Name and Location
Ntaka Hill nickel sulphide project, Tanzania.

Client
IMX Resources.

Project Description
The Ntaka Hill nickel sulphide project has the potential to emerge as one of the world’s best undeveloped nickel sulphide projects.

The deposit has a measured and indicated mineral resource of 12.78-million tonnes grading 1.21% nickel and 0.25% copper, and an inferred mineral resource of 45-million grading 0.3% nickel and 0.07% copper (using a cutoff grade of 0.2% nickel).

Average yearly contained nickel production is estimated at 10 000 t to 15 000 t. The mine is expected to have a life of 15 years.

Value
The project will entail a preproduction capital investment of $227-million.

Duration
The project, currently under development, is planned to be brought into production in 2015, with the first product shipment expected in early 2016.

Latest Developments
In September, IMX announced that it had reached an agreement with MMG Exploration Holdings, on the terms and conditions under which MMG may earn up to a 60% joint venture (JV) interest in IMX’s Nachingwea project, which includes the Ntaka Hill project. The agreement is divided into three stages, the first stage requiring MMG to sole fund $10-million within one year for a 15% interest in the project.

Having met the minimum expenditure commitment for Stage 1, MMG has the right to form an incorporated JV with IMX to either jointly explore the tenements or proceed to earn an additional 25% JV interest by sole funding a further $25-million within a further 18 months.

At the completion of Stage 2, MMG can elect to earn an additional 20%, taking its JV interest to 60% by sole funding a further $25-million within a further 2.5 years.

Should MMG elect to cease sole funding during the earn-in period before incurring $60-million expenditure, it will retain the JV interest that it earned up to and including the last fully sole funded earn-in stage. After completion of the sole funding period, if one JV partner does not contribute to its share of JV funding, it will be diluted, with the dilution formula based on historical costs until a definitive feasibility study (DFS) is completed and fair value thereafter.

IMX and MMG have also agreed on a process whereby IMX can elect to continue to manage some exploration programmes on the Nachingwea tenements, so long as those programmes do not conflict with MMG’s sole-funded programme.

The agreement is conditional upon approval by the Tanzanian Fair Competition Commission and consent from the Commissioner for Minerals in the Tanzania Ministry of Energy and Minerals.

With an established camp, supporting infrastructure, key contractual partnerships in place and IMX’s exploration team on site at Ntaka Hill, it is expected that the transition to MMG management of the exploration programme will occur relatively quickly.

Assuming a successful exploration programme at the Nachingwea JV, after the completion of a DFS, and once a decision to develop has been taken in accordance with the agreement, the relevant project tenements will be excised to form an incorporated operations JV (OJV). MMG will then have the right to increase its holding in the OJV by a further 20%, to reach a maximum 80%, for a cash payment to IMX based on a fair assessment of value having reference to the outcomes of the DFS.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
IMX Resources, tel +61 8 9388 7877, fax +61 8 9382 2399 or email info@imxresources.com.au.
MMG Exploration Holdings, tel +61 3 9288 0888 or fax +61 3 9288 0800.