Kibaran (then known as Kibaran Nickel) acquired a 100% interest in the Kagera Nickel Project in late 2010, from Castillian Resources Corporation. Kagera covers an area of 864km2 along the western border of Tanzania, with its key tenements located approximately 10km north-east of the world-class Kabanga Nickel deposit.
The Kagera asset is currently a secondary focus project for Kibaran, being identified as a future growth asset. Work is underway, via an independent Nickel Prospectivity Study, to better understand the true nickel-sulphide (NiS) potential and financial value of the project. The study is essentially focused on the compilation, re-processing & re-interpretation of historical of airborne and ground exploration data over the project area and its surrounds.
Kibaran also recently secured an agreement with BHP Billiton to access historical data from their regional airborne EM and aeromagnetic surveys carried out in 1992. This new set of data will now be re-processed and re-interpreted as part of the ongoing Nickel Prospectivity Study. The replacement value of all combined geological and geophysical data is now estimated to be in excess of $12 million.
Analysis of the exploration data reveals that the Ruiza East Prospect is the location within the KAB that most resembles Kabanga in terms of geological setting, magnetic signature, conductivity response and surface geochemical footprint. Further, the highest nickel grade stream sediment sample collected outside the Kabanga area is located downstream of the Ruiza East conductivity anomaly.
Shanga Nickel Project
The Shanga Prospect is located at the southern end of the project area, within the granted Kibaran Prospecting Licence. It is approximately 20km north-east of Kabanga. A seven-hole drilling program carried out at the prospect in 2011 focused primarily on testing a 7km-long, north-east striking anomaly – an anomaly identified in 2008 by a VTEM survey flown over the southern part of project area.
Re-interpretation of the drill intersection SHG-07 (7m @ 0.11% Ni, 327ppm Cu, 97ppm Co, 3743ppm Cr and 24% MgO from 94m)
supports a Kabanga-type geological setting at the prospect.
Figure showing Kagera project aeromagnetic and VTEM survey summary
Kagera Project land holding:
The Kagera Nickel Project consists of four granted Prospecting Licences (PLs) totalling 578km2
in area, two PLs under application (totalling 284km2
) in an area located to the north of the Kibaran Orogenic Belt, and six PLs under application over relinquished areas from the PL 4985/2008 (which was renewed with a 50% reduction in its original area).
The original PL applications for the Kagera Nickel Project area were submitted by Castillian Resources Ltd (Tanzania), which was a wholly-owned subsidiary of Castillian Resources Ltd (Canada). In October, 2010 Kibaran Nickel Ltd acquired 100% interest in the Kagera Nickel Project from Castillian Resources, purchasing its Tanzanian subsidiary which holds all granted licences and applications.
See below for a summary table of the property licences and plan map of granted licences/applications.
Table: Summary of Prospecting Licenses (PLs)
The renewal process requires a 50% reduction of the initial area. The retained area for PL4985/2008 was selected based on the results of geological, geochemical and geophysical surveys that were executed during the license period. All of the potential target areas and areas with the most favourable geological environments were retained during the reduction process.
The table below outlines the initial PL area, the retained area and the relinquished area that underwent reapplication.
Table: Prospecting License PL4985/2008 renewal summary
|Prospecting License - 4985/2008
|Relinquished / Reapplied
Figure Kagera project map showing stand out exploration targets