Drilling expanding reserves at Kabanga nickel project

A drill program at the Kabanga joint venture in Tanzania is expanding reserves.

Sutton Resources (VSE) says work on the North zone has outlined 12.4 million tons grading 2% nickel, 0.27% copper and 0.15% cobalt. The resource includes a higher-grade core of 8.1 million tons grading 2.48% nickel, 0.33% copper and 0.19% cobalt.

BHP Minerals is earning a 58% working interest from Sutton by funding the project through to a production decision. The Tanzanian government retains a 10% carried interest.

Preliminary metallurgical work on the North zone material indicates that recoveries of more than 80% are achievable for all three metals.

The North zone remains open to expansion and sits about 2,300 ft. north of the Main zone. Combined resources in the Main and North zone stand at 34.1 million tons grading 1.5% nickel, 0.22% copper and 0.13% cobalt.

BHP expects to have drilled 16,000 metres during the current fiscal year, which ends May 31, 1996. And, contingent on results, it plans to begin an underground program early in 1996.