Nickel Results in Rulenge, T

RNS Number : 0658J

Obtala Resources PLC

27 November 2008

 



27 November 2008

OBTALA RESOURCES PLC ('Obtala' or the 'Company')

Strong Nickel Results in Rulenge, Tanzania

The Board of Obtala Resources, the AIM quoted mineral exploration and development company is pleased to provide the market with an update of the results from the soil sampling conducted over the Rulenge licence in Northern Eastern Tanzania. 

Highlights

• Multiple soil geochemical anomalies identified
• Geological Mapping completed
• Numerous gossans in outcrop identified during mapping
• 3,878 samples collected
• Ground magnetic completed
• 6 Nickel anomalies occur 15km northwest of Xstata-Barrick's Kabanga Nickel Deposit

A total of 3,644 soil samples have been collected from the geochemical sampling between July and October 2008. To date 2,969 soil samples results have been returned, with these results indicating a number of new zones of potential mineralisation that have not been previously tested by either trenching or drilling.  

Project	Work Status	Soil	Stream	Rock	Total
Rulenge	complete	3,644	120	114	3,878

Table 1. Total number of samples collected to date

Soil samples have been collected on a 200 x 100 meters grid (section line spacing x interval along section line) across the entire licence. Three areas were selected for closer spaced sampling (100 x 50 meters) over zones where outcropping gossan was identified. Stream sediment and rock-chip samples were collected to supplement the soil sample programme. A total of 429 quality control and assurance samples (142 standards samples, 145 duplicate samples and 142 blank samples) were included with the sample submissions to the laboratory representing 11% of the total number of samples collected.

Obtala engaged the services of Goldfinders Ltd (GFT), an experienced Tanzania registered geological consultancy, to undertake the preliminary phase of soil sampling and geological field mapping on the Rulenge nickel licence. GFT has retained the services of geologists with previous field experience from working on the Kabanga exploration project. This level of experience has aided in the mapping process and compilation of the local geological stratigraphy. 

During the course of field mapping, GFT have recognized a significant number of massive sulphide and semi-massive sulphide gossans in outcrop. The recognition of the gossans can be considered as highly significant. Gossans, by definition, are intensely oxidized and weathered rock, usually the upper and exposed part of a sulphide bearing body. Within the Rulenge licence area the lithologies are folded, with gossan outcrops being observed on both limbs of a northeast trending anticline structure in the central-western part of the licence.

Click here to view Geology of Rulenge Licence Area

http://www.rns-pdf.londonstockexchange.com/rns/0658J_-2008-11-27.pdf

The licence was internally divided into 4 sub-blocks; A, B, C and D. Results have been received for sub-blocks A, B and C. Sub-block A returned no values of interest. The results from sub-blocks B and C indicate 6 separate multi-element anomalies with nickel as the dominant element, at least three of which occur in areas of gossan outcrop. Anomalous values are defined by a 97 percentile threshold value.

A review of the 1970's study of the Kabanga area conducted by the United Nations Development Programme indicates that the Rulenge geochemical threshold values are inline with and similar to those determined by the study over Kabanga. 

These nickel-rich geochemical anomalies range from 400-1,200m in strike length.

An additional geochemical anomaly identified trends in a northerly orientation for over 3,000m and is sub-parallel to the strike trend of the lithologies and consists of copper and cobalt.

Click here to view map of Rulenge Nickel Project: Soil Geochemical Anomalies

http://www.rns-pdf.londonstockexchange.com/rns/0658J_1-2008-11-27.pdf

All samples were submitted to ALS Chemex (ALS) laboratories in Mwanza, Tanzania. ALS has preparation facilities in Mwanza with the prepared samples being dispatched to their analytical facility in Vancouver, Canada for analysis. All samples are being analyzed for multi-element analysis using the ME-ICP41 method (aqua regia digestion - ICP-AES). 

Rulenge in a regional geological setting lies within the units of the Karagwe-Ankolean System which forms part of the Mesoproterozoic Kibaran Orogenic Belt. The region is commonly referred to as the Kabanga-Musongati mafic-ultramafic belt, after the importance of the nickel sulphide bodies at Kabanga and the reef-type PGE concentrations of the Musongati nickel laterite deposit, in Burundi.

The Rulenge licence covers an area of 77.81km2 and is located 260km west of Mwanza, Tanzania's 3rd largest city, situated on the shores of Lake Victoria. The Rulenge licence is located 15km northwest of the Xstrata-Barrick Joint Venture Kabanga Nickel Deposit, which is currently undergoing a feasibility study. The western limit of the licence is the Ruvubo River, which marks the border between Tanzania and Burundi.

Frank Scolaro, Chairman of Obtala, commented that our exploration licences continue to show encouraging results. These initial results show a strong nickel anomaly lying in very close proximity to the world class Xstrata-Barrick Kabanga nickel deposit, and further adds progress to Obtala becoming a multi-commodity junior, with strong strategic associations ideally positioned to realise value for our shareholders. Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter. I am confident that further low cost and efficient exploration work will deliver additional encouraging results.

Contact:

Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.co.uk	[phone]
Obtala Resources plc
Ray Zimmerman/Jonathan Evans/Sam Kiri	[phone]
Zimmerman Adams International Ltd - Nominated Adviser and Broker

 

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