African Eagle Resources Regulatory News (AFE)

27 May 2005 07:00

African Eagle Resources PLC27 May 2005 African Eagle Resources plc Heads of Agreement Signed for Joint Venture in Tanzania African Eagle ("the Company", ticker AFE) is pleased to announce the signing ofa Heads of Agreement for an option and farm-in joint venture covering theCompany's Kakumbi project area in Tanzania. African Eagle's Chairman John Park comments "We are delighted to have concludedthis agreement with Australian listed Resolute Mining Ltd over a very promisinggold area. The deal is in line with our strategy of forging partnerships withcompanies who can contribute expertise and finance to take our projects forward,and follows our recent announcement of a similar agreement with MSA over theLunga licence in Zambia." Under the agreement, Resolute Mining Limited (Resolute) of Australia, throughits Tanzanian subsidiary, can earn a 51% interest in African Eagle's Kakumbigold project by operating and managing exploration costing US$1.15 million overthe next three years and can earn a further 14% interest by expending anadditional US$1.85 million on exploration. Kakumbi lies 1.5km north of Nyakafuru, a gold deposit which contains a reportedresource of 730,000 ounces at the relatively high grade of 6.3 g/t. AfricanEagle's exploration work has confirmed that gold mineralised structures alsoexist on the Kakumbi property, with grab sampling of four areas of abandonedartisanal workings returning gold grades of up to 17.7g/t and geochemicalsurveys revealing several areas of anomalous gold. Resolute owns and operates Golden Pride, which became Tanzania's first moderngold mine when it commenced production in 1999 and currently produces 160,000ounces per annum. Resolute is undertaking a major exploration programme toexplore the Nyakafuru licence and adjacent areas. John ParkChairman For further information Tel MobileJohn Park (Chairman) or African Eagle 020 7248 6059 077 7980 1159Mark Parker (MD)Leesa Peters or Amanda Conduit PR 020 7618 8534 07979 955 923Harris This information is provided by RNS The company news service from the London Stock Exchange