| Wed 25 Jan 2012, 9:00 | | AEA - African Eagle Resources plc - SGS selected for metallurgical Pilot testing |
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AEA
AEA
AEA - African Eagle Resources plc - SGS selected for metallurgical Pilot testing
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)
SGS SELECTED FOR METALLURGICAL PILOT TESTING
African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that it
has selected SGS Metallurgy of Perth, Western Australia to perform the pilot-
scale hydrometallurgical testing programme for its flagship Dutwa Nickel project
in Tanzania. The pilot test work will be performed to confirm and finalise the
atmospheric tank leach flowsheet for Dutwa. The pilot test work programme will
commence at the facilities of SGS Lakefield Oretest in the second quarter of
this year and forms an essential part of the Dutwa bankable feasibility study
("BFS"), which is due for completion around the end of 2012.
As previously announced, the Company has chosen atmospheric tank leaching as the
primary metallurgical process method to be used for the leaching of Dutwa ores
and has defined a preliminary process flowsheet for the Dutwa plant. In order to
finalise the flowsheet and to predict full plant metallurgical performance the
Company will, commencing in the second quarter of 2012, perform a series of
laboratory tests on representative ore samples.
Over the past twelve months, the Company has conducted a thorough worldwide
research campaign assessing the capability of independent metallurgical
laboratories in order to assess their facilities and technical capacity to
undertake the requisite pilot-scale atmospheric tank leach testwork for the
Dutwa project. The Company selected SGS Metallurgy and their facilities at SGS
Lakefield Oretest in Perth, Western Australia as a result of their unparalleled
expertise in nickel hydrometallurgical pilot testing.
SGS Metallurgy is recognised as the world leader in the development and
demonstration of bankable flow sheets and pilot plant test work programmes. With
a purpose built, state-of-the-art hydrometallurgical facility based in Perth,
SGS Metallurgy has successfully completed a significant number of
hydrometallurgical piloting campaigns over the past twelve years providing
comprehensive metallurgical testing services to a large number of global
resource projects. Nickel laterite projects previously piloted in Perth by SGS
Metallurgy include Niquel do Vermelho, Ravensthorpe and Shevchenko - the latter
two included similar atmospheric tank leaching plants as will be employed at
Dutwa.
The pilot plant work programme of continuous and fully integrated testing is in
final development and will confirm the process design criteria, reagent
consumptions, metal recoveries and overall performance of the Dutwa atmospheric
leach process flowsheet. The pilot plant will treat ore samples representative
of the planned mining schedule at Dutwa. Ore samples will be obtained from an
upcoming large-core drilling programme developed in consultation with Snowden
(Perth, W.A).
About Dutwa
Dutwa, which was discovered in 2008, is a nickel laterite resource with
unusually beneficial geometallurgical properties. Since discovery, the progress
of development has been rapid. Dutwa is defined by a JORC resource of 99 million
tonnes at 0.93% Ni, offering ready mining from two hilltop deposits and
straightforward low consumption atmospheric acid leaching, leading to strong
economics. The most recent financial modelling, prepared in early 2011,
projected cash operating costs of approximately $3.50/lb, a post tax NPV10 of
US$630M at $9/lb. Ni and a projected capital payback period between three and
five years. The current BFS and ESIA development is directed toward defining the
full environmental, social, technical and economic performance of Dutwa.
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 January 2012
For further information:
Please see the Company`s web site at www.africaneagle.co.uk or contact one of
the following:
African Eagle Resources plc
Trevor A. Moss (CEO)
Yasumi Toyoda (Investor Relations)
+44 20 7248 6059
Canaccord Genuity Limited
Rob Collins
Andrew Chubb
+ 44 207 050 6500
Ocean Equities Limited
Guy Wilkes+44 20 7786 4370
Russell & Associates, Johannesburg
Charmane Russell
Marion Brower
+27 11 8803924
+27 82 8928052
Date: 25/01/2012 09:00:01 Produced by the JSE SENS Department.
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