Image completes strategic acquisition of Bidaminna

Image Resources has entered into an agreement to acquire a 90% interest...

  Image Resources has entered into an agreement to acquire a 90% interest in exploration licence E70/3298, which hosts a significant part of the Bidaminna heavy mineral (HM) resource in the North Perth Basin.The remainder of the resource and its potential northern extension is held on Image’s 100%-owned tenements. The defined Bidaminna Inferred Resource of 1.3Mt of HM concentrate (44Mt at 3% HM) was previously drilled out by Geopeko and is 6km in length and 40m in width. Image has outlined at Bidaminna more than 30km of additional targets including a 6km extension of the Bidaminna Resource and an 18km-long potential channel. The previous work by Geopeko indicates that the Bidaminna resource comprises two stacked strands with the upper strand containing ilmenite with characteristics suitable for local processing to synthetic rutile and a lower strand more suitable for processing to titanium dioxide via the sulphate route.In the last year the sulphate ilmenite price has risen from US$85/tone to more than US$100/tonne following strong demand from Chinese processors. Global titanium dioxide pigment demand is forecast to be strong until at least 2012.The Bidaminna acquisition is seen to be a significant strategic addition to Image’s expanding resource inventory in the North Perth Basin.