We present simulation studies on the ability of a proposed portable radiation detecting instrument to reconstruct images of radioactive sources. The instrument is a stack of ten CdTe layers placed 2 cm apart, consisting of 10000 pixels in a two-dimensional arrangement, occupying an area of 4cmx4cm. The image reconstruction is performed using LM-MELM, an imaging algorithm based on the Compton imaging technique. Point-like radioactive sources emitting gamma-rays in a broad energy range, located at various distances and orientations with respect to the detectors symmetry axis have been simulated in order to estimate the ability of the instrument to reconstruct the source images. Results on the reconstructed image resolution are presented.