Zambezi Nickel Share Discussion Threads

[umair] 22/2/2006 16:28

from miningnews.net

Nickel promise for Zambezi
Monday, February 13, 2006

ZAMBEZI Nickel's Mitaba exploration project has the potential to feed a 90,000 tonne per annum nickel operation for forty years based on current indicators, according to managing director Paul Rankine. Report by Chris Cann in Zambia

Rankine told MiningNews.net at the Africa Emerging Mining Congress in Zambia, the project received a boost after aeromagnetic studies discovered a further mineralised zone, Mitaba East, and opened the door for mineralisation linking the two main mineralised bodies, Mitaba Hill and Mitaba West.

The next drill program has been increased from 3,300m to 4,500 to test the new anomalies. Drilling will begin in April after the wet season and run until the end of July.

The separate zones of mineralisation form an 8.9km strike length. The strike length at the Mt Keith nickel mine, which is expected to have a 45,000tpa production rate for 45 years, is 1.6km.

Zambezi expects a JORC compliant resource by the fourth quarter of this year to establish more than 3.6Mt. The company will move straight into a bankable feasibility study if its assumptions are proved correct.

Rankine said the company was leaning toward using LionOre's Activox technology to treat its ore but stressed it was still considering all options.

He said the operation would use hydropower at a cost of 2.5c per kilowatt hour, which is well under half the cost of conventional electricity.

Once in production Zambezi will look at its other major project, Paulwi, also in Zambia.

AIM-listed Zambezi Nickel is a spin-off from Zambezi Resources' former nickel projects. Zambezi Resources holds a 49% interest in the spin-off company.

[peterdavis] 25/1/2006 17:32

No one in to this then?

[peterdavis] 09/12/2005 15:50

This one is O/K thanks

[dubbsie] 09/12/2005 14:06

If you are interested in a proper exploration company look at RDG

[currypasty] 09/12/2005 08:26

tipped in IC today

[double6] 15/11/2005 10:51

Next one ??

[currypasty] 01/11/2005 07:58

Feature Story Date: November 01, 2005

Zambezi Nickel Spun-Off By Zambezi Resources To Focus on Nickel in Zambia

Trading on AIM has started today in Zambezi Nickel the spin-off from Zambezi Resources which listed in July 2004. Zambezi Resources already has more than 10 copper and gold projects so it is debatable whether any real value is given to its nickel projects which are in the south of Zambia near the border with Zimbabwe. This move gives new investors a chance to invest in a pure nickel play, with Zambezi Resources retaining a 49.6 per cent holding. The annoying thing for management at the time of listing is that while gold and copper have both remained strong, the nickel price has been heading south. On the London Metal Exchange, nickel has slipped from US$7.50 a pound a few months ago, to around US$5.50/lb. The fall in the metal price is not welcomed by any producer, but the positive aspect is that nickel price is still well above its long-term average.

Paul Rankine, the CEO of Zambezi Nickel, will be able to take a view from both sides as he has been a mining analyst and a metals and mining industry consultant as well as a mining engineer at a senior level with both Gold Fields of South Africa and De Beers. He points out that the volatility of nickel seems a bit overdone compared with other metals, which smacks of hedge traders paying their little games in the metal. Talk to producers such as Michael Kiernan of Consolidated Minerals and he still sees consistent demand from Chinese steel producers even if, as he puts it, "They try to screw you through the floor on price." Nevertheless he forecast increased nickel exploration in the Kambalda area at the AGM last week, and that has to be taken as an encouraging sign.

The other point to bear in mind about Zambezi Nickel is that both its projects are some way away from production so the current price of nickel is largely academic until work starts on a bankable feasibility study at either of them. The Mitaba project consists of two prospects, Mitaba Hill and Mitaba West and to the east of them is the Paulwi prospect. Mitaba Hill was previously explored trenched and drilled by Zamanglo in the 1960s, but very little exploration has ever taken place at Mitaba West. Sampling results from trenches at Mitaba Hill reveal numerous wide intervals in only mildly weathered target channel features with grades of 1.23% nickel over 88..4 metres and 1.77% nickel over 53.3 metres.

Similar trenches at Mitaba West assayed 0.71% nickel over 52.4 metres and 0.76% nickel over 50.3 metres. The fact that platinum group elements were detected in surface specimens containing the highest nickel lend credence to the fact that disseminated sulphides should be found at depth. It is disseminated sulphides that Zambezi Nickel is after at Mitaba, of sufficient size and grade to support an open cut mine similar to the operation at Mt Keith in Australia where 11 million tonnes of ore is mined/year. Drill targets have already been defined and the company will drill these next year in order to come up with an initial resource estimate to JORC specifications. In the meantime aeromagnetics and VTEM will be flown over both projects.

Paulwi was explored by Zamanglo at the same time, but here the geology is different with strong potential for massive nickel sulphides like Albidon's Munali project which has a JORC resource of 55,500 tonnes of contained nickel. In the first quarter of 2006 Zambezi Nickel will be generating massive nickel sulphide targets from the data received and these will be drilled later that year. Investors will be encouraged to read in the prospectus that 'results of historic work at both Mitaba and Paulwi, especially the convincing evidence of sulphur saturation and the identification, already, of targets for disseminated, pittable sulphides at Mitaba and for high grade massive sulphides along the basal contact at Paulwi, all combine to indicate a positive outome from the proposed exploration programme.'

Hot on the trail, would be a fair description and the development strategy envisages raising additional funds for a bankable feasibility study this time next year. This is a company in a hurry and its directors have the skill sets and experience necessary to fast track nickel production. By the same token the company is in a strong position to acquire non-core nickel assets in the region from other players and drive them forward in the same way. Zambezi Nickel has hit the ground running as it is already operating in the area and will spend most of the gross £1.6 million raised at the time of the listing in the ground as it can share central expenses with its parent. Should be some interesting news before long.

[currypasty] 31/10/2005 09:55

Zambezi Nickel has raised a total of #1,598,132, before expenses, via an
offer (the "Offer") of 9,458,333 new Ordinary Shares ("Offer Shares") to
shareholders of Zambezi Resources Limited ("Zambezi Resources") and a placing
(the "Placing") of 6,522,989 new Ordinary Shares at 10p per share

Attached to the Offer Shares is an option to purchase one new Ordinary
Share for every two Offer Share's subscribed for under the Offer at a price of
10p per share

Zambezi Nickel's market capitalisation at Admission will be #3,351,494

The Company is dedicated to nickel exploration and development in Africa

Two core projects being developed in Zambia on nickel belt hosting
working mines