Image Resources NL (ASX:IMA) has reported a 39% increase in total ore reserves at its Boonanarring Mineral Sands Project located in the North Perth Basin.
The total tonnes of ore reserves have increased to 20 million tonnes at 7.2% total heavy minerals, from 14.4 million in 2013.
Image’s share price surged 16.47% on Monday, closing at $0.099.
This increase in ore reserves follows on from outstanding drill results in March confirming the potential of a 5.6-kilometre high-grade extension of the Boonanarring deposit to the north.
The latest results include 8 metres at 21.1% heavy minerals from 23 metres and 8 metres at 23.8% heavy minerals from 27 metres.
The new ore reserve has been incorporated into the ongoing bankable feasibility study (BFS).
All required engineering work, including operating cost estimates for the study were completed on schedule by the end of March.
Further review of capital cost estimates and economic modelling is ongoing and BFS reporting is anticipated to be completed during April 2017.
The impending completion of the BFS coincides well with the recent strengthening of mineral sands commodities prices.
The demand for zircon has recently increased and the price of ilmenite has doubled since mid-2016 to more than US$200/tonne.