Sutton drilling Kabanga nickel

Diamond drilling has resumed on the Kabanga nickel project owned by Sutton Resources (VSE).

Located in western Tanzania, the project is estimated to contain preliminary reserves totaling 40.5 million tons grading 1.05% nickel, 0.21% copper and 0.11% cobalt based on previous drilling by the United Nations in the late 1970s.

Drilling last year by Sutton outlined a smaller reserve of about 22 million tons grading 1.22% nickel, 0.17% copper and 0.08% cobalt. The reserves are contained in massive sulphide zones up to 60 ft. thick with a surrounding lower grade zone up to 450 ft. thick.

Michael Kenyon, president, said the two modes of mineralization may lend themselves to either selective underground mining or bulk open pit mining, or a combination of both methods.

The current drilling is aimed at better defining the southern end of the deposit where a potential starter pit could be located.

Kenyon noted that no drill footage or budget has been set. He added that as the drilling program proceeds, the company will get a better handle on whether the deposit is best suited to an open pit operation or an underground one.

Metallurgical work is continuing and Kenyon said preliminary indications point to nickel and cobalt recoveries in excess of 80%.