| Wed 30 Apr 2008, 10:57 | | AEA - African Eagle Resources Plc - Mkushi project |
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AEA
AEA
AEA - African Eagle Resources Plc - Mkushi project 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 PROJECT UPDATE
* Mkushi feasibility study on track
* Full mining licence application submitted
* New drill results from the Munshiwemba Zone include 1.75% copper over 26m,
4.65% over 8m and 2.71% over 9m
* AFE`s exploration discovery at Munda should add significantly to overall
resource
* Production from this project could begin in 2010
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) announces that its joint venture (JV) partner CGA Mining today issued
a report containing new drill data for the Mkushi Project and a summary of
progress towards the feasibility study (FS).
African Eagle`s MD Mark Parker comments "The Mkushi project remains on track for
completion of the FS at the end of October. The JV`s recent application for a
full mining licence is a major step on the road to production and we believe
that the additional mineralisation over 2km strike length which has been
revealed at Munda by African Eagle`s exploration effort will add significantly
to the overall resource".
CGA reports that good progress is being made on the various components of the
FS, which is on track for completion in the last quarter of 2008. An application
for a Mining Licence over the Mkushi deposit and adjacent prospects with
resource potential was submitted during February 2008.
Drill results received during the quarter indicate potential for additional
resources in the previously mined Munshiwemba Pit and support our geological
interpretations of H, L, and G Zones. An independent resource estimate to JORC
and NI-43-101 guidelines is due for completion in the next quarter and will
include data that was not available at the time of the preliminary study.
Exploration work by African Eagle has intersected significant mineralisation at
the Munda prospect and identified several new soil geochemical copper anomalies
within the wider 476 sq km prospecting licence.
Feasibility Study - Summary
Bateman Engineering Pty Ltd (Bateman), with its subsidiary Metplant Engineering
Services Pty Ltd (Metplant), is the principal consulting group carrying out the
feasibility study for the Mkushi process plant.
The geotechnical drilling has been completed and the report, being prepared by
African Mining Consultants Ltd Zambia ("AMC"), is expected in the next month.
The Environmental Impact Assessment (EIA) has also been completed by AMC and has
been presented to the authorities for review.
Snowden Mining Industry Consultants Pty Ltd, Perth, has been engaged to prepare
the NI 43-101 estimate for the mineral resources. This document is expected to
be available for release in the next quarter.
Discussions are advanced with the two main power suppliers in Zambia to provide
a secure supply of power to the operation.
Discussions have commenced with smelter operations in Zambia concerning possible
off-take agreements.
Completion of the FS is on track for the last quarter of 2008.
Resource Drilling & Estimation
The resource evaluation drilling programme at Munshiwemba H Zone has been
completed and drill rigs transferred to a programme to test additional
exploration targets within the joint venture licence areas. Success on these
targets is expected to result in an increase in the resource base at the Mkushi
Project. It is anticipated that further resource drilling at Munshiwemba, H Zone
and other core area prospects will recommence after the completion of the FS.
Results received during the quarter indicate potential for additional resources
in the old Munshiwemba Pit (north east of G Zone) and have confirmed geological
interpretations at L, and G Zones.
Based on visual observations, the 10m x 10m close spaced vertical RC programme
at G Zone appears to confirm the continuity of the copper mineralisation.
Snowden, an independent resource consultant based in Perth, has commenced the
resource estimate to JORC and NI 43-101 guidelines. This estimate is due for
completion in the next quarter and will include additional data that was not
available at the time the preliminary study was announced in February.
Significant new drill intersection results can be found in Table 1. The holes
were drilled on an average angle of minus 50? and the widths referred to in the
table are apparent widths.
Table 1
MKUSHI - SIGNIFICANT NEW DRILL INTERSECTIONS
HOLE NO ZONE FROM WIDTH Cu TYPE
GRADE
%
MH018 H ZONE 52 25 0.51 RC
MH029 H ZONE 142 5 1.01 DD
MH029 H ZONE 150 3 1.89 DD
MH084 L ZONE 137 7 1.26 DD
MH085 H ZONE 25 5 1.03 DD
MH086 H ZONE 13 19 0.34 DD
and 71 33 0.60 DD
and 109 9 0.90 DD
and 219 8 0.85 DD
MH098 H ZONE 28 3 1.69 RC
MH100 H ZONE 174.5 4.5 1.87 DD
MMU048 MUNSHIWEMBA 12 9 0.67 DD
MMU050 MUNSHIWEMBA 17 3 1.99 DD
and 31 26 1.75 DD
MMU051 MUNSHIWEMBA 48 9 2.71 DD
MMU053 MUNSHIWEMBA 57 8 4.65 RC
and 70 4 2.63 RC
MMU055 MUNSHIWEMBA 8 5 1.17 RC
MMU057 MUNSHIWEMBA 11 5 2.07 RC
MMU060 MUNSHIWEMBA 20 9 1.74 RC
MMU061 MUNSHIWEMBA 4 8 0.89 DD
and 16 18 0.40 DD
MMU064 MUNSHIWEMBA 1 11 0.97 DD
MMUGT1 H ZONE 73 19 0.63 DD
MMUP038 G ZONE 11 5 2.67 VertRC
MMUP039 G ZONE 0 11 1.27 VertRC
MMUP040 G ZONE 11 9 0.68 VertRC
MMUP045 G ZONE 9 10 1.15 VertRC
Geotechnical Study
The geotechnical diamond drilling programme has been completed and a report is
being prepared by AMC for inclusion in the DFS.
Sterilisation Drilling
A 4,100m RC programme has been completed on proposed sites for plant, waste and
tailings facilities. No mineralisation of significance was located and sites are
now adequately sterilised for infrastructure.
Licences
An application for a Mining Licence over the Mkushi deposit and adjacent
prospects with resource potential was submitted to the Zambian Ministry of Mines
on 12 February 2008. The Environmental Impact Assessment ("EIA") prepared by AMC
has been completed and submitted for review and approval by the Environmental
Council of Zambia. The EIA is also a key requirement of the Mining Licence
application. The approval of the Mining Licence is unfortunately held up due to
the extended moratorium imposed by the Zambian government on licence approvals.
It is expected that the Mining Licence will be processed and approved early in
May after the moratorium is lifted.
Regional exploration
African Eagle, which under the JV is exploring the wider 478 sq km licence
around the known deposits, has now received most of the laboratory analyses from
its 3432 sample soil geochemical programme. These have revealed several
promising copper anomalies, which African Eagle will follow up.
African Eagle`s diamond and RC drilling of the Munda Prospect, 5km south of
Munshiwemba, yielded several intersections of copper sulphides over 2km of
strike, with grades up to 2% indicated by visual inspection and in-field XRF
analysis, although these remain to be confirmed by a certified laboratory.
General
As part of our ongoing commitment of community improvements work was completed
on re-wiring of the local medical facility in the nearby Mkushi Copper Mine
village during the quarter.
John Park
Chairman
African Eagle Resources plc
30 April 2008
Qualified Person
Information of a technical nature in this report is based on information
compiled by, or under the supervision of, and approved by Mr Geoff G Jones and
Mr Simon Plunkett. Mr Plunkett is a Professional member of the Australian
Institute of Geoscientists and is a full-time employee of CGA. The drilling
results were assayed by Genalysis Laboratory Services Pty Ltd in Perth, Western
Australia.
Both Mr Jones and Mr Plunkett have sufficient experience relevant to the style
of mineralisation and type of deposit under consideration to be recognised as
Competent Persons as defined in the 2004 Edition of the `Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Resources`. Mr Jones
and Mr Plunkett consent to the inclusion in the report of the matters based on
their information in the form and context in which it appears.
Information in this report relating to exploration results is based on data
reviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, 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
For further information:
Mark Parker
Managing Director
African Eagle
+44 20 7248 6059
+44 77 5640 6899
Nicola Marrin
Seymour Pierce Limited, London
Nominated Adviser
+ 44 20 7107 8000
Charmane Russell
Russell & Associates, Johannesburg
+ 27 11 8803924
+27 82 8928052
Ed Portman / Leesa Peters
Conduit PR, London
+44 20 7429 6607
+44 (0) 7733 635 01
About African Eagle
African Eagle is a diversified 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 fast-tracked 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.
Zambia, Tanzania and Mozambique, the sites of African Eagle`s projects, are all
countries which have highly prospective geology, relatively low aboveground
risks and track records of successful major investments in the metals and
minerals industries.
African Eagle specialises in project generation and exploration. 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.
Date: 30/04/2008 10:57:33 Produced by the JSE SENS Department.
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