Resource Mining to drill long nickel-cobalt zone at Kabulwanyele project in Tanzania
Gladiator Resources’ acquisition of Zeus Resources and its Tanzanian uranium projects remains subject to final regulatory approvals.
Perth-based nickel explorer Resource Mining Corporation (ASX: RMI) is readying to begin a maiden drilling program at its Kabulwanyele nickel-cobalt project in Tanzania’s Mpanda District.
Last year the company collected 254 soil samples and 19 rock chip samples across all the tenements in the project area.
This program delineated a 2km-long nickel-cobalt target that is broadly coincident with an historically mapped nickel laterite body.
The upcoming reverse circulation drilling program will comprise 18 holes for a total of 1,000m – testing for massive sulphides underlying the laterite cover.
Drilling will focus on the 2km of strike where rock sampling returned up to 1.27% nickel.
The 18 holes will be drilled to 40m, for a total 720m, with an additional 280m budgeted for potential deeper drilling at the centre of the laterite body.
A bulldozer will arrive on site shortly to provide an access track and prepare drill pads, with the drilling program expected to take six weeks.
Tanzanian nickel portfolio acquisition
In May, Resource Mining announced it was acquiring privately-owned Massive Nickel Pty Ltd, which owns: Kabanga North, Kapalagulu, Liparamba, Kitai and Mbinga.
BHP (ASX: BHP) is heavily invested in the Kabanga nickel project – having invested over US$40 million to date, and committed for an additional US$50 million – which is along strike of Kabanga North. The major also previously owned Liparamba, Kitai and Mbinga.
Resource Mining has strong ties to Tanzania, with chairman Asimwe Kabunga born in the country and helping to establish the Tanzania Community of Western Australia.
Nickel market looking ‘increasingly bullish’
Due diligence is currently underway in relation to the Massive Nickel acquisition and Mr Kabunga said the company looks forward to updating investors “soon”.
“The nickel market is looking increasingly bullish and there is strong competition between the majors for quality assets,” he said.
“We therefore see Massive Nickel as a unique opportunity to create significant value.”
The company notes that the nickel price has gained 55% over the past 12 months and 135% over 24 months as producers struggle to keep up with demand.