Resources 

Monday, June 02, 2014 

Nickel miner starts Tanzania drilling

MWANZA, Tanzania - Global resources company, MMG Exploration Holding Limited (MMG) has started a major nickel sulphide drilling program at Ntaka Hill, Southern Tanzania.

This is under its $60 million Nachingwea joint venture with IMX Resources. Last year, IMX agreed to $60 million JV with MMG at Nachingwea in an accelerated pursuit of high-grade mineralization.

It marks the culmination of a $50million exploration effort over 8 years which has identified a potentially world-scale nickel sulphide province in Tanzania.

According to IMX Resources Limited Managing Director, Gary Sutherland (May, 16) under the program, drilling will test a host of extensive, green-fields and advanced nickel sulphide targets identified during MMG’s recent soil sampling and geophysics programs.

Sutherland said: “The substantial new investment reflects the JV partners’ strong belief that Ntaka Hill could become a world-class nickel sulphide province.”

MMG will drill a series of new targets with the potential to delineate high-grade nickel sulphide mineralisation. 

These targets were identified following a comprehensive program completed by MMG over the past seven months, which has resulted in important breakthroughs in the exploration approach at Nachingwea. 

Sutherland said the current program is scheduled to continue until late August, 2014 and will comprise over 23,000m of drilling including 14,775m of diamond drilling and 8,700m of RC drilling at Ntaka Hill, Lionja and regional targets across the broader Nachingwea Property. 

The first results are expected to flow through early next quarter.

The Ntaka Hill Nickel Sulphide Project is situated on IMX’s Nachingwea Property in south-eastern Tanzania. 

Under the JV, MMG can earn up to 60% of the Nachingwea Property by spending $60 million on exploration and related activities over a five- year period. 

The current drilling program is part of the first stage of the agreement, under which MMG will earn a 15 per cent stake by spending $10 million by September this year.

Sutherland said MMG was looking for major high-grade nickel sulphide deposits which, if successful, could be a game-changer for IMX Resources.

“We have been very encouraged by the results previously generated at Ntaka Hill and by the strong belief which a company of MMG’s calibre has in this project,” Mr Sutherland said.

“MMG is committing significant expertise and financial resources to its goal of identifying world-class nickel sulphide deposits at Ntaka Hill, maximising our prospects of success,” Sutherland said.

“This comes at a time of renewed investor interest in nickel exploration, with the nickel price already up nearly 40% this year,” he added.

IMX Resources Limited is an Australian-based mining and exploration company, listed on the Australian Securities Exchange and Toronto Stock Exchange (‘TSX’), with projects located in Australia and East Africa.

In Africa, IMX owns the highly prospective Ntaka Hill Nickel Sulphide Project, located within the Nachingwea Exploration Property in south-eastern Tanzania which is prospective for nickel and copper sulphide, gold and graphite mineralization. 

By Andrew Zablon, Monday, June 02nd, 2014