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IMX Resources Extends High Grade Nickel Sulphide Mineralisation In Tanzania

IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) has made a significant discovery along the Ntaka - Lionja ultramafic trend in Tanzania, which extends 8 kilometres south from the Ntaka Hill Nickel Sulphide Project.

The company has intersected new high grade and disseminated nickel sulphide mineralisation from diamond drilling comprising four holes for 1050 metres, with highlights including:

- 1.07% nickel at 0.10% copper over 5.0 metres, including 0.60 metres at 7.1% nickel at 0.44% copper;
- 0.67% nickel at 0.12% copper over 8.4 metres, including 0.45 metres at 3.52% nickel at 0.60% copper; and
- 0.51% nickel at 0.12% copper over 8.8 metres.

Importantly for IMX - all holes intersected wide intervals of disseminated nickel sulphide mineralisation which exhibit high nickel tenors similar to the Ntaka Hill sulphide zones.

In addition, high grade nickel sulphides were intersected in two holes with a best nickel grade of 7.1% nickel and 0.44% copper over 0.6 metres, within a wider 5 metre zone grading 1.07% nickel and 0.1% copper from 210 metres.

As with the Ntaka Hill intrusion, the Lionja high grade lens occurs within a wider disseminated nickel sulphide halo.

The impact from the drilling is that it has extended the nickel mineralisation in the Lionja ultramafic intrusion 400 metres to the west from previous drilling and indicates an area of potential nickel mineralisation over a 500 metre by 600 metre area.

Drilling targeted extensions to the Lionja intrusion where previous drilling delivered up to 2.25 metres at 2.03% nickel and 0.41% copper.

Neil Meadows, managing director, commented: "These latest results are great news for the company. To date, our exploration activities have been largely focussed on the high-grade zones at Ntaka Hill.

"The Lionja intrusion at the southern end of the 8km Ntaka-Lionja stratigraphic package represents the second mineralised ultramafic intrusion in the project and has the potential to host significant nickel mineralisation of a similar style and tenor to Ntaka Hill.

"This may have major implications for the growth of resources as well as the size and scale of the future development of our Ntaka Hill Nickel Sulphide Project."

Potential for wider intervals and higher grade

The Lionja nickel mineralisation appears to be present over a significant strike and dip extent with new drilling showing potential for wider intervals and higher grade to the south.

A large portion of the mineralisation remains open and untested with further drilling required in order to define potentially economic zones of mineralisation closer to surface.

Two nickel-copper soil anomalies were also tested by two diamond drill holes totaling 229.4 metres with no significant results reported.

Analysis

The significance of the drilling results from Lionja is that comparisons have already been made to Ntaka Hill - which is located just eight kilometres to the north.

As with the Ntaka Hill intrusion, the Lionja high grade lens occurs within a wider disseminated nickel sulphide halo.

To put this into perspective, Ntaka Hill is one of the world's best un-developed nickel sulphide projects and has the potential to produce a very clean, high quality premium nickel concentrate.

Add to this positive results from the updated preliminary economic assessment on the Ntaka Hill Nickel Sulphide Project which indicated robust returns with low C1 operating costs of US$5/lb of payable nickel over a 15 year mine life.

Now what is so important about Lionja is that it is showing the early signs of being able to add size and scale to the future development of Ntaka Hill - which if achieved has the potential to provide a further boost to the project's economics.

Another plus for Lionja is that nickel mineralisation appears to be present over a significant strike and dip extent with new drilling showing potential for wider intervals and higher grade to the south.

IMX is well-funded with $19.2 million in cash at the end of October 2012.