| Mon 7 Nov 2011, 9:02 | | AEA - African Eagle Resources plc - African Eagle adopts an enhanced Dutwa |
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AEA
AEA
AEA - African Eagle Resources plc - African Eagle adopts an enhanced Dutwa
Development Programme
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)
AFRICAN EAGLE ADOPTS AN ENHANCED DUTWA DEVELOPMENT PROGRAMME
African Eagle Resources plc ("African Eagle" or the "Company"; AIM: AFE; AltX:
AEA) announces that it has adopted a streamlined development programme for its
Dutwa nickel project in Tanzania.
Main phase of resource upgrade drilling complete
Favourable new nickel metallurgical results received
Neutralising limestone source identified and preliminary testing completed
Use of Dutwa neutralising wastes offers potential cost advantages
Limestone supply studies commenced
Social and environmental impact assessment studies underway
Since joining the board of African Eagle in September 2011, CEO designate
Trevor Moss has undertaken a review of the Dutwa project and the development
programme previously defined by the Company. Moss has now proposed a
streamlined development programme to focus all efforts directly on the timely
completion of the Dutwa bankable feasibility study (the "BFS") which the Board
has adopted.
Mr Moss comments: "African Eagle`s prior studies have confirmed the viability
of Dutwa and recent analyses have identified various opportunities for project
optimisation which are currently being tested and are exhibiting favourable
preliminary results. To derive the maximum benefit from these studies and to
ensure the overall project timeline, it is important that we ensure Dutwa
progresses in a controlled way that results in an integrated and comprehensive
BFS. Any other approach would run the risk of extending the development
timetable and increasing the overall development cost. This programme negates
the need for the previously planned formal pre-feasibility study report and
all of the on-going studies will be fed directly into the BFS. We aim to
complete the BFS around the end of 2012 but may revise the timetable, if
appropriate, to ensure we take full advantage of opportunities to add value to
the project. We will update the market as key milestones are achieved"
Since the discovery of the Dutwa nickel deposit in 2008, the project has
developed rapidly. The current tasks supporting the BFS are advancing apace
and include: drilling to upgrade the JORC mineral resource from indicated to
inferred and to define its geology better; a definitive metallurgical test
programme designed to achieve the early definition of the optimal process
plant; the extension of the logistics studies; and the development of a full
social and environmental impact assessment (the "SEIA"). In addition, the
Company will soon add further internal project management skills via a
dedicated and experienced professional who will drive the completion of the
BFS, and the subsequent construction of the project.
Resource drilling
The current phase of resource upgrade reverse circulation ("RC") drilling at
Ngasamo is being completed this week. This drilling is directed towards
upgrading the existing JORC Inferred Resource to Indicated category and
extending the resource to the south of the existing resource, an area that was
not previously drilled.
Within the coming week, the drilling will move to the Wamangola deposit for
similar RC infill drilling to upgrade the remaining JORC Inferred Resource to
the Indicated category. On completion of this drilling programme, the Company
expects that all resource drilling necessary for the BFS will be complete,
subject to the results of resource modelling and pit optimisation to be
performed by Snowden of Australia.
Metallurgical test work
A comprehensive metallurgical test work programme is currently underway at
various laboratories in Perth, Australia and Johannesburg, South Africa. The
test work programme includes: ore upgrade and beneficiation studies; single
and dual stage agitated atmospheric tank leach tests; and agglomeration and
heap leach testing, each with associated variability analyses. In addition to
run-of-mine samples, a suite of composite ore samples have been constituted
from Bulk Ore Sample 1 representing the chief characteristic ore types from
the Ngasamo and Wamangola deposits. The test work programme has been designed
to comprehensively model the metallurgical performance of the deposits and
evaluate the available process methods to enable the early definition of the
optimal process plant flowsheet.
Following on from the studies undertaken by Professor Richard Herrington of
the National History Museum in London, initial results from beneficiation
tests on raw ore and composite samples indicate favourable performance with
the potential for run-of-mine ore to be pre-treated by way of a simple
mechanical process to enable an upgrading of plant head grade, thereby
reducing the net processing plant throughput rate with resulting capital and
operating cost efficiencies. Further testing will be undertaken to confirm
these initial conclusions.
Results from the agitated atmospheric tank leaching continue to exhibit rapid
overall leach kinetics and confirm the overall favourable performance of the
Dutwa ores with good recoveries being achieved from relatively low acid
addition. Tests to examine integrated dual stage leaching to lower overall
acid consumption and maximise utilisation of the ore resource are well
advanced. Likewise, the heap leach test results to date, exhibit favourable
performance characteristics of low acid addition, low slumping, good
percolation and permeability properties and above average rates of nickel
recoveries.
Both tank and heap leach tests at laboratory scale will continue in the short
term and the results from the agitated tank leach will be used to define and
construct a pilot plant, that will be employed in 2012, to confirm the bench
scale results (metal recoveries and reagent consumptions), and to validate the
process design parameters.
Acid neutralisation tests show that available limestone is highly reactive and
suitable for acid neutralisation and also that certain Dutwa saprolite ores
(which are relatively high in magnesium) can be partially substituted for
limestone, offering the potential to minimise external reagent requirements
and reduce operating costs.
Limestone Studies
Simulus of Perth, Australia has been commissioned to conduct a limestone
supply and transport study and the Company has undertaken the detailed
assessment of a limestone resource recently identified as suitable for
neutralisation. This work is ongoing.
Social and Environmental Studies
The Company recently engaged Citrus Partners LLP, a UK based speciality
consultancy, to manage the preparation of the SEIA for Dutwa. Citrus is
deeply experienced in the development of international SEIAs and has completed
its initial site visit. Working with Tanzanian consultants, Citrus will
develop the SEIA in full compliance with Tanzanian regulations and the Equator
Principles. The SEIA will be completed concurrent with the BFS.
Qualified Person
Information in this report relating to metallurgical test results is based on
data reviewed by Dr. Chad Czerny PhD, Project Manager, Metallurgy for African
Eagle Resources, who is a Member of the Australasian Institute of Mining and
Metallurgy, has more than 20 years` relevant experience in the mining and
metallurgical industry, and is a Qualified Person under AIM guidelines. Dr
Czerny 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
7 November 2011
For further information, Please see African Eagle`s web site at
www.africaneagle.co.uk or contact one of the following:
African Eagle Resources plc
Trevor A. Moss (Chief Executive Officer) +1 925 577 1078
Mark Parker (Director) +44 207 248 6059
Canaccord Genuity Limited
Andrew Chubb +44 207 050 6500
Bhavesh Patel
Ocean Equities Limited
Guy Wilkes +44 207 786 4370
Russell & Associates, Johannesburg
Charmane Russell +27 11 880 3924
Marion Brower
Date: 07/11/2011 09:02:00 Produced by the JSE SENS Department.
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