Friday, 29 July 2011

Image Resources acquires remaining 30% stake of Cooljarloo heavy mineral sands JV

Image Resources (ASX: IMA) has purchased Metal Sands Pty. Ltd.’s remaining 30% interest in the Cooljarloo Joint Venture for $100,000 cash plus 3 million ordinary fully paid Image shares, escrowed for twelve months.

Image now owns 100% of Cooljarloo, located in North Perth Basin of Western Australia, and the company considers the consolidation will simplify future project financing.

The company said "the relativity of the foreign exchange rate to heavy mineral commodity pricing has materially improved in the last six months, which augurs very well for the commercialisation of the North Perth Basin Project."

The Cooljarloo prospect adjoins the ground held by TiWest’s Cooljarloo heavy mineral sands mine and is situated on heavy mineral strandlines extending northwest from the mine.

The prospect contains the Atlas deposit which is 7 kilometres long and up to 400 metres wide, and is one of the better shallow, high-grade resources identified in the North Perth Basin project.

Atlas has an Indicated Resource estimate of 14.6 million tonnes at 6.2% heavy minerals with 910 000 tonnes contained heavy minerals, 102 000 tonnes of zircon, 66 000 tonnes of rutile + leucoxene and 555 000 tonnes of ilmenite. Other deposits at Cooljarloo include Titan, Calypso and Telesto.

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