IMX Resources (ASX: IXR) and joint venture partner Continental Nickel (TSX-V: CNI) are closing in on a resource upgrade at the Ntaka Hill Project in Tanzania after intersecting new nickel mineralisation and receiving final assays from a 2011 exploration program.
The joint venture has intersected new nickel mineralisation of 20 metres at 0.52% nickel and 0.11% copper at a new exploration target 350 metres east of H Zone.
Meanwhile, final assays have been received for 12 additional drill holes completed at the Sleeping Giant Zone in 2011.
Best intersections were 20.4 metres at 1.11% nickel and 0.25% copper from 174 metres, including 7.4 metres at 2.52% nickel and 0.54% copper from 187 metres.
Additional disseminated nickel sulphide mineralisation of between 0.2% and 0.6% nickel was also intersected in the hanging wall of the Sleeping Giant Zone within the April 2011 Resource estimate pit shell.
Continental Nickel president and chief executive officer David Massola said the joint venture partners are now able to move towards delivering an upgraded Resource for the Ntaka Hill Project.
“The potential new mineralised zone to the east of H zone is a result of evolving exploration concepts following the discovery of the Sleeping Giant Zone and we look forward to continuing the drill testing of this area in 2012,” he said.
The new drilling results will be included in the Ntaka Hill and Sleeping Giant Resource update that is expected to be released in early March.
The joint venture completed 12,981 metres of diamond drilling in 42 holes late last year to expand the current resource of the Sleeping Giant Zone and to test selected other targets within the Ntaka intrusion.
In December IMX and Continental Nickel extended the Sleeping Giant Zone 150 metres down plunge to the south after intersecting 53 metres at 0.52% nickel and 0.13% copper from 488 metres, including 13 metres at 1.04% nickel and 0.27% copper.
An additional 500.5 metres of diamond drilling in five drill holes was completed on the Chilalo regional exploration licence to test selected geochemical and geophysical targets.
This drilling was terminated earlier than expected due to heavy rains that restricted road access and will be completed as part of the 2012 regional exploration program.
Assays for the five completed holes are expected to be reported later in March.
Ntaka Hill is part of the Nachingwea Project in southern Tanzania. IMX has a 25% interest in the joint venture and Canadian company Continental Nickel holds a 75% interest.
The two companies are working towards gaining Tanzanian Government approval for the Ntaka Hill nickel-copper project with the submission of an Environmental Scoping Study earlier this week.
The joint venture is aiming to bring Ntaka Hill into production by mid-2015.