Kabanga North and North East Concessions
Tanzania – Africa
The concessions are located near the in north-western Tanzania, abutting the world class Kabanga Nickel Project. Adavale Resources Limited has ownership of the Kabanga North and North East concessions (comprising PL11406 and 11405), covering over 400km2 adjoining the Kabanga Nickel Project located along the Karagwe-Ankoilean system in Tanzania. The highly prospective Kabanga-Musongati mafic-ultramafic belt occurs in the Meso-Proterozoic Kibaran Orogenic Belt, along 350 km with a northeast-southwest rend, exposed in Burundi, Rwanda, southwest Uganda, and northwest Tanzania. The intrusions were emplaced into pelitic sediments of the Karagwe-Ankoilean Supergroups that accumulated during the early rifting phase of the Kibaran orogeny and contain important nickel sulphide ores at the Kabanga Nickel Deposit (Tanzania) and the reef-type platinum group element concentrations at Musongati (Burundi), one of the world’s largest nickel-laterite deposits.
The adjacent Kabanga Nickel Project holds one of the world’s largest undeveloped high-grade nickel sulphide resources of 58Mt @2.62% Nickel. The project has demonstrated an easily floated sulphide ore, with low risk sulphide metallurgy producing low impurity nickel.
In January 2018, the Tanzanian government cancelled 11 retention licences which were approved under the Mining (Mineral Rights) Regulations of 2018, as part of a broader strategy to claw back a bigger share of its domestic mineral wealth. Retention licences are granted to mining companies when they identify a mineral deposit of potential commercial significance but cannot immediately develop it due to technical constraints, adverse market conditions or other economic factors.
The licence for Kabanga – situated in north-western Tanzania and believed to be one of the most attractive undeveloped nickel sulphide deposits in the world – was among those cancelled, despite being due to expire in less than 12 months.
Previously the Glencore-Barrick Gold joint venture over Kabanga spent more than US$250 million on exploration and pre-development activities since the late 1990s before mothballing the project in the mid-2000s in light of falling nickel prices.
Kabanga is currently the subject of a prospecting licence application by Glencore-Barrick, to replace the cancelled retention licence. Jervois is believed to have also submitted an exploration permit application for the project. ADD is in discussions with potential JV partners with respect to tendering for the project. If successful, ADD’s current adjacent assets could represent excellent bolt on feed to the already substantial resource here.
The company plans to test high grade targets at its wholly owned tenements identified via historic data, which have previously been conducted by BHP via airborne radiometric surveys and other activities.