* Xstrata outlines world class nickel sulphide deposit in Tanzania** By: John Chadwick
* Posted: '18-FEB-07 10:21' GMT (c) Mineweb 1997-2006 *L*ONDON (Mineweb.com) --Xstrata Nickel will invest a further $95 million and commence a prefeasibility 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 between Barrick Gold 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, according to Xstrata, with a total estimated indicated resource of 9.7 million tons grading 2.37%nickel and a total estimated Inferred resource of 36.3 million tons grading 2.8% nickel. The revised estimate represents a notable increase from the project's previous estimate (Inferred) of 26.4million tons at 2.6% nickel. Xstrata Nickel has completed over $50 million in expenditures to update the resource model for the Kabanga project and preparation of an extensive scoping study. Ian Pearce, CEO of Xstrata Nickel said "We are very pleased with the progress at Kabanga. 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 prefeasibility stage and we look forward to the continued development of Kabanga." Greg Wilkins, Barrick President and CEO commented "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." Diamond drilling is ongoing using ten drills with the objectives to continue to upgrade the resource to Measured and Indicated categories in North Zone to provide sufficient quality data to support a feasibility study on the project. It will also expand and upgrade the Inferred resource at the Tembo Zone, a new zone discovered in June 2006, located 2 km north along strike of the North Zone. There will also be systematic exploration of the underexplored Kabanga licences and evaluation of select regional targets for new discoveries in the proximity of the Kabanga deposits. Xstrata will also undertake geotechnical investigations for potential infrastructure sites. *John Chadwick is editor and proprietor of International Mining magazine – www.im-mining.com*
