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Ngasamo Resource Increase and Upgrade
African Eagle Resources plc
Incorporated in England and Wales
(Registration number 3912362)
(AIM share code: AFE AIM ISIN: GB0003394813)
(JSE share code: AEA JSE ISIN: GB0003394813)
(“African Eagle” or the “Company”)
NGASAMO RESOURCE INCREASE AND UPGRADE
African Eagle is pleased to announce a revised and upgraded JORC resource for the Ngasamo
deposit at its flagship Dutwa Nickel Project in Tanzania following a drilling campaign completed in
Q4 2011. This upgraded resource report doubles the total Dutwa Indicated Resource to 92.3 million
tonnes (“Mt”) and increases the total Dutwa resource by 10% to 109.1Mt.
The total JORC resource for Ngasamo has been increased by 10.7Mt to 48.9Mt, including 46.1Mt
which is now classified in the Indicated category, with an overall nickel grade of 0.91%. The amount
of Nickel contained in the Ngasamo hill has been increased by 13%.
Total 2012 Ngasamo Mineral Resource - Indicated Resource estimate reported above a 0.55% nickel
cut-off.
JORC (2004) Tonnes Ni Co SiO2 Al2O3 Fe2O3 MgO
Lithology
Resource Category (Mt) (%) (%) (%) (%) (%) (%)
Ferruginous-siliceous 30.5 0.87 0.03 71.96 1.85 12.95 6.23
Indicated Transitional 10.9 0.97 0.03 52.35 1.19 14.29 17.74
Saprock 4.7 1.01 0.03 37.71 0.33 7.81 33.31
Total Indicated* 46.1 0.91 0.03 63.84 1.54 12.74 11.70
Ferruginous-siliceous 0.7 0.99 0.03 74.32 1.67 13.29 4.84
Inferred Transitional 0.4 0.91 0.02 50.25 1.85 12.24 18.60
Saprock 1.6 0.74 0.02 39.58 0.32 8.62 31.87
Total Inferred 2.7 0.83 0.02 50.04 0.89 10.35 22.99
Total Indicated and
Inferred** 48.9 0.90 0.03 63.07 1.50 12.61 12.33
Small discrepancies may occur due to rounding * Contained metal in the Indicated Resource is estimated at
419,500 tonnes.
**Contained metal in the Inferred Resource is estimated at 2,200
tonnes.
Furthermore, the Company and its joint venture partner on the Ngasamo deposit, PMRC of Tanzania
(“PMRC”), have identified that the resource defined by this most recent report does not represent the
full extent of the mineralisation at the Ngasamo deposit and together the companies have already
undertaken a further drill extension programme. This additional resource extension drilling
programme is not expected to impact the development plan or overall timetable for the Dutwa BFS.
The two nickel laterite deposits, Ngasamo and Wamangola, comprise the Dutwa Nickel Project located at the
top of hills rising above the plain. The Ngasamo deposit has three main mineralised horizons overlying the
bedrock; a ferruginous-siliceous horizon, a transitional horizon, and a saprock horizon. The Ngasamo host
rocks and mineralisation strike east-west and dip gently to the north and to the south following the
topography of the hill.
The 2011 Ngasamo resource upgrade drill programme comprised 122 vertical holes for 8,040 metres of
reverse circulation drilling, bringing the total number of Ngasamo drill holes to 188. African Eagle
commenced the drilling in late August 2011 and completed the work in early November 2011. The
programme was specifically designed to upgrade the majority of the resource classification from Inferred to
Indicated and was defined with the assistance and approval of Snowden of Perth, Australia, African Eagle's
deposit modelling and resource geology contractor. With this most recent drilling, African Eagle has
completed a total of 12,865m of resource drilling at Ngasamo.
The total July 2012 Mineral Resource estimate for the Ngasamo deposit was developed by Snowden and is
summarised in the Table above. The Mineral Resource has been classified and reported in accordance with
the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(JORC Code and ASX Companies Updates). The resource classification was based on a review of the data
quality and an assessment of the confidence in the geological and nickel grade continuity. The Mineral
Resource has been reported above a 0.55% nickel grade provided by African Eagle.
As part of the updated resource estimate, Snowden updated the September 2010 geology and nickel
mineralisation interpretation with data collected from the recent drilling and built a new resource block model.
Snowden elected to use the Datamine Unfold process to address the impact of the dipping mineralisation on
the variogram modelling and the grade estimation. In situ density values were assigned to the model blocks
based on assigning fixed (mean) values based on rock type derived core measurements. Estimates of all
grades including Ni, Co, SiO2, Al2O3, MgO, and Fe2O3 were made using ordinary block kriging.
The Ngasamo Mineral Resource estimate is reported above a 0.55% nickel cut-off grade. The cut-off grade
was provided by African Eagle and was based on the following assumptions:
- Based on atmospheric tank leach testing African Eagle expect the overall process recoveries of nickel
and cobalt will be approximately 80% and 70% respectively.
- Average three-year LME metal prices of US$10 per pound of nickel and US$17 per pound of cobalt,
based on historical prices over the period May 2010 to May 2012.
- Acid consumption per tonne of dry ore between approximately 357 kg to 566 kg.
The Company and PMRC have worked closely together to define areas of further potential mineralisation
that is believed to extend beyond the envelope defined by both the 2011 and 2010 drilling programmes. A
drill programme to test and define the extent of the Ngasamo resource is a key objective of the joint venture.
The details of the full extent of the drill programme are currently being finalised but drilling of the early holes
has already commenced as the drill campaign for the BOS 3 samples for the metallurgical pilot plant test
work is now complete.
Qualified Person
Richard Sulway is a member of the Australasian Institute of Mining and Metallurgy (MAusIMM(CP)) and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity to which he is undertaking to qualify as a competent person as defined in the 2004 edition
of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Richard Sulway is a full-time employee of Snowden Mining Industry Consultants Pty Ltd and is a Qualified
Person under AIM rules. Richard Sulway consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
For further information, please visit www.africaneagle.co.uk or contact:
African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059
Canaccord Genuity Limited (NOMAD)
Rob Collins or Andrew Chubb
+ 44 20 7523 8000
Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370
Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924
Sponsor
Merchantec Capital
5 September 2012
About African Eagle
African Eagle Resources plc is a nickel development and exploration company listed on the London AIM
(AFE) and Johannesburg AltX (AEA) stock exchanges. The Company's flagship project is the Dutwa Nickel
project in Tanzania located about 25km south of Lake Victoria and 110km east of Mwanza within greenstone
gold belts which host many of Tanzania's operating and developing gold mines. The Company is currently
conducting a Bankable Feasibility Study, which is due for publication during Q1 2013.
Date: 05/09/2012 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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