Image Resources has reported a second consecutive month of record heavy mineral sands concentrate production at its 100% owned, high grade, zircon-rich Boonanarring mineral sands project, located 80km north of Perth. Production for January 2020 was 35,300 tonnes of HMC concentrate, setting a new record after usurping December 2019’s record of 31,400 tonnes.
The record monthlyproduction rates well exceed the first year’s monthly numbers that delivered an average production rate of 25,000-28,000 tonnes per month. The strong improvement in monthly production is a consequence of higher ore grades coming in from the mining of Block ‘B’ after relocating the equipment from the initial site at Block ‘C’.
The latest results are encouraging as the mine only commenced production in December 2018 and ramped up to exceed name plate capacity in its second month of operations. Image achieved positive cash flow from the mine during the first quarter of 2019 and it has now delivered four quarters of successful operations.
According to management, the first four quarters of operations have exceeded performance targets with higher HMC production delivered with operating costs lower than forecast.
Image said the regular January shipment and sale of HMC ore was achieved on schedule but that February’s shipment could be delayed due to uncertain economic conditions in China due to the coronavirus situation.
The company said it was now working with its partners to expand the size and frequency of future shipments whilst targeting new markets in the region to minimise geographical risk.
Managing Director and CEO, Patrick Mutz said: “We continue to meet our production targets at Boonanarring which for 2020 are significantly higher than 2019 targets. Our efforts have been supported by substantially higher HMC production capacity following modifications to the processing plant in 2019. These modifications have now been proven to allow HMC production at levels substantially above original plant design capacity.
We also remain focused on, and confident of the outcome of accelerating exploration and the development of new Mineral Resources and Ore Reserves under the formal banner of Project ‘MORE’ with the goal of extending the mine-life at Boonanarring as quickly as practicable. And, in response to the recent softening of the zircon market, which were largely offset by rising TiO2 prices, we continue to evaluate value-adding steps aimed at incrementally increasing product revenue.”
Image is delivering in spades on its targets of improving ore grade and increasing production rates and, if sustained, the recent upswings in production should nestle their way nicely into the bottom line of Images forward accounts over coming months.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
Image Resources has reported a second consecutive month of record heavy mineral sands concentrate production at its 100% owned, high grade, zircon-rich Boonanarring mineral sands project, located 80km north of Perth. Production for January 2020 was 35,300 tonnes of HMC concentrate, setting a new record after usurping December 2019’s record of 31,400 tonnes.
The record monthlyproduction rates well exceed the first year’s monthly numbers that delivered an average production rate of 25,000-28,000 tonnes per month. The strong improvement in monthly production is a consequence of higher ore grades coming in from the mining of Block ‘B’ after relocating the equipment from the initial site at Block ‘C’.
The latest results are encouraging as the mine only commenced production in December 2018 and ramped up to exceed name plate capacity in its second month of operations. Image achieved positive cash flow from the mine during the first quarter of 2019 and it has now delivered four quarters of successful operations.
According to management, the first four quarters of operations have exceeded performance targets with higher HMC production delivered with operating costs lower than forecast.
Image said the regular January shipment and sale of HMC ore was achieved on schedule but that February’s shipment could be delayed due to uncertain economic conditions in China due to the coronavirus situation.
The company said it was now working with its partners to expand the size and frequency of future shipments whilst targeting new markets in the region to minimise geographical risk.
Managing Director and CEO, Patrick Mutz said:
“We continue to meet our production targets at Boonanarring which for 2020 are significantly higher than 2019 targets. Our efforts have been supported by substantially higher HMC production capacity following modifications to the processing plant in 2019. These modifications have now been proven to allow HMC production at levels substantially above original plant design capacity.
We also remain focused on, and confident of the outcome of accelerating exploration and the development of new Mineral Resources and Ore Reserves under the formal banner of Project ‘MORE’ with the goal of extending the mine-life at Boonanarring as quickly as practicable. And, in response to the recent softening of the zircon market, which were largely offset by rising TiO2 prices, we continue to evaluate value-adding steps aimed at incrementally increasing product revenue.”
Image is delivering in spades on its targets of improving ore grade and increasing production rates and, if sustained, the recent upswings in production should nestle their way nicely into the bottom line of Images forward accounts over coming months.
Is your ASX listed company doing something interesting ? Contact : matt.birney@wanews.com.au
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
