Jim Sinclair to focus on Kabanga metal belt in Tanzania with new exploration company owned by TNX.
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SEATTLE, WA, 30 Nov 2012 (MINEWEB) –
Tanzanian Royalty Exploration (TSX: TNX), headed up by mineral exploration entrepreneur Jim Sinclair, said it was creating a new company that would explore Tanzania’s Kabanga metal belt for nickel, cobalt and platinum group metals (PGM).
The new company, called Northwestern Basemetals, is to be a 75-percent owned subsidiary of Tanzanian Royalty, with 15 percent ownership by Tanzania’s state miner and 10 percent ownership by Beijing Songshanheli Mining Investment, Tanzania Royalty stated in a press release Wednesday.
Precise plans for the new company are scarce. But Sinclair, who could not be reached Thursday in an after hours phone call to corporate offices in Connecticut, pointed out in the press release that he was no newcomer to the Kabanga area, in western Tanzania. Sinclair was the chairman of Kabanga Nickely, now an equal partnership between Xstrata and Barrick Gold.
Kabanga Nickel, in turn, owns the Kabanga nickel deposit that is widely regarded as one of the world’s leading undeveloped nickel deposits, hosting some 58 million tonnes nickel @ 2.6 percent.
Tanzania Royalty did not elaborate on what properties – if such have been identified – the new exploration company would explore. However, Tanzanzia Royalties already holds rights to vast tracks of mineral licenses in western Tanzania. On a project location map, Tanzania Royalty outlines numerous concessions to the north of Kabanga, Tanzania, including the Kabanga project.
As well, Sinclair, in a prepared statement, had this to say about Tanzania’s future as regards being a nickel supplier to India and China, the latter of which has invested heavily in infrastructure in Tanzania over the past decade:
“Tanzania looks right across the Indian Ocean at the growing markets of India and China. Developments of the infrastructure in this area have been significant in the past year including roads and electricity. Historically nickel foundries are established to service their clients so that development in India and China can be expected. If current trends continue, India and China will grow into membership of the three largest markets on the planet for these products.”
