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Wamangola resource upgrade and Dutwa project revised resource statement
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”)
WAMANGOLA RESOURCE UPGRADE AND DUTWA PROJECT REVISED RESOURCE STATEMENT
African Eagle is pleased to announce a revised and upgraded JORC compliant resource estimate for
the Wamangola deposit, part of the Dutwa Nickel Project. This new resource estimate, combined
with the associated resource estimate at the nearby Ngasamo deposit which was also recently
upgraded, raises the total estimated resource at the Dutwa Nickel Project to 107Mt at 0.92% Ni.
Highlights:
- Wamangola Indicated resource increases 13%* to 55.2 million tonnes (“Mt”) with a grade of
0.94% Nickel (“Ni”);
- Total Dutwa Indicated resource increases to 101Mt at 0.93 Ni; and
- Total metal content of Dutwa increases 9%* to 984,000 tonnes (“t”)
The revision to the resource results from drilling campaigns performed by the Company in late 2011 and
early 2012 at both the Wamangola and Ngasamo deposits. A full 101Mt of the current 107Mt resource (94%)
now resides in the Indicated category with the ferruginous siliceous ore (”FeSi”) comprising 70% of the total
resource. As recently announced, the Wamangola FeSi ore is strongly amenable to beneficiation and
demonstrates improved leach characteristics compared to run-of-mine ore, and FeSi ore comprises the
majority of the ore resource.
At the Wamangola deposit, the Indicated JORC category has increased by 7Mt* to 55.2Mt at a grade of
0.94% Ni and the overall JORC resource is now 57.9Mt.
* For comparison the prior 2010 resource has been revised to report the estimated resource above a 0.55% Ni cut-off
grade
Total September 2012 Wamangola Mineral Resource - Indicated Resource estimate reported above a
0.55% nickel cut-off grade.
JORC (2004)
Tonnes Ni Co SiO2 Al2O3 Fe2O3 MgO
Resource Lithology
(Mt) (%) (%) (%) (%) (%) (%)
category
Indicated Ferruginous-siliceous 42.0 0.93 0.027 72.30 2.83 12.33 3.90
Transitional 13.2 0.99 0.019 51.61 1.77 11.31 19.20
Total Indicated 55.2 0.94 0.025 67.36 2.58 12.08 7.55
Inferred Ferruginous-siliceous 1.48 0.72 0.031 73.23 2.81 11.96 4.14
Transitional 0.37 0.66 0.018 52.21 2.48 12.08 19.40
Saprock 0.84 1.00 0.016 36.07 0.66 7.78 33.54
Total Inferred 2.68 0.80 0.025 58.80 2.10 10.67 15.37
Total 57.9 0.94 0.025 66.96 2.56 12.02 7.91
Small discrepancies may occur due to the effects of rounding
Total September 2012 Dutwa Project Mineral Resource - Indicated Resource estimate reported above
a 0.55% nickel cut-off grade.
JORC
(2004) Tonnes Ni Co SiO2 Al2O3 Fe2O3 MgO
Deposit Lithology
Resource (Mt) (%) (%) (%) (%) (%) (%)
category
Ferruginous-
Indicated Ngasamo 30.5 0.87 0.035 71.96 1.85 12.95 6.23
siliceous
Transitional 10.9 0.97 0.028 52.35 1.19 14.29 17.74
Saprock 4.70 1.01 0.026 37.71 0.33 7.81 33.31
Sub-total 46.1 0.91 0.032 63.84 1.54 12.74 11.70
Ferruginous-
Wamangola 42.0 0.93 0.027 72.30 2.83 12.33 3.90
siliceous
Transitional 13.2 0.99 0.019 51.61 1.77 11.31 19.20
Sub-total 55.2 0.94 0.025 67.36 2.58 12.08 7.55
Total Indicated 101 0.93 0.028 65.76 2.11 12.38 9.44
Ferruginous-
Inferred Ngasamo 0.70 0.99 0.027 74.32 1.67 13.29 4.84
siliceous
Transitional 0.41 0.91 0.020 50.25 1.85 12.24 18.60
Saprock 1.62 0.74 0.019 39.58 0.32 8.62 31.87
Sub-total 2.73 0.83 0.021 50.04 0.89 10.35 22.99
Ferruginous-
Wamangola 1.48 0.72 0.031 73.23 2.81 11.96 4.14
siliceous
Transitional 0.37 0.66 0.018 52.21 2.48 12.08 19.40
Saprock 0.84 1.00 0.016 36.07 0.66 7.78 33.54
Sub-total 2.68 0.80 0.025 58.80 2.10 10.67 15.37
Total Inferred 5.41 0.81 0.023 54.39 1.49 10.51 19.21
Grand Total 107 0.92 0.028 65.18 2.07 12.29 9.94
Small discrepancies may occur due to the effects of rounding
Two nickel laterite deposits, Wamangola and Ngasamo, comprise the Dutwa Nickel Project located at the top
of low hills rising above the plain. The Wamangola deposit has three main mineralised (weathering) horizons
overlying the bedrock; a ferruginous-siliceous horizon, a transitional horizon, and a saprock horizon.
The Wamangola deposit host rocks and mineralisation strike east-west and dip gently to the north and to the
south following the topography of the hill.
The Wamangola resource upgrade drill programme of 93 vertical holes comprised 4,378 metres (“m”) of
reverse circulation (“RC”) drilling, bringing the total number of RC drill holes at Wamangola to 421. African
Eagle commenced the drilling in early November 2011 and completed the work in early February 2012.
Assays were carried out at Omac Laboratories in Ireland on 3m composited RC drill cuttings, with overall
approximately 15% of quality control samples (reference standards, blanks and duplicates) inserted into the
sample stream. The programme was specifically designed to upgrade the previously classified Inferred
resource to Indicated category and was defined with the assistance and approval of Snowden of Perth,
Australia, African Eagle's deposit modelling and resource geology contractor. African Eagle has completed a
total of 23,255m of resource drilling at Wamangola.
The previous publically reported resource estimate for the Wamangola deposit was completed by Snowden
in December 2010 at which time the Mineral Resource was reported above a 0.43% Ni metal equivalent cut-
off. In order to allow direct comparison between the December 2010 and current September 2012 Mineral
Resources the 2010 model was revised to report above a 0.55% Ni cut-off grade.
The total September 2012 Mineral Resource estimate for the Wamangola 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.
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 Wamangola 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.
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
21 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 2013.
Date: 21/09/2012 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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