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AFRICAN EAGLE RESOURCES PLC - Beneficiation Results and Metallurgical Update

Release Date: 22/01/2013 09:15
Code(s): AEA     PDF:  
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Beneficiation Results and Metallurgical Update

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”)


Beneficiation Results and Metallurgical Update


African Eagle is pleased to announce test work results that confirm the positive beneficiation
results for the Wamangola and Ngasamo Ferruginous Siliceous ("FeSi") and Transition ores,
following completion of a targeted metallurgical variability test work campaign. The results
compare favourably to those already obtained for the Wamangola FeSi ores (see press release
dated 12 September 2012) and extends the knowledge of beneficiation performance to the full
resource base.

The variability test work programme involved tests on both Dutwa deposits (Wamangola and
Ngasamo) and both principal ore types (FeSi and Transition). Further test work on the leach
response of the beneficiated ores is still underway and will be finalised and reported later in
Q1 2013.

Principal Conclusions from recent tests:

   -   Beneficiation prior to downstream processing optimises the operating and capital costs
       of the Dutwa project;

   -   The results demonstrate that the run-of-mine (“RoM”) FeSi ores from both deposits are
       strongly amenable to beneficiation via silica rejection;

   -   RoM Transition ores from both deposits are also amenable to beneficiation, although
       for Wamangola these upgrade to a lesser extent than the FeSi ores;

   -   Improved geometallurgical understanding of the beneficiation response of ores from
       the two deposits has resulted in an improved understanding of reagent consumptions
       and their influence on operating costs;

   -   The test work has enabled development of mathematical upgrade relationships for the
       key metals: nickel, iron, magnesium and aluminium, as a function of the silica content
       in the RoM ores which can be applied in the optimisation of the mining schedule;

Additional Metallurgical Leach Testing Undertaken:

Prior test work performed in 2012 indicated that the leach behaviour of beneficiated FeSi ore from
Wamangola is generally superior to that of RoM ore. As a means of confirmation, a further
metallurgical programme has been undertaken to confirm the leach response of the beneficiated ores.
This test programme is nearing completion and the results are expected to be announced during Q1
2013. The leach test programme is designed to confirm the leach response (metal recoveries and
acid demand) of both beneficiated “FeSi” and beneficiated Transition products with testing of further
samples from Wamangola and Ngasamo and extend the understanding of the overall leach
performance and acid demand.

Ore beneficiation is anticipated to positively impact the Dutwa project, as it minimises both the acid
requirements per unit of nickel leached and optimises the capacity of the processing plant.
Summary Details of Beneficiation Test Results
Extensive and comprehensive metallurgical variability test work has been conducted to verify the
beneficiation responses observed on bulk samples by taking measurements across a range of ROM
ore grades on samples from both the Wamangola and Ngasamo deposits.

In conformance with expectations, the results indicated that:
   -  Moderate scrubbing power input between 2 and 4 kWh/t will be required for the majority of
       ores from both Wamangola and Ngasamo; and

   -   The optimal economic cut-point for the Dutwa ores (defined as the particle size above which
       material is either rejected to low grade stockpile (or waste) and below which is processed is
       likely to be 3.35 mm.

Statistical analysis of the overall results from the variability testing has, importantly, determined
empirical mathematical relationships between the upgrade factors of the key metals (Ni, Fe, Mg, Al)
and the silica (SiO2) concentrations in the RoM ores. These relationships in turn enable the
reasonable prediction of beneficiation recoveries and product grades by mining block, and will be
applied to optimise the mining schedule for the Dutwa project. The key findings of the variability test
program are summarised in Table 2 below.

Furthermore the reliability of reagent consumption and operating costs estimations has been
significantly improved through greater geometallurgical understanding of the beneficiation response of
the ores from Wamangola and Ngasamo.

The beneficiation batch test work was performed by ALS Metallurgy (Perth, Western Australia) to
determine the energy requirements for effective scrubbing. The work with bulk samples was
performed using a large ~0.8 tonne composite sample prepared from multiple drill holes whilst
variability programmes undertaken by SGS Lakefield Oretest (Perth, Western Australia) as well as by
ALS Metallurgy utilised smaller sample sizes corresponding to either 3m or 9m lengths of core from
single drill holes. In both cases samples were created from diamond drill cores from each deposit,
selected in accordance with the expected mining schedule.

The diamond drill hole locations were selected to be spatially representative of the planned pit shells.
Beneficiation tests comprising scrubbing in a simple rotating drum mill followed by size separation by
screening. The test work was performed with nip-crushed (100% passing 50mm) ore samples
prepared with potable water.

Mass and metal recoveries from individual beneficiation tests (at 4kWh/t energy input) on
representative sub-samples (~50kg dry weight) of the bulk composites and variability composites are
summarised in Table 1 and Table 2, respectively:

Table 1: Beneficiation Results for Dutwa Bulk Composite Ore Samples

                          % Mass      % Nickel*   Feed Grade      Beneficiated                 Upgrade
  Deposit/Ore Type                             
                         Recovery Recovery        % Nickel     Grade % Nickel                  Factor
Wamangola - FeSi              40.0          78.5           1.01                1.99             1.97
Wamangola -Transition         58.4          79.3           1.15                1.56             1.36
Ngasamo - FeSi                40.3          59.9           0.93                1.39             1.49
Ngasamo - Transition          40.2           57.3            0.73                1.05             1.43
* Percentage recovery to beneficiation product only.

Table 2: Beneficiation Characteristics of Dutwa Ores (Mean values) from Variability Testing

                                                   Feed Grade      Beneficiated
                          % Mass       % Nickel*                                       Upgrade
Deposit - Ore Type                                 (ROM ore)         Grade
                         Recovery Recovery                                             Factor
                                                      % Ni           % Nickel
Wamangola “FeSi”           47.0          75.9          1.01            1.68             1.67
Wamangola “FeSi”
                           48.6          77.2          1.17            1.85             1.62
(PW core)
Wamangola “Transition”
                           55.5          63.5          1.72            1.89             1.17
(PQ and PW)
Ngasamo “FeSi”             40.0          69.9          1.01            1.77             1.79
Ngasamo Transition”        48.0          78.0          1.10            1.91             1.78
* Percentage recovery to beneficiation product only.

The Wamangola FeSi variability samples achieved an upgrade factor of between 1.62 and 1.67 on
average for a 3.35 mm cut size, with nickel recoveries of 76 to 77%.

For the variability samples, increase in the upgrade factor for Wamangola FeSi to 1.86 was noted with
a hypothetical 0.5 mm cut size although nickel recovery was lowered to 73.15%. The difference in the
beneficiated FeSi grade at the 0.5 mm cut size was slight (0.2% Ni increase).

Whilst the results from both the bulk and variability beneficiation test work indicate the potential to
beneficiate the transition ores, it is evident that transition ores are less amenable to beneficiation by
wet scrubbing and screening than FeSi ores, particularly for Wamangola, as shown in Tables 1, 2 and
4. However, the ability to recover nickel from RoM transition ores using atmospheric tank leaching has
been previously demonstrated, as announced on 12 September 2012.

Further work to quantify the cost-benefit relationships of leaching beneficiated versus un-beneficiated
transition ores has been undertaken by the Company, with results expected later in Q1 2013.

Table 3: Beneficiation Results for Wamangola Bulk FeSi Ore versus Screen (Cut) Size used to
obtain Product

Screen Size     % Mass        % Nickel*      Feed Grade      Beneficiated Grade    Upgrade
                                       
(mm)           Recovery      Recovery    (ROM ore) % Ni         % Nickel           Factor
- 3.35            43.3          81.2       1.09                 2.04                1.88
- 1.18            40.3          80.2       1.09                 2.16                1.99
- 0.5             38.0          79.2       1.09                 2.27                2.08
* Percentage recovery to beneficiation product only.

Table 4: Beneficiation Results for Wamangola Bulk Transition Ore versus Screen (Cut) Size
used to obtain Product
Screen Size     % Mass       % Nickel*      Feed Grade      Beneficiated Grade   Upgrade
                                      
(mm)           Recovery     Recovery     (ROM ore) % Ni        % Nickel          Factor
- 3.35            58.4          79.3          1.15                1.56            1.36
- 1.18            55.7          77.3          1.15                1.60            1.39
- 0.5             52.6          74.6          1.15                1.63            1.42
* Percentage recovery to beneficiation product only.

Reasonable upgrade factors were obtained from Ngasamo FeSi ores as shown in Tables 2 and 5, but
also resulted in more nickel reporting to the reject stream, with lower nickel recoveries versus
Wamangola. Overall, slightly better results were determined for the Ngasamo variability samples with
around 69.9% of the nickel being recovered on average from FeSi ores using a 3.35 mm cut point.
The beneficiated grade averaged 1.77% Nickel (at 3.35mm).

Table 5: Beneficiation Results for Ngasamo Bulk FeSi Ore versus Screen (Cut) Size used to
obtain Product

Screen Size     % Mass        % Nickel*          Feed Grade   Beneficiated Grade Upgrade
                                         
(mm)           Recovery      Recovery         (ROM ore) % Ni     % Nickel        Factor
- 3.35           40.3            59.9               0.93            1.39          1.49
- 1.18           36.7            58.4               0.93            1.48          1.59
- 0.5            34.4            57.4               0.93            1.58          1.67
* Percentage recovery to beneficiation product only.


Technical terms
A glossary of technical terms used by African Eagle in this announcement and other published
material may be found at www.africaneagle.co.uk/p/glossary.asp.


Qualified Person
Information in this report relating to metallurgical test results is based on data reviewed by Chad
Czerny PhD, Project Manager - Metallurgy for African Eagle Resources, who is a Member of the
Australasian Institute of Mining and Metallurgy, has more than 20 years' relevant experience in the
mining and metallurgical industry, and is a Qualified Person under AIM guidelines. Dr Czerny
consents to the inclusion of the 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 and Joint Broker)
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

22 January 2013


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.

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