| Thu 26 Jan 2012, 9:00 | | AEA - African Eagle Resources plc - Appointment of BFS Engineering Contractor |
|
AEA
AEA
AEA - African Eagle Resources plc - Appointment of BFS Engineering Contractor
for Dutwa
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)
APPOINTMENT OF BFS ENGINEERING CONTRACTOR FOR DUTWA
African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to announce that
after an extensive bidding and adjudication programme it has selected Lycopodium
Minerals Pty Limited of Perth, Western Australia as the engineer to prepare the
bankable feasibility study (the "BFS") for its flagship Dutwa project in
Tanzania.
In the latter part of 2011 the Company issued requests for proposals for the
engineering of the BFS to nine international EPCM firms. After a detailed and
rigorous adjudication process performed through January 2012, Lycopodium
Minerals Pty Limited ("Lycopodium") has been selected as engineer for the BFS.
Lycopodium was judged to offer the best service to the Company due to its
strength in the design, engineering and construction of hydrometallurgical
process plants; its experience defining and managing transportation and
logistics for mining projects, particularly within Tanzania; the quality of the
individuals to be engaged in the key roles of the BFS; and its commitment to the
successful completion of the Dutwa project. Lycopodium will manage all
engineering tasks for the Dutwa project process plant and related facilities,
including tailings management, and will compile the final BFS report which will
incorporate inputs from other Company contractors such as Snowden (resource and
mine planning engineer) and SGS (pilot plant test work).
Lycopodium completed Tanzania`s first modern gold processing plant and
infrastructure at Resolute Mining`s Golden Pride Mine in 1998. This 1.5 Mtpa
gold project presented significant logistical challenges in a developing country
where road and rail infrastructure are limited. Building on this success,
Lycopodium has emerged as the pre-eminent mining EPCM engineer and contractor in
Tanzania, completing such projects as Geita for AngloGold Ashanti and Buzwagi
for African Barrick. Moreover, Lycopodium is currently performing engineering
services for a number of other nickel projects in Tanzania and Australia.
Lycopodium will commence the engineering immediately with full mobilisation of
the project team to occur in early February.
Trevor A. Moss CEO of African Eagle commented, "After a very competitive bidding
process, during which several competitors presented strong credentials, I am
delighted that we have been able to select Lycopodium as the engineer for the
completion of the Dutwa BFS. Lycopodium`s unrivalled experience in the study
and development of projects in Tanzania is a fundamental skill which will
contribute to the success of Dutwa. We look forward to a long and beneficial
relationship with them."
About Dutwa
Dutwa was discovered in 2008 and is a nickel laterite project 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
$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.
About African Eagle
African Eagle Resources plc is a junior mining explorer and developer with
development projects in Tanzania and Zambia. The Company`s flagship project is
the Dutwa Nickel project in Tanzania, located about 25kmsouth of Lake Victoria
and 110km east of Tanzania`s second city, Mwanza, within greenstone gold belts
which host many of Tanzania`s operating and developing gold mines. The Company
is quoted on the AIM market of the London Stock Exchange (AIM: AFE) and on
Johannesburg`s AltX.
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
26 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: 26/01/2012 09:00:37 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
