| Mon 6 Sep 2010, 8:00 | | AEA - African Eagle Resources plc - Zanzui drilling program returns encouraging |
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AEA
AEA
AEA - African Eagle Resources plc - Zanzui drilling program returns encouraging
Nickel and Cobalt results
African Eagle Resources plc
Incorporated in England and Wales
(Registration number 3912362)
(AIM share code: AFE AIM ISIN: GB0003394813)
(JSE share code: AEA JSE ISIN: GB0003394813)
ZANZUI DRILLING PROGRAM RETURNS ENCOURAGING NICKEL AND COBALT RESULTS
African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,
AltX: AEA) today released results from its drilling programme at the company`s
Zanzui nickel project in Tanzania. These follow favourable metallurgical results
from acid leach tests by South Africa`s Mintek on drill samples in August 2009.
Zanzui is situated 50km south of the company`s flagship Dutwa nickel project.
The results indicate significant nickel and cobalt intersections:
* Key nickel mineralised intersections from Zanzui include:
39m at 1.5% nickel including 6m at 3.1%
42m at 1.1% nickel including 6m at 2.8%
39m at 1.0% nickel including 15m at 1.48%
42m at 0.9% nickel
* Key cobalt mineralised intersections from Zanzui include:
27m at 0.30% cobalt including 15m at 0.47%
42m at 0.15% cobalt including 9m at 0.46%
36m at 0.14% cobalt
African Eagle Managing Director Mark Parker comments, "Whilst the Company`s
efforts are directed principally towards completing the feasibility study at the
Dutwa nickel project, we are also pursuing future upside by evaluating other
nearby oxide nickel deposits. These new results from Zanzui are very favourable.
The nickel grades are marginally lower than at Dutwa, but the cobalt grades are
significantly higher. Metallurgical testing of samples from previous drilling
at Zanzui, reported last year, showed that the deposit apparently enjoys the
same favourable processing characteristics as Dutwa. Potentially, this offers
economies of scale for the development of Dutwa and augurs well for the long
term sustainability of African Eagle`s nickel activities in this promising
region."
Zanzui drill results
The Zanzui Complex, located 110km east of Mwanza and 50km south-west of Dutwa,
is a circular layered basic-ultrabasic intrusion about 12km in diameter. In the
1980s, the United Nations Development Programme reported high soil geochemical
nickel values of up to 1.24g/t palladium in diamond drill core samples. African
Eagle`s own geochemical work returned high values of nickel and cobalt in the
central part of the complex, while ground and airborne magnetometer surveys
clearly showed the strongly layered nature of the complex. A 30-hole, 1,940m
scout drilling programme in 2008 showed that parts of the complex have a nickel-
enriched laterite blanket, similar to that at Dutwa.
In mid 2010, a further 49 vertical reverse circulation drill holes with average
depth 61m, to form a 100m x 100m grid covering an area of about 1km2 in the
centre of the complex. The results from this new drilling are very favourable.
The nickel grades are marginally lower than at Dutwa, but the cobalt grades are
significantly higher. Together, the drill holes to date are expected to provide
sufficient data to allow a preliminary resource estimate to be made.
A table of all mineralised intersections at Zanzui with grade more than 0.5%
nickel, including these latest results, is available on the Company`s web site,
www.africaneagle.co.uk/p/zanzui_drilling.asp.
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 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.
September 6, 2010
Sponsor
Merchantec Capital
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
Guy Wilkes
Ocean Equities Limited
+44 20 7786 4370
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
African Eagle is currently developing the major Dutwa nickel laterite in
Tanzania. The Company discovered Dutwa in 2008, completed a scoping study on in
June 2009, and is now conducting a feasibility study. The deposit contains 92mt
at 0.88% nickel (JORC inferred mineral resource). Initial metallurgical work
indicates that the laterite will be able to be processed with standard heap
leaching and no need for a costly HPAL facility. African Eagle is also
evaluating a second promising nickel laterite deposit at Zanzui in Tanzania,
50km south of Dutwa which is currently in the drilling and testing phase.
In December 2008, African Eagle resolved to prioritise the Dutwa project,
because the Board believes that, of all the Company`s projects, it offered the
greatest potential to add value. To take its other discoveries into production,
African Eagle is seeking industry partners with records of successful mine
development, by means of joint ventures, farm-ins, spin-outs or other
mechanisms. These include: a 49% interest in the Mkushi Copper Mines joint
venture project in Zambia, for which a draft feasibility study was completed in
Q4 2008; the Miyabi gold project in Tanzania which has a half a million ounce
JORC gold resource; the Ndola and Mokambo projects in the Zambian Copperbelt;
and the Igurubi gold project in Tanzania.
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.
Date: 06/09/2010 08:00:04 Produced by the JSE SENS Department.
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