16 May
2008
NACHINGWEA NICKEL JV TO UNDERTAKE EXPANDED
2008 EXPLORATION PROGRAM
IMX Resources NL (ASX : IXR) is pleased to
advise that the Nachingwea Joint Venture will undertake an expanded Cdn$7
million 2008 exploration program to follow-up the exciting 2007 exploration
results at the Tanzanian nickel – copper project.
Joint Venture partner Continental
Nickel Limited (TSXV:CNI), in which IMX Resources has a substantial
shareholding of 47.6%, is the operator of the joint venture and is funding the
exploration.
The expanded exploration program will
commence next month. It will include diamond drilling (12,500 to 15,000
metres), a regional airborne magnetic and EM survey (5,000 line kilometres),
ground EM surveys, geological mapping and geochemical sampling. The work
program will focus on detailed drill testing in the Ntaka intrusion area to
evaluate the recently discovered mineralized zones for potential resources, and
allow for continued target testing aimed at identifying additional zones of
mineralization. Exploration activities will also be initiated to evaluate
and prioritise new target areas identified by the 2007 airborne VTEM survey for
drill testing in 2008.
Diamond drilling will commence
towards the end of June with first drill assay results are expected by
September. Approvals for the airborne survey are in progress with the
survey scheduled to begin in June.
In addition to the previously
drilled Ntaka intrusion (2006 and 2007 drilling programs) a further five conductive
targets were identified by the 1,150km2 airborne VTEM survey
conducted in late 2007. These new targets are all located within 25 kilometres
of the Ntaka intrusion.
Figure 1: 2007 VTEM survey with new
exploration targets
The full TSXV release by Continental
Nickel Limited is attached.
Nachingwea Holding
Structure
The IMX Resources
interests in the Nachingwea project are held indirectly through a 47.6%
interest in Continental Nickel, which holds a 70% interest in the Tanzanian JV
company, Ngwena Limited. Ngwena is the licence holder for the Nachingwea
tenements. IMX Resources also holds a 30% direct interest in the project
through a 30% interest in Ngwena.
IMX Resources 30%
interest is free carried up to the completion of a feasibility study or the
expenditure of Cdn$15m. Continental Nickel can earn an additional 5% on
completion of the feasibility study and a further 5% upon the expenditure of
Cdn$15m.
DUNCAN
MCBAIN
MANAGING
DIRECTOR
About IMX Resources NL
IMX Resources NL (ASX:IXR) –
is headquartered in Perth, Western Australia, is listed on the
Australian Stock Exchange (ASX) with a current market capitalisation of
approximately $100m.
IMX Resources is an active
diversified mining company with projects in South
Australia, Tasmania and Tanzania, East Africa,
focusing on a range of commodities including iron-ore, nickel, gold, copper,
platinum and uranium.
The company is disciplined in
following a careful strategy to maximise shareholder value by discovering and
developing ore bodies. IMX Resources achieves this by participating in
multiple, quality exploration projects in joint ventures with global mining
companies, and by listing spin-off companies, to ensure programs with high
potential are well-funded, while retaining a significant interest to provide
exposure for IMX Resources shareholders. In
2008 it is anticipated that IMX Resources
shareholders will have leverage to approximately
$17m of exploration, with IMX Resources contributing
around $1.5m.
IMX Resources 100%-owned project is
Cairn Hill, 55 kilometres south-east of Coober
Pedy, South Australia.
This unique magnetite Fe – Cu – Au project is close to the Darwin to Adelaide
railway line. Studies indicate the project is viable and will produce a premium
niche magnetite product that does not require pelletisation for use in the iron
and steel industry in addition to having a significant Cu revenue stream. IMX
Resources signed a three year offtake agreement with Jilin Tonghua Iron &
Steel Mining (Group) Co Ltd in December 2007, following which the Board
committed to proceed to project development project. On 17 April 2008 IMX
Resources subsidiary, Termite Resources, was granted a Mineral Lease (Mining
Lease) covering the Cairn Hill deposit.
In Tanzania, Lonmin Plc is earning
interest in IMX Resources Mibango platinum joint ventures. Lonmin
currently funds and operates the exploration at Mibango.
IMX Resources spun off 70% of the Nachingwea
Nickel - Copper project in Tanzania
into a Continental Nickel Limited (TSXV:CNI) in August 2007. IMX
Resources currently holds 47.3% of Continental Nickel and retains a
30% free carried interest in the Nachingwea Nickel - Copper project through a
joint venture company structure.
IMX Resources owns 39.5% of Uranex
(ASX:UNX), a spin-off company from IMX Resources, which listed on the ASX in
October 2005 and is dedicated uranium company with assets in Australia and Tanzania.
Visit: www.imxresources.com.au
Press
Release
Continental
Nickel updates exploration plans for the 2008 exploration program on the
Nachingwea nickel-copper project, Tanzania
Toronto, Ontario (May 15,
2008): Continental Nickel Limited (TSXV: CNI) is pleased to provide an
update on its expanded 2008 exploration program for its 70% owned Nachingwea
nickel-copper project in Tanzania, a 70:30 JV with IMX Resources NL
(“IMX”) of Australia.
Based on highly
encouraging exploration results from 2007 and our subsequent private placement
in January 2008, the Company is
moving forward with its proposed 2008 exploration program budgeted at C$7.0
million.
The expanded exploration
program will include diamond drilling (12,500 to 15,000 metres), a regional
airborne magnetic and EM survey (5,000 line kilometres), ground EM surveys,
geological mapping and geochemical sampling. The work program will focus
on detailed drill testing in the Ntaka intrusion area to evaluate the recently
discovered mineralized zones for potential resources and allow for continued
target testing aimed at discovering additional zones of mineralization.
Exploration activities will also be initiated to evaluate and prioritise new
targets areas identified by the 2007 airborne VTEM survey for drill testing in
2008.
Logistical preparations
to support the field program are well underway and field crews are being
mobilized in May. Two diamond drill rigs will mobilize to the site in
late June and first drill assay results are expected by September.
Approvals for the airborne survey are in progress with the survey scheduled to
begin in June. Exploration results will be released as received and
validated on an ongoing basis.
In 2007, CNI completed 53
drill holes totalling 10,547 metres to test priority twelve conductive targets
identified from a ground TDEM survey completed in the area of the Ntaka
intrusion. The drill program was highly successful, discovering six new
near surface nickel-copper magmatic sulphide zones. Highlights
(previously reported) included 7.50% nickel and 1.15% copper over 9.55 metres
at Zone H and 3.35% nickel and 0.46% copper over 21.0 metres at Zone J. A
subsequent 5971 line kilometre airborne magnetic and VTEM survey detected at
five new priority conductive target areas which display close magnetic,
electromagnetic and structural similarities to the mineralized Ntaka intrusion.
Craig MacDougall,
President & CEO of Continental Nickel Limited, reported “we are very
pleased to announce that the 2008 exploration program at Nachingwea is underway
and we look forward to what could be a very exciting year for Continental
Nickel and its shareholders. The program will initially evaluate the
resource potential of mineralized zones already discovered at the Ntaka
Intrusion. Regional exploration will also be conducted to evaluate a
number of high priority conductive target areas identified in the 2007 airborne
VTEM survey which we feel have outstanding discovery potential for additional
zones of magmatic nickel sulphides.”
The quality control,
technical information and all aspects of the exploration program were
supervised by Patricia Tirschmann, P.Geo., Vice President of Exploration for
CNI. Ms. Tirschmann is a qualified person as defined by National
Instrument 43-101.
About
Continental Nickel
Continental Nickel
Limited is an exploration company focused on the exploration and discovery of
nickel sulphide deposits in geologically prospective, but under explored
regions globally. Current projects include its 70% controlling interest
in the Nachingwea project in Tanzania,
and an option joint venture on the St Stephen project in New Brunswick, Canada.
Continental Nickel has 30,061,360 shares issued and outstanding (33,060,916 on
a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol
CNI.
On behalf of
Continental
Nickel Limited
“Craig
MacDougall”
President & Chief
Executive Officer
For
further information please contact:
Continental
Nickel Limited
Craig MacDougall, P. Geo.
President and CEO
Tel: (416) 364-7111
Fax: (416) 364-8114
E: info@continentalnickel.com
Web site: www.continentalnickel.com
CAUTIONARY
STATEMENT: The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the
information contained herein. This News Release includes certain
“forward-looking statements”. All statements other than
statements of historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and reserves,
exploration results, future plans and objectives of Continental Nickel Limited,
are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause
actual results to differ materially from Continental Nickel Limited’s
expectations are the risks detailed herein and from time to time in the filings
made by Continental Nickel Limited with securities regulators.
Information in this announcement
relating to exploration results is based on data compiled by Patricia
Tirschmann, P. Geo., who is a registered member of the Association of
Professional Geoscientists of Ontario and who is a full-time employee of the
company. Patricia Tirschmann has sufficient relevant experience to
qualify as a Competent Person under the 2004 Edition of the Australasian Code
for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Patricia Tirschmann consents to the inclusion of the data in the form and
context in which it appears.
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