IMX Resources Limited
TSX : IXR
TSX : IXR.WT
ASX : IXR
ASX : IXR.WT

IMX Resources Limited

May 05, 2013 23:21 ET

IMX Resources Reports Inferred Mineral Resource at Zeppelin Deposit of 31,000 Tonnes of Contained Nickel

PERTH, AUSTRALIA--(Marketwired - May 5, 2013) -

Highlights

  • Inferred Mineral Resource at the Zeppelin deposit of 6.0Mt @ 0.52% Ni for 31kt of contained nickel (0.3% Ni cut-off)

  • The Zeppelin Mineral Resource includes 1.6Mt at 0.96% Ni

  • Zeppelin deposit now defined over 475m, open up plunge (north), down plunge (south) and down-dip (west)

  • Represents a portion of a greater system of stacked mineralized zones which may be connected

IMX Resources Limited (TSX:IXR)(TSX:IXR.WT)(ASX:IXR) ('IMX' or the 'Company') is pleased to announce it has completed an Inferred Mineral Resource estimate for its Zeppelin deposit that forms part of the Company's Ntaka Hill Nickel Sulphide Project (the 'Ntaka Hill Project'), located in south-east Tanzania.

Mineral Resources calculated at various cut-off grades are provided in Table 1.

Table 1. Inferred Mineral Resource at Zeppelin, calculated at various cut-off grades

Cut Off
(%Ni)
Tonnes
(000)
%Ni %Cu Contained
Ni
(kt)
0.30 6,000 0.52 0.12 31
0.40 2,579 0.76 0.17 19
0.60 1,559 0.96 0.22 15

The Inferred Mineral Resource estimate for the Zeppelin deposit is located in close proximity to the Ntaka Hill resource, where calculated at a cut-off grade of 0.20% Ni, there is a Measured and Indicated Mineral Resource of 12.8Mt at 1.21% Ni and 0.25% Cu for 155kt of contained Ni and 32kt of contained Cu respectively and an Inferred Mineral Resource of 45.0Mt at 0.30% Ni and 0.07% Cu for 135kt of contained Ni and 32kt of Cu respectively.

The Mineral Resource estimate for the Zeppelin deposit is based on data obtained from 26 diamond drill holes totalling 4,462m, completed to explore for and delineate the various sulphide lenses at a nominal 65m drill section spacing. The drilling data included 20 holes of exploration diamond drilling completed during 2012.

The Zeppelin deposit has now been defined over 465m and remains open uplunge to the north, down plunge to the south and down dip to the west and work to date indicates that it forms part of a larger system of stacked mineralized zones which may be connected. The Sleeping Giant deposit and the Zeppelin, H, NAD013 and L deposits have the potential to comprise a single mineralised system, conducive to open-pit mining. Figure 1 illustrates the geographical relationship among these deposits and Figure 2 shows a cross section of the Inferred Mineral Resource at Zeppelin.

The assays from the Zeppelin mineralisation also indicate consistently high nickel tenor, similar to the mineralisation in the Sleeping Giant, NAD013, H and L deposits which have been shown to exhibit excellent metallurgical performance and allow for production of a high grade nickel concentrate. Representative drill core samples from the Zeppelin deposit have been taken and are currently en-route to G & T Metallurgical Laboratories in Kamloops, Canada, where the mineralogical characteristics will be assessed and flotation tests will be carried out to determine the metallurgical response of the mineralisation to the same processing flow sheet as the other mineralised zones.

IMX Managing Director Neil Meadows said, "This is an important step forward in advancing the Ntaka Hill Project. The mineral resources have the potential for lower cost open pit mining and the similarity with nearby mineralisation that demonstrated encouraging metallurgical test work results, indicates that material from Zeppelin will also show good metallurgical performance."

NEIL MEADOWS, Managing Director

To view Figure 1 and Figure 2, please visit the following link:
http://media3.marketwire.com/docs/imx505_F1-2.pdf

Notes to Mineral Resource estimate in Table 1

  1. Mineral Resource estimates were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum definition standards regarding mineral resources and mineral reserves.
  2. Mineral Resources were calculated from a geostatistical block model using Datamine software and reported at various nickel cut-off grades constrained by preliminary pit shells constructed by Whittle software. Only mineralized intervals located within the pit shells are reported as Mineral Resources. Mineral Resources calculated at various cut-off grades are provided in Table 1.
  3. Assays of drill core were completed at ALS Minerals of Vancouver, Canada and included a comprehensive Quality Assurance / Quality Control ('QA/QC') program. All aspects of the core sampling, assay procedures and QA/QC program have been reviewed by Roscoe Postle Associates Inc. ('RPA') of Toronto, Ontario and were judged to be of industry standard and suitable for use in the estimation of mineral resources. Resource models were prepared based on drill section interpretation using nominal nickel grade wireframes of 0.2%, 0.5% and 1.0% nickel grade cut-offs. 3D solids were constructed cooperatively between IMX and RPA geologists, then reviewed and revised as necessary by RPA.
  4. The estimation employed statistical analysis and variography of nickel values to construct the block model. Block cell size was 10 x 10 x 10 with level 3 sub-celling (8 x 8).
  5. Grade interpolation to assign grade values to cells used Ordinary Kriging methodology.
  6. Intersections were length*specific gravity weighted and carried over an intersection length of 5.0 metres in order to be included in the mineralized wireframe(s).
  7. A preliminary pit was used to constrain the mineral resources reported and was constructed using Whittle software using metallurgical and cost assumptions that were based on the preliminary economic assessment completed in November 2012 (ASX news release 14 November 2012).
  8. Totals may differ due to rounding.
  9. The Company is not aware of any environmental, permitting, legal, title, taxation, socio-political or marketing issues that are material to the statement of the mineral resource estimate.
  10. The Mineral Resource estimate is effective as of 6 May, 2013.

Competent Persons / Qualified Person / NI 43-101 Statement

The Mineral Resource Estimate was prepared by RPA under the supervision of Chester Moore, P. Eng., P. Geo., Principal Geologist. Mr. Moore is an independent qualified person as defined by NI 43-101 and approves and consents to the inclusion of the Mineral Resource estimate.

Information in this announcement relating to quality control, technical information on exploration results and all aspects of the exploration program at the Zeppelin deposit is based on data collected under the supervision of, or compiled by Patricia Tirschmann who held the position of Vice President, Exploration up until 31 March 2013 and was a full-time employee of IMX. Ms. Tirschmann is a registered member of the Association of Professional Geoscientists of Ontario and has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms. Tirschmann approves and consents to the inclusion of the data in the form and context in which it appears.

Following 31 March 2013, Mr. Ernie Poole represented the Company in connection with preparation of this Mineral Resource estimate. Mr. Poole holds the position of Manager Exploration and is a full-time employee of IMX. Mr Poole is a registered member of the Australian Institute of Geoscientists and has sufficient relevant experience to qualify as a Competent Person under the 2004 Edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Poole approves and consents to the inclusion of the data in the form and context in which it appears.

Quality Control

The drilling was completed by Capital Drilling (Tanzania) Limited. Drill core samples (NQ) are cut in half by a diamond saw on site. Half of the core is retained for reference purposes. Samples are generally 1.0 metre intervals or less, at the discretion of the site geologists. Sample preparation is completed at the ALS Chemex preparation laboratory in Mwanza, Tanzania. Sample pulps are sent by courier to the ALS Chemex analytical laboratory in Vancouver, Canada. Blank samples and commercially prepared and certified Ni sulphide analytical control standards with a range of grades are inserted in every batch of 20 samples, or a minimum of one per sample batch. Analyses for Ni, Cu and Co are completed using a peroxide fusion preparation and ICP-AES finish (Analytical Code ME-ICP81). Analyses for Pt, Pd, and Au are by fire assay with an ICP-AES finish (Analytical Code PGM-ICP23).

About IMX Resources Limited

IMX Resources Limited is an Australian-based mining and base and precious metals exploration company, listed on the Australian Securities Exchange ('ASX') and Toronto Stock Exchange ('TSX'), with exploration projects located in Australia, Africa and North America.

In Africa, IMX owns and operates the highly prospective Nachingwea Exploration Project in south-east Tanzania, which includes the potentially world-class Ntaka Hill Nickel Sulphide Project. Nachingwea is highly prospective for nickel and copper sulphide, gold and graphite mineralisation. The Ntaka Hill Nickel Sulphide Project is one of the world's best un-developed nickel sulphide projects and has the potential to produce a very clean, high quality premium nickel concentrate.

In Australia, IMX operates and owns 51% of the Cairn Hill Mining Operation, located 55 kilometres south-east of Coober Pedy in South Australia, where it produces a premium coarse-grained magnetite-copper-gold DSO product at a rate of 1.8Mtpa.

IMX is actively developing the Mt Woods Magnetite Project on the highly prospective Mt Woods Inlier in South Australia. IMX currently has a JORC Inferred Resource of 569Mt @ 27% Fe at the Snaefell Magnetite Deposit and a Global Exploration Target of between 900-1,200Mt @ 20-32% Fe elsewhere in the project. Studies indicate that coarse grained concentrates that could be produced at Snaefell have the potential to produce a direct sinter feed product which has the potential to attract a significant price premium.

IMX has a joint venture with OZ Minerals Limited ('Oz Minerals'), the Mt Woods Copper-Gold Joint Venture Project, to explore the Mt Woods tenements for copper and gold. OZ Minerals is spending a minimum of $20M for a 51% interest in the non-iron rights, with IMX retaining a 49% interest in the non-iron rights and 100% of the iron ore rights.

IMX owns 25.65% of Uranex (ASX:UNX), an exploration company with prospects in Tanzania and Australia.

Visit: www.imxresources.com.au

Forward-looking Statements: This News Release includes certain "forward‐looking statements". Forward-looking statements and forward-looking information are frequently characterised by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "will" or "could" occur. All statements other than statements of historical fact included in this release are forward‐looking statements or constitute forward-looking information. There can be no assurance that such information of statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such information. Important factors could cause actual results to differ materially from IMX's expectations.

These forward-looking statements are based on certain assumptions, the opinions and estimates of management and qualified persons at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements or information. Such factors include fluctuating metal prices, uncertainty in equity markets and other factors. Exploration Target tonnage quantity and grades estimates are conceptual in nature only. These figures are not resource estimates as defined by the JORC (2004) or NI 43-101, as insufficient exploration has been conducted to define a Mineral Resource and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource. Mineral resources that are not Mineral Reserves do not have demonstrated economic viability

IMX undertakes no obligation to update forward-looking statements or information if circumstances should change. The reader is cautioned not to place undue reliance on forward-looking statements or information. Readers are also cautioned to review the risk factors identified by IMX in its regulatory filings made from time to time with the ASX, TSX and applicable Canadian securities regulators.

Cautionary Statement: The TSX does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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