Saturday, December 13, 2008

Kiwara sees promising nickel prospects in Zambia

JOHANNESBURG (miningweekly.com), 11/12/2008

Aim- and JSE-listed exploration company Kiwara on Thursday reported that its Kawako project, in Zambia, could result in a significant nickel discovery, if the deposit strike length and dip-down continuity of the project was confirmed.

In its interim results, for the period ended September 2008, the company stated that initial nickel grades obtained from the Kawako site were very high by industry norms, and that the soil geochemistry showed the presence of copper mineralisation, which would be further investigated.

At Kiwara’s Kalumbila project, copper, nickel, cobalt, and uranium mineralisation have been reported. The company stated that the continued programme had thus far focused on near-surface potential, which if realised, could make Kalumbila an open pittable multibase metals deposit.

“The company clearly has outstanding prospects since its initial discoveries indicate significant mineralised strike length and proximity to surface, which may provide Kiwara with the opportunity to report considerable, easy-to-mine base-metal mineral resources. Both Kawako and Kalumbila show potential for world class mining opportunities,” said Kiwara chairperson Colin Bird.

“The Kiwara mission is to identify major deposits of nickel and copper, and we appear to be making good progress towards this objective. The location, favourable geology, and exploration results to date, make Kiwara an exciting emerging base metal company, with many value add possibilities for our shareholders.”

Bird stated that the global economic slow down had led to significant decline in both the price of base metals and in the market capitalisation of almost all mining and exploration companies. “This is based on an anticipated Chinese economic slowdown, which I believe, should be short lived.”

In its interim results, the company reported a loss of £172 483, compared to a loss of £146 374 for the previous corresponding period. Headline earnings were also down to 0,09p a share.

During the period under review, the company raised R15-million from its listing on the JSE.

Kiwara issued five-million ordinary shares to one of its original investors, New African Mining Fund. The transaction included the issue of a two-year option to New African Mining Fund to subscribe for a further 2,5-million ordinary shares, at R4 a share.