The Nachingwea Exploration Project is located in south-east Tanzania and covers an area of approximately 7,000 square kilometres. It includes the Ntaka Hill Nickel Sulphide Project and regional exploration across the broader land package.
In September 2013, the Company entered into an earn-in and joint venture agreement with MMG under which MMG may earn up to a 60% Joint Venture interest in the Nachingwea Exploration Project by sole funding expenditure of up to US$60 million over a five year period structured with 3 stages. Under the terms of the agreement, MMG acts as manager of the Joint Venture.
MMG is targeting a resource in the order of 27 million tonnes at 1.5% Ni for 400,000 tonnes of contained nickel.
Ntaka Hill Nickel Sulphide ProjectThe Ntaka Hill Nickel Sulphide Project is located in the north-east area of the Nachingwea Exploration Project and has been the focus of IMX’s exploration activity. IMX’s exploration work at Ntaka Hill has targeted resource definition in support of near-surface, open pit mining opportunities that has resulted in the discovery of a number of mineralised zones, two of which – Sleeping Giant and Zeppelin – comprise the Ntaka Hill global mineral resource of:
• Measured and Indicated Resources of 20.32 million tonnes at 0.58% Ni & 0.13% Cu for 117,880 tonnes of contained Ni; and
• Inferred Resource of 35.93 million tonnes at 0.66% Ni and 0.14% Cu for 238,500 tonnes of contained Ni.
Significant high-grade intersections of mineralisation have been made at Ntaka Hill and the focus of exploration under the Joint Venture with MMG is on high-grade mafic intrusive style nickel mineralisation within southerly plunging conduits or tubular bodies known as chonoliths.
The decision to target high-grade mineralisation at depth was further supported by the recent intersection of 3.46% Ni and 0.62% Cu from 357.9 metres.
The Joint Venture with MMG has brought material technical and financial resources to bear, that will enable IMX to gain an understanding of the significance of these intersections and the potential for further high-grade discoveries at Ntaka Hill.
Diamond drilling will be the primary exploration tool, the majority of which is expected to be greater than 300m in depth and will be guided by ground Controlled Source Audio-frequency Magnetotellurics (CSAMT), ground Electro Magnetic (EM) and Induced Polarisation surveys, down hole EM, cross hole tomography, and seismic surveys covering the southern plunge extent of Ntaka Hill.
MMG also plans to target the Ntaka-Lionja Corridor, an area of approximately 60 square kilometres that extends from the southern edge of Ntaka Hill, southward to the Lionja ultramafic body, where drilling will be guided by the same techniques being applied at Ntaka Hill specifically. The Ntaka Hill Nickel Sulphide Project is favourably located in close proximity to road and power infrastructure, with access to a deep water port at Mtwara.
A Scoping Study completed in November 2012 demonstrated the potential for project development at long-term nickel prices. Notwithstanding the findings of the Scoping Study, IMX is currently focused on supporting the Joint Venture with MMG in its high-grade exploration effort.
Regional explorationIMX’s regional ground position, outside of the Ntaka Hill Nickel Sulphide Project, comprises 82 tenements over approximately 6,000 square kilometres. This is a strategically significant ground package providing an outstanding exploration opportunity in a relatively unexplored region. While the focus of activity has been on the Ntaka Hill Nickel Sulphide Project, some regional work has been carried out, including a 2,409 kilometre airborne geophysical survey which identified 25 electromagnetic anomalies. Selective regional drilling has been conducted, the results of which have included:• The intersection of copper sulphide mineralisation over a 1km strike length at the Chilalo prospect, located 23km north-east of Ntaka Hill; and • The discovery of a new gold target at the Hog gossan, located 20km north-east of Ntaka Hill, where grab sampling has returned up to 4.96g/t Au and subsequent reverse circulation drilling intersected up to 2.71 g/t Au and multiple intersections of anomalous base metals.
MMG’s regional exploration work is expected to include identification of priority targets for follow-up work which will involve supplementing existing geophysical datasets with additional geophysical work, along with radiometrics, soil geochemistry, and airborne EM, which will form the foundation of a comprehensive regional targeting program. Prioritized drill targets will then be systematically tested.
5. ASX news release 19 August 20136. ASX news release 28 March 20127. ASX news releases 28 May 2012 and 15 November 2012
47 Tynte Street,North Adelaide SA 5006 Australia T: +61 8 8311 1110 F: +61 8 9382 2399