Mining and exploration company IMX Resources (IMX), which will be an exhibitor at the 2013 Investing in African Mining Indaba, plans to start production at its Ntaka Hill nickel sulphide project by 2015 subsequent to completion of a bankable feasibility study in late 2013.
Exploration has been done by a joint venture comprising IMX and Canadian exploration company Continental Nickel (CNI), over the past six years in the Nachingwea district in south eastern Tanzania, where Ntaka Hill is located. During 2012 IMX acquired CNI in September 2012 and became the sole owner of the Ntaka Hill nickel sulphide project.
An updated scoping study for the project has recently been completed. The study demonstrated that the project has the potential to produce 10 000 t/y to 15 000 t/y of nickel in Phase 1, with up to 25 000 t/y of nickel in concentrate in Phase 2, which would start five years after the start of production. The life-of-mine is estimated to be at least 15 years.
Various mineralised zones have been defined at Ntaka Hill, which is located at the northern end of a long zone of ultramafic rocks prospective for both massive and disseminated types of nickel sulphide mineralisation.
In March 2012, a measured and indicated mineral resource of 12.78-million tons grading at 1.21% nickel and 0.25% copper, and an inferred mineral resource of 45-million tons grading at 0.3% nickel and 0.07% copper (using a cutoff grade of 0.2 % nickel) were estimated.
“The Ntaka Hill nickel sulphide project has demonstrated the potential to produce a clean, high-grade, premium quality nickel concentrate that is expected to attract premium prices by using conventional froth flotation,” MD Neil Meadows states.
The construction phase of the project currently employs 600 to 800 people with the operations workforce estimated at 430 employees.
IMX states that local infrastructure in the area of the project is promising with the Port of Mtwara only 230 km away from Ntaka Hill. There is also a readily available source of electricity from the Mtwara power station based on the nearby Mnazi Bay gasfield.
He believes that the future of African mining is positive provided the risks are adequately dealt with and hopes discussions at the Indaba will contribute to this outcome.
“Infrastructure and the fear of the unknown regarding sovereign risk in some jurisdictions prove challenging for investors and exploration companies in Africa.”