NICKEL RESOURCES – Kabanga under the microscope

TANZANIA - Torontos XSTRATA NICKEL and BARRICK GOLD have begun a prefeasibility study of their joint Kabanga nickel project. The property is located in northwest Tanzania, south of Lake Victoria and near the borders with Burundi and Rwanda.

Xstrata and Barrick are saying that the Kabanga project is among the worlds most attractive undeveloped nickel sulphide deposits. The indicated resource is 9.7 million tonnes grading 2.37% Ni, and the inferred resource is 36.6 million tonnes grading 2.8% Ni. The latest resource numbers follow the conclusion of a US$50-million exploration program carried out by Xstrata and Falconbridge (Barricks original partner in the project).

Work at Kabanga continues. Additional diamond drilling will facilitate a feasibility study for the North zone, and the Tembo zone (discovered in June 2006) will be expanded and upgraded. Geotechnical investigations are planned to identify potential infrastructure sites.

Kabanga marks Barricks first foray into the nickel sector. Press releases concerning the joint venture are available at www.Xstrata.com and www.Barrick.com.