Continental Nickel’s Tanzanian results

Nickel may be trading at just US$5.96 per lb. but that isn’t slowing down Continental Nickel (CNI-V) at its Nachingwea nickel-sulphide project in Tanzania, where recent assays are encouraging, the company says.    

Assay highlights from 24 diamond drill holes on five sulphide zones of the Ntaka intrusion include 7.2 metres grading 5.71% nickel and 0.92% copper, including 14.11% nickel and 1.74% copper over 2.6 metres, in the L sulphide zone.

In the H sulphide zone, highlights include 15.96% nickel and 1.33% copper over 2.45 metres and in the M sulphide zone, 8.35 metres grading 2.84% nickel and 0.64% copper, including 3.35 metres grading 3.96% nickel and 0.83% copper. 

Continental Nickel plans to start resource studies on all five zones at the Ntaka intrusion once the remaining assay results from 2008 come in. So far all of the zones have shown continuity and intersected high grades at shallow depths.

The Toronto-based junior drilled 119 holes totaling 15,573 metres last year at its 70%-owned Nachingwea project.

About 180 km west of the port city of Mtwara and 400 km south of Dar es Salaam, the country’s main business center, Nachingwea is a joint venture between Continental Nickel (70%) and Australia’s IMX Resources (IMX-A), (30%).  

Under the terms of the joint venture, Continental Nickel, which is the project operator, is to fund C$15 million in expenditures on Nachwingea following which its interest will increase by 5% to 75%. 

If CNI completes a feasibility study on a mineral resource, its interest will climb another 5% to 80%. Both parties must fund their share of expenditures once CNI has satisfied its funding requirement, or dilute. 

Continental Nickel is well financed. Last year it spent C$7 million on exploration and still has about C$13 million left in its treasury.

In Australia IMX Resources is trading at about A$0.19 per share. Continental Nickel is trading at about C$0.5 per share, and has a 52-week trading range of C$0.23-C$3.20 per share.