Mining giant BHP Minerals International recently agreed to take up an option on the Kabanga and Kagera concessions in Tanzania from Sutton Resources (VSE).
Under the terms of the previously announced agreement, BHP will fund all exploration costs to the point of a production decision in order to earn a 52.2% interest in the Kabanga property, and a 60% interest in the Kagera concession.
The Tanzanian government retains a 10% equity interest in each of the appropriate operating mining companies.
Sutton reports that recently completed drilling on the Kabanga nickel project intersected some good-grade mineralization over substantial widths in both infill and stepout holes and complete assay results are expected shortly. The recent drilling brings total drill-footage on the project since January, 1991, to 43,100 ft.
The most recent preliminary estimate for the Kabanga project put reserves at about 22 million tons grading 1.22% nickel, 0.17% copper and 0.08% cobalt contained in a larger reserve measuring about 40 million tons grading 1.05% nickel, 0.21% copper and 0.11% cobalt.
An airborne geophysical survey over a portion of the 9,600-square-mile Kagera belt, which extends to the north of the Kabanga project, was recently completed and data evaluation is in progress.
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