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IMX Resources starts drilling with 70m sulphides intersection at Ntaka Hill

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IMX Resources (ASX: IXR, TSX: IXR, IXR.WT) has recommenced drilling at its Ntaka Hill Project in Tanzania with the first hole of the 2013 field season intersecting 70 metres of continuous sulphide mineralisation.

Assays are pending and likely to be highly anticipated given the broad nickel zones that continue to be discovered at the project.

The 2013 drilling program started last week, with a focus on drilling targets determined from a re-assessment of currently held data sets.

The re-assessment of the soil geochemical data sets, historical electromagnetic survey results and the gravity survey completed towards the end of 2012 have led to a large number of “drill ready” targets being identified which are expected to be pursued during this field season.

All of the holes drilled at Ntaka Hill during the current field season will be assessed with down-hole electromagnetic equipment to explore for extensions to massive sulphide mineralisation that has been previously discovered.

In addition to this work, IMX plans to use ground-based induced polarisation surveys as a further tool to identify higher grade disseminated near surface mineralisation across the broader Ntaka Hill trend.

Neil Meadows, managing director, commented: “The application of electro-magnetic and induced polarisation techniques is an important advance for IMX as it will enable exploration of the rocks beneath the graphite horizons which in the past have potentially masked any massive sulphide mineralisation present.

“We are pleased to have restarted drilling at Ntaka Hill and encouraged by the mineralisation observed in the first hole.”


Ahead of the game

Importantly, IMX has a head start this year with the exploration camp at Ntaka Hill opened in February, three months earlier than has been the case previously.

During the past three months, the company has focused on obtaining expert opinions on work carried out to date and developing the detail of the proposed 2013 exploration program.

It has also focused on soil sampling, geochemical work and preparation for ground based and down-hole geophysical surveys to be completed during this current field season.


Nachingwea


Ntaka Hill forms part of the Nachingwea Exploration Project in south-eastern Tanzania, which is located about 250 kilometres west of the port town of Mtwara.

Nachingwea is highly prospective for nickel and copper sulphide, gold and graphite mineralisation.

The Ntaka Hill Nickel Sulphide Project is one of the world’s best undeveloped nickel sulphide projects and has the potential to produce a very clean, high quality premium nickel concentrate.

Ntaka Hill is host to zones of high grade massive sulphide intervals of up to 16.3% nickel within wide intersections of disseminated mineralisation.

Just recently, IMX defined an Inferred Resource of 31,000 tonnes of contained nickel at its Zeppelin deposit that is part of its Ntaka Hill.

The mineralisation at Ntaka Hill is significant in that it is near surface and therefore conducive to low-cost open pit mining.

Previous testwork has also demonstrated attractive metallurgy, plus associated copper credits, which makes for a relatively lower economic cut-off grade at Ntaka Hill.

The Preliminary Economic Assessment shows the project could be cashflow positive at about 0.2% nickel feed.

With a cash balance of $15.29 million, or $0.038 per share, at the end of March 2013 quarter against a market capitalisation of $32.1 million and share price of $0.081, IMX is around 48% cash backed.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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