Results from completed seven out of eleven exploration drill holes at the Safari Link Area of Kabanga Nickel project located in Ngara district have intercepted high grade nickel, copper and cobalt mineralization, Lifezone Metals Limited's update on operations and unaudited Q1 2024 financial summary has said.

Lifezone Metals Limited's Chief Executive Officer, Chris Showalter said the company is advancing its Kabanga Nickel Project through a strategic partnership with the government of Tanzania and BHP. 

In November last year, mineral resources update assumed an underground mining rate of 2.2 million tonnes per year. 

However, based on the size of the Kabanga Resources, Lifezone believes that a higher throughput of 3.4 million tonnes per year will provide a more optimal outcome in the Definitive Feasibility Study.

Kabanga is believed to be one of the world largest and highest-grade undeveloped nickel sulfide deposits.

The update notes that Lifezone has also received the Kahama Hydromet Refinery Licence from the government of Tanzania, and Kahama will be located within a newly promulgated Special Economic Zone (SEZ).

During the first quarter, the company reported both basic and diluted loss per share of $0.05, compared to basic and diluted loss per share of $0.10in Q1 2023.

Showalter stated: "In the first quarter of 2024, we made significant progress in advancing our Kabanga Nickel Project in Tanzania across various fronts and remaining on track to complete the Definitive Feasibility Study by the end of Q3 2024”.

This included advancements in areas such as concentrator and refinery design work and mine planning, and the evaluation of potential resource additions. 

During the period, he said, the government of Tanzania continued to demonstrate its steadfast support for Kabanga with the issuance of the Kahama Hydromet Refinery Licence and the declaration of the Special Economic Zone – two critical milestones for Kabanga nickel project. 

“We remain close with the government of Tanzania, our local communities and BHP, our project partner, as we advance Kabanga project,” he said.

“Beyond Kabanga, the closing of funding for Phase 1 of our PGM recycling partnership with Glencore during the quarter marked another significant achievement for Lifezone”.  

Furthermore, the CEO said; “This partnership enables us, in parallel with Kabanga, to demonstrate the versatility and benefits of our Hydromet Technology in yet another compelling, large and growing metals recycling market and focused here in the United States. We look forward to concluding our pilot project in Q3 2024."

The company has recorded more than 1.8 million hours worked without a lost time injury at the project, which testify the commitment to promoting and implementing comprehensive workplace health and safety measures, which include rigorous monitoring and reporting systems. 

During Q1 2024, the concentrator and refinery design work and mine planning continued for the Kabanga nickel project and progress was made on the various technical workstreams supporting the Definitive Feasibility Study. 

The two-phased development plan was finalized and will form the basis of the Definitive Feasibility Study – which will involve a1.7 million tonne per year Phase 1 with an additional 1.7 million tonne per year Phase 2 expansion, for an expected 3.4 million tonne per year operation in the aggregate.

The Kabanga Nickel Project is currently 69.7 percent owned by Lifezone, and measured and indicated resources attributable to Lifezone total 43.6 million tonnes grading 2.02 percent nickel, 0.28 percent copper and0.16 percent cobalt (2.57 percent nickel-equivalent).