Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Joint Venture Project Update – IMX Resources Limited (ASX:IXR) is pleased to announce that initial metallurgical testwork has confirmed that high grade nickel concentrates with high recoveries can be produced from the multiple Ntaka Hill ore zones at the Nachingwea Ni-Cu joint venture in Tanzania. The Project is a joint venture between IMX Resources Limited (25%) and Continental Nickel Limited (75%).
High grade composite concentrate results were returned from the initial ‘sighter’ flotation tests at the various Ntaka Hill deposits. Highlights include a 16.7% Ni to 18.6% Ni concentrate at Sleeping Giant with between 84.2% and 90.2% recovery, an M zone composite concentrate of 17.2% Ni with 88.1% recovery, and a 15.0% Ni concentrate with 88.1% recovery from H zone. Significantly all the concentrates returned low contaminant levels of As, Sb, Cr, Pb, Zn and in particular MgO (magnesium oxide) which reported between 1.5% and 3.9% MgO, which is low by global standards. The high grade nickel concentrate produced from Nachingwea will be highly marketable and compares favorably to the best nickel sulphide mines in the world.
The composite flotation tests were conducted at a moderately coarse grind size of 106 µm (P80) using a conventional concentrate processing technique for nickel sulphide ore. Further testwork is planned to optimize concentrate grade and recoveries through grind size determinations and reagent additions.
Comminution testwork was also initiated with Bond Mill Work index rate tests completed on 3 ore zone composites. An average work rate of 14.8 kWh/t was determined for the Ntaka ores, which is typical for hard rock sulphide ores, and confirms the suitability of a conventional comminution circuit with typical operating costs.
The confirmation of the project’s ability to produce high grade nickel concentrates with high recoveries using conventional processing technology will greatly reduce technical and start-up risk. This provides further confidence that the JV will be able to advance development of the Nachingwea JV Project into a potential world class mine operation.
Additional metallurgical testwork will be conducted on 2011 core samples to provide definitive performance and engineering design data for the project. The JV intends to undertake this test work program in the first half of 2012.
A full discussion of current results can be viewed in the CNI release to the TSXV as attached below.
Nachingwea Holding Structure
IMX’s interest in the Nachingwea Ni-Cu JV Project is held through a direct 25% interest in the Tanzanian joint venture company, Ngwena Limited, and indirectly through a 37.2% interest in CNI. IMX funds its joint venture interest on a pro rata basis.
