Drilling on the Kabanga nickel project in northwestern Tanzania returned a number of wide intersections for owner Sutton Resources (VSE).
The drilling included a 16.09-metre intersection in one of the better holes (No. 31), averaging 3.02% nickel, 0.38% copper and 0.19% cobalt. Other intersections include 20.03 metres in hole 29 grading an average of 2.81% nickel, 0.41% copper and 0.19% cobalt, as well as 22.15 metres grading 1.46% nickel, 0.21% copper and 0.12% cobalt in hole 32.
The results represent the last Sutton-controlled program on the property before project management was taken over by BHP Minerals International. BHP can earn a 52.2% interest in Kabanga by funding all exploration costs to the point of a production decision.
The most recent preliminary estimate of reserves at Kabanga totals about 20 million tonnes grading 1.22% nickel, 0.17% copper and 0.08% cobalt within a larger reserve of 36.3 million tonnes grading 1.05% nickel, 0.21% copper and 0.11% cobalt.
The company can also earn a 60% interest in the nearby Kagera concession under the same terms, with the Tanzanian government retaining a carried 10% interest in each project and Sutton holding the balance.
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