2. COMPETENT PERSON STATEMENT
COMPETENT PERSON’S STATEMENT – EXPLORATION RESULTS
The information in this presentation that relates to exploration results is based on information compiled by Paul Leandri BAppSc who is a
member of the Australasian Institute of Mining and Metallurgy. Paul Leandri is an employee of Image Resources NL. He has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Paul Leandri consents to the inclusion of this information in the form and context in
which it appears in this presentation.
COMPETENT PERSON’S STATEMENT – RESOURCE ESTIMATES
The information in this presentation that relates to mineral resources is based on information compiled by Lynn Widenbar BSc, MSc, DIC
MAIG, MAusIMM employed by Widenbar & Associates who is a consultant to the Company. Lynn Widenbar has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Lynn Widenbar consents to the inclusion of this information in the form and context in which it appears in
this presentation.
COMPETENT PERSON’S STATEMENT – PROJECT EVALUATION
The information in this presentation that relates to project evaluation and financial analysis is based on information compiled by Mr Ray
Cary, BSc., who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of
Geoscientists. Ray Cary is the Director and Principal of Northwind Resources Pty Ltd, a Perth, Western Australia based minerals
industry consultancy. Ray Cary has sufficient experience in the technical and economic evaluation of minerals development projects
and mining operations which is relevant to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ray Cary consents to the
inclusion of this information in the form and context in which it appears in this presentation.
2
3. FORWARD LOOKING STATEMENT
FORWARD LOOKING STATEMENT
Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic
outlook for the mining industry, expectations regarding prices, exploration or development costs and other operating results, growth
prospects and the outlook of Image’s operations contain or comprise certain forward looking statements regarding Image’s operations,
economic performance and financial condition. Although Image believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those set out in the forward looking statements as a result of, among other factors,
changes in economic and market conditions, success of business and operating initiatives, changes that could result from future
acquisitions of new exploration properties, the risks and hazards inherent in the mining business (including industrial accidents,
environmental hazards or geologically related conditions), changes in the regulatory environment and other government actions, risks
inherent in the ownership, exploration and operation of or investment in mining properties, fluctuations in prices and exchange rates and
business and operations risks management, as well as generally those additional factors set forth in our periodic filings with ASX. Image
undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or
circumstances after today’s date or to reflect the occurrence of unanticipated events.
3
4. CONTENT
1. Investment Case
2. Company Overview
3. Location
4. Sustainability
5. Resources
6. Plant Concepts
7. Funding Requirement
8. Project Economics
9. Next Steps
10. Development Team
11. Exploration Potential
12. Conclusion
Appendices: Resources, Maps, CVs.
4
5. THE MINERAL SANDS BUSINESS
CHANGE QUALITY MARKETING INVESTMENT
Markets,
economic
drivers,
investment
climate
Quality of
resources is a
key driver
Bulk commodity
marketing =
bulk commodity
pricing
Counter-cyclic
investment is
essential
FOUR CONSTANTS
5
6. 1a. INVESTMENT CASE
PROJECT ECONOMICS TIMETABLE FINANCE
PARTNERS
Low funding
(target <A$65M)
for 3Mtpa plant
producing
180ktpa of
finished product
in the early years
16 month pay
back, Pre tax
IRR between
80% and 100%
Quick into
development.
Less than six
month build
Detailed
discussions
continuing
North Perth Basin Mineral Sands Project
An >80% IRR project
6
7. 1a INVESTMENT CASE
RESERVES LOCATION PRODUCT UPSIDE
Highest in
ground value per
tonne currently
being evaluated
globally (8% HM,
6.5% VHM and
over 19% Zircon)
90km from
Perth, near
existing major
road, power
lines, gas
pipelines and
adequate water
supply on site
In first two years
higher priced
Zircon/Rutile
generate 75% of
the revenue
Large JORC
Resource base
and exploration
potential beyond
initial 10 year
mine life
High grade resources and ideal location
1b. INVESTMENT CASE 7
8. 2. COMPANY OVERVIEW
Focus of Operations: Mineral Sands in Western Australia
Liquid Assets: A$2.6M (at 31 December 2013)
Market Cap: A$20M (at A$0.145 per share)
Shares: 140.2M
Options: 8.8M (held by directors, all well above current share price)
Top 20 Shareholders: Holding 46%
Board and Management:
Peter Thomas Chairman
Peter Davies MD/ Project Manager
George Sakalidis Director Exploration
Graeme Scott CFO
8
9. Home - Centre of WA’s Mineral Sands
“province” for over 35 years
Industry - Company making deposits
nearby for Iluka and Tronox (Tiwest)
In Place - Excellent road, rail, power,
gas and ports
Team - Locally available experienced
technical staff and plant operators
Mineralogy - Known characteristics
Government - Low sovereign risk
3. LOCATION 9
10. 104. SUSTAINABILITY
All proposed operations at Boonanarring will be carried out on cleared farmland
At the end of mining and processing operations the land will be returned
to pre-mining topography and land use
Environmental studies to date have not indicated any significant
environmental impediments
The public review period for the Boonanarring PER ended on 12th February.
Work has commenced on secondary approvals processes.
The aim is to have all required licences and approvals in place in time
to start work on site in October 2014.
11. 11
Strike Length - 12km
Resource - 21.5Mt @ 8.3% HM
containing 1.4Mt VHM (79% of HM)
Contains 370kt Zircon
Sweet Spot - East Strand 8.4Mt
@11.7% HM with 25% of HM as
Zircon (includes higher grade sections)
Extension - Potential to North
“Boonanarring is a world
class combination of HM,
VHM and Zircon.”
5a. BOONANARRING RESOURCES
12. 125b. ATLAS RESOURCES
Location - 90 km from Boonanarring - mined in years 6 to 10
Resource - 10.7Mt @ 7.8%HM containing 0.64Mt VHM (all Measured and Indicated)
Assemblage - 53.4% Ilmenite, 5.3% Leucoxene,
7.8% Rutile, 10.6% Zircon
Strip ratio - 1:1
Extensions - Atlas South drilled
Mining Lease - Application in progress
NPB DEVELOPMENT PROJECT STAGE 2
Shallow and high grade
18. 18
US$/t
8c. ZIRCON PRICE
JP Morgans
Weighted Average
Zircon Inducement
Price $1807
March 2013
At Long Term
$1500/t the
NPV would be
A$240M and IRR
>80%
IMA Zircon
Inducement Price
$600
750
900 880
1880
2080
1275
1450 1500 1500
0
500
1000
1500
2000
2500
2008 2009 2010 2011 2012 2013 2014 2015 Long
Term
19. 199a. NEXT STEPS
Final submissions lodged
mid Nov 2013
Studies in progress
Off-take and debt progressing
6 month build
From mining to product
in 2-3 months
20. 209b. NEXT STEPS
ü Base Case Feasibility Study
ü Updated Economic Case
ü Environment Submissions Lodged
• Boonanarring JORC Resource Upgrade
• Sales Off-take Agreements progressing
• Detailed Design (Q2 2014)
• Conclude Debt and Finance Negotiations (Q3 2014)
• Construct (Q4 2014)
Delivery drives value
21. 2110. DEVELOPMENT TEAM
Key members of the project development team have all worked
for many years in other local mineral sands operations
The combined list of recent mineral sands experience
amongst the team includes Tiwest/Tronox, Iluka, Gunson, Tormin,
Base and Bemax
MD with 40 years industry experience in project evaluation and
operations, including mineral sands and pigment plant senior
management roles
No initial requirement for Fly in-Fly out or camp accommodation
22. 2211. EXPLORATION POTENTIAL
Extensive new finds and extensions within the known NPB
mineral sands province achieved over the last 13 years
Large resource base of both high grade and large scale
resources, in addition to Boonanarring and Atlas
Potential northern resource extension between Boonanarring
and Red Gully
Potential for further major finds at Bidaminna and between
Atlas and Bidaminna currently being tested
Positive additions to medium term news stream at low cost –
historical costs are $0.15/t JORC Resources
Longer term potential in the Eucla basin
IMAGE’S EXPLORATION EXPERTISE IS A KEY COMPETITIVE ADVANTAGE
23. 2312. CONCLUSION
Low funding required - A$60M to A$70M
Product Mix - high proportion of high value Zircon/Rutile
Good Margins - A$345 per tonne product
Fast Pay back - 16 months from first production
Timetable - Quick into development. Six month build
Economics - NPV over A$240M, IRR of 80% to 100%
Upside - Exploration for large scale deposits
Risk - Low infrastructure, technical and sovereign risks
24. 24PERMITTING IN WA
Public Environmental Review
Radiation Management Plan
Project Management Plan
Mining Proposal
Works Approval
- Construction
- Operations
q Dewatering >50ktpa
q Mineral Sands Mining
H3 Hydrological Studies
Operating Strategies
Water licenses for Abstraction
EPBC Act Referral
(Black Cockatoos)
EP ACT PART IV
DMP
DER
DOW
DEPT OF ENVIRONMENT
(Federal)
25. 25COMMUNITY RELATIONS
NIMBY vs employment opportunities
Remote communities vs neighbouring landowners
Land access:
• Exploration
• Environmental studies
• Technical studies
• Mining access agreements
Local Presence
Mineral sands mining impacts
Community liason
35. 35
“ILMENITES
AIN’T
ILMENITES”
COMMANDING PREMIUM PRICING
Boonanarring Ilmenite is a sought after premium product:
• 54.5% and 60% TiO2 (range of world deposits is between
40% and 63% TiO2)
• Coarse Grained (D50 150 – 200 micron)
• Low U+Th (80 – 130 ppm)
• Suitable as feed to SR plants, pigment plants and slag production
APPENDICES
HIGH QUALITY PRODUCTS
36. 36
AREA ZIRCON ILMENITE LEUCOXENE RUTILE
kt kt kt kt
Boonanarring 268 525 49 44
Atlas 75 368 5 46
TOTAL 343 893 54 89
Average Annual
Production
34* 89** 5 9
* Up to 55 ktpa ZIRCON
** up to130 ktpa ILMENITE
APPENDICES
PRODUCTION - VALUABLE HEAVY MINERALS
37. 37
Historical exploration costs of 15
cents per tonne of Resources
Dry Mining Resources
• Boonanarring (existing ML - most)
• Atlas and Atlas South (part MLA)
• Red Gully (existing ML)
• Gingin North (existing ML)
• Gingin South (existing ML - part)
• Hyperion
• Helene
Larger Tonnage Dredge Mining Projects
• Bidaminna
• Cooljarloo
APPENDICES
PROVEN EXPLORATION
38. 38THE TEAM
APPENDICES
PETER DAVIES – DIRECTOR/PROJECT MANAGER
Peter Davies, appointed as Managing Director in May 2012, is a mining engineer with 39 years of global experience in project evaluation
and management of mining, chemicals and mineral sands operations. From 1995 to 2000 he was Manager/General Manager of the Tiwest
Chandala mineral sands and Synthetic Rutile processing facilities north of Perth. In 2000 he was transferred by Kerr-McGee Chemicals (later
Tronox) to manage the TiO2 pigment plant at Antwerp and from 2001 to 2006 was Director of European Operations, in charge of the pigment
plants at Uerdingen (Germany), and Botlek (The Netherlands). Peter joined Image in February 2012.
GEORGE SAKALIDIS – TECHNICAL DIRECTOR (MD UNTIL MAY 2012)
George Sakalidis is an exploration geophysicist with over 25 years’ industry experience, during which time his career has included extensive
gold, diamond, base metals and mineral sands exploration. Mr Sakalidis has been involved in a number of significant mineral discoveries,.
He was also instrumental in the design of the magnetic surveys and exploration drilling program that led to the discovery of the large mineral
sands resources at Magnetic Minerals Limited's Dongara Project. Magnetic Minerals were taken over by Ticor in early 2003.
The geophysical techniques used by Image and George Sakalidis’ proven ability to interpret the results in order to find economic
mineralisation which has been missed by other companies, gives Image a significant competitive advantage in this field.
LYNN WIDENBAR – WIDENBAR AND ASSOCIATES
Consultant resource geologist with over 40 years experience in the exploration, evaluation and mining of mineral resources in Australia, Asia,
Africa, North, Central and South America and Europe; this includes more than 10 years involvement in resource estimation mineral sands,
mainly in Western Australia, for companies such as Image Resources, Magnetic Minerals and Diatreme Resources.
PER SCRIMSHAW – CREATIVE MINED
Consultant mining engineer with 14 years experience in technical support for mining operations within Australia and abroad. Over 10 Years
of this has been servicing Mineral Sands clients in the key areas of optimisation, design, scheduling and economic evaluation. Supported
operations have included North Capel Extended, Stratham West, Gingin, Cataby, Eneabba South Mine, Dardanup / Burekup, Kwale.
TODD COLTON – BROAD REACH PTY LTD
Mining professional with over 23 years experience in the mining industry, predominately in mineral sands operations with WSL/Iluka,
providing operational, technical and management support for project development and mining operations in Australia and overseas.
Todd has held operational and senior management roles through feasibility studies, operations planning and design, construction and
commercial production.
39. 39THE TEAM
APPENDICES
EUGENE DARDENGO – PROCESSING MANAGER
Eugene is an accomplished Metallurgist and Operations Manager with over 27 years’ experience in the Australian mining and mineral
industry. Eugene has held a number of other diverse roles and was held accountable for Logistics Services, Technical Support Services and
Safety, Health and Environment Advice for Tiwest Northern Operations. Has worked as a Metallurgist, with Hamersley Iron (Rio), and Allied
Mineral Laboratories and the Readings Group of Companies, and has had exposure to the planning, prioritising and implementation of
various metallurgical test work programs for iron ore projects and a wide range of industrial minerals.
STEVE BENSON – ALLMINERAL
Over 33 years experience in Mineral Sands at Allied Eneabba (RGC) and Tiwest Chandala and Cooljarloo operations. Steve has worked at
all levels in Wet Plant and Dry Mill operations up to Plant Manager and has provided technical support both as an in house specialist and as
a specialist with equipment suppliers. He has strong knowledge of and experience in physical separation techniques and some unique skills
in the assessment of heavy minerals mineralogy.
PETER MCSWEENEY – MSP ENGINEERING
Peter has over 25 years experience in delivering industrial minerals projects throughout Australia and overseas. He has been the Managing
Director of MSP Engineering for the past 16 years and during this period the company has delivered over $AUD 500M in capital projects
including:
– ISK Mineral Sands – Wet and dry mineral sands processing facility at Waroona and Picton WA
– MBT (now Bemax) – MBT wet and dry mineral sands processing facility in the Murray Basin
– Bemax – Relocation of the Jangardup wet plant floating concentrator to Murray Basin
– Rocla – Design and construction of their 1.6mtpa high purity silica sands plant in South Australia
– Sons of Gwalia / GAM – Numerous expansions of the Wodgina and Greenbushes tantalum gravity/grind concentrators
valued in excess of $200M.
JACKIE BOYER – JASS (AUST) PTY LTD
Jackie has over 27 years’ experience in statutory approvals management, environmental impact assessment, environmental planning,
environmental management and environmental policy matters. Her experience has been gained working with a wide range of interests from
State and local government, construction, industry and academic institutions to landowners, community groups and the general public.
40. 40CONTACT US
APPENDICES
PRINCIPAL OFFICE
Suite 4A
5 Mumford Place
BALCATTA WA 6021
POSTAL ADDRESS
P.O. Box 1075
West Perth, W.A. 6914
TELEPHONE
(08) 9485 2410
FACSIMILE
(08) 9240 7845
EMAIL
admin@imageres.com.au
www.imageres.com.au
