony Haggarty and with the commencement of new President and CEO, David Massola.
IMX’s support of Continental Nickel and the Nachingwea Project will continue and we are anticipating more exciting news from this project in the coming months.
The Mt Woods Joint Venture with OZ Minerals remains on track with exploration activities continuing. Both IMX and OZ Minerals remain committed to aggressively explore our Mt Woods exploration leases for their copper/ gold potential and will continue to advance the already identified targets.
IMX's 2011 significant milestones include:
- 1,000,000 tonnes ore mined to end July 2011 at Cairn Hill;
- 800,000t of ore shipped to China through Port Adelaide, August, 2011 – providing turnover for the company of A$101 million;
- Although start up costs were higher than originally anticipated, due to a slower build up – these have now reduced to steady state levels of approximately A$73 per tonne FOB Port Adelaide;
- A 139% increase to the Cairn Hill Phase 2 resource – 8.37mt at 46.7% iron (Fe);
- Snaefell (IMX 100%) initial resource estimate expected by the end of the thrid quarter; and
- Nachingwea Ni-Cu Project advancing towards production with key consultant and technical study team appointments.