Image Resources (ASX: IMA) would have taken significant encouragement from initial results from drilling at the Chandala North heavy mineral (HM) deposit, part of the North Perth Basin project, after receiving the first 750 analytical results from drilling.
High grade intercepts included 15 metres at 11.1% HM from surface and four metres at 24.0% HM from 30 metres (2.5% cut-off).
The Gingin South deposit has now increased in size, with a continuous high grade core of greater than 8% HM over a 5 kilometre strike length and Resource estimation will shortly commence.
The deposit is situated in the North Perth Basin project in Western Australia, 2.5 kilometres south and along strike from the Gingin South resource.
Image has also completed infill drilling at 100m x 20m spacing over most of the Gingin South deposit and is awaiting analytical results to enable estimation of Measured and Indicated resources.
Analyses from Rhea and Middle Strand has been completed, including 5 metres at 10.8% HM from 5 metres and 2 metres at 34.8% HM from 6 metres.
The high grade core at Middle Strand has been extended, grading more than 10% HM over a 1.1km strike length.
Significantly, Resource upgrades are about to commence at Rhea and Middle Strand, each showing potential for both dry mining and dredgeable resources.
Image said the correlation of the strand lines from Gingin South to Chandala North is a significant validation to the company’s strategy to target high grade mineralisation along the Gingin Scarp.
Target 3, south of Chandala North, also has potential to define another Gingin Scarp strandline package up to 4 kilometres in strike length and future drilling is being scheduled to test this area.
The Gingin project is estimated to have about 10–18Mt at 8–10% HM target with contained 1–1.5Mt HM and 0.6–0.9% zircon in ground.
With more increases in titanium feedstock and zircon prices the project economics for Image’s North Perth Basin project would have improved further.
With resource upgrades and estimation of Measured and Indicated resources, Image will have strong newsflows and catalysts for re-rating.