Image Resources will embark on a drilling program aimed at upgrading the company’s mineral resource at the Boonanarring mineral sands project in Western Australia.
The additional drilling is intended to define the mineralisation of Boonanarring’s core that has been identified as having potentially high grades.
Image Resources said in an ASX statement its previous information on the eastern strand of Boonanarring’s core may have underestimated its heavy minerals grade.
According to managing director Patrick Mutz, this drilling campaign was “a good problem to have” and it could open new possibilities for the company.
The zircon-rich project in the North Perth Basin commenced production in November last year.
Production results from Boonanarring have been significantly higher than expected over the last three months. It produced 19,020 tonnes of heavy minerals concentrate (HMC) in February, 51 per cent higher than the allocated budget of 12,600 tonnes.
“Results from Boonanarring continue to impress with the level of HMC production for February again significantly higher than budget,” Mutz said.
“The additional production during the first three months of production could create an opportunity for the same of HMC outside of the current off-take agreements.”
Image Resources’ third shipment of HMC is scheduled for departure before the end of March 2019. The company remains on track to achieve a positive project cash flow for the first quarter of 2019.