Image Resources drilling hints at northern extension to Boonanarring Resource

Image Resources (ASX: IMA) has returned consistently high grade heavy minerals (HM), with some zircon-rich intersections, from drilling 3.6 kilometres north of the existing resource at Boonanarring in Western Australia.

First pass drilling is now complete on part of the northern magnetic extension to the Boonanarring deposit in the North Perth Basin, and results are beginning to fulfil the promise of the 7.7 kilometres magnetic target.

Highlights include 15 metres at 9.9% HM from 24 metres at 2.5% HM cut-off, including 5 metres at 19.7%HM (5% HM cut-off), with encouraging zircon enrichments in two holes.

Significant mineralisation was intersected over widths ranging from 300 metres to 400 metres of a similar tenor to the Boonanarring deposit.

The mineralisation is considered to be a possible extension of the high zircon areas found within the Boonanarring deposit where zircon values average 15% of the HM with concentrations up to 70% in some areas.

Boonanarring could potentially be a significant additional high grade component of Image's North Perth Basin Feasibility Study. Ongoing drilling by the company will test extensions at Boonanarring South.
George Sakalidis, Image Resources' managing director, told Proactive Investors today "we are very excited by the size of the resource which we hope to drill out over the coming months."

The Resource currently contains 3.1 million tonnes (Mt) at 7.2% HM containing 221,000t HM at a 2.5% cut-off and is centrally located within the 65 kilometre Gingin Scarp target area, but was not included in the Scoping Study as there was insufficient drilling completed.
With the deposit and target length recently increasing to 12.5 kilometres long x 400 metres wide, Image expects with further extensions within the target zones identified outside the current resource that Boonanarring will add to the resource inventory, with potential to add significant economic value to the North Perth Project.
Significantly, the price of zircon, a mineral used in ceramics, refractories, foundry and zirconium chemicals, increased around 40% from the second quarter of 2011 to $2,200-2,400/tonne, FOB Australia, as demand continues to outstrip supply. This trend bodes well for the project.
Ongoing drilling
A total of 40 metre-spaced aircore holes were drilled on lines between 200 metres and 400 metres apart over a strike length of 1.8 kilometres. Laboratory processing results have now been completed and Image is preparing samples for mineralogical analysis.

Visual examination of HM concentrates from the recent drilling has identified zircon enrichments of between 5% and 40% of the HM associated with high grade mineralisation, located 40 metres apart on the southernmost drill line.

Analysis of these samples using a portable XRF analyser has supported the estimates of elevated zircon content. These preliminary results will be confirmed by QEMSCAN analysis as part of Image’s ongoing assessment of this deposit.

Drilling in this area is ongoing, with drilling of two lines immediately south of the zircon-enriched area to commence shortly. The company expects to completion the drill pattern plus additional sample analysis in mid December.

The HM samples will then be composited and submitted for QEMSCAN analysis to determine overall mineralogy as well as to quantify the extent of zircon enrichment indicated by the preliminary examination.

The recent drilling is located in the northern half of the interpreted 7.7km northern extension of the Boonanarring deposit and Image plans to test the remaining zones once access agreements are completed.

The Boonanarring deposit is also open to the south where planning is in progress for a drill program to test the extent of this mineralisation in January 2012.

Based on trends identified in the Boonanarring deposit the interpreted southern extension is also considered to have potential for high zircon mineral assemblages.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23212/image-resources-drilling-hints-at-northern-extension-to-boonanarring-resource-23212.html