| Tue 2 Dec 2008, 9:00 | | AEA - African Eagle Resources plc - African Eagle Increases Stake In Mokambo |
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AEA
AEA
AEA - African Eagle Resources plc - African Eagle Increases Stake In Mokambo
Copperbelt Project To 87%
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 INCREASES STAKE IN MOKAMBO COPPERBELT PROJECT TO 87%
New drilling results released
African Eagle Resources plc is pleased to report that it has increased its
ownership of the Mokambo Joint Venture in the Zambian Copperbelt to 87% and
that it has received promising results from its 2008 diamond drilling
programme.
African Eagle`s Managing Director, Mark Parker, commented, "We are pleased to
report that African Eagle has increased its stake in the project from 50 to
87%, with immediate effect, with Copperbelt Minerals Limited holding the
remaining 13%. We have also negotiated an option to acquire the remaining
interest for some $400,000. We continue to be excited about the potential of
the project, which contains known copper deposits, and about future
development in the Copperbelt as a whole, especially now that the new Zambian
administration is reviewing the fiscal regime for mining in the light of
global market conditions.
"Prior to African Eagle`s increase in ownership, the JV parties completed a
3,000m drilling programme at Mokambo and we are pleased to announce today,
some significant results from this work."
The Mokambo Project lies 15km from the world class Mufulira copper deposit,
which has been in operation since 1933, producing more than 9Mt of copper
metal. Past exploration at Mokambo demonstrated significant mineralisation
along a 12km strike length, with at least two historic resource statements.
The mineralised drill intersections include:
2.44% copper over 15.0m
2.47% copper over 12.0m
3.96% copper over 3.1m
3.50% copper over 4.4m
3.20% copper over 4.3m
2.00% copper over 3.0m
The Mokambo licences form a narrow strip of 25km2 running along the border
between Zambia and the Democratic Republic of Congo (DRC). Much of the project
is underlain by highly prospective Lower Roan rocks, which host most of the
world class copper deposits in central Africa. The Project lies on the eastern
limb of the Mufulira syncline; the western limb contains the Mufulira copper
deposit.
In November 2007, African Eagle signed a Heads of Agreement with Copperbelt to
explore and develop the Mokambo project together. Copperbelt holds a
prospecting licence over the northern zone (Mokambo North) and Katanga
Resources over the southern zone (Mokambo South). Each company held a 50%
participating interest, with African Eagle acting as project manager and
operator. Over the last 12 months, the Company has completed a 3,000m
drilling programme, and surface geochemical and geophysical surveys. It has
also digitised maps and sections, and re-logged and re-assayed drill cores
from exploration carried out in the 1960s.
In August 2008, Copperbelt, having assigned new priorities to their projects
in Zambia and the DRC, notified African Eagle that it wished to reduce its
commitment to the Mokambo project in order to focus on its assets in the DRC.
After negotiations, Copperbelt agreed to reduce its participating interest in
the Mokambo project to 13.08% and to grant African Eagle the right at its sole
option, to buy this residual interest for US$400,000.
The drill results are from 9 of 12 diamond drill holes for a total of 2,729m,
completed during 2008 as part of a phase one evaluation programme. Four pre-
collar reverse circulation holes awaiting diamond tails were also drilled, for
284m.
Eleven of the holes were drilled at Mokambo South, to test ore shoots defined
from historical drilling, undertaken between 1930 and 1965, which defined a
copper mineralised body estimated to contain 5.9Mt averaging 2.4%. This is not
a resource to modern JORC standards, however, and African Eagle`s recent
drilling was designed to confirm the old results as well as to search for
possible extensions up and down dip or along strike and to test the potential
for oxide mineralisation.
The drill intercepts from Mokambo South above 0.5% copper included 12m at
2.47% copper, 4.4m at 3.5% copper, 4.3m at 3.25% copper and 3.1m at 3.96%
copper (Table 1). The copper mineralisation is hosted in a marker greywacke
unit up to 13m thick at the top of the Lower Roan sequence and in quartzite
immediately below it, and can be traced for at least 1000m along strike from
depths of 100 to 285 vertical metres below surface, dipping 50 to 70 degrees
towards the south-west
The copper mineralisation comprises chalcopyrite, chalcocite, bornite and
malachite. Some oxide mineralisation was encountered in the up-dip parts of
the mineralised zone, but grades were low and the potential for a significant
copper oxide deposit appears to be limited.
It was only possible to complete one diamond drill hole at Mokambo North, due
to delays in obtaining environmental permitting. Past exploration in this area
indicated a deposit of 3.8Mt at 1.7% copper, again pre-JORC standard. The 2008
drill hole (MND1) intersected a substantial zone of mineralisation including
15m at 2.44% copper at a depth of 162 vertical metres. The zone is open along
strike and up and down dip. The mineralisation comprises largely malachite and
chalcocite and while most is again hosted by the greywacke at the top of the
Lower Road and in underlying quartzites, there is also significant
mineralisation within a `Middle Conglomerate` unit.
Table 1. Mokambo drill intercepts greater than 0.5%
Hole From Intersectio Copper Location
ID (m) n (m) Grade %
MSD1 120.00 4.2 0.97 Mokambo
South
Includ 124 1.0 1.46*
ing
and 134.47 39.53 1.17
Includ 135.00 12.0 2.47*
ing
and 157.0 2.0 1.01
MSD3 32.00 3.05 0.54 Mokambo
South
and 38.00 1.0 1.2*
MSD4 116.00 4.8 0.83 Mokambo
South
and 128.00 14.91 1.30
Includ 130.00 3.1 3.96*
ing
and 138.00 1.0 1.42
MSD5 85.00 1.88 1.22 Mokambo
South
and 90.10 10.9 0.5
MSD7 171.00 2.4 0.51 Mokambo
South
and 182.00 17 1.31
Includ 183.00 4.4 3.50*
ing
MSD8 112.00 4.0 1.22 Mokambo
South
Includ 113.0 2.2 1.75*
ing
and 119.00 30.00 0.90
Includ 121.00 4.33 3.20*
ing
Includ 136.00 1.0 1.02*
ing
Includ 139.00 2.0 1.37*
ing
MSD12 285.00 4.25 0.77 Mokambo
South
Includ 285.00 3 2.00*
ing
MSD13 277.00 1.85 0.90 Mokambo
South
and 288.70 0.7 1.1
and 295.00 3.0 1.62*
MND1 92.00 2 1.21 Mokambo
North
Includ 93.00 1 1.61*
ing
and 141.00 16 0.89
Includ 148 2.75 1.45*
ing
and 162.00 16.0 2.34
Includ 162.00 15.0 2.44*
ing
Intercepts marked * were determined using 1% cut-off, all others using 0.5%
In addition to the drilling, a soil geochemical survey on a 200 x 50m grid was
completed over the project area, together with geological mapping, trenching
and ground magnetic and gamma ray spectrometer surveys.
The geochemical soil survey generally reveals a good correlation between
anomalous copper in soil values and the outcrop of the Lower Roan which can be
traced for at least 3.2km at Mokambo North and 6.6 km at Mokambo South.
Several copper in soil anomalies were also defined to the west of the main
outcrop of the Lower Roan suggesting additional potential for mineralisation.
The generally low tenor of the anomalies indicates leaching at shallow depths.
The results of the drilling programme are currently being assessed. Further
drilling is planned at Mokambo North, to assess the strike length of the
mineralised zone encountered in MND1, and at Mokambo South, to test for
additional ore shoots in a largely unexplored area south along strike from the
known mineralisation.
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 Mokambo
The Mokambo Project is situated in the Zambian Copperbelt, 90km northeast of
Ndola and 15km east of Mufulira, Africa`s biggest underground copper mine. The
licence forms a narrow strip 17km long and up to 2km wide running along the
border between Zambia and the Democratic Republic of Congo (DRC).
In November 2008, African Eagle increased its holding in the project to 87%,
having previously held a 50% interest. An area of 400 hectares in central
Mokambo is excised from the project area, being a small-scale mining licence
held by a Zambian company, over which Toronto-listed ICS Copper Systems Inc
has an option to acquire an 80% interest.
Much of the project is underlain by the highly prospective Lower Roan
geological unit which hosts most of the world class deposits in the Central
African Copper Belt. The Project lies on the eastern limb of the Mufulira
syncline, the western limb of which contains the world class Mufulira copper
deposit which has produced more than 9Mt of copper since 1933.
The area was investigated in the 1950s by a team from Mufulira and in the
1970s by Geomin, a Romanian group. Geomin estimated that the deposit holds
41Mt grading 1.72% copper.
Copper mineralisation has been intersected by drilling in the Mokambo South
Zone over a strike length of at least 1km, to a maximum depth of 430m. Based
on the results reported from these drill holes, the average grade is 2.4%
copper over an average thickness of 4.6m indicating a deposit of 6Mt.
Similarly, the Mokambo North Zone was estimated to contain at least 3.8Mt @
1.7% copper.
African Eagle has completed a phase 1 exploration programme on the project,
including soil geochemical surveys, geological mapping and geophysical
surveys. The mapping has shown that Lower Roan rocks are well exposed for at
least 12km along strike, usually forming a ridge up to 30m high.
Under the Company`s 2008 drilling programme at Mokambo, 12 diamond drill holes
with a total of 2729m and 4 reverse circulation holes for 284m, were
completed.
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 Dutwa nickel laterite
discovery in Tanzania, where the Company expects to announce a resource at the
end of 2008.
African Eagle has also defined a gold resource estimated at half a million
ounces at the Miyabi gold project in Tanzania, and is evaluating a second
promising nickel laterite deposit 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.
02 December 2008
Sponsor
Nedbank Capital
Date: 02/12/2008 09:00:03 Produced by the JSE SENS Department.
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