IMX Resources and Continental Nickel discover new copper gossan near Nachingwea, Tanzania

IMX Resources' (ASX:IXR) acting chief executive officer Andrew Speers received some good news with the discovery of a second copper gossan 30 kilometres northeast of the Ntaka Hill Ni-Cu resources in southern Tanzania.

The new occurrence ‘Chilalo East’ is located 6.5 kilometres northeast of the Chilalo malachite copper pits.

The prospects are part of the Nachingwea nickel copper joint venture between IMX (25%) and Continental Nickel (TSXV: CNI) (75%). However, IMX also has an indirect interest through a 37.2% interest in CNI.

Rock chip sampling at both prospects has identified up to 0.42% Cu and 0.34% Zn at Chilalo East, and 1.48% Cu and 3.05g/t Ag at Chilalo.

In May 2011, the joint venture confirmed the existence of a new malachite-bearing copper occurrence identified by artisanal miners within the regional Chilalo prospecting licence, 23 kilometres northeast of Ntaka Hill.

This area has been the focus of on-going regional exploration during 2011 which includes soil and rock sampling, mapping, and ground time domain electromagnetic (EM) surveys.

At Chilalo, the malachite mineralisation was initially believed to be hosted in both graphitic gneisses and ultramafic rock.

The copper sulphide gossan and associated malachite mineralisation can be traced in a series of pits extending in a northeast-southwest orientation over a 400 metres strike length.

Where exposed, the mineralised horizon appears to be fairly narrow (<5m in width) and dips moderately to the south.

Rock chip samples of the heavily oxidised sulphide gossan and altered, mineralised felsic gneisses and amphibolite from the pits returned values of up to 1.48% copper and 3.05g/t silver.

Geochemical soil sampling at Chilalo successfully identified a number of copper anomalies with the strongest located to the southwest of the main malachite pits.

This 600 metre long copper anomaly reported up to 1,780ppm copper in soils. A second, 700 metre long anomalous copper trend ranges from 100 - 250ppm is located further along strike to the southwest.

Preliminary ground EM has identified a high priority EM anomaly west of the malachite pits.

At Chilalo East, geochemical sampling has confirmed the anomalous rock chip results with up to 625ppm Cu and 925ppm Zn returned from soils in the vicinity of the new gossan. A ground EM anomaly coincident with the elevated copper and zinc soil results has been identified in the preliminary data.

The anomalous copper values in soils are widespread and may be stratigraphically controlled. Drill testing of the developing geochemical and geophysical targets is scheduled for the next quarter.

The new copper gossan discoveries Chilalo and Chilalo East represent the first occurrences of new styles of copper mineralisation outside the Ntaka Hill area at Nachingwea. These occurrences further enhance the mineral prospectivity of the JV’s large under explored landholding.

Cairn Hill

Meanwhile, IMX recently announced good news from the 51% owned Cairn Hill project, with a 139% boost in the Phase 2 Resource to a JORC 8.37 million tonnes at 46.7% iron with a 35% iron cut-off grade.

Stage 1 is a unique magnetite iron – copper – gold DSO ore, which produces a premium coarse grained magnetite product, with a clean saleable copper / gold concentrate.

Highlighting the saleability of the product, IMX Resources already has a Phase 1 life of mine sales off-take agreement with Sichuan.

The Cairn Hill mine has now ramped up to full production of around 140,000 tonnes per month being produced and shipped.

Cash costs FOB, including royalties and administration, are now running at a highly respectable $75 per tonne and additional project optimisation is expected to reduce costs further.

Analysis

Nachingwea is shaping up to be a significant asset for IMX and its current worth not factored into the valuation of IMX, pointing to the opportunity for investors.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20040/imx-resources-and-continental-nickel-discover-new-copper-gossan-near-nachingwea-tanzania-20040.html