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.

Net present Value/Internal Rate of Return
Not stated.

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
IMX announced in December 2014 that it had entered into a project acquisition agreement with Loricatus Resource Investments, an investment vehicle on behalf of Mauritius-based mining private equity fund Fig Tree Resources Fund II, to establish a new joint venture (JV) for the Ntaka Hill project.

Fig Tree will initially acquire a 70.65% interest in the project from the Nachingwea JV for $5.88-million cash and a commitment to sole fund completion of a feasibility study.

Fig Tree will have the right to maintain its 70.65% interest in Ntaka Hill upon completing a feasibility study within five years. If Fig Tree does not complete the feasibility study, its interest in the Ntaka Hill JV will decrease to 50%.

Fig Tree will appoint the manager of the new Ntaka Hill JV and use its financial and technical resources to define the feasibility of a low capital expenditure, higher-grade nickel sulphide mining operation.

Meanwhile, IMX will continue to manage and fund the existing Nachingwea JV, and its graphite and gold projects, with the Ntaka Hill project to be ‘excised’ out of the remaining Nachingwea JV.

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.