| Thu 25 Nov 2010, 9:00 | | AEA - African Eagle Resources Plc - New deposit model and targets flagged by |
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AEA
AEA
AEA - African Eagle Resources Plc - New deposit model and targets flagged by
VTEM Interpretation, Zanzui Project, Tanzania
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)
NEW DEPOSIT MODEL AND TARGETS FLAGGED BY VTEM INTERPRETATION, ZANZUI PROJECT,
TANZANIA
African Eagle Resources plc (AIM: AFE; AltX: AEA) announces that internal
deposit modelling at its Zanzui project in Tanzania has demonstrated the
potential for a significant nickel oxide deposit, based on the initial drilling
completed to date. Furthermore, the interpretation of VTEM geophysical data from
the project has identified a number of conductive targets which further enhance
the prospectivity of the deposit.
The key results of this work are:
* Deposit modelling based on the drilling to date shows a JORC Exploration
Target of at least 20 million tonnes at 0.9 to 1% equivalent nickel.
* VTEM and geochemical data indicate good potential to increase this tonnage.
* Eight targets identified from VTEM interpretation.
* Possible nickel sulphide and platinum targets as well as oxide nickel
targets.
African Eagle`s Managing Director Mark Parker comments:
"Our in-house deposit modelling shows good potential for a significant nickel
deposit at Zanzui, even within the modest area drilled to date. VTEM geophysical
data also indicates other areas of thick laterite that remain to be tested and
also possible bedrock conductors which may be nickel sulphides. Together,
African Eagle`s Zanzui and Dutwa nickel deposits are shaping up to be an
important nickel province. The Company has already delineated JORC resources
close to one million tonnes of contained nickel equivalent in its Dutwa
inventory and the deposit at Zanzui should help surpass this significant
milestone."
Deposit Model
African Eagle`s geologists used Gemcom software to generate a deposit model
covering the area of Zanzui drilled to date. The result, defined as an
Exploration Target under JORC 2004 guidelines, is summarised in the table below.
The modelling indicates that the drilled area potentially contains between 17
and 24 million tonnes at an average grade comparable to that at Dutwa.
Table: Deposit model results for Zanzui, November 2010
Cut off Tonnage Average Average Average
% Ni Mt Ni % Co % eNi %
0.3 38.3 0.65 0.05 0.72
0.4 30.7 0.72 0.06 0.80
0.5 23.3 0.82 0.07 0.91
0.6 17.4 0.92 0.07 1.01
0.7 14.4 0.98 0.08 1.09
0.8 12.5 1.02 0.08 1.13
The equivalent nickel grade was calculated with the same parameters as those
used by Snowden for the Dutwa deposit.
VTEM Interpretation
With drilling results showing that Zanzui has potential for a significant nickel
deposit, African Eagle commissioned a formal interpretation of the VTEM data
acquired in mid-2008. VTEM is the exploration industry`s most widely used
helicopter time-domain electromagnetic system. The interpretation was conducted
by Condor Consulting Inc (Condor) of USA, an industry leader in this field.
Condor generated a suite of data imaging enhancements and inversions of the VTEM
and magnetic data. From these, a number of interpretations were made:
* The central nickel laterite probably covers at least twice the area drilled
so far.
* This area is characterised by a flat-lying conductor which appears deeper
than the drill-holes to date.
* Similar features to the west and south may indicate additional nickel
laterites.
* Conductive targets parallel to the layering of the Zanzui complex may
indicate sulphide mineralisation. Previous geochemical results suggest that
sulphide nickel may be associated with platinum group metals at Zanzui.
These targets will now be followed up with further detailed ground surveys and
drilling.
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.
Sponsor
Merchantec Capital
25 November 2010
For further information:
Mark Parker
Managing Director
African Eagle
+44 20 7248 6059
+44 77 5640 6899
Jeremy Stephenson
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 now contains
an Inferred Resource (JORC 2004) of 98.6 Mt at 0.93% nickel. 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: 25/11/2010 09:00:01 Produced by the JSE SENS Department.
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