| Tue 15 Jun 2010, 8:00 | | AEA - African Eagle Resources plc - Major resource increase at African Eagle`s |
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AEA
AEA
AEA - African Eagle Resources plc - Major resource increase at African Eagle`s
Dutwa Nickel Project
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
MAJOR RESOURCE INCREASE AT AFRICAN EAGLE`S DUTWA NICKEL PROJECT
Tonnage tripled and contained metal more than doubled
- New JORC inferred resource for Ngasamo (western deposit)
35.3 million tonnes at average grade 0.9% nickel and 0.036% cobalt
- Updated JORC inferred resource for Wamangola (main deposit)
56.8 million tonnes at average grade 0.86% nickel and 0.030% cobalt
- Global resource tonnage increased 3-fold and contained metal increased
2.4-fold 92.1Mt at 0.92% nickel equivalent (845,000t contained eNi)
- Deposit modelling by the Snowden Group continuing for upgrade to
Indicated category
African Eagle is pleased to report an exceptional update to the JORC-compliant
resource estimate at its Dutwa Project in Tanzania.
African Eagle`s Managing Director Mark Parker comments, "The new resource
estimate exceeds our expectations, tripling the tonnage and more than doubling
the contained nickel equivalent from 345,000 to 845,000 tonnes. This is a
significant step forward in our feasibility work at Dutwa.
"The results also show that the Ngasamo deposit shares Dutwa`s high silica,
low iron, low magnesium chemistry, which is the key to the low acid
consumption seen in the metallurgical testing.
"Independent consultants Snowden are now improving the Wamangola deposit model
to upgrade the resources from JORC inferred to indicated category, using the
data from our extensive drilling programmes over the past 12 months."
The detailed resource statements are given in the table below:
Dutwa Inferred Mineral Resource (JORC, 2004), no Ni cutoff
Deposit Tonnage Bulk Nickel Cobalt Nickel Major elements (as
density grade grade equivale oxides)
nt
Mt t/m3 %Ni %Co % eNi SiO2% Al2O3 Fe2O3 MgO%
% %
Ngasamo 35.3 1.6 0.9 0.036 0.90 65.7 1.7 13.2 9.9
Wamangola 56.8 1.6 0.86 0.030 0.95 68.6 2.8 12.9 6.8
Total 92.1 1.6 0.88 0.032 0.92 66.8 2.1 13.1 8.7
The global resource contains 806,000t nickel and 30,000t cobalt. This is
845,000t of nickel equivalent, (calculated as Ni + 1.32Co), an increase of 2.4
times over the November 2008 resource estimate. The formula is based on
assumed metal prices $10/lb Ni and $17/lb Co; and assumed recoveries of 90%
and 70% for Ni and Co, respectively.
Snowden`s deposit models for these inferred resource estimates were based on
polygonal mineralised envelopes drawn on vertical drill cross sections 100m
apart along the 3.6km length of Wamangola and the 1.9km length of Ngasamo. A
cut-off of 0.45% equivalent nickel was chosen to define mineralized material.
The mineralised polygons were interpolated between the sections and
extrapolated by up to 50m into "no data" areas. The upper boundaries of the
envelopes were trimmed to the topography.
Background
In November 2008, African Eagle announced a preliminary inferred resource
estimate of 31 million tones at an average 1.1% nickel for the Wamangola
deposit of the Dutwa oxide nickel project, based on the 150 drill holes
completed to that date. This estimate was sufficient for the Company to
commission a scoping study which concluded a good investment case for the
project, and African Eagle therefore began work on a feasibility study.
In November 2009, African Eagle exercised an option to enter a Joint Venture
on the Ngasamo area, 6km west of Wamangola, where there was good geological
evidence for significant additional nickel resources. In the same month,
African Eagle awarded a contract for deposit modelling, resource estimation
and mine planning to Snowden Mining Industry Consultants (Snowden). Snowden
has one the best records of any consulting group of nickel laterite advanced
deposit modelling, resource estimation and mine engineering studies. Projects
included Koniambo in New Caledonia (Xstrata Nickel, formerly Falconbridge);
Caldag in Turkey and Acoje in the Philippines (European Nickel); and
Ravensthorpe (BHP Billiton) and Murrin Murrin (Anaconda Nickel) in Australia.
Other recent Snowden clients include Heron Resources, Intex Resources, Toledo
Mining (Berong and Ipilan).
Snowden is continuing work on the deposit modeling, to upgrade the Wamangola
resource to JORC indicated category. Additional drilling is planned at Ngasamo
to allow the resource to be upgraded to indicated.
Qualified Persons
The resource statement was conducted and signed by Richard Sulway, MAppSc,
MAusIMM (CP), who has 15 years relevant experience in deposit modeling and
resource estimation. Mr Sulway is a full-time employee of Snowden Mining
Industry Consultants Pty Ltd and a Competent Person in the terms of the JORC
code. Mr Sulway consents to the inclusion of the 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 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/p/glossary.asp
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 77 3336 3501
About African Eagle
Since discovering major nickel oxide deposits at Dutwa in northern Tanzania,
African Eagle is in transition from a diversified explorer into a nickel
mining company. The Company completed a positive scoping study on the Dutwa
deposit in July 2009, and is now working towards a full feasibility study.
African Eagle is evaluating a second promising nickel oxide deposit at Zanzui
in Tanzania, 60km south of Dutwa.
The Company also holds a 49% interest in the Mkushi Copper Mines joint venture
in Zambia, for which a draft feasibility study was completed in Q4 2008. In
addition, it holds a half million ounce gold resource at the Miyabi project in
Tanzania, and a portfolio of gold and base metal exploration assets, including
two copper projects in the Zambian Copperbelt.
The Company is seeking partners or buyers for its "non-core" copper, gold and
uranium projects.
More information may be found on the Company`s website, www.africaneagle.co.uk
African Eagle`s oxide nickel projects
The Dutwa oxide nickel project, discovered in mid-2008, consists of two
deposits, Wamangola and Ngasamo, within blankets of laterite or weathered rock
on the tops of low ridges. The deposits together contain a JORC inferred
resource estimate of 92 million tonnes at an average grade of 0.88% nickel and
0.032% cobalt. Because the deposits lie at surface, mining costs will be very
low.
The deposits lie 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 Company holds a 90% interest in the main Dutwa deposit, with an option to
acquire 100%, and is earning up to 75% of a second nickel deposit at Ngasamo,
6km to the west.
Since discovering the deposits in June 2008, African Eagle has explored the
project very quickly and cost-effectively, completing within 9 months an
interim JORC-compliant resource estimate based on the drilling to September
2008 and laboratory metallurgical and mineralogical tests which showed that
the deposit can be processed efficiently by sulphuric acid leaching.
In July 2009, the Company announced the results of a "proof of concept"
scoping study by GRD Minproc, which indicated that the project would be
profitable if it were in production today. African Eagle has now begun work
towards a definitive feasibility study.
The economic viability of any nickel laterite deposit depends on its
metallurgy, its resource geology and its location. Metallurgical tests have
shown that the Dutwa ore is unusually, perhaps uniquely, amenable to acid
leaching, with very low acid consumption and a very fast leach reaction
compared to other nickel laterites around the world. These characteristics
should allow the ore to be processed at atmospheric pressure using
straightforward heap or tank leaching.
In addition to the Dutwa deposits, African Eagle holds the Zanzui nickel
project, which is only 50km from Dutwa and offers potential economies of
scale. Zanzui is possibly as large as Dutwa and preliminary metallurgical
tests suggest that it shares the same fast, low-acid leaching characteristics.
The Company is aware of at least two other, similar deposits in Tanzania.
15 June 2010
Sponsor
Nedbank Capital
Date: 15/06/2010 08:00:03 Produced by the JSE SENS Department.
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