16 July 2009
MAIDEN RESOURCE AT NACHINGWEA
IMX Resources Ltd (ASX:IXR) is pleased to report the first resource in the Ntaka Hill area of the Nachingwea nickel sulphide JV project in Tanzania. The project is a 30:70 Joint Venture between IMX Resources (?IMX?) and TSXV listed Continental Nickel Limited (?CNI?), in which IMX has a substantial 47.3% shareholding.
The calculated measured and indicated mineral resource is 1.13mt at 2.43% Ni, 0.40% Cu and 0.06% Co at a US$100/t NSR cut-off containing a total of 61.0 million pounds of nickel metal, while at a lower cut off of US$23/t NSR the calculated measured, indicated and inferred mineral resource is 3.16mt at 1.29% Ni, 0.24% Cu and 0.04% Co. containing a total of 89.9 million pounds of nickel metal.
The NI 43-101 Mineral Resource estimate was completed by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) of Toronto, Ontario. The estimate, the first for the project, includes the calculation of Mineral Resources from six separate, near surface, sulphide zones (G, H, J, L, M and NAD013) discovered at Ntaka Hill from 2006 to 2007 and delineated in 2008. The estimate is based on data obtained from 179 drill holes totalling 26,981 metres completed to explore for and delineate the various sulphide zones at nominal 25 to 100 metres drill section spacing. Mineral Resources as calculated from the study at various NSR cut-off values are summarised in the table below:
Note: NSR values derived from grade were determined using average long-term nickel, copper and cobalt prices of US$7.50/lb, US$2.25/lb, and US$20.00/lb, respectively; preliminary metal recoveries estimated at 89% for nickel, 65% for copper and 50% for cobalt, and allowances for transportation of concentrate and standard industry treatment charges for smelting and refining.
Mineralisation extends below the bottom of the preliminary pit shells for most of the zones, portions of which may covert to additional Mineral Resources with pit optimisation studies. In addition, several zones, notably M, L and G remain open up plunge and further drilling is required to confirm the possibility of additional near surface resources.
The locations of the various sulphide zones at Ntaka Hill is shown in Figure 1.
Figure 1: Locations of the Ntaka Hill sulphide zones.
Duncan McBain, Managing Director of IMX Resources said ? This is an important milestone for the Nachingwea project, and is another major step towards establishing the Nachingwea area as an emerging new nickel sulphide district. The mineral resources have the potential for lower cost open pit mining. The initial mineral characterisation indicates the sulphide mineralisation has favourable metallurgy which should be able to be processed using conventional techniques.?.
The TSXV release from CNI outlining the full details and analytical results received can be found by following the link below:
http://www..purplecom.com.au/_content/documents/1259.pdf
Nachingwea Holding Structure
The IMX Resources interests in the Nachingwea project are held indirectly through a 47.3% 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 Limited
IMX Resources Limited (ASX:IXR) ? is headquartered in Perth, Western Australia, is listed on the Australian Stock Exchange (ASX) with a current market capitalisation of approximately $45m.
IMX is an active diversified mining company with projects in South Australia, Tasmania, Tanzania and Mozambique, 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 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 shareholders.
IMX 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. Phase 1, which is currently under development, is a DSO magnetite project, studies indicate this project has excellent rates of return. Testwork indicates that the ore produces a premium coarse grained magnetite product, with a clean saleable Cu / Au concentrate. IMX has a three year sales offtake agreement with Jilin Tonghua Iron & Steel (Group) Mining Co Ltd for the DSO magnetite production. Beyond Phase 1, preliminary metallurgical testwork has been completed on Phase 2 of the project targeted at producing a premium grade magnetite concentrate, with the calculation of the resource for this phase in progress. Phase 3 is focussed on the 90% of the 40km of magnetic anomalies that remain largely undrilled. The immediate upside for Cairn Hill remains the definition of further resources to support a long term 3-5mtpa operation.
In Tanzania, IMX holds 100% of the Mibango nickel / copper / platinum project.
IMX spun off 70% of the Nachingwea Nickel - Copper project in Tanzania into a Continental Nickel Limited (TSXV:CNI) in August 2007. IMX 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 owns 34..6% of Uranex (ASX:UNX), a spin-off company from IMX , which listed on the ASX in October 2005 and is dedicated uranium company with assets in Australia and Tanzania.
Visit: www.imxresources.com.au
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