IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) has once again intersected broad zones of nickel copper at the Ntaka Hill Nickel Sulphide Project in Tanzania, which importantly are near surface and therefore potentially amenable to open-pit mining.
The "Zeppelin" nickel sulphide deposit has been identified with current strike extent of around 450 metres, with mineralisation in fourteen drill holes delivering:
Mineralisation intersected in fourteen drill holes including:
- 37 metres at 0.71% nickel and 0.15% copper from 129 metres, including 8 metres at 1.13% nickel and 6 metres at 1.65% nickel;
- 26.7 metres at 0.77% nickel and 0.15% copper from 93 metres, including 2.1 metres at 2.8% nickel;
- 30.1 metres at 0.69% nickel and 0.16% copper from 123 metres, including 2.1 metres at 1.87% nickel; and
- 60 metres at 0.46% nickel and 0.11% copper from 39 metres, including 5 metres at 1.01% nickel.
The 2012 drilling program at Zeppelin consisted of nineteen diamond drill holes totaling 3283 metres and tested a target generated by re-examination of previous drill hole results and information obtained from earlier soil sampling.
Neil Meadows, managing director, commented: "We are excited by the results of the Zeppelin drilling which further confirm the existence of additional mineralisation in close proximity to Ntaka Hill.
IMX Resources has also delivered a significant increase in the Exploration Target to have a potential quantity and grade of approximately 9.0Mt to 11.0Mt at 0.4% to 0.7% nickel, in light of encouraging metallurgical testwork results from nearby mineralisation.
This mineralisation appears to be similar to that present at Zeppelin, allowing the increase in the Exploration Target from 3.5Mt to 4.0Mt at 0.6% nickel to 0.7% nickel.
Meadows added, "First up success from the application of a multi-layered approach to target generation at Ntaka Hill is extremely encouraging and as a result of this success we are now even more confident that there is additional mineralisation to be found in close proximity to the current known Resources at Ntaka Hill."
2013 exploration program
IMX Resources has also planned that the 2013 exploration program will introduce the most appropriate electro-magnetic and induced polarization technology to enable the company to better target the near-surface, higher grade mineralisation evident in these intersections.
The company will also focus on soil geochemistry results together with the results from gravity survey work and other historical data available from previous exploration, a multi-layered approach not used before at Ntaka Hill.
This will then deliver models which will assist in identifying mineralisation within the areas between Ntaka Hill and Lionja.
At present the mineralisation is not closed off and the 2013 field season will focus on extending the strike extents of the mineralised zones north and south of the drilling completed to date.
Upgraded mineral resource
Results from exploration work carried out at the Zeppelin deposit will be incorporated into an upgraded Mineral Resource estimate for Ntaka Hill, which the company expects to complete during the June quarter 2013.
While the company anticipates that the Zeppelin deposit may be amenable to open pit mining, completion of an upgraded resource will allow for an assessment of this potential.
Zeppelin near the Sleeping Giant resource
the Zeppelin deposit is only around one kilometre from the Sleeping Giant resource and other areas of known mineralisation on the Ntaka Hill Project area.
IMX Resources has already delineated a Measured and Indicated Mineral Resource of 12.79 million tonnes at 1.21% nickel for 154,700 tonnes of contained nickel, together with an Inferred Mineral Resource of 45.0 million tonnes at 0.30% nickel for 135,000 tonnes of contained nickel.
The valuation metrics for IMX Resources are compelling, with the company having $7 million cash with a market cap. of $48 million.
IMX Resources is well-funded with the existing cash (.A$7 million excluding Taifeng's share of JV cash), and in addition the Mt Woods / Oz Minerals transaction (A$5 million receivable on completion).
There are also distributions from the Cairn Hill Joint Venture - which are around A$25 million in CY2013 assuming current spot prices (early February 2013) being IMX's 51% share.
The company also holds a stake in Uranex Limited (ASX: UNX) which is valued at over $4 million.
These assets are all in addition to Ntaka Hill, which has the potential to be a world-class sulphide project, which is also due for a resource upgrade in the June quarter 2013.
The major shareholder in IMX Resources is Sichuan Taifeng Group with a 13.1% stake.