Mkushi JV Progress Update

4 Dec 2007 09:15

African Eagle Resources PLC04 December 2007 AFRICAN EAGLE RESOURCES plc MKUSHI JOINT VENTURE PROGRESS UPDATE • Pre-feasibility study nearing completion • Joint venture company established • Production decision on course for late 2008 • Resource drilling progressing well African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE,AltX: AEA) today announces a progress update from the Mkushi Copper Mines JointVenture in central Zambia. Mkushi is a joint venture between African Eagle and CGA Mining Limited (CGA),through their respective Zambian subsidiaries. CGA manages and funds theresource drilling and feasibility study while AFE manages a jointly fundedregional exploration programme. Both CGA and African Eagle have made substantial progress. CGA's resourcedrilling programme is well advanced and to date, the partners have completedmore than 33,000 metres of diamond and percussion drilling. Drilling within the1970s era Munshiwemba open pit is underway, now that the pit has been pumpeddry. CGA has generated a resource model from the drill results as the basis forthe pre-feasibility study. This study is now expected to be ready by the end ofJanuary 2008, slow laboratory turn-around and other delays outside the JVpartners' control having pushed the completion date back a few weeks.The current resource drilling programme will continue until mid-2008, afterwhich the resources delineated will be converted to mineable reserves as part ofthe bankable feasibility study, scheduled for completion in late 2008.Geotechnical and sterilisation drilling will also be undertaken during thisperiod. African Eagle's regional exploration programme is making excellent progress,with the aim of finding additional copper resources around Mkushi. Geochemicaland geophysical surveying under this programme, as well as showing probableextensions of the known copper zones, have revealed new anomalies furthersouthwest and northeast which have yet to be drill tested. Overall, work at Mkushi is progressing extremely well and the partners expect tolodge an application for a mining licence with the Ministry of Mines in the NewYear. The full bankable feasibility study is on track and the final decision togo into production will be made around the end of 2008. Following signature of the full joint venture agreement in May, the two MkushiProspecting Licences were transferred to Mkushi Copper Joint Venture Limited andthe shares of that company have now been allotted to the partners. KatangaResources Ltd, the wholly owned Zambian operating subsidiary of AFE, now holds2,450,000 shares (49% of the total) and Seringa Mining, a wholly ownedsubsidiary of CGA, holds 2,550,000 shares (51%). Managing Director Mark Parker said: "We are pleased with the progress ourpartners and operators CGA have made on the project over the past few months.Despite minor operational delays, we look forward to completion of thepre-feasibility study. African Eagle's regional exploration is also progressingwell and gives strong indications of previously undiscovered mineralised zonesin the Mkushi copper system." John ParkChairman 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 Ed Portman/ Leesa PetersConduit PR+44 20 7429 6607/+44 7733 363 501 Nicola MarrinSeymour Pierce LimitedNominated Advisors & Brokers+ 44 20 7107 8000 James DuncanRussell & Associates, Johannesburg+ 27 11 8803924 / +27 82 8928052 Qualified Person Information in this report relating to exploration results is based on datareviewed by Mr Christopher Davies BSc, MSc, DIC, FSEG, Operations Director forAfrican Eagle, who is a Fellow of the Australasian Institute of Mining andMetallurgy, has more than 26 years relevant experience in mineral explorationand is a Qualified Person under AIM rules. Mr Davies consents to the inclusionof 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 About African Eagle African Eagle is a mineral exploration and development company operating ineastern and central Africa. The Company's principal advanced projects are theMkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,which are being prioritised towards production. The Company also holds a largewell-balanced portfolio of promising earlier stage gold and base metal projects,including the Ndola copper project and the Eagle Eye iron-oxide copper goldproject. African Eagle's projects are in Zambia, Tanzania and Mozambique, countries whichall have highly prospective geology, relatively low above-ground risks and trackrecords of successful major investments in the metals and minerals industries. African Eagle specialises in project generation and exploration and has a highlymotivated team, proven management and an experienced board. 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