Mineral and metal explorer Diatreme Resources Ltd (ASX: DRX) announced on Wednesday that it has entered into a joint partnership with fellow Aussie miner Image Resources NL (ASX: IMA) following the agreement that the company sealed last month with a Chinese firm to develop the Cyclone and Cyclone Extended heavy mineral sand deposit in Western Australia.

Diatreme and Image jointly announced the signing of the memorandum of understanding (MoU) on the same day, that would initiate joint efforts in developing the Cyclone tenements in the Eucla Basin, which are potentially rich in zircon that are being used in the production of ceramic tiles.

In its released statement, Diatreme said that both companies have agreed to cooperate that could eventually lead into a joint venture agreement that would develop and operate the two contiguous deposit sites.

The Queensland-based company added that the MoU should pave the way for advancing the twin assets into feasibility status and their eventual production stage, stressing that "such cooperation may include collective negotiations with third parties who may wish to enter into an agreement or arrangement to invest in or purchase the assets."

Diatreme was clearly alluding to the agreement it earlier forged with Chinese firm BaoTi Group Ltd, reputed as China's largest manufacturing company, allowing the foreign company to hold a stake in the company and play an active role in developing the Cyclone projects.

Reports said that the BaoTi Group is currently controlling up to 80 percent share of China's zircon and titanium fabrication market.

As of 1240 AEST on Wednesday, both Diatreme and Image shares moved up in the market as Diatreme stocks inched up by 0.8 cents or 10.67 percent to trade at 8.3 cents while Image securities surged by 4.5 cents or 11.25 percent to trade at 44.5 cents.