Tanzanian assay results buoy Continental Nickel

In one field season exploration newcomer Continental Nickel (CNI-V) has discovered six nickel-sulphide zones near surface with solid nickel grades at its Nachingwea nickel-sulphide project in Tanzania.

Now results have come in from the remaining 31 of 53 holes (10,514 metres) drilled last year. Highlights include Hole 69 at Target J, which intersected 21 metres grading 3.35% nickel and 0.46% copper, including 7.11% nickel and 0.71% copper over 6.35 metres.

Hole 43 from Target H cut 6.8 metres grading 5.53% nickel and 0.31% copper, including 15.89% nickel and 0.77% copper over 2.15 metres. Hole 60, also of Target H, intersected 5.2 metres grading 4.45% nickel and 3.01% copper.

Hole 44, from a newly discovered zone, called Target M, intersected 1.98% nickel and 0.47% copper over 11.3 metres, including 3.19% nickel and 0.76% copper over 5.3 metres.

Toronto-headquartered Continental is a new nickel exploration company whose goal is to find early stage nickel sulphide exploration projects in underexplored regions such as East Africa.

Continental holds a 70% stake in Nachingwea, with Australia’s IMX Resources, formerly Goldstream Mining, owning the remaining 30%.

Nachingwea is about 400 km south of Dar es Salaam in southeastern Tanzania and about 180 km west of the port city of Mtwara.

The property is situated within the Proterozoic age Mozambique Belt to the southeast of the Archean Tanzanian craton and is underlain by a heterogeneous assemblage of mafic to felsic granulites and gneisses, amphibolites, sedimentary rocks and ultramafic to felsic intrusives, the company said.

In a press release today, Continental said the discovery “indicates the potential of the Mozambique Belt to host magmatic sulphide deposits” and that globally, Proterozoic rifted continental margin settings “are host to a number of significant nickel camps including Thomson and Raglan in Canada, Pechenga in Russia and Jinchuan in China.”

Tanzania hosts other nickel sulphide deposits as well including the massive Kabanga sulphide nickel deposit in the northwestern portion of the country’s Kagera belt.

Kabanga partners Barrick Gold (ABX-T, ABX-N) and Xstrata (XTA-L, XSRAF-O) are pushing ahead with a feasibility study.

The Kabanga deposit has an estimated indicated resource of 9.7 million tonnes grading 2.37% nickel and an inferred resource of 36.3 million tonnes grading 2.8% nickel. That makes it similar in size and grade to the world-class Voisey’s Bay mine in Labrador. Prior to mining, the reserves of the Voisey’s Bay Ovoid deposit totaled 32 million tonnes of 2.82% nickel.

At Nachingwea, Continental Nickel plans to launch an aggressive C$9.5 million exploration program to follow-up the existing drilling and further evaluate its land holdings, which are in excess of 7,000 sq. km.

Continental’s shares on the Toronto Venture Exchange rose 4 to $2.25 apiece on a trading volume of 188,027.