AFTER entering into a five-year, US$60 million earn-in and joint venture agreement with IMX Resources in September, Hong Kong-based MMG Ltd has focused on identifying targets for a 2014 drilling program at Nachingwea Exploration Project in southeast Tanzania. Since taking over management of the project, which includes Ntaka Hill nickel sulphide deposit, MMG has been using a range of geophysical methods and geological data bases and is carrying out diamond drilling to test for mineralization down plunge of existing near surface high-grade mineralization.
MMG is targeting a resource of 27 million tonnes @ 1.5% nickel for 400,000 tonnes of contained nickel. The budget for the initial program is US$10 million and includes 16,000 metres of diamond drilling and 8000 metres of reverse circulation (RC) drilling.
MMG’s initial work program has the primary objective of rapid evaluation of the potential for high-grade nickel discoveries and successful achievement of the resource target. MMG is specifically targeting high-grade nickel mineralization within southerly plunging conduits. Exploration for these targets is best achieved using a combination of ‘deep looking’ geophysical techniques, targeted drilling and follow-up downhole electro-magnetic (EM) surveys.
Geophysical surveys including NSAMT (natural source audio magnetotellurics), ground electro magnetics using a state of the art high sensitivity ARMIT sensor and surface gravity together with surface geological mapping and further soil sampling are being used to generate targets. This work will be completed in time for drilling of targets to commence in early 2014 following the wet season.
Ntaka Hill is one of the world’s best undeveloped nickel sulphide projects. The exploration JV with MMG Exploration Holdings means MMG can earn a 60% interest in the project.
MMG’s work program includes regional exploration over the Ntaka-Lionja Corridor and other regional tenements. The corridor comprises an area of about 60sqkm that extends from the southern edge of Ntaka Hill, south to Lionja. It has previously been identified as having similar characteristics and host rocks to the Ntaka ultramafic intrusive complex. Exploration will be guided by soil survey and gravity survey results and NSAMT/EM work which is under way.
The program includes regional soil sampling over areas recently identified with ultramafic rocks which are the primary host to nickel sulphide mineralization. This will supplement the existing airborne radiometrics, soil geochemistry, and airborne EM data sets and provide the foundation for a comprehensive regional targeting program. Prioritized drill targets will be systematically tested with RC drilling in 2014.
IMX is an Australian-based mining and base and precious metals exploration company, listed on the Australian Securities Exchange and Toronto Stock Exchange, with projects in Australia, Africa and North America.
The Wafi-Golpu joint venture between Newcrest Mining and Harmony Gold hosts one of the highest grade porphyry copper systems in South East Asia.