THE BOURSE WHISPERER: Nimrodel Resources (ASX:NMR) has implemented its first diversification strategy into copper.
The company has executed a First Heads of Agreement for the right to acquire a 75 per cent interest of a Prospecting Licence application in the copper mining area of Kigoma in western Tanzania.
General location of Prospecting Licence. Source: Company announcement
The 500 square kilometre Kigoma copper project is located at the western margin of the intracratonic rift systems hosting Lake Tanganyika.
The project is accessible by road and rail from the national capital Dar es Salaam.
Nimrodel said the deal takes it to what it described as being an emerging copper district was clear demonstration of its diversification strategy.
The region is currently being worked by local artisanal miners under Primary Mining Licences.
Nimrodel has now secured control over a large portion of consolidated ground held under a prospecting Licence application with a plan in mind to apply modern mining and exploration techniques to this under-explored region.
“The low entry cost afforded by this JV will allow Nimrodel to establish itself as a “leader explorer” in the area and formulate further ventures with multiple willing partners that lack the technical or capital capacity to progress,” Nimrodel Resources managing director Allan Mulligan said in the company’s announcement to the Australian Securities Exchange.
“While minimal historical exploration has been undertaken, extensive small scale artisanal copper mining activity in the area continues to produce hundreds of tonnes of copper ore monthly that is being trucked to a smelter in Dar es Salaam and our plan is to consolidate smaller holdings and then subject them to modern, organised exploration programs providing Nimrodel with a first mover advantage in the region.”
Nimrodel indicated a visual inspection of the area and interpretation of geological and geophysical data had identified the Kigoma area as a viable base metal target with promising styles of mineralisation such as sediment hosted copper and mafic extrusive flood basalt nickel-copper – platinum group mineralisation.
Under the Heads of Agreement with a local Tanzanian Company that has secured rights to the prospect area, Nimrodel has the right to earn-in to 75 per cent of the project by delivering a Prefeasibility study within three years of the commencement date.
Nimrodel will refund previous expenditure incurred on the PL in the amount of US$25,000 and a further US$15,000 in the second year.
“NMR’s immediate exploration strategy will be to undertake geophysical, geochemical and RAB drilling programs to identify the host mineralised systems within a largely unexplored area,” Mulligan said.
Nimrodel said it was currently in advanced stage negotiations with local rights holders.