IMX Resources Limited: Report for the Quarter Ended 31 December 2013

IMX Resources Limited: Report for the Quarter Ended 31 December 2013 
PERTH, AUSTRALIA -- (Marketwired) -- 01/27/14 -- IMX Resources
Limited (ASX:IXR)(TSX:IXR)(TSX:IXR.WT) -   
HIGHLIGHTS 


 
--  Increased cash flow from previous Quarter 
--  Commencement of hematite exploration at Mt Woods 
--  MMG fully funding aggressive exploration program at Ntaka Hill 

 
SUMMARY  
Cairn Hill Iron Ore Operations  


 
--  Increase in positive cash flow from operations of $8.1 million(1)
    (September Quarter: $3.7 million) 
--  Distributions to joint venture partners of $11.9 million, IMX's share
    $6.1 million (September Quarter $14.2 million, IMX's share $7.2 million)
--  Price protection put in place for iron ore price through January and
    February 
--  Hematite exploration program under way, with encouraging initial ground
    gravity surveys completed, drilling planned for February 2014 
--  Assessment of potential for a Phase 2 extension to Cairn Hill ongoing
    with decision expected at the end of the March Quarter 

 
Ntaka Hill Nickel Sulphide Project  


 
--  MMG commenced an exploration program focussed on high-grade nickel
    mineralisation with a target of 27Mt at greater than 1.5% nickel for
    400,000 tonnes of contained nickel 
--  Significant new intersection at the Sleeping Giant deposit of 13.65m at
    3.46% nickel and 0.62% copper from 357.9m reinforces potential for high
    grade 
--  Assessment of recent and historical drilling suggests that Ntaka Hill
    hosts multiple zones of mineralisation that appear to be linked and form
    an intrusive that is larger in extent than previously interpreted 
--  Soil sampling and surface mapping confirms potential for mineralisation
    along the 8.5km long Ntaka Hill-Lionja intrusive corridor and identifies
    further potentially mineralised intrusives 

 
Mt Woods Exploration and Development 


 
--  Search continues for a development partner for the Mt Woods Magnetite
    Project with roadshows undertaken in China to present the opportunity to
    potential investors 
--  Process to identify a joint venture partner to explore for copper-gold
    on the Mt Woods tenements commenced during the Quarter 

 
Corporate  


 
--  IMX cash of $3.2 million, excluding cash invested in Cairn Hill JV,
    following repayment of $2.5 million to Taifeng IMX cash of $3.2 million 

 
OPERATIONS  
Cairn Hill Joint Venture (IMX - 51%)  
Summary information on production and shipments for the December
Quarter is shown in Table 1 below (figures represent the full (100%)
results of the Cairn Hill Joint Venture (the "Cairn Hill JV"):  
Table 1. Cairn Hill JV: Production and shipment performance for the
December Quarter 2013 


 
----------------------------------------------------------------------------
                                   December      September   Comparison with
                               Quarter 2013   Quarter 2013  Previous Quarter
----------------------------------------------------------------------------
Waste removed (BCM)                 454,681        573,210           (20.7%)
----------------------------------------------------------------------------
Waste and Ore (BCM)                 554,770        668,452           (17.0%)
----------------------------------------------------------------------------
Ore Mined (tonnes)                  430,383        409,539              5.1%
----------------------------------------------------------------------------
Ore Crushed (tonnes)                403,942        429,363            (5.9%)
----------------------------------------------------------------------------
Road Haulage (tonnes)               422,691        433,233            (2.4%)
----------------------------------------------------------------------------
Rail Haulage (tonnes)               418,871        439,161            (4.6%)
----------------------------------------------------------------------------
Ore Shipped (tonnes)                381,735        451,898           (15.5%)
----------------------------------------------------------------------------

 
Operations  
The Total Recordable Injury Frequency Rate increased to 19.1
(September Quarter: 16.4) as a result of two Recordable Injuries.
Both the Cairn Hill JV and the mining contractor Exact Mining
Services ("EMS") continue to focus on hazard awareness and
identification to eliminate potential hazards in order to improve the
overall site safety performance.   
Mining continued in both Pit 1 and Pit 2 with the first ore mined
from Pit 2 in November. The total mining volumes were lower due to a
reduction in free-dig material as the Pit 2 development progressed.
Ore tonnes mined increased as access was obtained to ore in Pit 2.
Road and rail haulage were impacted by technical issues with the rail
locomotives however, these were resolved during the Quarter.   
A total of 381,735 tonnes of ore were shipped on five shipments,
which was in line with guidance provided in the September Quarterly
report.  
For the December Quarter, FOB costs averaged $94 per tonne shipped
and $111 per tonne CIF (September Quarter: $82 and $99). Forecast
operating costs per tonne shipped were higher than previous Quarters
due to lower shipment tonnage for the Quarter.  
FOB costs per tonne shipped for the remainder of the 2014 financial
year are forecast to average $81 per tonne shipped ($101 per tonne
CIF). The Company has put in place measures to increase rail capacity
to recover some of the capacity lost due to the technical issues with
the locomotives and wet weather in 2013.  
Operations Cash Flow 
The Cairn Hill JV generated positive cash flow from operations of
$8.1 million (September Quarter: $3.7 million).  
The iron ore price was steady and the AUD/USD exchange rate decreased
during the provisional pricing periods and as a result the
provisional price received per tonne of magnetite copper ore shipped
was $127 per tonne CIF (September Quarter $121 per tonne CIF).  
The Cairn Hill JV had receipts of $0.8 million for adjustments on
final invoices during the Quarter. At spot prices and exchange rates
on 31 December, payments for adjustments on final invoices due for
settlement in the March Quarter are estimated to be $1.6 million.  
Stockpiles  
At the end of the Quarter, the book value of ore stockpiles, being
the cost to deliver the stockpiles to their present location, was
$12.9 million (30 September 2013: $8.8 million). The increase in the
book value of ore stockpiles was due to shipping volumes being less
than tonnes mined resulting in higher physical quantities of
stockpiles. The breakdown by stockpile location is shown in Table 2
below:   
Table 2. Ore stockpiles at 31 December 2013 


 
----------------------------------------------------------------------------
                     Pre-Crusher   Post Crusher   Rankin Dam   Port Adelaide
----------------------------------------------------------------------------
Stockpile (tonnes)        92,036         57,260       58,923          63,612
----------------------------------------------------------------------------

 
Sales and Marketing  
Sales contracts for 100% of forecast 2014 production were completed
during the Quarter. The terms of the completed contracts are in line
with the 2013 sales contracts and reflect the strong demand for Cairn
Hill ore.  
DEVELOPMENT PROJECTS 


 
1.  Continuity of operations at Cairn Hill 

 
Hematite exploration  
The recently announced commencement of exploration for direct
shipping ore ("DSO") hematite is an important element of the
Company's efforts to maintain ongoing operations at Cairn Hill beyond
the first Quarter of 2015. IMX believes that hematite may occur in
association with the abundant magnetite at Mt Woods as it does at
Arrium Limited's Peculiar Knob DSO hematite mine located within 6km
of IMX's Mt Woods tenements and in the iron ore mines of the
Middleback Ranges and other hematite exploration prospects in the
Gawler Craton region of South Australia.  
Any discovery of economic DSO hematite at Mt Woods would have the
potential for near-term production utilising the road, rail and port
infrastructure currently used by the Cairn Hill Mine.  
In December, IMX commenced an exploration program for DSO hematite
with an initial round of detailed ground gravity surveys completed
over 15 prospective areas in order to identify their potential for
hematite. A follow-up ground gravity program is planned to further
define drilling targets at the Axehead prospect, located 20km from
Cairn Hill. It is anticipated that drilling of these targets will
occur in February 2014.  
Phase 2  
There is potential for a Phase 2 development of Cairn Hill involving
mining resources located immediately adjacent to the current mining
operation. In order to be economic, material from the Phase 2
resource needs to be upgraded by dry magnetic processing following an
additional stage of crushing.  
Existing equipment, haul road, and rail and port infrastructure
currently used at the Cairn Hill Mine are suitable for a Phase 2
development.  
Evaluation of the development of Phase 2 is well advanced with the
following activities underway or completed: 


 
--  Whittle pit optimisations for the resources have been completed based on
    the estimated operating costs for the operation and a preliminary
    estimate of revenue; 
--  Mining and product haulage operating cost estimates have been completed
    in conjunction with the current mining contractor, EMS; 
--  Confirmatory metallurgical test work has been completed on spatially
    representative samples of diamond drill core from across the resource.
    The key outcomes from this test work included: 
    --  Confirmation of the suitability of dry magnetic separation for
        upgrading the material by up to 10% Fe and reduce silica levels to
        approximately 10%; 
    --  Confirmation, through Davis tube testing of the dry magnetic
        separation product, that a final concentrate can be produced by
        IMX's potential customers in China of between 70% Fe and 72% Fe,
        with very low impurity levels similar to the current ore exported
        from Cairn Hill; 
    --  Samples have been prepared of the dry magnetic separation for
        testing by potential customers in China; and 
    --  Process design criteria for the crushing and magnetic separation
        circuits have been developed. 
--  Crushing and dry magnetic separation plant design and costing is well
    advanced, with a proposal for an extension of the current Cairn Hill
    crushing circuit received from EMS along with preliminary designs for
    the magnetic separation plant from a boutique equipment manufacturer and
    supplier; and 
--  A value-in-use model for the product has been developed, drawing largely
    on the information gleaned from the processing of the ore from current
    operations at Cairn Hill, and preliminary discussions have been held
    with potential customers, who have shown a high level of interest. 

 
The Company will be finalising the capital and operating cost
estimates for Phase 2 during the next Quarter and conducting detailed
discussions with potential customers to determine the value of the
proposed product. It is expected that a decision will be made on the
viability of Phase 2 by the end of the March Quarter.  


 
2.  Mt Woods Magnetite Project, South Australia (IMX 100%) 

 
Work on the Mt Woods Magnetite Project continued in critical areas
related to logistics (rail and port) and power supply infrastructure.
This included engagement with infrastructure owners to negotiate
access to key infrastructure and to optimise the product transport
and handling costs in order to improve project economics.  
Engagement has also continued with South Australian Government
authorities including the Department of Environment, Water and
Natural Resources and the Department for Manufacturing, Innovation,
Trade, Resources and Energy ("DMITRE"). A Case Manager for project
approvals has been appointed by DMITRE to assist with relevant
regulatory approvals.  
The process to secure a partner for the evaluation and development of
the Mt Woods Magnetite Project continued during the Quarter with a
presentation to the China-Australia Resources Investment Forum held
in Beijing during October and road shows to potential investors and
industry intermediaries promoting the Mt Woods Magnetite Project
arranged by Azure Capital and specialist Chinese intermediaries.  
A number of potential partners are reviewing the information in the
project data room and are being followed up. 
EXPLORATION 


 
1.  Nachingwea Property, Ntaka Hill (IMX 100%) 

 
Joint venture partner MMG commences funding of exploration  
Having entered into a five year, US$60 million earn-in and
shareholders agreement with MMG in September 2013, MMG commenced
funding and directing exploration of the Nachingwea Project. MMG is
targeting a resource in the order of 27 million tonnes at greater
than 1.5% nickel for 400,000 tonnes of contained nickel and has
implemented a new exploration program, focussed on delineating
high-grade mafic intrusive style nickel mineralisation often referred
to as "chonoliths" which is considered to have the potential to
increase the grade and size of the existing resource.  
The initial work program defined by MMG, with a budget of US$10
million, has the primary objective of rapid evaluation of the
potential for high-grade nickel discoveries and achievement of MMG's
resource target.  
To date, MMG has focussed on identifying targets for the 2014
drilling program, using a range of geophysical methods including
"deep-looking" NSAMT (natural source audio magnetotellurics) surveys,
MLEM (moving loop EM) surveys, gravity surveys and down-hole EM
surveys together with surface mapping and soil sampling.  
Exploration activity is focussed on identifying targets
characteristic of the high-grade nickel sulphide intersections
recorded in previous drilling programs at Ntaka Hill which are
believed to be hosted in tube-like structures or "chonoliths". This
style of mineralisation forms a significant portion of the Norilsk
nickel deposit in Russia which is one of the world's largest nickel
deposits.  
High-grade mineralisation intersected at Ntaka Hill(2)  


 
--  13.65m at 3.46% nickel and 0.62% copper from 357.9m was recorded in hole
    NAD13-372, including: 
    --  0.95m at 6.70% nickel and 0.57% copper 
    --  2m at 4.58% nickel and 0.87% copper 
    --  1.4m at 4.57% nickel and 0.81% copper 
--  6m at 1.19% nickel and 0.42% copper from 400m 

 
These high-grade intersections lie outside the existing mineral
resource and indicate the potential for an upgrade to the Sleeping
Giant mineral resource.  
New zone of mineralisation identified at Ntaka Hill(3)  
A new zone of mineralisation, referred to as "P Zone", located 400m
east of the current Sleeping Giant and Zeppelin resource, was
identified during the Quarter. Four holes were drilled, each of which
intersected mineralisation, with assay results including: 


 
--  11.4m at 0.51% nickel and 0.15% copper from 211m down-hole (NAD13-369) 
--  2.0m at 1.1% nickel from 266m and 3.4m @ 1.2% nickel from 272.4m down-
    hole (NAD13-375) 
--  3.0m @ 0.4% nickel from 186m down-hole (NAD13-376) 
--  17.0m @ 0.4% nickel from 223m and 9.3 @ 0.4% nickel from 272.7m down-
    hole (NAD13-377) 

 
Since announcing these exploration results on 1 November 2013 and 10
December 2013, IMX is not aware of any new information or data that
materially affects the information included in those announcements.  
Modelling of P Zone indicates that it is potentially an up-dip
extension of the mineralisation at Zeppelin and Sleeping Giant to the
west and south-west, significantly improving the upside potential of
this area.  
Significant assay results received during the Quarter are shown in
Appendix 1.  
11 holes (NAD13-379 to NAD13-389) were drilled during the Quarter for
a total of 3,405m.The assay results will be available early in 2014.  
Ntaka Hill-Lionja intrusion  
Recent and historical drilling suggests that Ntaka Hill hosts
multiple zones of mineralisation that appear to be linked and form an
intrusive that is larger in extent than previously interpreted and
open to the south and east. An appreciation of the increasing size of
the Ntaka Hill intrusive has motivated MMG to rapidly assess the
potential of the recently defined Ntaka Hill-Lionja intrusive
corridor.  
Surface mapping and systematic soil sampling over the Ntaka Hill and
Lionja intrusions were completed in 2013. This outlined previously
unidentified ridges of gossan and ultramafic rocks at Lionja and
extended the known extent of the intrusion in this area to the east
and southeast.   
Nachingwea Property, Regional Targets (IMX 100%)  
Systematic regional soil sampling and field mapping commenced for the
first time over the broader Nachingwea property aimed at
investigating radiometric/aeromagnetic anomalies and identifying new
ultramafic intrusions. A total of 7,801 soil samples were collected
over various prospects. The soil sampling has identified two
geochemical anomalies that potentially represent targets for nickel
exploration beyond the Ntaka Hill-Lionja corridor.  
Soil sample assay results are expected to be available early in 2014. 


 
2.  Mt Woods Copper-Gold prospect, South Australia (IMX 100%) 

 
OZ Minerals has completed its withdrawal from the Mt Woods
Exploration JV during the Quarter. As a result, all mineral rights
over the Mt Woods tenements and ownership of those tenements have
reverted to 100% ownership by IMX.  
This represents an opportunity for the Company to refresh the
exploration effort on the highly prospective Mt Woods tenements and a
process to secure a joint venture partner for non-iron exploration on
these tenements commenced during the Quarter.  
The Company has engaged with a number of parties who have expressed
an interest in non-iron exploration at Mt Woods, with a data room
established and confidentiality agreements executed with several
Australian and international copper-gold explorers and producers. The
process is expected to be completed early in the June Quarter.  
The prospectivity of the Mt Woods tenements, together with the
availability of a significant exploration database established during
previous exploration work, makes this an attractive opportunity for
iron oxide copper gold discoveries in the world-class Gawler Craton
mineral province.  
CORPORATE  
Cash position and distributions  
As at 31 December 2013, the Group had cash at bank of $17.7 million,
as detailed in Table 3 below:  
Table 3. Consolidated Cash Position 


 
----------------------------------------------------------------------------
                                                 31 Dec 2013    30 Sept 2013
                                                        ($m)            ($m)
----------------------------------------------------------------------------
IMX Resources Limited                                    3.1             2.9
----------------------------------------------------------------------------
Cash in IMX Group held on behalf of MMG                  0.9               -
----------------------------------------------------------------------------
Cairn Hill JV (51% IMX share is $7.5                                        
 million)                                               13.7            17.8
----------------------------------------------------------------------------
Consolidated Group                                      17.7            20.7
----------------------------------------------------------------------------

 
The Cairn Hill JV cash balance is the working capital required to
fund the operation. Distributions to the JV partners are made on a
monthly basis so as to retain a cash balance of at least $3 million.  
As at 31 December 2013, IMX's Tanzanian subsidiary Ngwena Limited
held $0.9 million of cash on behalf of MMG. This cash will contribute
towards its expenditure on the Nachingwea JV.  
Distributions to the Cairn Hill JV partners amounted to $11.9
million, of which IMX received $6.1 million (September quarter $14.2
million, IMX share $7.2 million).  
Based on consensus forecasts for metal prices and exchange rates, the
cash flow from operations in the March Quarter is forecast to be $6.8
million and distributions to the Cairn Hill JV partners to be $8.8
million (IMX share $4.5 million). Price protection has been put in
place for 90% of the Group's iron ore exposure for January and
February 2014 using existing limits with CBA. The hedges entered
utilise iron ore swaps and AUD/USD foreign currency forward contracts
that provide a hedged January iron ore price of AUD146.59 and a
hedged February iron ore price of AUD144.16 for approximately 90% of
the Group's exposure to the iron ore price. These hedges provide
greater certainty in achieving the forecast distributions in the
March Quarter.  
The $2.5 million loan from Taifeng has been repaid and the Company is
now debt free.  
Annual General Meeting  
The Annual General Meeting of IMX shareholders was held on 21
November 2013. Motions for the re-election of John Nitschke and
election of Robert Sun as directors were carried. While carried as an
ordinary resolution, the Company received a 'no' vote of greater than
25% in relation its Remuneration Report.  
Managing Director  
A process to identify a new Managing Director is under way. It is
expected that an appointment will be made in the first Quarter of
2014.  
TENEMENT INTERESTS  
Tenements Held and Location 


 
----------------------------------------------------------------------------
Tenement                       Ownership         Project            Location
----------------------------------------------------------------------------
ML6303 - Cairn Hill                 100%      Cairn Hill     South Australia
----------------------------------------------------------------------------
EL4649 - Kangaroo Dam               100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4706 - Mt Woods                   100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4963 - Warrina North              100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4964 - Warrina South              100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL5048 - Mt Brady                   100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4446 - Yarrabolina Hill           100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4866 - Mt Paisley                 100%        Mt Woods     South Australia
----------------------------------------------------------------------------
EL4982 - Brumby Creek               100%        Mt Woods     South Australia
----------------------------------------------------------------------------
PL6489/2010 - Lubalisi              100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL6895/2012 - Mioni                 100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL7464/2011 - Luegele               100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL8017/2012 - Molumbo Hill          100%         Mibango            Tanzania
---
-------------------------------------------------------------------------
PL8124/2012 - Milanga               100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL8833/2013 - Kamafinga             100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL8901/2013 - Sifumbi               100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL8902/2013 - Mpondwe               100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL9299/2013 - Lwega                 100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL9394/2013 - Nkulya                100%         Mibango            Tanzania
----------------------------------------------------------------------------
PL4422/2007 - Ntaka             100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL4917/2008 - Mbangala          100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL4918/2008 - Lukumbi           100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL5447/2008 - Noli SE           100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL5971/2009 - Matambare         100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL5977/2009 - Naujombo          100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL5978/2009 - Kihangara                                                     
 North                          100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6073/2009 - Chilalo           100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6148/2009 - Mbwemburu                                                     
 North                          100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6149/2009 - Chilalo West      100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6153/2009 - Mbwemburu         100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6154/2009 - Nachingwea SW     100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6156/2009 - Noli SW           100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6158/2009 - Kiperere East     100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6161/2009 - Mtimbo            100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6397/2010 - Kiperere West     100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6409/2010 - Rappa             100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6412/2010 - Mujira            100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6414/2010 - Kihangara         100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6467/2010 - Nepanga           100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6634/2010 - Mihumo            100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL6635/2010 - Nachingwea NW     100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL7095/2011 - Nditi             100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL7226/2011 - Ntaka South       100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8625/2012 - Nambu West        100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8626/2012 - Nambugu East      100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8627/2012 - Lumpumbulu        100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8628/2012 - Kipendengwa       100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8748/2012 - Kihue             100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8754/2012 - Chikoweti         100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8811/2013 - Chimbo            100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL8812/2013 - Mbemba            100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL9397/2013 - Mtimbo South      100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
PL9442/2013 - Nachi West        100% (i)      Nachingwea            Tanzania
----------------------------------------------------------------------------
                                                              New Brunswick,
Claim Block 4242                50% (ii)      St Stephen              Canada
----------------------------------------------------------------------------
                                                              New Brunswick,
Claim Block 5787                50% (ii)      St Stephen              Canada
----------------------------------------------------------------------------
(i) Subject to farm-in joint venture with MMG                               
(ii) Subject to 50/50 joint venture with ABE Resources                      

 
Tenements Acquired During the Quarter 


 
----------------------------------------------------------------------------
Tenement                           Ownership         Project        Location
----------------------------------------------------------------------------
PL9397/2013 - Mtimbo South              100%      Nachingwea        Tanzania
----------------------------------------------------------------------------
PL9442/2013 - Nachi West                100%      Nachingwea        Tanzania
----------------------------------------------------------------------------

 
Tenements Disposed During the Quarter 


 
----------------------------------------------------------------------------
Tenement                   Ownership         Project                Location
----------------------------------------------------------------------------
EL17/2007 - Dunns                 0%        Tasmania     Tasmania, Australia
----------------------------------------------------------------------------

 
Farm-in Agreements  
As at 31 December 2013, IMX held a 100% interest in the Nachingwea
Project which is the subject of a farm-in agreement with MMG.  
During the Quarter, OZ Minerals withdrew from a farm-in agreement
with the Company. As reported above, all mineral rights over the Mt
Woods tenements and ownership of those tenements have reverted to
100% ownership by IMX. 
John Nitschke, Acting Managing Director 
Appendix 1. Significant assay results at Ntaka Hill received during
the Quarter 


 
----------------------------------------------------------------------------
                Location             Hole                                   
             East/ North            Depth    From      To                   
Hole           UTM:WGS84  Az / Dip    (m)     (m)     (m) % Ni % Cu   Target
----------------------------------------------------------------------------
              451424mE /                                                    
NAD13-369      8883408mN  90 / -60  400.2  211.00  211.50 0.36 0.10   P Zone
--
--------------------------------------------------------------------------
                                           211.50  212.15 0.25 0.08         
----------------------------------------------------------------------------
                                           212.15  213.30 0.55 0.10         
----------------------------------------------------------------------------
                                           213.30  214.55 0.26 0.10         
----------------------------------------------------------------------------
                                           214.55  214.80 1.70 0.87         
----------------------------------------------------------------------------
                                           214.80  216.00 0.34 0.12         
----------------------------------------------------------------------------
                                           216.00  217.00 1.10 0.23         
----------------------------------------------------------------------------
                                           217.00  218.00 0.46 0.14         
----------------------------------------------------------------------------
                                           218.00  219.05 0.40 0.11         
----------------------------------------------------------------------------
                                           219.05  220.35 0.28 0.08         
----------------------------------------------------------------------------
                                           220.35  221.00 0.67 0.31         
----------------------------------------------------------------------------
                                           221.00  222.40 0.68 0.12         
----------------------------------------------------------------------------
          451095.832mE /                                            Sleeping
NAD13-372  8883000.082mN 100 / -65  520.7   31.00   32.00 0.45 0.08    Giant
----------------------------------------------------------------------------
                      
                      32.00   33.00 0.92 0.16         
----------------------------------------------------------------------------
                                            33.00   34.00 0.66 0.11         
----------------------------------------------------------------------------
                                           148.10  149.00 0.59 0.11         
----------------------------------------------------------------------------
                                           149.00  150.00 0.70 0.14         
----------------------------------------------------------------------------
                                           150.00  151.00 0.38 0.19         
----------------------------------------------------------------------------
                                           151.00  152.00 0.46 0.11         
----------------------------------------------------------------------------
                                           152.00  153.00 0.42 0.11         
----------------------------------------------------------------------------
                                           354.60  355.80 4.38 0.32         
----------------------------------------------------------------------------
                                           357.90  358.60 2.86 0.36         
----------------------------------------------------------------------------
                                           358.60  360.00 4.57 0.81         
----------------------------------------------------------------------------
                                           360.00  361.00 4.02 0.95         
----------------------------------------------------------------------------
                                           361.00  362.00 4.49 0.90         
----------------------------------------------------------------------------
                                           362.00  362.95 6.70 0.57         
----------------------------------------------------------------------------
                                           362.95  364.00 0.65 0.07         
----------------------------------------------------------------------------
                                           364.00  365.25 4.49 0.57         
----------------------------------------------------------------------------
                                           365.25  366.00 4.74 1.36         
----------------------------------------------------------------------------
                                           366.00  367.00 2.72 0.55         
----------------------------------------------------------------------------
                                           367.00  368.00 2.15 0.42         
----------------------------------------------------------------------------
                                           368.00  369.00 3.27 0.49         
----------------------------------------------------------------------------
                                           369.00  370.00 2.95 0.57         
----------------------------------------------------------------------------
                                           370.00  371.55 1.92 0.55         
----------------------------------------------------------------------------
                                           400.00  401.00 0.88 0.22         
----------------------------------------------------------------------------
                                           401.00  402.00 1.39 0.50         
----------------------------------------------------------------------------
                                           402.00  403.00 1.18 0.50         
----------------------------------------------------------------------------
                                           403.00  404.00 1.68 0.73         
----------------------------------------------------------------------------
                                           404.00  405.00 1.43 0.42         
----------------------------------------------------------------------------
                                           405.00  406.00 0.55 0.13         
----------------------------------------------------------------------------
              451358mE /                                                    
NAD13-375      8883386mN  90 / -60  443.8  264.00  266.00 1.10 0.30   P Zone
----------------------------------------------------------------------------
                                           269.00  272.40 1.20 0.40         
----------------------------------------------------------------------------
              451427mE /                                                    
NAD13-376     88835001mN  90 / -60  266.7  183.00  186.00 0.40 0.10   P Zone
----------------------------------------------------------------------------
              451323mE /                                                    
NAD13-377      8883408mN  90 / -60  377.8  223.00  240.00 0.40 0.10   P Zone
----------------------------------------------------------------------------

 
About IMX  
IMX Resources Limited is an Australian-based mining and exploration
company, listed on the Australian Securities Exchange ('ASX') and
Toronto Stock Exchange, with projects located in Australia and East
Africa.  
In Australia, IMX operates and owns 51% of the Cairn Hill Mining
Operation, located 55km 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. This operation generates cash flow
which underpins the IMX investment proposition.  
IMX is also actively exploring for direct shipping hematite at its Mt
Woods tenements, located near the Cairn Hill Mining Operation, and
progressing development options for its Mt Woods Magnetite Project.
Studies indicate that a smaller scale, lower cost project may be
economically developed utilising existing infrastructure already in
use at the Cairn Hill Mining Operation. Efforts to secure a partner
to support development of the Mt Woods Magnetite Project are
continuing.  
In Africa, IMX owns the highly prospective
 Ntaka Hill Nickel Sulphide
Project, located within the broader 7,000km2 Nachingwea Exploration
Project in south-eastern Tanzania which is prospective for nickel and
copper sulphide, gold and graphite mineralization. Ntaka Hill is a
potentially world-class nickel sulphide project which is being
explored under a US$60 million exploration joint venture with MMG
Exploration Holdings Limited.  
Visit: www.imxresources.com.au  
Competent Persons / Qualified Persons  
Information relating to quality control and technical information on
exploration results at the Ntaka Hill Nickel Sulphide Project has
been prepared under the supervision of Mr Mathew Perrot in his
capacity as Senior Exploration Geologist for IMX. Mr Perrot is a
registered member of the Australian Institute of Geoscientists and
has sufficient relevant experience to qualify as a Competent Person
under the 2012 Edition of the Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves ('JORC 2012')
and as a qualified person under Canadian National Instrument 43-101
('NI 43-101'). Mr Perrot has verified the data underlying the
information contained in this announcement and approves and consents
to the inclusion of the data in the form and context in which it
appears.  
Information relating to the Global Exploration Target of between
900Mt-1,200Mt @ 18-32% Fe on the Mt Woods Magnetite Project is based
on data compiled by Mr Peter Hill who is a Member of the Australian
Institute of Geoscientists, and who is a full-time employee of the
Company. Mr Hill 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.
Mr Hill approves and consents to the inclusion of the data in the
form and context in which it appeared.  
Information relating to Australian exploration results is based on
data compiled by Mr Peter Hill who is a Member of the Australian
Institute of Geoscientists, and who is a full-time employee of the
Company. Mr Hill has sufficient relevant experience to qualify as a
Competent Person under the 2004 JORC Code and as a Qualified Person
for the purpose of NI 43-101. Mr Hill approves and consents to the
inclusion of the data in the form and context in which it appears.  
Cautionary statement: The TSX does not accept responsibility for the
adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.  
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 inc
luded in this
release are forward-looking statements or constitute forward-looking
information. There can be no assurance that such information or
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 grade estimates are conceptual in nature
only. These figures are not resource estimates as defined by the 2004
JORC Code 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. 
(1) All Dollars in this report are Australian Dollars unless
otherwise stated. 
(2) ASX Announcement 1 November 2013 
(3) ASX Announcement 10 December 2013 
Contacts:
IMX Resources Limited
John Nitschke
Acting Managing Director
+61 8 9388 7877
jnitschke@imxres.com.au 
IMX Resources Limited
Phil Hoskins
Chief Financial Officer
+61 8 9388 7877
phoskins@imxres.com.au
www.imxresources.com.au 
Read Corporate
Paul Armstrong/Nicholas Read
Media
+61 8 9388 1474
info@readcorporate.com.au
 
 
Press spacebar to pause and continue. Press esc to stop.