| Tue 4 Dec 2007, 11:15 | | AFE - African Eagle Resources plc - Mkushi joint venture progress update |
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AEA
AEA
AFE - African Eagle Resources plc - Mkushi joint venture progress update
African Eagle Resources plc
(Incorporated in England and Wales, registered number 3912362)
AIM share code: AFE AIM ISIN: GB0003394813
JSE share code: AEA JSE ISIN: GB0003394813
MKUSHI JOINT VENTURE PROGRESS UPDATE
* Pre-feasibility study nearing completion
* Joint venture company established
* Production decision on course for late 2008
* Resource drilling progressing well
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) today announces a progress update from the Mkushi Copper Mines Joint
Venture in central Zambia.
Mkushi is a joint venture between African Eagle and CGA Mining Limited (CGA),
through their respective Zambian subsidiaries. CGA manages and funds the
resource drilling and feasibility study while AFE manages a jointly funded
regional exploration programme.
Both CGA and African Eagle have made substantial progress. CGA`s resource
drilling programme is well advanced and to date, the partners have completed
more than 33,000 metres of diamond and percussion drilling. Drilling within the
1970s era Munshiwemba open pit is underway, now that the pit has been pumped
dry. CGA has generated a resource model from the drill results as the basis for
the pre-feasibility study. This study is now expected to be ready by the end of
January 2008, slow laboratory turn-around and other delays outside the JV
partners` control having pushed the completion date back a few weeks.
The current resource drilling programme will continue until mid-2008, after
which the resources delineated will be converted to mineable reserves as part of
the bankable feasibility study, scheduled for completion in late 2008.
Geotechnical and sterilisation drilling will also be undertaken during this
period.
African Eagle`s regional exploration programme is making excellent progress,
with the aim of finding additional copper resources around Mkushi. Geochemical
and geophysical surveying under this programme, as well as showing probable
extensions of the known copper zones, have revealed new anomalies further
southwest and northeast which have yet to be drill tested.
Overall, work at Mkushi is progressing extremely well and the partners expect to
lodge an application for a mining licence with the Ministry of Mines in the New
Year. The full bankable feasibility study is on track and the final decision to
go into production will be made around the end of 2008.
Following signature of the full joint venture agreement in May, the two Mkushi
Prospecting Licences were transferred to Mkushi Copper Joint Venture Limited and
the shares of that company have now been allotted to the partners. Katanga
Resources Ltd, the wholly owned Zambian operating subsidiary of AFE, now holds
2,450,000 shares (49% of the total) and Seringa Mining, a wholly owned
subsidiary of CGA, holds 2,550,000 shares (51%).
Managing Director Mark Parker said: "We are pleased with the progress our
partners and operators CGA have made on the project over the past few months.
Despite minor operational delays, we look forward to completion of the pre-
feasibility study. African Eagle`s regional exploration is also progressing
well and gives strong indications of previously undiscovered mineralised zones
in the Mkushi copper system."
John Park
Chairman
4 December 2007
For further information, see the Company`s web site www.africaneagle.co.uk or
contact one of the following:
Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899
Ed Portman/ Leesa Peters
Conduit PR
+44 20 7429 6607/+44 7733 363 501
Nicola Marrin
Seymour Pierce Limited
Nominated Advisors & Brokers
+ 44 20 7107 8000
James Duncan
Russell & Associates, Johannesburg
+ 27 11 8803924 / +27 82 8928052
Qualified Person
Information in this report relating to exploration results is based on data
reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, Operations Director for
African Eagle, who is a Fellow of the Australasian Institute of Mining and
Metallurgy, has more than 26 years relevant experience in mineral exploration
and is a Qualified Person under AIM rules. Mr Davies consents to the inclusion
of the information in the form and context in which it appears.
Technical terms
A glossary of technical terms used by African Eagle in this announcement and
other published material may be found at www.africaneagle.co.uk/african-eagle-
projects-glossary.html
About African Eagle
African Eagle is a mineral exploration and development company operating in
eastern and central Africa. The Company`s principal advanced projects are the
Mkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,
which are being prioritised towards production. The Company also holds a large
well-balanced portfolio of promising earlier stage gold and base metal projects,
including the Ndola copper project and the Eagle Eye iron-oxide copper gold
project.
African Eagle`s projects are in Zambia, Tanzania and Mozambique, countries which
all have highly prospective geology, relatively low above-ground risks and track
records of successful major investments in the metals and minerals industries.
African Eagle specialises in project generation and exploration and has a highly
motivated team, proven management and an experienced board. To take its
discoveries into production, it seeks to sign up industry partners with records
of successful mine development. These joint ventures and, in time, the revenue
from advanced projects, will finance future exploration and new discoveries.
Sponsor
Nedbank Capital
Date: 04/12/2007 11:15:48 Produced by the JSE SENS Department.
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