as a reminder

Below is an exert from a November 2006 Bulletin article regarding IMA which may give you an idea what may happen very soon.

Before you read the exert, remember that DRX has already encountered:

* Average estimated grade 4.5pc heavy minerals averaging five metres thick, with thickest at 20 metres (1pc estimated heavy minerals (EHM) cutoff);

* Highest grade 40pc estimated heavy minerals; yep 40pc, and

* 18 drill holes (drillholes WL030-WL 50) intersected above 1pc estimated heavy minerals.

At the Cyclone prospect, a close spaced (100 metre) drill traverse has encountered high grade zircon rich HM mineralisation over a distance of 2.3 kilometres.

Reconnaissance drilling was conducted at the Hurricane prospect, within the northern area of Wanna Lake prospect. Assays are due very very soon.

The drilling is very wide spaced (10 kilometres between drill lines).

The HM grain sizes are in the 100 to 150 micron range, and the mineralisation is shallow, being 12 metres depth below the surface...and now we have lodged applications for 11 exploration licences in the Eucla Basin, within Western Australia, covering an area of 6600 square kilometres...plus today another lot.

Here is the exert and get excited:

"A takeover is in the air as an explorer turns up tempting drilling results north of Perth.

Our favourite heavy minerals prospector, Image Resources, shot to a year’s high of 83¢ a share last week after reporting spectacular intersections from a continuing drilling program north of Perth.

Readers who followed us into Image (B, Jan 17) at an initial 37¢ should be well satisfied. While I may sell a few at any time to reduce debt, the main rationale for buying into Image remains. It will become an increasingly attractive takeover target for its much larger heavy mineral mining neighbours, the unlisted Ticor and Iluka Resources.

A possible clue to such an adventure may be the appearance on Image’s share register in mid-September of UBS Nominees as a substantial shareholder with 5.06 million shares or 6.85%. Nominee companies are used to mask the identity of the real owners.

Image would be a mere snack for one of the heavy minerals (HM) majors. Iluka, for example, carries a market capitalisation of $1.7bn, dwarfing the size of Image which, at 80¢, is valued at just $50.6m.

The share price began to firm last Wednesday after the company announced a string of assays from infill drilling of the southern two kilometres of a 3km long north-south trending strandline at its Cooljarloo project in the north Perth basin. Holes were drilled 20m apart along lines spaced 200m apart.

Earlier work identified three strandlines with a combined inferred resource of 80 million tonnes grading 3% HM. These include zircon and the ores of titanium metal, rutile and ilmenite.

The first results last week detailed 30 holes with near-surface mineralisation, including 6m of 10.4% HM, 4m of 15.8% and 8m of 19%, all from surface. There was also 4m of 26% from a depth of 2m. Two days later, the company released more broad intersections from channel sediments below the main strandlines, including 40m of 4.4% HM from a depth of 18m and 22m of 6.1% from the same depth.

Investors went berserk. From a previous week’s turnover of just 421,651 shares and a closing price of 57¢, Image turned over 1.73 million shares last Thursday in the hours after the last announcement. They rose to a high of 73¢ in the process. Before lunch last Friday, another million-plus shares traded at up to 83¢ each. Image now holds 520sq km of ground in a region that produces 25% of the world’s zircon."

Remember the 40pc?

The general market has little idea about HMs. It will get another reminder soon.

But wait, there are more boxes ticked:

and...we only have 100m shares on issue with the top 20 owning 81% of all options (which expire in Oct and in the money). The directors have a tremendous direct and indirect interest in he company with Huntleys owning ord shares of just under 7%. I envisage farmouts as well in the future with their other projects and a change in substantial holding may well be imminent.

Judging by IMA's recent boardroom radio presentation regarding DRX, I feel there is a strong possibility that IMA would be very eager to gain DRX's corporate memory and data on Cyclone and Hurricane given that their Eucla land is adjacent/adjoining DRX.

Could we be witnessing a JV or MOU between both parties similar to ADN and ILU? A IMA Director bought $100,000 on market post DRX ann and DRX announced the IMA ann. Dots?

Notice the historical BHP notes.

http://www.iom3.org/materialsworld/feature...20of%20view.pdf

Think options, exercise date and cash. They expire on the 31/10/2007 at 25c....and now we have broker support too via Hogans an reportedly, Pattersons.

and remember this:

Article dated April 2006:

DIATREME Resources has been backed to the tune of $A2.1 million by unlisted Doral Mineral Industries, giving Doral an 8.86% stake in Diatreme, a move which could possibly be a pre-cursor to a takeover, according to Diatreme managing director Tony Fawdon.

Fawdon told MiningNews.net Doral's move onto the Diatreme register, making it the largest individual shareholder in the company, could lead to a takeover offer contingent on Diatreme having success at its zircon-mineral sands project in the Eucla Basin on the Western Australia-South Australia border.

"It's not our plan to get taken over … but if we start to become successful in the Eucla basin then yes, probably there will be overtures," Fawdon said.

"Well, there have already been overtures from major sand miners (and) many of them, not just one, so our position I would say, unless we can fend those off, we'll probably become takeover material."

Fawdon also said the spin-off of Diatreme's gold and copper assets could also take place in the future, with the company probably retaining a controlling stake.

Doral's parent company, Japan's Iwatani, is one of the biggest traders of zircon and mineral sands in China and Japan.

Fawdon said the group has expertise in engineering, chemical processing and downstream activities but had no exploration exposure, making Diatreme a good fit.
He said Doral experience would be employed once Diatreme established a resource in the Eucla Basin and he was looking at starting feasibility studies, possibly within the next two years.

Fawdon said Diatreme would also likely provide support when it comes to raising future capital.

"The (planned drill) program is going to cost us about $A2 million in the Eucla Basin alone … and after we spent about two years or $A4-5 million, then we would expect to be in a position where we expect to have some sort of resource," Fawdon said.

Diatreme has 40,000m of drilling planned for the Eucla Basin tenements this year, providing it can establish agreements with native title holders on both sides of the WA-SA border. Fawdon said negotiations are well underway and he hoped the company could start drilling in the second half of the year.

Meanwhile as part of the deal, Doral director George White will join Diatreme as a non-executive director. White has more than 30 years experience in the mineral sands industry.

Shares in Diatreme were off 0.5c (1.4%) at 34.5c in midday trade.

http://www.miningnews.net/storyview.asp?st...hlight=diatreme

Here is another one:

Jan 2007:

Diatreme handballs projects to Xtreme

Thursday, 4 January 2007
Rebecca Lawson

DIVERSIFIED explorer Diatreme Resources has begun the process of transferring 13 of its gold tenements into a separate, wholly-owned subsidiary, which is expected to list some time this year.

Speaking to MiningNews.net today, Diatreme executive chairman Anthony Fawdon said the tenements – principally gold projects with other commodities in them – will be transferred to new company Xtreme Resources.

Fawdon said Xtreme will list this year, with most of the prospectus already been written, but so far a decision on where to list has not been decided.
On listing, Diatreme will maintain a controlling interest in Xtreme.

The new company's projects include Nymbool and Georgetown Inlier, and Diatreme will also assign interests in the Tick Hill gold project to Xtreme by way of deed of assignment. All the projects are in Queensland.

Fawdon said Xtreme's board will largely remain the same as its parent company, however Neil Stewart will be managing director and new recruit John Stacpoole will take the role of exploration manager.

Diatreme said Stacpoole has broad-based exploration and mining experience and has worked for a number of companies including Zinifex, Bemax and Consolidated Minerals.

Fawdon said Diatreme's main focus will be on exploring for zircon in the Eucla Basin that straddles Western Australia and South Australia.

The news of the transfer had a positive effect on Diatreme's shares, which gained 3.5c (10%) to close at 38.5c today.

http://www.miningnews.net/storyview.asp?st...hlight=diatreme