| Thu 27 Nov 2008, 9:00 | | AEA - African Eagle Resources plc - Initial Resource Estimate At Dutwa Nickel |
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AEA
AEA
AEA - African Eagle Resources plc - Initial Resource Estimate At Dutwa Nickel
Project, Tanzania
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
INITIAL RESOURCE ESTIMATE AT DUTWA NICKEL PROJECT, TANZANIA
31 million tonnes at 1.1% nickel and 0.034% cobalt
340,000 tonnes contained nickel and 11,000 tonnes contained cobalt
Potential to increase both resource and confidence level
African Eagle Resources plc, the diversified mineral and exploration company
operating in eastern and central Africa, is pleased to announce an initial
Inferred Mineral Resource estimate of 31 million tonnes at an average grade
of 1.1% nickel and 0.034% cobalt at its Dutwa nickel laterite project in
Tanzania. This estimate was prepared by independent consultants SRK
Consulting (UK) Ltd in line with the Australasian Code for Reporting of
Mineral Resources and Ore Reserves (the JORC Code).
At a cut-off grade of 0.5% nickel, this gives Dutwa a contained metal
endowment of some 340,000 tonnes of nickel and 11,000 tonnes of cobalt.
Mark Parker, the Company`s Managing Director, comments "This has been a fast
and exciting evaluation programme, from the commencement of drilling in June
to our first JORC compliant resource less than six months later.
"Metallurgical test work is currently being conducted at the Mintek
laboratories in South Africa to give us a better understanding of the
mineralogy of the deposit and to indicate the best means of treating the ore.
We believe that the results of this work, expected early 2009, with a small
amount of additional drilling, will enable us to upgrade to a JORC-compliant
Indicated Resource.
"African Eagle will undertake a scoping study during the first half of 2009
to assess the economic viability of the project, and will continue to provide
updates to the market on this exciting project as the information becomes
available."
African Eagle began its drilling programme at Dutwa in June 2008, to
investigate a strong nickel and cobalt geochemical anomaly extending for more
than 2.5 kilometres over a hill composed of serpentinite rock. After very
encouraging initial results, including 57m at 2.57% nickel, this was expanded
into a systematic resource drilling programme of 139 reverse circulation (RC)
holes, drilled on a 100 x 100 metre grid, (a total of 9,957 drill-metres),
and 10 diamond drill holes for 595 metres.
The Company has reported consistently encouraging results from its drilling
progressively since August and a table of all results to date can be found on
the company website:
www.africaneagle.co.uk/african-eagle-projects-dutwa.html.
SRK carried out the resource modelling using Datamine Studio 3 software,
using a cut-off grade of 0.5% nickel to define the mineralised domain. The
resource model used 50 x 50 x 6 metre blocks, these dimensions being chosen
after geostatistical (semi-variogram) analysis, taking into account the drill
spacing and down-the-hole sample intervals. The average grades of the blocks
were estimated from the drill data using Ordinary Kriging and cross-checked
by Inverse Distance Weighting. Sample grade top cuts of 3.5% nickel and
0.365% cobalt were applied. Table 1 shows the resulting resource estimate.
Table1: Mineral Resource Statement (0.5% nickel cut off)
CLASS VOLUME TONNES DENSITY Nickel Cobalt Copper Iron Magnesium
(M3) (Mt) g/cm3 % % % % %
Inferred 19 31 1.6 1.1 0.034 0.007 8.5 3.5
the numbers in this table and announcement have been rounded to two
significant digits
SRK classified the estimate as an Inferred Mineral Resource in terms of the
JORC code, but noted that this could be promoted to an Indicated Resource,
subject to refinement of the mean density of the mineralised domain through
increased sampling; some infill drilling and some additional drilling at the
peripheries of the main deposit; and improved knowledge of the mineralogy and
metallurgy of the deposit from test work now underway. SRK notes that the
Dutwa resource forms a continuous mineralised body of simple geometry, which
has been well delineated by the drilling programme to date.
African Eagle has despatched more than 100 kilograms of mineralised drill
core and percussion chip samples to Mintek Laboratories in Johannesburg to
investigate the mineralogy and metallurgy of the deposit, especially the
amenability of the material to heap leaching. Mintek is carrying out
mineralogical characterisation by X-ray diffraction (XRD), scanning electron
microscopy and polished section work, to determine the nature of the ore
body, and extended bottle roll acid leach tests to determine nickel-cobalt
recoveries and acid consumption. The Company expects to be able to announce
results of this work in early 2009.
Qualified Person (AFE)
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 27 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 Dutwa
The Dutwa project area lies in the Kilimafedha (Swahili for "money hills")
belt of the Lake Victoria Goldfield. Operationally, the project is favourably
situated, 100km east of the railhead at Mwanza and close to the main Mwanza-
Nairobi trunk road, a major power line and the shore of Lake Victoria. The
Dutwa project area covers 746km2, including the recently granted Nyawa
prospecting licence, which lies to the east of the region explored to date.
The Company holds 90% interests, with options to acquire 100%, over most of
this ground, including the area of the laterite discovery, and the remainder
is under application.
African Eagle acquired the Dutwa project originally for its gold potential,
but its exploration team quickly recognised that there was significant nickel
laterite potential.
Greenstones of Nyanzian age and granites underlie the area. The greenstones
are mostly metamorphosed volcanic and sedimentary rocks, with some banded
iron formation in the east, but there are also several large ultramafic
bodies within the greenstones - the nickel laterites form a blanket over
these.
Geochemical soil surveys carried out by African Eagle over the whole of the
project area identified a promising 5km-long nickel anomaly and a number of
gold anomalies. There is very little outcrop, so the Company conducted a
large ground magnetic survey to reveal the underlying structure and geology.
The Company has also compiled historical data, including detailed geological
maps and trench results dating from 1956, when rock chip samples from the
trenches over the ultramafic rocks were reported as yielding up to 1.9%
nickel and 10% chromium.
To investigate the nickel deposit, the Company undertook a resource drilling
programme of 139 reverse circulation (RC) drill holes, and 10 diamond drill
holes to obtain core samples for metallurgical testing and density
measurements. The results indicate a substantial nickel endowment. The grade
and thickness of the laterite blanket appear comparable with those at many
major nickel laterite deposits worldwide.
All the samples have also been analysed for cobalt, platinum and other
elements commonly associated with nickel. Results suggest that there will be
significant by-product cobalt. Interestingly, as the area first attracted
African Eagle`s attention as a gold prospect, some quite high gold and PGM
values have been returned from the ultramafic parent rock beneath the
laterite, suggesting that there is potential for precious metals to be won
when the laterite has been stripped and processed.
The Company has also completed a trial programme of RC drilling to test a
laterite at its Zanzui project, 70km to the south of Dutwa. Results are
awaited but the Company`s geologists report that garnierite (a nickel
silicate) occurs at surface and within the drill cuttings.
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. African Eagle is also evaluating two promising nickel laterite
deposits which it recently discovered in Tanzania. The Company holds a large
well-balanced portfolio of promising earlier stage gold and base metal
projects, including the Ndola and Mokambo copper projects in Zambia.
Zambia, Tanzania and Mozambique, the sites of African Eagle`s projects, are
all countries which 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. 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: 27/11/2008 09:00:01 Produced by the JSE SENS Department.
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