African Eagle sends off full Ngasamo assay set from Dutwa nickel project for resource estimate

May 10, 2010 10:54 AM ET
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Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.
African Eagle Resources (AIM: AFE) said it has received the last batch of assay results from recently completed drilling at Ngasamo Hill, a part of its Dutwa nickel project in Tanzania. The assays have been sent to Snowden Mining Industry Consultants in Perth for a formal resource estimate.

Managing Director Mark Parker commented: "We are extremely pleased with the drill results from Ngasamo. They reveal a deposit which is somewhat thicker than the main Dutwa deposit, and although the average grade appears to be slightly lower, we expect Ngasamo will add significantly to the overall resource base.”

Of the 66 holes drilled in the vertical reverse circulation (RC) programme which was designed to delineate a formal Mineral Resource to JORC Inferred category or better, 59 intersected mineralisation, and highlights include: 75 metres at 1.42 percent nickel, 84 metres at 1.07 percent nickel including 30 metres at 1.64 percent, 63 metres at 1.41 percent nickel including 45 metres at 1.71 percent, and 57 metres at 1.25 percent nickel including 12 metres at 2.48 percent.

Key cobalt mineralisation intersections include 18 metres at 0.47 percent cobalt, 9 metres at 0.43 percent and 9 metres at 0.27 percent cobalt, the latter including 3 metres at 0.48 percent.

African Eagle has also completed an infill drilling programme at the Dutwa main deposit, designed to test the internal variability of the mineralisation and allow the Dutwa main resource to be upgraded to JORC Indicated category.

"Meanwhile, the nickel market continues to show strength, with prices now up more than 40 percent this year, backed  by an  increase of 55 percent year-on-year stainless steel demand from China," MD Parker said.

With  the  determination  of  a  resource  estimate  at Ngasamo to JORC inferred standard or better,  African Eagle  will have  completed its  earn-in of a 35 percent interest in the deposit from Ngasamo's owners, Safina a.s. of the Czech Republic and  its Tanzanian subsidiary Precious Metals Refinery Company Ltd.  Thereafter, the company can increase its equity in Ngasamo to at least 50 percent and up to 75 percent by completing further resource and feasibility work.

Since discovering major oxide nickel deposits at Dutwa, African Eagle is in transition from a diversified explorer into a nickel mining company. The company completed a positive scoping study on the Dutwa deposit in July 2009 and is now working towards a full feasibility study.

African Eagle is evaluating a second promising oxide nickel deposit at Zanzui in Tanzania, 60 kilometres south of Dutwa.

The company also holds a 49 percent interest in the Mkushi Copper Mines joint venture in Zambia, for which a draft feasibility study was completed in Q4 2008. In addition, it holds a half million ounce gold resource at the Miyabi project in Tanzania, and a portfolio of gold and base metal exploration assets, including two projects in the Zambian Copperbelt.

The company is seeking partners or buyers for its non-core copper, gold and uranium projects.

Disclosure: The author holds no positions in the company

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