Nickel is an important alloying addition in nearly two thirds of the stainless steel produced today. Its primary function is to stabilize the austenitic (face-centered cubic crystal) structure of the steel. Normal carbon steel will, on cooling, transform from an austenite structure to a mixture of ferrite and cementite.
Almost 40% percent of annual nickel use is in nonferrous alloys (mixed with metals other than steel) and super alloys (metal mixtures designed to withstand extremely high temperatures and/or pressures or have high electrical conductivity). Nickel is present in over 3000 different alloys that are used in more than 250,000 end-use applications.
Nickel is used as a coating on other metals to slow down corrosion, for the production of coins, as a catalyst for certain chemical reactions and as a colorant - nickel is added to glass to give it a green color.
Rechargeable nickel-hydride batteries are used for cellular phones, video cameras, and other electronic devices. Nickel-cadmium batteries are used to power cordless tools and appliances.
It is estimated that there is about 140 million tons of nickel available in identified deposits. Nickel-bearing deposits come in 2 types:
Sama Resources Inc. (TSX: V.SME, Stock Forum)
Sama Resources is focused on exploring the Samapleau nickel/copper project in Ivory Coast, West Africa and the Lola nickel and cobalt project in the Republic of Guinea, Africa. The company is well financed and managed by experienced industry professionals with a strong track record of discovery.
Samapleu Project
Location: Côte d’Ivoire, Africa. The Samapleu license encompasses approximately 446 square kilometers, has all the necessary infrastructure and services and is located adjacent to the large world class nickel-cobalt laterite deposits of Sipilou, Foungouesso, Moyango and Viala. A NI 43-101 mineral resource is to be completed on the Samapleu Project by mid-2011.
The Samapleu Project is a joint venture between Sama's 100% owned subsidiary, SAMA Nickel Corporation (66?%) and Société pour le Développement Minier de Côte d'Ivoire ("SODEMI") (33?%). Sama Nickel Corporation will pay 100% of costs to feasibility, thereafter Sama will bear 60% of costs, SODEMI 30% and the Ivorian Government has a 10% carried interest.
The Samapleu Main deposit appears to be composed of two distinct and more or less parallel tubular shape lenses of massive sulphide plunging towards the south at approximately 35°. These two massive lenses (sulphides are considered “massive” when they are 40% plus of the total rock volume) are located within a 10% to 40% halo of disseminated sulphide within pyroxenite units, forming a 400m long mass open at surface toward the southeast, northwest and at depth. A detailed IP survey is due to start shortly to test the potential for expansion at both ends.
Highlights of the 6,900m 2010 drill program:
41m: 1.07% Ni, 1.01% Cu
33m: 1.29% Ni, 1.16% Cu
38m: 0.53% Ni, 0.88% Cu
31m: 1.02% Ni, 0.85% Cu
11m: 3.04% Ni, 2.92% Cu
8m: 2.58% Ni, 4.34% Cu
Metallurgical testing was conducted by Societe Generale de Surveillance (SGS) of Vancouver, B.C., under the supervision of Blue Coast Metallurgy Ltd. of Nanaimo, B.C. Metallurgical test work at SGS was performed on two mineralized blends: a high-grade blend grading of 1.71 per cent nickel and 1.71 per cent copper (Comp 1) and a production blend grading of 0.53 per cent nickel and 0.52 per cent copper (Comp 2).
A recent locked cycle test on the Comp 2 blend returned an 18.5-per-cent nickel plus copper grade of concentrate, with nickel and copper recoveries of 74 per cent and 89 per cent, respectively. Cobalt recovery was 71 per cent.
The test results confirm earlier predictions gleaned from quantitative mineralogical analyses that Samapleu material is quite favorable for treatment by milling and flotation processes, indicating a potentially simplified flow sheet yielding good sulphide minerals of a relatively coarse grind.
There is a second phase, 9000m drill program, currently underway. The Phase 2 drilling program is aimed at establishing NI43-101 compliant Mineral Resources at the Main Samapleu deposit and at Extension 1.
Samapleu Extension 1 is a New Discovery made in 2010, its 1.5km north of Samapleu and returned intersections of;
- 9m grading 1.93% Ni+Cu and 1.6g/t PGE's and Scandium
- 0.90m @ 2.68% Ni
- 1.65m @ 1.82% Ni, 2.14 g/t Pd
- 0.65m @ 1.75% Ni, 2.74 g/t Pd
The Samapleu exploration license also hosts a significant amount of nickel-cobalt + scandium rich laterite material, known as the Sipilou South laterite deposit, located 5 km northwest of the Samapleu main deposit.
Approximately 50% of the Sipilou South Ni-Co laterite deposit extends into the exploration license. Laterite material grading between 1.2% to 2.04% Nickel and 0.06% to 0.10% Cobalt has been reported from previous works. A first stage laterite drilling program by the Company on an 800m x 400m grid will be part of the current drilling Phase II program.
Newly discovered high potential zones:
Kourouba
Kourouba is a new mineralized sector located 2.5km north of the Main Samapleu deposit. The discovery is based on 23.75m of mineralized pyroxenite with disseminated sulphide ranging from 10 to 30% including stringers of massive sulphides. Full lateral extension of the sector is not known and is open at depth.
Gangbapleu:
Sama's surface exploration has identified a new mafic to ultramafic complex (potential host for mineralization) located 3.5 kilometers south of the Samapleu Main deposit. This new "Gangbapleu" sector extends for several km to the southwest. A mineralized pyroxenite rock sample collected at surface has returned 0.15% Copper and 0.07% Nickel. Although low, these unexpected values at surface are indicative of the potential for a whole new complex.
Lola Project: Nickel and Cobalt
Location: Republic of Guinea, Africa. The geological setting of the area is characterized by the presence of ultramafic and mafic intrusions forming an almost continuous succession within a corridor of structural deformation orientated more or less NE-SO. The deformation zone extends for almost 170 km with 60 km in Guinea and remaining 110km in Côte d'Ivoire.
Sama controls this trend with their two properties, Samapleu and Lola, adjacent to each other.
Ultramafic and mafic intrusions located within the Lola property can be the host of either, nickel and copper sulphide mineralization (ie: Samapleu poly-metallic deposit) or nickel and cobalt rich surface laterite deposits (ie: Sipilou and Foungouesso laterite deposits).
The Lola Project is 100% owned by Sama.
Conclusion
Nickel is a critical ingredient in the production of stainless steel and industrial alloys - the demand for nickel rises directly in step with the growth of emerging economies.
Unlike gold there is no “emotional” component to the value of nickel. It isn’t hoarded in safes, given as wedding presents, or dangled around women’s necks. Instead you find it in buildings, cars, trains and bridges.
Pure nickel exploration plays aren’t common. Is Sama Resources (charts) and its potential 170k long nickel/copper/cobalt mining district on your radar screen?
If not maybe it should be.
Disclosure: Richard Mills does not own shares of Sama Resources. Samais an advertiser on Richard’s website www.aheadoftheherd.com.