BHP enhancing Tanzanian deposit

A second hole drilled near the Kabanga nickel-cobalt deposit in northwestern Tanzania has confirmed the potential for a significant new zone.

BHP Minerals reports that Hole 43 intersected an estimated 82 ft. of true width grading 2.52% nickel, 0.35% copper and 0.19% cobalt.

The hole was drilled 3,300 ft. north of the Kabanga and 500 ft. south of last year’s hole 36. That hole returned 2.52% nickel, 0.33% copper and 0.2% cobalt over an estimated true width of 80 ft.

BHP can earn a half interest from Sutton Resources (VSE) by funding all exploration and development up to a production decision. A US$4-million work program is budgeted for both the Kabanga and the Kagera concessions. BHP can earn a 66% interest in these projects from Sutton and has spent more than US$6 million on them to date.

Kabanga, the main deposit, contains a geological resource estimated at 25.5 million tons grading 1.19% nickel, 0.2% copper and 0.1% cobalt. Preliminary metallurgical testing indicates a recovery rate in the mid-80% range for both nickel and cobalt, along with an even higher recovery rate for copper. Two drill rigs are operating on the concession in an effort to determine the strike length of the newly identified peripheral zone.

Sutton believes the Kagera concession is a contiguous 124-mile-long nickel belt, with the Kabanga deposit lying at the southern tip. Prior work by the United Nations Development Program identified 101 anomalies of nickel-copper-cobalt mineralization through geophysical and geochemical surveys.

BHP followed up with an initial airborne geophysical program and now has two drill rigs evaluating the anomalies.