Image Resources targets 2014 mine start at Atlas with mining lease application

Image Resources (ASX: IMA) has applied for a mining lease for the Atlas Measured and Indicated Resource at its wholly owned Cooljarloo project, which marks the achievement of an important milestone in the development of the company’s North Perth Basin assets.

Based on Image’s recent Scoping Study results, Atlas is the highest value resource within the North Perth Basin project with a projected payback of project capital within 13 to 16 months from the start of operations.

Atlas is planned to be the first resource to be developed, with mining anticipated to begin in 2014 subject to the outcome of the Feasibility Study and environmental permitting process.

At the production rates used in the Scoping Study, mining at Atlas will operate for the first three and a half years of the estimated 12 year project mine life.

Drilling of the 3 kilometre southern extension of the Atlas deposit identified by magnetic mapping recently began and may substantially extend the mine life.

Importantly, the aircore drilling program has the potential to add tonnage to the Atlas Measured and Indicated Resource and is targeting grade extensions of the Atlas deposit, the southern end of which contains elevated grades and zircon contents up to 20% of the heavy mineral suite.

Following completion of fauna and flora surveys at Atlas, Image is commissioning consultants to compile the necessary information to complete and submit the environmental impact assessment documentation for the proposed mine site.

Image is also in the process of appointing consultants to review the hydrogeology of the Atlas area.

Other resources in the North Perth Basin project are already held under granted mining leases.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24202/image-resources-targets-2014-mine-start-at-atlas-with-mining-lease-application-24202.html