Dutwa Nickel Exploration Update

African Eagle Resources plc ("African Eagle" or the "Company") Dutwa Nickel Exploration Update African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to report new nickel and cobalt drill results from the Ngasamo deposit at its flagship Dutwa nickel project in Tanzania...

African Eagle Resources plc

 

("African Eagle" or the "Company")

 

Dutwa Nickel Exploration Update

 

African Eagle Resources plc (AIM: AFE; AltX: AEA) is pleased to report new nickel and cobalt drill results from the Ngasamo deposit at its flagship Dutwa nickel project in Tanzania.  The new results are from a drilling programme completed in Q4 2011 that was designed to extend the Ngasamo JORC resource and to upgrade it from Inferred to Indicated category. A similar programme has since been completed at the Wamangola deposit and results are expected in Q2.

 

The new results confirm that the mineralised zone at Ngasamo is up to 80m thick, an exceptional thickness for a nickel laterite, and contains some significant high-grade zones. 

 

Key mineralised intercepts include: 

 

Nickel

·         66 metres at 2.09% nickel including 15 metres at 5.01% nickel

·         81 metres at 1.41% nickel including 18 metres at 3.37% nickel

·         51 metres at 1.86% nickel including 15 metres at 2.73% nickel

·         63 metres at 1.49% nickel including 15 metres at 3.34% nickel

·         57 metres at 1.56% nickel including 12 metres at 2.34% nickel

 

Cobalt:

·         9 metres at 0.27% cobalt including 6 metres at 0.50% cobalt

·         21 metres at 0.27% cobalt including 9 metres at 0.49% cobalt

·         21 metres at 0.31% cobalt including 6 metres at 0.58% cobalt

 

Mark Parker, African Eagle's Director for Corporate Development, commented "With these results, we expect to be able to upgrade the bulk of the Ngasamo deposit into JORC Indicated category and to extend the resource beyond previous drilling.  The results confirm the exceptional thickness and local high grade zones of the deposit, which is one of the two nickel-bearing oxide hill caps which make up the Dutwa project.  Since drilling at Ngasamo, the rig has completed a resource drill programme at Wamangola, drilled several water bores, (including one for our new development camp) and has now begun a wide-core drilling programme to obtain bulk ore sample 3 (BOS3) for the forthcoming pilot plant tests."

 

The Ngasamo resource upgrade drill programme comprised 122 vertical holes for 8,045 metres of reverse circulation drilling, bringing the total number of Ngasamo drill holes to 188.  African Eagle commenced the drilling in late August 2011 and completed the work in early November 2011. The programme was specifically designed to upgrade the resource classification from Inferred to Indicated and was defined with the assistance and approval of Snowden of Perth, Australia, African Eagle's deposit modelling and resource geology contractor. Snowden will now conduct a formal resource estimate to JORC standard with the results expected in Q2. With this most recent drilling, African Eagle has completed a total of 12,865m of resource drilling at Ngasamo. 

 

Upon successful completion of the upgrade of the Ngasamo resource to JORC Indicated category, African Eagle will be entitled to increase its equity in the Ngasamo project from 35% to 50% under its April 2009 agreement with Ngasamo's owners, Precious Metals Refinery Company Ltd (PMRC), a Tanzanian subsidiary of the Safina group of the Czech Republic. Thereafter, the Ngasamo deposit will be included in the bankable feasibility study of the whole Dutwa project African Eagle will earn 75% interest in Ngasamo by sole-funding the BFS work or  PMRC can retain its interest in Ngasamo based on its pro-rata funding of the study.

 

All mineralised intersections from the latest drilling with grades of more than 0.5% nickel or 0.05% cobalt are listed below. Assays were carried out at Omac Laboratories in Ireland on 3m composited RC drill cuttings, with approximately 20% of quality control samples (reference standards, blanks and duplicates) inserted into the sample stream. The resource upgrade drilling programme infilled previous drilling to nominal drill collar intervals of approximately 100m x 50m and stepped out beyond the existing drilling, mainly to the south. A map of the drill hole locations old and new can be found on African Eagle's website, www.africaneagle.co.uk. 

 

Table A:  Nickel intersections for drillholes in the resource upgrade programme

 

Drill hole	From (metres)	Intersection (metres)	Grade  (% nickel)
NGRC - 68	0	53	1.19	EOH*
NGRC - 69	3	9	0.51
NGRC - 71	3	21	1.42
and	30	6	0.56
and	39	3	0.85
or	3	39	1.01
NGRC - 74	0	18	1.09
NGRC - 75	30	12	0.82
NGRC - 76	54	3	0.63
NGRC - 78	0	3	0.50
and	9	18	0.86
and	36	6	0.98
NGRC - 79	3	42	1.21
including	27	15	1.92
NGRC - 81	0	15	0.92
NGRC - 82	3	65	1.01	EOH
NGRC - 83	0	12	0.71
and	24	6	0.53
and	36	24	0.85
and	63	3	0.53
or	36	30	0.77
NGRC - 84	3	15	1.23	EOH
NGRC - 85	3	48	1.10
and	69	6	0.70
NGRC - 86	0	21	1.04
and	36	33	1.17
and	72	6	0.59
or	36	42	1.03
NGRC - 87	9	18	0.60
and	36	3	0.75
and	42	3	0.62
NGRC - 88	3	3	0.53
and	21	3	0.57
and	33	3	0.80
and	39	18	1.11
NGRC - 89	3	3	0.51
and	9	3	0.52
and	18	12	1.22
NGRC - 90	3	9	0.60
and	24	9	0.85
NGRC - 91	3	36	1.12
and	42	15	0.57
or	3	54	0.93
NGRC - 92	0	81	1.41
including	45	18	3.37
NGRC - 93	0	9	1.11
and	27	33	1.35
NGRC - 95	18	3	0.50
NGRC - 97	0	18	1.26
including	12	3	3.13
and	24	6	0.53
NGRC - 98	3	27	1.05
NGRC - 99	6	24	0.84
and	42	1	0.99	EOH
NGRC - 100	12	18	0.91
and	36	6	0.75
NGRC - 101	3	54	1.86
including	30	15	2.73
NGRC - 102	0	3	0.63
NGRC - 104	33	3	0.54
and	39	3	0.58
NGRC - 105	0	9	1.05
and	12	9	1.08
and	24	21	0.84
and	48	6	0.84
or	0	54	0.85
NGRC - 106	0	42	0.96
NGRC - 107	3	12	0.83
NGRC - 108	6	27	0.80
NGRC - 109	0	27	0.75
NGRC - 111	0	66	2.09
including	12	15	5.01
NGRC - 112	3	12	0.93
and	18	9	0.92
and	33	27	1.17
and	63	3	0.51
or	3	63	0.92
NGRC - 113	45	24	1.20
including	60	6	2.17
NGRC - 114	0	18	0.99
and	24	48	1.14
or	0	72	1.04
NGRC - 116	0	3	0.77
NGRC - 117	12	9	0.62
NGRC - 118	3	21	0.84
and	60	30	0.84
NGRC - 119	15	42	0.81
NGRC - 121	0	21	1.28
NGRC - 122	6	6	0.56
NGRC - 124	0	12	0.69
NGRC - 125	0	12	1.27
and	15	24	0.89
or	0	39	0.98
and	54	9	0.78
NGRC - 126	15	3	0.59
and	39	21	0.79
NGRC - 127	0	57	1.29
including	30	6	2.66
NGRC - 128	0	15	0.76
and	18	3	0.66
and	24	6	0.92
or	0	30	0.73
NGRC - 129	0	12	0.65
NGRC - 130	12	18	0.93
NGRC - 131	6	12	1.20
and	21	3	0.52
or	6	18	0.96
and	33	15	0.76
NGRC - 132	18	42	0.76
NGRC - 133	3	3	0.52
and	9	33	0.67
and	45	24	1.06
or	3	66	0.78
NGRC - 134	0	36	1.45
and	42	12	0.75
and	57	6	0.81
or	0	63	1.10
NGRC - 135	9	18	0.75
and	30	6	0.65
or	9	27	0.70
and	45	3	0.50
NGRC - 136	6	24	1.03
and	3	36	0.55
and	42	15	0.82	EOH
or	6	51	0.84	EOH
NGRC - 137	0	18	0.81
and	42	21	1.03
and	66	3	0.53
or	42	27	0.90
NGRC - 138	0	12	0.93
and	30	27	0.78
NGRC - 139	0	18	0.82
and	24	3	0.63
and	30	21	0.63
or	24	27	0.60
NGRC - 140	6	18	0.75
NGRC - 141	0	6	0.80
and	30	18	0.70
NGRC - 142	0	12	1.42
and	15	12	0.86
and	30	3	0.55
and	39	6	0.70
or	0	45	0.85
NGRC - 143	15	3	0.54
and	24	6	0.64
and	33	12	0.94
and	48	3	0.58
and	54	3	0.58
or	24	33	0.69
NGRC - 144	0	9	0.80
and	15	45	1.02
or	0	60	0.93
NGRC - 145	0	9	0.92
and	15	18	0.85
or	0	33	0.80
NGRC - 146	0	6	0.65
and	24	15	0.57
NGRC - 147	9	12	0.70
NGRC - 148	0	33	0.79
NGRC - 149	0	12	0.83
NGRC - 150	0	15	0.68
NGRC - 152	27	24	0.78
NGRC - 153	3	39	0.91
NGRC - 154	0	51	0.87
NGRC - 155	0	18	0.61
and	33	6	0.76
and	48	10	0.77	EOH
NGRC - 156	0	12	0.77
and	15	3	0.64
and	21	15	0.77
or	0	36	0.70
and	51	3	0.70
NGRC - 157	0	12	0.88
and	21	6	0.62
and	30	36	1.14
or	0	66	0.92
NGRC - 158	0	12	0.71
and	18	21	1.20
and	45	6	0.57
or	0	51	0.83
NGRC - 159	0	15	0.73
and	18	45	1.81
and	39	15	3.34
or	0	63	1.49
NGRC - 160	3	9	0.72
and	15	21	0.74
or	3	33	0.71
NGRC - 161	3	39	1.15
and	45	6	0.67
or	3	48	1.04
NGRC - 162	3	12	0.68
and	18	9	1.08
or	3	24	0.80
and	54	3	0.62
NGRC - 163	0	6	0.59
and	9	3	0.79
NGRC - 164	6	6	0.72
NGRC - 165	18	24	0.66
NGRC - 166	12	15	0.78
NGRC - 167	3	6	0.80
and	12	21	1.03
or	3	30	0.93
NGRC - 168	12	21	1.31
and	45	6	0.66
NGRC - 169	0	57	1.56
including	6	12	2.34
NGRC 170	0	39	1.29
including	18	6	2.63
NGRC - 171	0	24	1.09
NGRC - 172	3	3	0.55
and	9	42	1.52
including	33	9	2.53
and	54	6	0.69
or	3	57	1.27
NGRC - 173	0	6	0.56
and	12	9	0.88
NGRC - 174	6	3	0.50
NGRC - 175	0	3	0.86
and	27	27	0.80
NGRC  - 176	0	24	0.95
and	27	3	0.52
or	0	30	0.84
NGRC - 177	6	3	0.57
and	15	9	0.60
NGRC - 178	0	45	0.95
and	51	6	0.68
or	0	57	0.87
and	69	3	0.73
NGRC - 179	0	18	1.01
and	21	9	1.30
or	0	30	1.04
and	42	3	0.52
and	54	6	0.52
and	69	6	0.51
NGRC - 182	0	21	0.82
NGRC - 184	9	42	0.79
NGRC - 185	57	3	0.53
NGRC - 187	0	33	1.27
and	36	3	0.54
or	0	39	1.15
NGRC - 188	0	33	1.19
and	36	3	1.09
or	0	39	1.12
and	51	3	0.62

*  EOH means end-of-hole

** "or"  indicates an alternative interpretation, usually the average of a longer interval.

 

 

Table B:  Cobalt intersections for drillholes in the resource upgrade programme

 

Hole	From (metres)	Intersection (metres)	Grade (% cobalt)	Notes
NGRC - 72	0	3	0.08
NGRC - 73	0	3	0.05
and	15	6	0.06
NGRC - 78	0	3	0.08
NGRC - 79	6	18	0.19
and	27	3	0.06
and	36	3	0.07
NGRC - 82	27	3	0.08
NGRC - 88	3	3	0.07
NGRC - 89	6	3	0.05
NGRC - 91	9	3	0.05
NGRC - 92	0	12	0.08
and	24	3	0.06
and	54	3	0.06
NGRC - 105	6	15	0.27
Incl.	15	6	0.50
NGRC - 106	0	21	0.27
including	3	9	0.49
NGRC - 11	12	6	0.06
and	21	6	0.06
and	60	3	0.06
NGRC - 113	0	3	0.05
NGRC - 114	6	9	0.06
NGRC - 118	60	3	0.06
NGRC - 125	0	9	0.27
NGRC - 127	21	21	0.07
and	45	3	0.06
NGRC - 128	0	15	0.19
and	27	3	0.05
NGRC - 131	9	6	0.05
NGRC - 133	9	6	0.16
NGRC - 134	0	9	0.08
NGRC - 135	0	6	0.09
NGRC - 136	0	3	0.06
NGRC - 137	3	6	0.05
NGRC - 139	0	21	0.31
including	12	6	0.58
NGRC - 141	12	6	0.13
and	21	3	0.05
NGRC - 144	0	9	0.11
and	12	9	0.08
or	0	21	0.09
NGRC - 146	0	3	0.06
NGRC - 152	0	3	0.06
NGRC - 157	0	12	0.16
NGRC - 159	48	9	0.05
NGRC - 160	3	6	0.22
NGRC - 165	12	3	0.05
and	18	12	0.20
NGRC - 166	0	6	0.09
NGRC - 167	3	3	0.10
NGRC - 170	15	12	0.06
NGRC - 172	3	3	0.07
NGRC - 173	0	6	0.10

 

 

 

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. nickel 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 developer and explorer with projects in Tanzania and Zambia. The Company's flagship project is the Dutwa nickel project in Tanzania located about 25 kilometres south of Lake Victoria and 140 kilometres east of Mwanza within Greenstone gold belt which hosts 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 the AltX of the JSE (ALTX: AEA).

 

 

Qualified Person

 

Information in this report relating to reported 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 30 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/african-eagle-projects-glossary.html 

 

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

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