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IMX Resources' Sleeping Giant Awakens With 16.3% Nickel Discovery

IMX Resources (ASX: IXR, TSX: IXR, TSX: IXR.WT) has uncovered high grade massive sulphide intervals of up to 16.3% nickel within wide intersections of disseminated mineralisation at its Ntaka Hill Project in Tanzania.

During 2012, 65 infill diamond drill holes totalling 16,692 metres were completed over the northern half of Sleeping Giant.

Results from 26 holes totalling about 7,891 metres have been received and include best intercepts of:

- 50 metres at 1.1% nickel and 0.22% copper from 340 metres, including 11.45 metres at 2.87% nickel and 0.52% copper and 1.25 metres at 16.3% nickel and 2.92% copper;
- 17 metres at 1.25% nickel and 0.21% copper from 303 metres;
- 50 metres at 0.57% nickel and 0.1% copper from 376 metres; and
- 33.7 metres at 0.61% nickel and 0.12% copper from 21.3 metres.

Neil Meadows, managing director of IMX Resources told Proactive Investors today the intercept of 1.25 metres at 16.3% is the highest grade uncovered at Ntaka Hill so far.

"The first hole that floated the company off was double the intersection length, it was 3 metres at 14%, but a metre and a quarter at 16% is the most significant number I've seen in the 12 months I've been in the company, and I think the most significant number we've seen at any point.

"It just proves that there is still high grade material there that hasn't been found that can't be found, or is unlikely to be found, with traditional methods that Continental Nickel have been using looking for conductors."

Additional wide near surface disseminated hanging wall mineralisation has also been intersected with best results of 101 metres at 0.4% nickel and 0.09% copper from 24 metres and 59 metres at 0.49% nickel and 0.11% copper from 169 metres.

Notable new footwall intersections returned were 23 metres at 1.35% nickel and 0.24% copper from 235 metres 18 metres at 1.17% nickel and 0.27% copper from 293 metres, including 11 metres at 1.71% nickel and 0.4% copper from 299 metres.

These results suggest that the Sleeping Giant and the L zone are linked and that high grade net-textured to semi-massive mineralisation has been found in the footwall at the western end of Sleeping Giant.

The drill results from this season's campaign have increased the understanding of the structure, stratigraphy and nature of the mineralisation at Sleeping Giant.

These new results will be integrated into a new resource model that IMX expects to announce during the first quarter of 2013.

Neil Meadows, managing director, commented: "We are very encouraged by the latest high grade results from the infill drilling which is continuing to demonstrate overall continuity of the Sleeping Giant mineralisation.

"We are confident that there are further zones of high grade mineralisation to be discovered at Ntaka Hill, utilising the new and improved exploration techniques that IMX's team has brought to the exploration effort."

Further assays from late season drilling are pending.

Debt free

IMX has fully repaid the Line of Credit with LinQ Resources Fund out of continued positive cash flows from the Cairn Hill Mining Operation in South Australia during the December 2012 quarter.

The facility was previously secured by Termite Resources in May and remains in place providing the joint venture with undrawn headroom of A$15 million until 30 May 2013.

The operation has been cash flow positive for all of 2012, with cash costs significantly reduced to $93 per tonne CIF ($77/t FOB).

Importantly, the subsequent cash flows to IMX from the Cairn Hill Joint Venture will be available to continue exploration at both the Ntaka Hill Nickel Sulphide project and the highly prospective Nachingwea exploration area.

Ntaka Hill

Ntaka currently hosts a Measured Resource of 1.66 million tonnes at 1.71% nickel and 0.29% copper for 28,400 tonnes of contained nickel, and an Indicated Resource of 11.12 million tonnes at 1.14% nickel and 0.25% copper for 126,300 tonnes of contained nickel.

It also hosts an Inferred Resource of 45.04 million tonnes at 0.3% nickel and 0.07% copper for 135,000 tonnes of contained nickel.

Drilling during 2012 targeted resource expansion within the highly prospective 7 kilometre Ntaka and Lionja ultramafic trend.

Exploration is focused primarily on near surface disseminated sulphide zones, which yield high recoveries and grade, as well as a clean NiS concentrate.

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