| Tue 13 May 2008, 8:00 | | AFE - African Eagle Resources Plc - Update on Ndol |
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AEA
AEA
AFE - African Eagle Resources Plc - Update on Ndola Project, Zambia
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
AFRICAN EAGLE RESOURCES PLC
UPDATE ON NDOLA PROJECT, ZAMBIA
* African Eagle regains unencumbered ownership of the Ndola Project
* Systematic exploration has identified four principal copper targets
* African Eagle will continue exploration at Ndola
* New JV partners will be considered
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) announces that Phelps Dodge Mining (Zambia) Limited ("PDMZ"), which
has been funding exploration on the Company`s Ndola Project in the Zambian
Copperbelt, has advised the Company that it will not exercise its right to earn
an interest in the project.
African Eagle`s Managing Director, Mark Parker commented "Our exploration to
date has shown that Ndola has good potential for significant discoveries to be
made. Whilst we are disappointed that PDMZ chose not to continue working with us
at Ndola, we recognise that they have their own priorities. PDMZ has been a
good partner to work with and African Eagle was able to advance the project
significantly quicker with PDMZ`s capital. We will continue to evaluate the four
key targets ourselves, although we would consider signing up a suitable new
partner".
PDMZ involvement
In August 2006, African Eagle signed a subscription and earn-in agreement with
PDMZ, under which PDMZ subscribed for African Eagle shares to the value of
US$2.27 million at a 10% premium to the market price. The Company used 75% of
these funds on a systematic exploration programme at Ndola. Under the
agreement, PDMZ held an exclusive right to earn an ownership interest of up to
70% in the project by making further agreed expenditures on exploration, up to
and including completion of a bankable feasibility study. PDMZ has been a wholly
owned subsidiary of Freeport McMoRan since March 2007.
PDMZ has now notified African Eagle that it will not be exercising its earn-in
right and the Ndola project will therefore remain 100% owned by the Company.
Progress at Ndola
African Eagle`s systematic exploration of the 428km2 Ndola licence area started
with a high resolution helicopter geophysical (magnetic and gamma-ray
spectrometric) survey and a 1600-sample reconnaissance geochemical soil survey
over the entire licence which identified four principal copper targets. The
Company then conducted a 20,000-sample detailed geochemical programme on those
targets followed by scout drilling and an induced polarisation survey over one
of the most promising.
The four principal copper targets identified by African Eagle are:
* Ndola East, an area northeast of Ndola town containing a copper deposit in
Lower Roan sediments, reported from past drilling to be of the order of
40Mt at 0.76% copper.
* Ndola South, a target associated with Lower Roan sediments in the southern
part of the licence. This mineralisation may be stratigraphically
continuous with Bwana Mkubwa, one of Zambia`s oldest former copper mines.
* Misundu, in the northwest of the licence, where copper mineralisation
occurs in sediments of Upper Roan Dipeta age, within a structurally complex
zone. The Dipeta is known to host significant copper deposits in
neighbouring DRC.
* Chiwala, a geochemical copper anomaly within post-Roan Kundelungu rocks in
the central part of the licence.
At the Ndola South target, geochemical soil sampling completed in late 2007
revealed an extensive low tenor copper anomaly associated with folded Lower Roan
strata. 12km to the west, these rocks contain the Bwana Mkubwa mine, one of
Zambia`s oldest and richest copper mines, now owned by First Quantum Minerals.
The Company recently completed a programme of shallow (30-40m) Reverse
Circulation drill holes to test the soil geochemical anomaly. Analysis of drill
chippings, using the Company`s field XRF analyser, indicates that there is up to
0.2% copper present in the leached saprolite derived from the target horizon.
The drill samples have been submitted for assay to a certified laboratory.
The Company is currently conducting an Induced Polarisation (IP) survey of Ndola
South and the results received so far show high chargeability at a depth of 50m
or more beneath the soil geochemical anomaly. This suggests that stratiform
copper sulphide mineralisation may exist at depth.
The Company considers Ndola South to be a significant exploration target and
plans a series of deep drill holes once all the results of the IP survey have
all been received and interpreted.
The Ndola East copper deposit occurs in north-northwest striking Lower Roan
sediments on the eastern flank of the Ndola Dome. From the results of
exploration during the 1950s and 1970s, the deposit was estimated to contain
mineralisation amounting to some 40 Mt at 0.76% copper over a strike length of
3.5km. Structural complications including thrusting and overturning of strata
were noted in the north. The reported drill hole intersections suggest that the
copper grade increases with depth to a maximum of 1 to 1.5%.
Given that the 1960s drill holes were on a very coarse grid pattern, spaced
approximately 1000m by 500m, we believe the deposit has not yet been
sufficiently investigated. There is potential for shallow oxide mineralisation
and deeper sulphide ores over a strike length of around 7.5km around the Ndola
Dome. The Company plans a programme of geophysical surveying and drilling to
evaluate the target.
At the nearby Misundu target, the Company drilled three diamond drill holes and
nine percussion drill holes for a total of almost 2000 metres, before drilling
was suspended to await the results of the detailed geochemical survey and other
surface surveys. Unexpectedly, the drilling intersected rocks which appear to
belong to the Dipeta Formation, within a structurally complex zone. The Dipeta
is part of the Upper Roan and is known to host significant copper deposits in
neighbouring DRC.
Diamond drill hole NDE1 was drilled to a depth of 603m with wedged offsets to
define the stratigraphic succession and to gain a better understanding of the
structural complexity and mineralisation at Misundu. Mineralisation grading 1.1%
copper was intersected in this hole at 58 vertical metres over a width of 7m and
further drilling is planned.
The geochemical anomaly at Chiwala, in the central part of the licence, lies in
the same stratigraphic sequence as First Quantum Mineral`s Lonshi deposit. An
IP survey will be undertaken at Chiwala, followed by drilling if appropriate.
John Park
Chairman
African Eagle Resources plc
13 May 2008
Qualified Person
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 363 501
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, for which a Feasibility
Study will be completed in Q4 2008, and the Miyabi gold project in Tanzania, at
which the Company has defined an estimated half-million ounce gold resource. The
Company also holds a large well-balanced portfolio of promising earlier stage
gold and base metal projects, including the Ndola and Mokambo copper projects.
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: 13/05/2008 08:00:06 Produced by the JSE SENS Department.
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