Nexus Minerals (ASX:NXM) has rationalised its Katamatoma project in Tanzania to target a smaller area that holds prospectivity for base metals exploration and will also reduce holding costs.
The project is considered to be prospective for principally copper, cobalt, and nickel and following further analysis of aeromagnetic data and preliminary results from ASTER multispectral target generation, Nexus will reduce the project size to 247 square kilometres in a more prospective area in the northeast sector of the tenement with an area of 1,122 square kilometres.
Nexus believes that this region warrants priority based on its higher relative prospectivity, ease of approvals process and access to existing highways, roads and tracks.
The area of focus has also generated a number of coincident geophysical and mineralogical targets that can be efficiently tested through surface mapping and geochemical sampling.
This reduction in size of the project will also help Nexus reduce its holding costs at a prime greenfield exploration site in Tanzania while also maintaining the projects potential exploration upside.
Due to the relatively high holding costs associated with the sheer size of the original Katamatoma Project area, relatively lower prospectivity and the complex approval processes associated with exploration in game reserves, Nexus will likely divest or joint venture the balance of the original Katamatoma Project tenement area over the coming months.
Nexus will conduct field activities in the new focus area in February 2013 and will generate samples for geochemical analysis after which drilling programs and further tenement rationalisation can be planned and effected.
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