IMX Resources Limited/Mt Woods Magnetite Project: Snaefell Metallurgical Testwork Evaluates Direct Sinter Feed Potential
WEST PERTH, AUSTRALIA--(Marketwire - Oct. 25, 2012) - IMX Resources Limited (ASX:IXR)(TSX:IXR)(TSX:IXR.WT) ('IMX' or 'the Company') has commenced the next phase of metallurgical testwork on core samples from the Snaefell prospect to produce a coarse high grade magnetite concentrate and evaluate whether it is suitable as a direct sinter feed product for Asian steel makers.
Snaefell, which forms part of the broader Mt Woods Magnetite Project, is located 12 km from the Company's Cairn Hill Mining Operation near Coober Pedy in South Australia. Snaefell has an Inferred Mineral Resource(1) of 569Mt @ 27.1% Fe (using 18% Fe cut-off) and remains open at depth.
The previous testwork program indicated that the Snaefell magnetite concentrate, which has a target grind size of 180-200 microns(2), has the potential to produce a premium quality concentrate suitable as an iron-making sinter plant feed. The primary objective of the new round of testwork is confirmation that a Snaefell magnetite concentrate can be directly sintered thereby removing the costly requirement for pelletisation as a preliminary step in steel making. If confirmed, the concentrate could attract a premium price to traditional magnetite concentrates because of these cost savings. This would also broaden the potential market for these concentrates to both South Korean and Japanese steel producers.
The testwork program involves production of a coarse magnetic concentrate in Perth, simulating the process flowsheet developed during the previous testwork. This magnetic concentrate will then be tested for direct-sintering as part of various blends with traditional direct-sinter feed materials at the China Iron and Steel Research Institute in Beijing, China.
The results of this round of testwork are expected to advance the process of attracting a partner to develop the Mt Woods Magnetite Project, and enable IMX Resources to extract value from its investment in the project.
NEIL MEADOWS, Managing Director
(1) Estimated according to JORC (2004) guidelines
(2) ASX: 27 August 2012; 80% by mass passing 180-200 micron screen
Competent Persons / Qualified Person / NI 43-101 Statement
Information in this report relating to exploration results and previous testwork is based on data compiled by Bianca Manzi who is a Member of the Australian Institute of Geoscientists, and who is a full-time employee of the Company. Bianca Manzi has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Bianca Manzi consents to the inclusion of the data in the form and context in which it appears.
About IMX Resources Limited
IMX Resources Limited is an Australian based mining and base & precious metal exploration company dual-listed on the Australian and Toronto stock exchanges (ASX:IXR)(TSX:IXR)(TSX:IXR.WT), with exploration projects located in Australia, Africa and North America.
In Africa, IMX owns and operates the highly prospective Nachingwea Exploration Project in southeast Tanzania, which includes the potentially word-class Ntaka Hill Nickel Sulphide project. Nachingwea is highly prospective for nickel and copper sulphide, gold and graphite mineralisation. The Ntaka Hill Nickel Sulphide Project is one of the world's best un-developed nickel sulphide projects and has the potential to produce a very clean, high quality premium nickel concentrate.
In Australia, IMX operates and owns 51% of the Cairn Hill Mining Operation, located 55 kilometres south-east of Coober Pedy in South Australia, where it produces a premium coarse-grained magnetite-copper-gold DSO product at a rate of 1.8Mtpa.
IMX is actively developing the Mt Woods Magnetite Project on the highly prospective Mt Woods Inlier in South Australia. IMX currently has a JORC Inferred Resource of 569Mt @ 27% Fe at the Snaefell Magnetite Deposit and a Global Exploration Target of between 200-380Mt @ 25-35% Fe elsewhere in the project. Studies indicate that coarse grained concentrates that could be produced at Snaefell have the potential to produce a direct sinter feed product which has the potential to attract a significant price premium.
IMX has also entered into a joint venture with OZ Minerals (the Mt Woods Copper-Gold JV Project) to explore the Mt Woods tenements for copper and gold. OZ Minerals is spending a minimum of $20M for a 51% interest in the non-iron rights, with IMX retaining a 49% interest in the non-iron rights and 100% of the iron ore rights.
IMX owns 25.65% of Uranex (ASX:UNX), which is a dedicated uranium exploration company, which is developing the Mkuju Uranium project in southern Tanzania.
FORWARD-LOOKING STATEMENTS: This News Release includes certain "forward-looking statements". Forward-looking statements and forward-looking information are frequently characterised by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "will" or "could" occur. All statements other than statements of historical fact included in this release are forward-looking statements or constitute forward-looking information. There can be no assurance that such information of statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. Important factors could cause actual results to differ materially from IMX's expectations.
These forward-looking statements are based on certain assumptions, the opinions and estimates of management and qualified persons at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, the ability of contracted parties (including laboratories and drill companies to provide services as contracted); uncertainties relating to the availability and costs of financing needed in the future and other factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Exploration Target tonnage quantity and grades estimates are conceptual in nature only. These figures are not resource estimates as defined by the JORC (2004) or NI 43-101, as insufficient exploration has been conducted to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
IMX undertakes no obligation to update forward-looking statements or information if circumstances should change. The reader is cautioned not to place undue reliance on forward-looking statements or information. Readers are also cautioned to review the risk factors identified by IMX in its regulatory filings made from time to time with the ASX, TSX and applicable Canadian securities regulators.
FOR FURTHER INFORMATION PLEASE CONTACT:
IMX Resources Limited
+61 8 9388 7877
Professional Public Relations
+61 8 9388 0944