Feb 16 2007
Xstrata Nickel announces further investment of US$95 million and the commencement of a pre-feasibility study to advance the Kabanga nickel project located in western Tanzania.
An update to the preliminary resource estimate has also been announced for the project, a 50/50 owned joint venture of Barrick Gold Corporation and Xstrata Nickel, operated by Xstrata through a subsidiary. This confirms the Kabanga nickel project as among the world’s most attractive undeveloped nickel sulphide deposits, with a total estimated indicated resource of 9.7 million tonnes grading 2.37% nickel and a total estimated inferred resource of 36.3 million tonnes grading 2.8% nickel. The revised estimate represents a notable increase from the project’s previous estimate (inferred) of 26.4 million tonnes at 2.6% nickel.
Xstrata Nickel has completed over US$50 million in expenditures to update the resource model for the Kabanga project and preparation of an extensive scoping study.
“We are very pleased with the progress occurring at Kabanga, which is among the world’s most attractive nickel projects,” said Ian Pearce, Chief Executive Officer of Xstrata Nickel. “We anticipated good results from our resource estimate update and we received them. We have taken the logical next step of moving this project to the pre-feasibility stage and we look forward to the continued development of Kabanga.”
“Kabanga has the potential to become a world class nickel sulphide deposit. The most recent resource has a compelling combination of size with high grades," said Greg Wilkins, Barrick President and Chief Executive Officer.