IMX Resources (ASX: IXR) and joint venture partner Continental Nickel (TSXV: CNI) are further enhancing the regional prospectivity of the Nachingwea Nickel-Copper Project in southeast Tanzania with the identification of 25 new high priority anomalies in a recently completed airborne magnetic and VTEM survey.
Of potential significance is the identification of a high amplitude late time electromagnetic anomaly coincident with the Hog gold prospect, where surface gossan sampling returned values of up to 4.96 grams per tonne (g/t) gold and 0.64% copper.
Several other VTEM anomalies are also confirmed as having coincident copper and/or nickel in soil anomalies.
Patricia Tirschmann, vice president exploration, commented: “We are pleased to have completed another successful regional VTEM survey and are very encouraged by the number of high quality targets generated.
“The identification of an EM anomaly coincident with the Hog gold prospect further enhances the exploration potential of this target and we look forward to drill testing it and other high priority targets beginning in September.”
Drill program
Continental Nickel plans to carry out 1,500 to 2,000 metres of reverse circulation drilling to test selected high priority regional VTEM and geochemical anomalies, including the Hog gold prospect.
This drilling is currently expected to begin in mid-September.
Nachingwea JV ownership structure
IMX’s interest in Nachingwea is held through a direct 25% interest in the Tanzanian joint venture company, Ngwena Limited, and indirectly through a 37.2% interest in Continental nickel.
The partners are moving closer to a merger under the previously announced plan for IMX to acquire all of the shares in Continental that it does not already own.
Continental has been granted approval from the Ontario Superior Court of Justice in Canada to call a special meeting of shareholders to approve the proposed business consolidation of the two companies.
The plan is to bring all of IMX and Continental’s activities under one single entity to simplify the structure of the two companies and reduce the complexities associated with bringing the Nachingwea Project into production.
The consolidation of IMX and Continental will take the market capitalisation of IMX Resources to about A$100 million, up from $39 million at present.
The combined company will feature dual ASX and TSX listings, giving access to a broader investor base, and an attractive asset base and growth pipeline.
In addition, with a cash balance of more than $15 million coupled with ongoing operating cash flow from Cairn Hill, the company will have greater funding and development capabilities going forward.
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