Image Resources NL advised it has executed an access and compensation agreement with the landowner over the southern extension of its 100%-owned, high-grade, zircon-rich Boonanarring mineral sands project located 80 km north of Perth in the infrastructure-rich North Perth Basin in Western Australia. Access for mining in this area provides the opportunity for the Company to extend mining operations at Boonanarring for a further 3-4 months and pushes the completion of ore processing at Boonanarring into May-June 2023. Grant of access to this southern extension of Block D at Boonanarring was delayed in large part due to COVID-19 related travel restrictions preventing the landowner from travelling to Australia to finalise access and compensation negotiations.

The plan for relocation of mining and processing equipment from Boonanarring to Atlas was outlined in the Company's 2017 Bankable Feasibility Study. Capital costs were estimated to be AUD 25 million, funded from cash reserves. The time required to relocate equipment to Atlas would result in an HMC production gap and was estimated to be a minimum of three months.

Timing and capital costs estimates are currently being updated for inflationary effects and changed circumstances such as delays in the finalisation of permitting at Atlas due in part to regulation changes in response to well-publicised events involving the destruction of the Juukan Gorge cultural heritage site in 2020. Updated timing and cost estimates are anticipated in fourth quarter 2022.