African Eagle Resources Regulatory News (AFE)

21 Jul 2006 07:00

African Eagle Resources PLC21 July 2006 African Eagle Resources plc New Drilling at African Eagle's High-grade Msasa Gold Project AIM quoted African Eagle Resources plc ("African Eagle" or "the Company", tickerAIM: AFE) is pleased to announce that MDN Northern Mining ("MDN", TSE:MDN) hasstarted reverse circulation drilling at the Company's 90 per cent owned MsasaGold Project in Tanzania. Under an option agreement signed in May 2006, MDN is investing US$200,000 inexploration at African Eagle's Msasa project, to earn the right to acquire a 51%interest in the project by investing a further US$1.7m. MDN can then increaseits participation to 65% by financing a feasibility study. Exploration already carried out by African Eagle has returned gold assay valuesindicating that the Msasa area holds high-grade mineralisation with similaritiesto that at the Tulawaka Gold Mine, 15km to the northeast, which is a jointventure between MDN (30%) and Barrick Gold Corporation (70%). African Eagle'sMsasa drilling intersected gold-bearing quartz veins, including one very highgrade section which assayed 81 grammes of gold per tonne over 9 metres. MDN's programme of reverse circulation drilling will follow up these promisingindications, to determine the extent of the gold mineralisation and to testfurther geochemical and geophysical targets. African Eagle's Managing Director Mark Parker comments "Our own drilling,geophysics and geochemistry has revealed that Msasa could be a significanthigh-grade deposit. At this location, which is within easy trucking distance ofthe Tulawaka plant, even a small high-grade deposit would be significant. MDN isshowing a strong commitment to this project and we are looking forward keenly tothe results of the drilling programme". John ParkChairmanAfrican Eagle Resources plc20 July 2006 About African Eagle African Eagle is a mineral resources company with its focus on eastern andcentral Africa. The Company operates in Zambia, Tanzania and Mozambique, threecountries with highly prospective geology and low above-ground risks, which haveall been recent destinations for successful major investments in the metals andminerals industries. The Company has a highly motivated team, proven management and an experiencedboard. Its principal operations are the Miyabi gold project in Tanzania and theMkushi and Ndola copper projects in Zambia. It has discovered a large iron oxidecopper gold (IOCG) system at Eagle Eye in Zambia and holds a well-balancedportfolio of promising early stage projects.Qualified PersonInformation in this report relating to the exploration results is based on datareviewed by Mr Christopher Davies B.Sc, M.Sc, DIC, Operations Director forAfrican Eagle Resources, who is a Fellow of the Australasian Institute of Miningand Metallurgy, has in excess of 25 years experience in mineral exploration andis a Qualified Person under AIM Rules. Mr Davies consents to the inclusion ofthe information in the form and context in which it appears. For further information, see the Company's web site www.africaneagle.co.uk orcontact one of the following: Mark ParkerManaging Director+44 20 7248 6059+44 77 5640 6899 Chris DaviesOperations Director+44 20 7248 6059+44 78 6672 9959 Leesa Peters or Ed PortmanConduit PR+44 20 7429 6666 This information is provided by RNS The company news service from the London Stock Exchange