Image Resources Study Highlights Potential Of Yandanooka Mineral Sands

Image Resources NL (ASX: IMA) has revealed the maiden ore reserve estimate and pre-feasibility study (PFS) results for its Yandanooka Mineral Sands Project.

The project is located in the infrastructure-rich North Perth Basin in Western Australia.

Yandanooka’s maiden probable ore reserve is 30 million tonnes at 3.9% total heavy minerals (HM).

The high-value mineral assemblage includes 14% zircon, 3.3% rutile, 27% leucoxene, 46% ilmenite and 0.19% monazite in HM.

Payback period of 15 months

Yandanooka boasts a pre-tax net present value (NPV) of A$151 million and an internal rate of return (IRR) of 72%, according to PFS estimates.

Initial development capital is expected to be A$50.3 million with a payback period of 15 months after generating first revenue.

The project is suitable for low-cost loader mining and expects to process an average of 3.8 Mt of ore per year over the life of mine (LOM).

This will produce an average of 130,000 tonnes of heavy mineral concentrate (HMC) per annum.

Robust economics

Managing Director and CEO Mr Patrick Mutz commented: “It is pleasing to see the robust economics for the Yandanooka deposit even with only assuming an HMC product.

 “This suggests future additions of mineral separation and conversion of ilmenite to synthetic rutile (SR) will magnify profitability provided Image’s proposed novel SR production technology is demonstrated to be viable.”

Backup for Atlas project

Mutz noted that Yandanooka has the shortest development timeline of any of the other projects in Image’s portfolio.

Consequently, Yandanooka is now a credible backup for Image’s Atlas project development in the event there are any further delays with Atlas.

Yandanooka could also follow on the heels of Atlas as a second operating centre.

This is in line with Image’s ambition of multiple mines and multiple products.



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