African Eagle Resources Regulatory News (AFE)

20 Apr 2005 07:00

African Eagle Resources PLC20 April 2005 AFRICAN EAGLE RESOURCES PLC Exploration Programme Update African Eagle Resources plc (the "Company", ticker AFE) is pleased to publishthis update on its projects in Tanzania, Zambia and Mozambique. The Company's Chairman John Park notes "Drilling is well underway at two of theCompany's four most prospective projects - the 400,000 ounce Miyabi goldproject in Tanzania and the Mkushi project in Zambia which holds a resource of30 million tonnes of 1.25% copper mineralisation reported by previous operators.The aim of the next six month's exploration programme is to increase thecompany's gold and copper resources while also acquiring additional licences soas to increase our strategic holdings". In Tanzania's Lake Victoria Goldfields, the discovery of the Faida zone atMiyabi and the recently announced 400,000 ounce independent gold resourceestimate have transformed the project from pure exploration to a resourcedrilling project. Five weeks ago core drilling restarted at Miyabi, with theobjective of increasing resources and the Company looks forward to the resultsof that programme over the coming months. With the current high copper price, Mkushi in Zambia has become an extremelyattractive target and both core drilling and surface surveys are now underway toconfirm and increase the 30 million tonnes of 1.25% copper resource reported byearlier explorers. At the Eagle Eye Iron oxide copper gold (IOCG) project in eastern Zambia, theCompany has begun an induced polarisation (IP) geophysical survey. Last year'smapping and first phase drilling revealed that copper mineralisation extendsover a strike length of at least 25km and identified a new priority target atNdomba, as well as confirming that the mineralisation reaches potentiallyeconomic grades and widths, and with the new geophysical surveys, will assistthe Company's geologists to select this year's drill targets. Early shallow drilling at the Igurubi gold project in Tanzania revealed rich,narrow gold veins of considerable promise and further drilling will follow aprogramme of surface surveys now underway, including ground magnetics, inducedpolarisation and geochemistry. These four priority projects sit on a sound foundation of second-tier andgrassroots projects, such as Msasa and Zanzui in Tanzania, Kampumba and Lunga inZambia and Namama in Mozambique. The Company continues to acquire promising new projects which our localknowledge, contacts and expertise bring to our attention. Our growingunderstanding of the geological setting of Iron Oxide Copper Gold (IOCG)mineralisation in southwest Zambia led us to apply for five licence areas withpotential for this type of deposit across the border in Mozambique. The Companynow holds a substantial IOCG portfolio on both sides of the border, coveringlarge areas of little-explored ground containing many known copper occurrences. The Company's web site www.africaneagle.co.uk is being updated with all the mostrecent information on each project. John Park Chairman African Eagle Resources plc 20 April 2005 For further information Tel Mobile John Park (Chairman) or African Eagle 020 7248 6059 077 7980 1159Mark Parker (MD) Leesa Peters or Amanda Conduit PR 020 7618 8534 07900 322 022Harris Matthew Robinson Durlacher 020 7459 3600 ADDITIONAL INFORMATION African Eagle has four top priority projects for its 2005 programme: Miyabi andIgurubi in Tanzania, and Mkushi and Eagle Eye in Zambia. At all four, drillingis either underway or planned to follow this year after current surface surveysare completed. Surface surveys are also underway at some of the Company's sixsecond priority projects and at several of twenty grassroots prospects. Tanzania African Eagle's Miyabi gold project in Tanzania is a shear zone hosted goldsystem, extending over 7km of strike. The Company recently reported a newresource estimate of 400,000 ounces of gold, carried out to "JORC" standards byrespected independent consultants SRK, together with a full technical audit.Drilling to increase this resource began in early March and four holes have beendrilled so far on the Faida structure. Preparations for geophysical IP surveyshave been completed which will assist in finalising drill hole locations onother target structures. Assay results received recently from the 1-metre "splits" from last December'sRC drilling at Igurubi confirm that the gold-bearing structures are rich andnarrow, with intersections including 2m at 24.8g/t in IGRC-12, 2m at 9.1g/t inIGRC-05 and 1m at 17.7g/t in IGRC-11. The full results will be posted onAfrican Eagle's web site. The Company has also obtained Igurubi exploration data dating from themid-1990's, with results of shallow RAB drilling including intersections of 3mat 24g/t gold, 6m at 4.2g/t and 3m at 3g/t. African Eagle recently completed aground magnetic survey and now plans to carry out IP and soil geochemicalsurveys to assist in selecting targets for drilling in mid-2005. Elsewhere in Tanzania, the Company is carrying out an IP survey at Msasa andgeochemical soil sampling at the Gloria and Dutwa grassroots projects. During2005, African Eagle plans to carry out drilling at Msasa and surface surveys atZanzui and a number of other grassroots prospects. Zambia In African Eagle's Mkushi licence, a chain of copper deposits lie along a 15kmlength of the Mtuga Shear Zone. Some of the deposits were mined in the past,notably Mtuga, mined underground in the 1920's and Mushiwemba, mined by open pitin the 1960's. A resource estimate made in the 1990's reported that 30.4 million tonnes grading1.23% copper remained, containing more than 350,000 tonnes of copper. At presenthigh copper prices, there is a good probability that this resource could bedeveloped profitably and brought into production quickly and cheaply. AfricanEagle has begun a programme of drilling and other work to confirm and expand thehistorical resources at Mkushi, which will lead to a full feasibility study ifthe results confirm the potential. At the Eagle Eye iron-oxide-copper-gold (IOCG) project, the Company isevaluating the wealth of data acquired during 2004, which revealed that coppermineralisation extends over a strike length of at least 25km and identified anew priority target at Ndomba, as well as confirming that the mineralisationreaches potentially economic grades and widths. Currently, African Eagle'sfield teams are carrying out geophysical and geochemical surveys which will helpto optimise this year's drilling programme. At the Tandalwe Hill copper prospect in the Company's Kampumba licence, trenchresults just received include 40m at 0.87% copper, 11m at 1.1% and 36m at 0.78%. These intersections also carry between 5 and 10g/t silver. An IP survey isunderway at Tandalwe Hill and drill targets will be selected once it iscomplete. Mozambique The Company has applied for five prospecting licences in western Mozambique,covering an area of almost 800 square kilometres containing rocks andmineralisation similar to those at Eagle Eye. During 2005, African Eagle plansto investigate the known mineralisation, conduct reconnaissance geochemicalsurveys and interpret recent high-resolution airborne geophysical data. Sampling and mapping at the Muazua nickel project in late 2004 showed that thesaprolite of the area carries more than 1% nickel in places. At the nearbyMajele gold project, re-appraisal of gold in panned concentrate samples hasindicated targets for further investigation. Corporate African Eagle currently has £2.7 million in the bank, more than sufficient tocover its planned exploration programmes through 2005. The Company is activelyseeking joint venture partners to participate in its new and existing projects.Negotiations are at an advanced stage on two of these and discussions areunderway with potential partners for several other projects. This information is provided by RNS The company news service from the London Stock Exchange