African Eagle Resources Regulatory News (AFE)

30 Apr 2008 09:31

African Eagle Resources PLC30 April 2008 African Eagle Resources plc Mkushi Project Update • Mkushi feasibility study on track • Full mining licence application submitted • New drill results from the Munshiwemba Zone include 1.75% copper over 26m, 4.65% over 8m and 2.71% over 9m • AFE's exploration discovery at Munda should add significantly to overall resource • Production from this project could begin in 2010 African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,AltX: AEA) announces that its joint venture (JV) partner CGA Mining today issueda report containing new drill data for the Mkushi Project and a summary ofprogress towards the feasibility study (FS). African Eagle's MD Mark Parker comments "The Mkushi project remains on track forcompletion of the FS at the end of October. The JV's recent application for afull mining licence is a major step on the road to production and we believethat the additional mineralisation over 2km strike length which has beenrevealed at Munda by African Eagle's exploration effort will add significantlyto the overall resource". CGA reports that good progress is being made on the various components of theFS, which is on track for completion in the last quarter of 2008. An applicationfor a Mining Licence over the Mkushi deposit and adjacent prospects withresource potential was submitted during February 2008. Drill results received during the quarter indicate potential for additionalresources in the previously mined Munshiwemba Pit and support our geologicalinterpretations of H, L, and G Zones. An independent resource estimate to JORCand NI-43-101 guidelines is due for completion in the next quarter and willinclude data that was not available at the time of the preliminary study. Exploration work by African Eagle has intersected significant mineralisation atthe Munda prospect and identified several new soil geochemical copper anomalieswithin the wider 476 sq km prospecting licence. Feasibility Study - Summary Bateman Engineering Pty Ltd (Bateman), with its subsidiary Metplant EngineeringServices Pty Ltd (Metplant), is the principal consulting group carrying out thefeasibility study for the Mkushi process plant. The geotechnical drilling has been completed and the report, being prepared byAfrican Mining Consultants Ltd Zambia ("AMC"), is expected in the next month. The Environmental Impact Assessment (EIA) has also been completed by AMC and hasbeen presented to the authorities for review. Snowden Mining Industry Consultants Pty Ltd, Perth, has been engaged to preparethe NI 43-101 estimate for the mineral resources. This document is expected tobe available for release in the next quarter. Discussions are advanced with the two main power suppliers in Zambia to providea secure supply of power to the operation. Discussions have commenced with smelter operations in Zambia concerning possibleoff-take agreements. Completion of the FS is on track for the last quarter of 2008. Resource Drilling & Estimation The resource evaluation drilling programme at Munshiwemba H Zone has beencompleted and drill rigs transferred to a programme to test additionalexploration targets within the joint venture licence areas. Success on thesetargets is expected to result in an increase in the resource base at the MkushiProject. It is anticipated that further resource drilling at Munshiwemba, H Zoneand other core area prospects will recommence after the completion of the FS. Results received during the quarter indicate potential for additional resourcesin the old Munshiwemba Pit (north east of G Zone) and have confirmed geologicalinterpretations at L, and G Zones. Based on visual observations, the 10m x 10m close spaced vertical RC programmeat G Zone appears to confirm the continuity of the copper mineralisation. Snowden, an independent resource consultant based in Perth, has commenced theresource estimate to JORC and NI 43-101 guidelines. This estimate is due forcompletion in the next quarter and will include additional data that was notavailable at the time the preliminary study was announced in February.Significant new drill intersection results can be found in Table 1. The holeswere drilled on an average angle of minus 50degrees and the widths referred toin the table are apparent widths. Table 1 MKUSHI - SIGNIFICANT NEW DRILL INTERSECTIONS HOLE NO ZONE FROM WIDTH Cu GRADE % TYPEMH018 H ZONE 52 25 0.51 RCMH029 H ZONE 142 5 1.01 DDMH029 H ZONE 150 3 1.89 DDMH084 L ZONE 137 7 1.26 DDMH085 H ZONE 25 5 1.03 DDMH086 H ZONE 13 19 0.34 DDand 71 33 0.60 DDand 109 9 0.90 DDand 219 8 0.85 DDMH098 H ZONE 28 3 1.69 RCMH100 H ZONE 174.5 4.5 1.87 DDMMU048 MUNSHIWEMBA 12 9 0.67 DDMMU050 MUNSHIWEMBA 17 3 1.99 DDand 31 26 1.75 DDMMU051 MUNSHIWEMBA 48 9 2.71 DDMMU053 MUNSHIWEMBA 57 8 4.65 RCand 70 4 2.63 RCMMU055 MUNSHIWEMBA 8 5 1.17 RCMMU057 MUNSHIWEMBA 11 5 2.07 RCMMU060 MUNSHIWEMBA 20 9 1.74 RCMMU061 MUNSHIWEMBA 4 8 0.89 DDand 16 18 0.40 DDMMU064 MUNSHIWEMBA 1 11 0.97 DDMMUGT1 H ZONE 73 19 0.63 DDMMUP038 G ZONE 11 5 2.67 VertRCMMUP039 G ZONE 0 11 1.27 VertRCMMUP040 G ZONE 11 9 0.68 VertRCMMUP045 G ZONE 9 10 1.15 VertRC Geotechnical Study The geotechnical diamond drilling programme has been completed and a report isbeing prepared by AMC for inclusion in the DFS. Sterilisation Drilling A 4,100m RC programme has been completed on proposed sites for plant, waste andtailings facilities. No mineralisation of significance was located and sites arenow adequately sterilised for infrastructure. Licences An application for a Mining Licence over the Mkushi deposit and adjacentprospects with resource potential was submitted to the Zambian Ministry of Mineson 12 February 2008. The Environmental Impact Assessment ("EIA") prepared by AMChas been completed and submitted for review and approval by the EnvironmentalCouncil of Zambia. The EIA is also a key requirement of the Mining Licenceapplication. The approval of the Mining Licence is unfortunately held up due tothe extended moratorium imposed by the Zambian government on licence approvals.It is expected that the Mining Licence will be processed and approved early inMay after the moratorium is lifted. Regional exploration African Eagle, which under the JV is exploring the wider 478 sq km licencearound the known deposits, has now received most of the laboratory analyses fromits 3432 sample soil geochemical programme. These have revealed severalpromising copper anomalies, which African Eagle will follow up. African Eagle's diamond and RC drilling of the Munda Prospect, 5km south ofMunshiwemba, yielded several intersections of copper sulphides over 2km ofstrike, with grades up to 2% indicated by visual inspection and in-field XRFanalysis, although these remain to be confirmed by a certified laboratory. General As part of our ongoing commitment of community improvements work was completedon re-wiring of the local medical facility in the nearby Mkushi Copper Minevillage during the quarter. John ParkChairmanAfrican Eagle Resources plc 30 April 2008 Qualified Person Information of a technical nature in this report is based on informationcompiled by, or under the supervision of, and approved by Mr Geoff G Jones andMr Simon Plunkett. Mr Plunkett is a Professional member of the AustralianInstitute of Geoscientists and is a full-time employee of CGA. The drillingresults were assayed by Genalysis Laboratory Services Pty Ltd in Perth, WesternAustralia. Both Mr Jones and Mr Plunkett have sufficient experience relevant to the styleof mineralisation and type of deposit under consideration to be recognised asCompetent Persons as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Resources'. Mr Jonesand Mr Plunkett consent to the inclusion in the report of the matters based ontheir information in the form and context in which it appears. Information in this report relating to exploration results is based on datareviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, FAusIMM, OperationsDirector for African Eagle, who is a Fellow of the Australasian Institute ofMining and Metallurgy, has more than 26 years relevant experience in mineralexploration and is a Qualified Person under AIM rules. Mr Davies consents to theinclusion 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 andother published material may be found at www.africaneagle.co.uk/african-eagle-projects-glossary.html For further information: Mark ParkerManaging DirectorAfrican Eagle+44 20 7248 6059+44 77 5640 6899 Nicola MarrinSeymour Pierce Limited, LondonNominated Adviser+ 44 20 7107 8000 Charmane RussellRussell & Associates, Johannesburg+ 27 11 8803924+27 82 8928052 Ed Portman / Leesa PetersConduit PR, London+44 20 7429 6607+44 (0) 7733 635 01 About African Eagle African Eagle is a diversified mineral exploration and development companyoperating in eastern and central Africa. The company's principal advancedprojects are the Mkushi Copper Mines project in Zambia and the Miyabi goldproject in Tanzania, which are being fast-tracked towards production. Thecompany also holds a large well-balanced portfolio of promising earlier stagegold and base metal projects, including the Ndola copper project and the EagleEye iron-oxide copper gold project. Zambia, Tanzania and Mozambique, the sites of African Eagle's projects, are allcountries which have highly prospective geology, relatively low abovegroundrisks and track records of successful major investments in the metals andminerals industries. African Eagle specialises in project generation and exploration. To take itsdiscoveries into production, it seeks to sign up industry partners with recordsof successful mine development. These joint ventures and, in time, the revenuefrom advanced projects, will finance future exploration and new discoveries. This information is provided by RNS The company news service from the London Stock Exchange