1. Nachingwea Property, Ntaka Hill (IMX 100%)
A drilling campaign at the Zeppelin prospect was completed in November 2012 which consisted of nineteen diamond holes for 3,283m. This drilling campaign tested a target generated by re-examination of previous drill hole and soil sampling results.
The Zeppelin drilling returned results including(1):
-- 37m at 0.71% Ni and 0.15% Cu from 129m including 8m at 1.13% Ni and 6m at 1.65% Ni-- 26.7m at 0.77% Ni and 0.15% Cu from 93m including 2.1m at 2.8% Ni-- 30.1m at 0.69% Ni and 0.16% Cu from 123m including 2.1m at 1.87% Ni-- 60m at 0.46% Ni and 0.11% Cu from 39m including 5m at 1.01
The work confirmed a strike extent of approximately 450m and remains open along strike and down dip.
An upgraded Mineral Resource estimate for Ntaka Hill will incorporate the results from the November 2012 drilling, with the Company expected to complete this work during the June quarter, at which time an assessment of open-pit mining potential may also be made.
Going forward, the Company plans to use existing electro-magnetic conductor data, soil geochemistry, gravity data and other historic exploration data as key elements of its strategy to identify new drill targets.
Independent consultants review at Ntaka Hill
Dr Stephen Barnes, lead scientist of the Earth Science and Resource Engineering Division of CSIRO, and Mr Jon Standing of Jigsaw Geoscience Pty Ltd, were engaged by the Company to enhance its understanding of the mineral systems at the Ntaka Hill Project and to inform the identification of targets for the proposed 2013 exploration program. Both Dr Barnes and Mr Standing spent time at Ntaka Hill during February 2013.
Mr Standing, a consulting structural geologist, took structural measurements on oriented drill core in order to provide an interpretation on the structural history of the intrusion and how this may have affected the localisation of the sulphide ore, including a more detailed understanding of the country rock structural morphology and history.
Dr Barnes undertook a detailed visual and geochemical analysis of the primary rock types of the Ntaka intrusion and their relationships to metal tenors in the sulphide ores and recommended a classification of rock types for use in core logging.
The combined interpretation of the resultant reports from these respected independent consultants, together with on-going consultation will contribute strongly to the Company's exploration efforts at Ntaka Hill.
Ntaka Hill - Lionja gravity survey and soil sampling
A gravity survey carried out during the previous quarter over the Ntaka Hill-Lionja trend indicates that a significantly larger area of the prospective ultramafic rocks associated with Ntaka Hill may exist across the Nachingwea project. The newly interpreted ultramafic rocks provide a much-increased target area for nickel-sulphide exploration within the project area.
A gravity survey completed at Lionja, located approximately eight kilometres south of Ntaka Hill, that was completed in November 2012 and which followed drilling in July 2012, resolved a coherent and very large gravity high in the area with a significant gravity gradient on the western boundary of the gravity high, interpreted as a major north-south structure.
During the quarter, approximately 3,000 soil samples from Lionja were processed and sent to ALS Johannesburg for analysis, with results expected in late April 2013. It is intended that field mapping be completed in late May, together with integration of satellite interpretation and interpretation of the gravity and soil geochemistry results which will re-direct nickel sulphide exploration in the area.