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African Eagle Resources says IFC investment completed

Mon, 06 Feb 2012 08:50:00 +0000

African Eagle Resources (LON:AFE) said the US$5 million, or £3.1 million, investment by World Bank Group member IFC for a 10 per cent stake has been completed.

It announced in November 2011 that the IFC would subscribe for shares in the group, and that the new funds will be used primarily to finance the evaluation of African Eagle’s flagship Dutwa nickel project in Tanzania.

It has issued 45,509,570 ordinary to the IFC at a placing price of 6.8 pence per share.

IFC is the largest global development finance institution that is focused on private sector development in frontier and emerging markets.

Dutwa was discovered in 2008 and is a nickel laterite project with unusually beneficial geometallurgical properties.

Since discovery, the progress of development has been rapid. Dutwa has a JORC resource of 99 million tonnes at 0.93 per cent Nickel, offering ready mining from two hilltop deposits and straightforward low consumption atmospheric acid leaching, leading to strong economics.

African Eagle has development projects in Tanzania and Zambia.

African Eagle Resources: Dutwa project puzzle coming together

Fri, 27 Jan 2012 15:45:00 +0000

African Eagle Resources' appointment of two new directors ends a busy week of activity as it moves its Dutwa nickel project nearer to bankable status. It has also hired two specialist companies for vital roles in the preparation of a bankable feasibility study for the Tanzanian project, due at the end of this year.

African Eagle Resources appoints two non-exec directors to support Dutwa development

Fri, 27 Jan 2012 07:30:00 +0000

African Eagle Resources (LON:AFE) has added two non-executive directors to its board as it transforms from an explorer to mine developer.

Don Newport and Dr Christopher R. Pointon are joining the company as it develops its flagship Dutwa Nickel project in Tanzania, it announced today.

Newport, currently a non-exec director at Wolf Minerals (LON:WLFE), is a London mine finance industry expert with more than 35 years experience in the banking sector.

Dr Pointon has wide international experience in the resources industry and is a non-exec director and deputy chairman of Ruukki Group (LON:RKKI).

He led mining giant BHP Billiton's (LON:BLT) stainless steel materials division for six years, building it into one of the largest global Nickel and ferrochrome producers with annual sales exceeding US$3 billion, said African Eagle.

Chairman Euan Worthington said: "I am very pleased that the board of African Eagle has managed to attract individuals of the calibre and quality of Chris and Don to join us and we look forward to benefiting from their wealth of experience as we continue the development of our exciting Dutwa Nickel project.

"The appointment of individuals of such strength is another step in the transformation of African Eagle from an explorer to a mine developer and we look forward to a strong future."

The firm's non- executive board now consists of Don Newport and Dr Christopher Pointon, Geoffrey Cooper, Julian McIntyre and Euan Worthington.

Yesterday, the company revealed it had chosen engineering firm Lycopodium Minerals to complete the bankable feasibility study (BFS) for the Dutwa project.

And on Wednesday, it said SGS Metallurgy would be responsible for the pilot test programme - an essential component of the BFS.

African Eagle Resources hires Lycopodium Minerals for Dutwa BFS

Thu, 26 Jan 2012 07:29:00 +0000

Engineering contractor Lycopodium Minerals has been chosen to complete the bankable feasibility study (BFS) for the Dutwa nickel project in Tanzania, African Eagle Resources (LON:AFE) announced today.

The Australia- based firm was chosen after an extensive bidding process.

Lycopodium will manage all the engineering tasks associated with the project's process plant and related facilities, including the tailings and will compile the final BFS report.

The report will include the work of other contractors, such as SGS Metallurgy, which was revealed yesterday by the firm as responsible for the pilot test programme, and Snowden - the resource and mine planning engineer.

African Eagle's chief executive Trevor A. Moss said: "Lycopodium's unrivalled experience in the study and development of projects in Tanzania is a fundamental skill which will contribute to the success of Dutwa.

"We look forward to a long and beneficial relationship with them."

Lycopodium completed Tanzania's first modern gold processing plant for Resolute Mining's Golden Pride Mine in 1998 and is currently providing services for a number of other nickel projects in Tanzania and Australia.

It will begin the engineering for Dutwa immediately and the full project team will be mobilised early next month (February), said African Eagle.

African Eagle Resources chooses SGS Metallurgy for pilot testing of Dutwa nickel project

Wed, 25 Jan 2012 07:30:00 +0000

African Eagle Resources (LON:AFE) has chosen the experienced SGS Metallurgy to carry out the pilot testing programme for its flagship Dutwa nickel project in Tanzania.

The work will finalise the atmospheric tank leach flowsheet for the project and will begin at SGS's facilities in Western Australia in the second quarter of this year.

It forms an essential part of the bankable feasibility study, which is due to be finished at around the end of 2012.

Last week, African Eagle announced that it had selected the atmospheric tank leaching as the metallurgical process method for recovering ores at Dutwa.

The firm had decided against the heap leaching process which had also been considered.

It has defined a preliminary process flowsheet for the Dutwa plant but to predict the full plant performance, a series of lab tests will begin in the second quarter.

The pilot plant will treat ore samples representative of the planned mining schedule at the project and the samples will be obtained from an upcoming large-core drilling programme.

SGS Metallurgy has completed a number of hydrometallurgical piloting campaigns over the past twelve years, including nickel laterite projects, which included similar atmospheric tank leaching plants.

African Eagle Resources selects metallurgical process for Dutwa nickel project

Tue, 17 Jan 2012 11:09:00 +0000

African Eagle Resources (LON:AFE) announces that it has selected atmospheric tank leaching as the metallurgical process method to be employed at its flagship Dutwa nickel oxide project in Tanzania.

Having decided against the heap leaching process which had been considered in tandem, this allows the group to streamline work on the bankable feasibility study as well as on the environmental and social impact assessment (ESIA).

Extensive batch metallurgical testwork over the past two years has shown that Dutwa ore allows simplified processing: atmospheric leach methods resulted in rapid extraction without the need for the challenging and costly high-pressure acid leach technologies that have proven problematic elsewhere, the company said.

African Eagle now wants to build a pilot plant to confirm the performance of the chosen process on samples representative for the planned output from Dutwa. It is in advanced talks with Australian laboratories that can operate the pilot plant.

The test programme is to be performed later this year in Perth and will support the Dutwa BFS, which is due for completion around the end of 2012.

Ocean Securities welcomed African Eagle’s choice, saying the tank leaching option had been its preferred process route for some time, especially so after the announcement of the mineralogical test work that showed most of the nickel was hosted in the fines fraction of the ore.

Mining analyst Christopher Welch pointed out that through tank leaching African Eagle is using the good leach kinetics of the ore to extract the nickel in the shortest amount of time.

Tank leaching essentially uses off-the-shelf technology to process ore and so a scaled up version of the pilot plant is essentially location independent. Heap leaching is a more complicated method that is slightly more dependent upon location variables.

Welch also still sees potential to optimise the leaching of Dutwa ore further. African Eagle could preferentially treat the fines fraction of the ore which would reduce throughput through the later stages of the plant. “We suspect this may be decided before construction of the pilot plant,” the analyst said.

African Eagle has made good progress of finding sources for the main consumables for the project, which include limestone and pyrite, he added.

Dutwa currently has a JORC resource of 99 million tonnes at 0.93 per cent nickel, offering ready mining from two hilltop deposits.

Only last week, African Eagle hired Aidan Schoonbee as project manager for Dutwa. He has over 20 years experience in the mining industry and his most recent role was as senior project manager for De Beers associate Debswana Diamond Company.

African Eagle Resources hires Aidan Schoonbee to oversee Dutwa BFS - UPDATE

Mon, 09 Jan 2012 11:59:00 +0000

---Adds comments from broker Ocean Equities---

African Eagle Resources (LON:AFE) today told investors that it has hired Aidan Schoonbee as project manager for the Dutwa development project.

Schoonbee will be responsible for the timely completion of the bankable feasibility study and the associated environmental and social impact assessment. These pivotal reports are due for completion later this year.

He has over 20 years experience in the mining industry and his most recent role was as senior project manager for De Beers associate Debswana Diamond Company. There he managed the Morupule Colliery Expansion in Botswana, managing the project from feasibility study through to operation.

"I am delighted that someone of the quality of Aidan Schoonbee has elected to join African Eagle at a time of fierce competition for high quality management in the minerals market,” said chief executive Trevor Moss.

“This is a testament to the strength of Dutwa when compared to other development projects. Aidan's extensive experience in high quality project delivery in Africa is an essential skill that will be of fundamental benefit to the definition and development of Dutwa".

Ocean Equities analyst Christopher Welch says its vital that African Eagle de-risks the Dutwa project because the project has sufficient scale to attract mid-tier or major mining companies. He believes that the appointment of Schoonbee is a boost in this respect.

“Appointing a project manager with Aidan’s background and his vital ‘big company’ experience further de-risks the BFS stage of Dutwa,” Welch said.

He added: “Essentially, Dutwa is a metallurgical play. The rare form of laterite, is more like a nickel oxide project than the more common wet-type laterite deposits found in Southeast Asia.

“This means that the ore is amenable to atmospheric leaching; early tests have shown that the ore has good leach kinetics where the nickel comes out quickly at low acid consumption rates.”

Accordingly Welch believes that Schoonbee’s background and experience in metallurgy combined with his BFS and financing experience will greatly benefit African Eagle.

“In its evolution from an exploration company into a development company African Eagle is bolstering its management team with proven mine builders.

“The fact that African Eagle and Dutwa have been able to attract well respected and experienced managers at a time when competition for such individuals is fierce is further indication of the quality of the project.”

Last week African Eagle confirmed that the World Bank’s investment arm, the IFC, had signed an agreement to invest US$5 million into the company.

This investment sees the IFC take a 10 per cent stake in the company. The funds will help African Eagle evaluate the Dutwa nickel project, primarily contributing to the bankable feasibility study.

Analysts believe that having the IFC as a key investor will assist the company in attracting future investments for the project.

African Eagle Resources hires Aidan Schoonbee to oversee Dutwa BFS

Mon, 09 Jan 2012 07:46:00 +0000

African Eagle Resources (LON:AFE) today told investors that it has hired Aidan Schoonbee as project manager for the Dutwa development project.

Last week African Eagle confirmed that the World Bank’s investment arm, the IFC, had signed an agreement to invest US$5 million into the company.

This investment sees the IFC take a 10 per cent stake in the company. The funds will help African Eagle evaluate the Dutwa nickel project, primarily contributing to the bankable feasibility study.

Analysts believe that having the IFC as a key investor will assist the company in attracting future investments for the project.

African Eagle Resources: City analysts welcome US$5 mln investment from IFC

Wed, 04 Jan 2012 10:19:00 +0000

While the share price remains unmoved today, analysts at Seymour Pierce believe the IFC’s US$ 5 million investment affirms the viability of the Dutwa nickel project.

African Eagle Resources confirms IFC’s US$5 mln investment

Wed, 04 Jan 2012 08:10:00 +0000

African Eagle Resources (LON:AFE) has confirmed that the World Bank’s investment arm, the IFC, has signed an agreement to invest US$5 million into the company.

This investment sees the IFC take a 10 per cent stake in the company.

The funds will help African Eagle evaluate the Dutwa Nickel project, primarily contributing to the bankable feasibility study. The pivotal study is already underway and is scheduled for completion by the end of the year.

African Eagle said it expects the funds to be disbursed by the IFC this month.

“We are pleased to have secured the IFC's investment through the signature of the final form subscription agreement and are working hard to satisfy the final outstanding conditions so that funds can be disbursed in January whilst progressing with our bankable feasibility study for Dutwa," said chief executive Trevor Moss.

As requested by the IFC African Eagle has agreed publicly to disclose any material payments to the Tanzanian Government.

"IFC is pleased to have signed an equity agreement with African Eagle Resources to support the company's Dutwa Nickel project in Tanzania, which has the potential to become a major African Nickel producer should the current feasibility study work continue to be successful,” added Tom Butler, Head of Mining at the IFC, Tom Butler.

“We look forward to helping African Eagle Resources implement environmental and social best practices for its mining activities."

African Eagle Resources reports high grade drilling results from Miyabi gold project

Tue, 06 Dec 2011 07:39:00 +0000

African Eagle Resources (LON:AFE) partner BrightStar Resources (ASX:BUT) has released high grade drilling results from their Miyabi gold project in Tanzania.

The Miyabi gold project is a joint venture between African Eagle and ASX-listed BrightStar which can earn up to 75 percent of the project by completing exploration and a feasibility study.

African Eagle relayed a statement from BrightStar, saying the latest results are from rotary air blast (RAB) holes in the area to the southwest of the 130,000 ounces Kilimani resource and represent a new high grade zone with untested strike potential of more than 1 kilometre. All intersections were from oxidised rock and many of the drill holes ended in mineralisation.

The new results include 33 metres at 4.36 grammes per tonne gold from 9 metres to end of hole, including 21 metres at 6.7g/t from 15 metres, and 3 metres at 22.6g/t from 33 metres.

African Eagle’s partner also found 15 metres at 0.81g/t from 24 metres, including 3 metres at 2.5g/t from 33 metres, and 24 metres at 0.52g/t from 15 metres, including 6 metres at 1.61g/t from 24 metres.

The results continue to show the potential of at the Miyabi project to host additional gold resources, including high grade zones.

BrightStar said the successful RAB programme has discovered multiple extensive resource grade gold mineralised structures, which remain open along strike and are very likely to add significantly to the existing 520,000 ounces JORC resource.

BrightStar also reported that reverse circulation (RC) drilling has been completed at priority targets beneath the best RAB results within the granite contact zone, with assay results expected in late December 2011 and January 2012.

An extensive programme of RC and diamond drilling is now planned at the end of the wet season, commencing April 2012.

African Eagle Resources: shares improve after US$5 million investment from World Bank investor

Wed, 09 Nov 2011 11:15:00 +0000

The news that IFC, a specialist investment body that focuses on frontier and emerging markets, is to take a 10-per cent stake in African Eagle has been welcomed in the City

African Eagle Resources to raise US$5 million from World Bank investor

Wed, 09 Nov 2011 07:27:00 +0000

African Eagle Resources (LON:AFE) announced this morning that World Bank Group member IFC is to subscribe for a 10-per cent equity stake in the firm by investment of approximately US$5 million (£3.1 million).

The new funds will be used primarily to finance the evaluation of African Eagle’s Dutwa nickel project in Tanzania.

IFC is the largest global development finance institution that is focused on private sector development in frontier and emerging markets.

IFC is getting involved in the Dutwa project because African Eagle “has shown commitment to responsible environmental and social management”. The organisation will help the miner to implement appropriate measures that will “ensure that the project is developed in line with international best practice, particularly with regard to environmental and social sustainability”.

The proposed IFC investment will be made through an equity subscription agreement with African Eagle. The placing price of 6.8 pence per share values its investment at approximately US$5 million and will result in the issue of around 45.5 million shares.

“We are delighted that IFC has decided, after careful due diligence, to invest in the Dutwa project, endorsing our view that Dutwa will become a major new mine for Tanzania,” said Euan Worthington, African Eagle’s chairman.

“Our management is fully behind the IFC’s criteria for responsible environmental and social management of the Dutwa project and we will welcome IFC as a shareholder. This investment will further de-risk the project by providing further financing towards the feasibility study.”

On Monday, African Eagle said that it aims to complete the bankable feasibility study for the Dutwa project by the end of 2012.

UPDATE: African Eagle Resources streamlines Dutwa development programme

Mon, 07 Nov 2011 14:56:00 +0000

---Adds broker comments and share price ---

After reviewing its Dutwa nickel project in Tanzania, African Eagle Resources (LON:AFE) said today that it has streamlined the development programme for the project in order to focus efforts on the timely completion of the Dutwa bankable feasibility study.

Current tasks supporting the BFS are advancing, said the firm.

These include: drilling to upgrade the JORC-compliant mineral resource from indicated to inferred and to define its geology better; a definitive metallurgical test programme designed to achieve the early definition of the optimal process plant; the extension of the logistics studies; and the development of a full social and environmental impact assessment

African Eagle said that the main phase of resource upgrade drilling has now been completed, with favourable new nickel metallurgical results achieved.

Meanwhile, it has identified a limestone source that is highly reactive and suitable for acid neutralisation, offering the potential to minimise external reagent requirements and reduce operating costs.

“African Eagle's prior studies have confirmed the viability of Dutwa and recent analyses have identified various opportunities for project optimisation which are currently being tested and are exhibiting favourable preliminary results," said Trevor Moss, the designated chief executive officer who joined the board in September.

"To derive the maximum benefit from these studies and to ensure the overall project timeline, it is important that we ensure Dutwa progresses in a controlled way that results in an integrated and comprehensive BFS.

"Any other approach would run the risk of extending the development timetable and increasing the overall development cost. This programme negates the need for the previously planned formal pre-feasibility study report and all of the on-going studies will be fed directly into the BFS."

To derive the maximum benefit from these studies and to ensure the overall project timeline, it is important that we ensure Dutwa progresses in a controlled way that results in an integrated and comprehensive BFS,”

Moss added that African Eagle aims to complete the bankable feasibility study by the end of 2012 but that the firm may revise the timetable in order “to ensure we take full advantage of opportunities to add value to the project”.

In a note, broker Ocean Equities pointed out that the most significant difference between a pre-feasibility study and a bankable feasibility study was the level of detail contained within the report.

"At this point, African Eagle has several detailed models on the various development and processing options, all based on up-to-date cost estimates. Therefore, there is an argument that African Eagle has already surpassed the detailed requirement for a pre-feasibility study and that producing such a report would be a backwards step in the development of Dutwa," said the broker.

"African Eagle’s decision to bypass the pre-feasibility study is an indication of the team’s confidence in the metallurgical test results received to date."

Another broker Seymour Pierce rates the stock a 'buy' and targets a price of 20 pence per share.

"The streamlining of the programme has led to African Eagle aboandoning the need for its previously planned formal prefeasibility study report and all studies will now be fed directly into the BFS," it said in a note.

As at 2.35 pm, African Eagle shares were trading up 1.92 per cent, changing hands at 6.63 pence.

African Eagle Resources streamlines Dutwa development programme

Mon, 07 Nov 2011 07:27:00 +0000

After reviewing its Dutwa nickel project in Tanzania, African Eagle Resources (LON:AFE) said today that it has streamlined the development programme for the project in order to focus efforts on the timely completion of the Dutwa bankable feasibility study.

Current tasks supporting the BFS are advancing, said the firm. These include: drilling to upgrade the JORC-compliant mineral resource from indicated to inferred and to define its geology better; a definitive metallurgical test programme designed to achieve the early definition of the optimal process plant; the extension of the logistics studies; and the development of a full social and environmental impact assessment

African Eagle said that the main phase of resource upgrade drilling has now been completed, with favourable new nickel metallurgical results achieved. Meanwhile, it has identified a limestone source that is highly reactive and suitable for acid neutralisation, offering the potential to minimise external reagent requirements and reduce operating costs.

“African Eagle's prior studies have confirmed the viability of Dutwa and recent analyses have identified various opportunities for project optimisation which are currently being tested and are exhibiting favourable preliminary results To derive the maximum benefit from these studies and to ensure the overall project timeline, it is important that we ensure Dutwa progresses in a controlled way that results in an integrated and comprehensive BFS,” said Trevor Moss, the designated chief executive officer who joined the board of the company in September.

Moss added that African Eagle aims to complete the bankable feasibility study by the end of 2012 but that the firm may revise the timetable in order “to ensure we take full advantage of opportunities to add value to the project”.

UPDATE: African Eagle Resources unveils further results from Myabi gold project

Wed, 02 Nov 2011 15:27:00 +0000

---Adds broker comments----

Further drill results have been received from the Miyabi gold project in Tanzania, African Eagle Resources (LON:AFE) told investors today.

The RAB (rotary air blast) drilling showed that the Myabi structural corridor is highly prospective and that further systematic exploration would likely increase the 0.5 million ounce resource there, it said.

The firm added that deeper drilling has now begun at Myabi to test for higher grade mineralisation beneath these shallower RAB intersections, just released.

The results come from the firm's joint venture partner BrightStar Resources and showed 9 metres at 1.82 grammes per tonne gold from 21 metres to end of hole (eoh).

Other highlights included 24 metres with 0.51g/t gold from 15 metres to eoh, including 6m at 1.61g/t of the yellow metal from 24m.

The finds also included 6m at 1.14g/t gold from 18m, 6m at 0.93g/t Au (gold) from 9m, 6m at 0.42g/t Au from 21m to eoh, and 11m at 0.46g/t Au from 12m to eoh.

The holes were shallow - typically 25 metres -30 metres in depth and showed that much of the area is covered by a 10m thick blanket of barren laterite and ferricrete overlying bedrock several tens of metres thick, within which gold has been depleted.

But the firm said higher gold grades could lie in rock under the moderate gold grades seen in the leached zone by the RAB holes and deeper drilling has now started to test this.

The RAB drilling programme at Myabi began in June this year and comprised 445 holes for more than 12,000 metres and results have been received from around 80 per cent of the holes.

Broker Shore Capital highlighted the fact that the results suggested that the structural corridor at Myabi was prospective and RC drilling will be carried out to test for higher grade gold in fresh rock beneath the RAB intersections.

The Miyabi gold project is a joint venture between African Eagle and ASX-listed BrightStar Resources. Brightstar can earn up to 75 per cent of the project by completing exploration and a feasibility study.

African Eagle Resources unveils further results from Myabi gold project

Wed, 02 Nov 2011 08:09:00 +0000

Further drill results have been received from the Miyabi gold project in Tanzania, African Eagle Resources (LON:AFE) told investors today.

The RAB (rotary air blast) drilling showed that the Myabi structural corridor is highly prospective and that further systematic exploration would likely increase the 0.5 million ounce resource there, it said.

The firm added that deeper drilling has now begun at Myabi to test for higher grade mineralisation beneath these shallower RAB intersections, just released.

The results come from the firm's joint venture partner BrightStar Resources and showed 9 metres at 1.82 grammes per tonne gold from 21 metres to end of hole (eoh).

Other highlights included 24 metres with 0.51g/t gold from 15 metres to eoh, including 6m at 1.61g/t of the yellow metal from 24m.

The finds also included 6m at 1.14g/t gold from 18m, 6m at 0.93g/t Au (gold) from 9m, 6m at 0.42g/t Au from 21m to eoh, and 11m at 0.46g/t Au from 12m to eoh.

The holes were shallow - typically 25 metres -30 metres in depth and showed that much of the area is covered by a 10m thick blanket of barren laterite and ferricrete overlying bedrock several tens of metres thick, within which gold has been depleted.

But the firm said higher gold grades could lie in rock under the moderate gold grades seen in the leached zone by the RAB holes and deeper drilling has now started to test this.

The RAB drilling programme at Myabi began in June this year and comprised 445 holes for more than 12,000 metres and results have been received from around 80 per cent of the holes.

The Miyabi gold project is a joint venture between African Eagle and ASX-listed BrightStar Resources. Brightstar can earn up to 75 per cent of the project by completing exploration and a feasibility study.

African Eagle Resources: Dutwa is unique among nickel laterite projects - broker

Mon, 31 Oct 2011 15:33:00 +0000

African Eagle Resources' (LON:AFE) flagship nickel project is 'unique' in that its ore can be processed using cheap technology with low capital costs, says broker Cannacord Genuity.

In a note, the broker has started coverage of the stock with a 'speculative buy' recommendation and a 17 pence a share price target.

Analyst Jeremy Dibb said that Dutwa, in northern Tanzania, was currently the focus of a pre-feasibility study expected to be completed by the end this year.

The analyst highlighted that significant metallurgical studies to date had indicated that the Dutwa ore, because of its structure, could be processed using low-technology, off-the-shelf equipment - most likely tank leaching, though heap leaching is also being considered.

"This is in contrast to recent major nickel projects where new technologies such as Bio-Heap leaching or HPAL (high pressure acid leaching) have lead to delays, cost over runs and sub-nameplate production," he said.

HPAL adds technical complexity and capital intensity per annual pound of nickel production, he added.

"Whilst nickel laterites have developed a bad reputation with investors for expensive cost blow-outs and operational difficulties, we do not see Dutwa as a typical nickel laterite deposit."

Dibb added: "In our view, African Eagle presents an exciting opportunity to gain exposure to the nickel market through a junior company unencumbered by future multi-billion dollar financing requirements for other nickel laterite deposits."

The Dutwa deposit consists of two separate hills - Wamangola and Ngasamo - which lie around 6 km apart.

"With a current resource of 1 million tonnes contained nickel, and a PFS expected by the end of 2011, African Eagle looks well positioned to rapidly develop the deposit into a 3 million tonnes per year operation producing 23,000 tonnes per year nickel and 582 tonnes per year cobalt with a 26-year mine life," said the broker.

African Eagle Resources hires FD Andrew Robertson to manage Dutwa financing

Tue, 18 Oct 2011 08:10:00 +0100

Andrew Robertson has been named as African Eagle Resources' (LON:AFE) new finance director and company secretary.

The exploration and development firm said the experienced 60-year-old would join the board with immediate effect and take up the full time roles on December 1 this year.

He will take up his new positions at the same time as Trevor Moss becomes full time CEO of the company.

Moss, 54, is responsible for completing the bankable feasibility study, mine construction and commissioning of the proposed nickel/cobalt mine at Dutwa in Tanzania. Robertson will be tasked with the development's project financing.

"The board is very pleased to have secured the services of such an experienced FD as Andrew to work alongside our newly appointed CEO Trevor Moss," said African Eagle's chairman Euan Worthington.

"We have full confidence that together, they have the skills to successfully bring the Dutwa nickel project into production."

Worthington also revealed that the firm's existing finance director Bevan Metcalf would be leaving the firm to take up a new role.

"I would like to thank him for his financial guidance over the past seven years. The board wishes him well in his new role," he said.

Robertson has been chief financial officer of gold explorer Ecometals Limited since 2008, and is also the chief financial officer of White Tiger Gold Limited - both listed on the Toronto Stock Exchange.

He is also the chief financial officer for private company Maple Minerals Corp. He has already resigned from these latter two positions and will step down from the first of these three shortly after taking up his new role at African Eagle, said the firm.

African Eagle has an "enviable position" says broker Ocean Equities

Thu, 29 Sep 2011 14:08:00 +0100

All areas of study required to complete pre-feasibility and definitive feasibility reports at African Eagle Resources' (LON:AFE) Dutwa nickel project are "well advanced", says broker Ocean Equities.

In a note today, the broker said this included the economic, metallurgical, geotechnical, geological, and logistical parts of the work.

It comes as the firm released its interim results and reiterated that its key aim was to complete a definitive feasibility study at the project in Tanzania by the end of next year.

It told investors that the key milestones over the coming months included the upgrade of the whole deposit into the JORC indicated category, revised pit optimisation, metallurgical test results and engineering design work.

"As these results become available, we will feed them into the engineering design and financial model, leading to a pre-feasibility study (PFS) expected around the end of the year and a definitive feasibility study (DFS) at the end of 2012," African Eagle's chairman Euan Worthington said today.

"Leaching tests on the bulk sample will begin soon. Thanks to the good leach kinetics of the Dutwa ore, the nickel is drawn out of the material relatively quickly and as such we will be most interested in the initial results from this testing," Ocean Equities said today.

"African Eagle is confident that the pre-feasibility study will be completed around the end of this year, but the study is at a critical stage as a result of the recent mineralogical studies which indicated significant cost savings could be made.

"The company is now at the stage where it has to make long-term choices about how the mine will be developed; getting the feasibility study right is key. The advanced level of all of the studies means that the definitive feasibility study will be completed more quickly than the pre-feasibility study."

The broker concludes that the company is in an 'enviable' position as it is confident that it has the lowest capex nickel laterite deposit in the world, but is also now aware that through optimisation of the processing flow sheet it could also have the lowest opex project too.

For the six months to June 30, the company posted a loss after tax of £712,583 compared to a loss of £387,831 in the comparative period in 2010. Cash in hand as at June 30 stood at £4.7 million, while net assets increased by 34 percent to £20.8 million.

African Eagle Resources makes "excellent" progress since discovering Dutwa project

Thu, 29 Sep 2011 07:47:00 +0100

African Eagle Resources (LON:AFE) is continuing apace with its progress at the Dutwa nickel project in Tanzania and its key aim is to complete a definitive feasibility study by the end of next year.

Key milestones over the coming months include the upgrade of the whole deposit into the JORC indicated category, the firm said, as it released its interim results.

Investors should also look out for the revised pit optimisation, metallurgical test results and engineering design work.

"As these results become available, we will feed them into the engineering design and financial model, leading to a pre-feasibility study (PFS) expected around the end of the year and a definitive feasibility study (DFS) at the end of 2012," chairman Euan Worthington said today.

For the six months to June 30, the company posted a loss after tax of £712,583 compared to a loss of £387,831 in the comparative period in 2010.

Cash in hand as at June 30 stood at £4.7 million, while net assets increased by 34 percent to £20.8 million.

Worthington said: "Since we discovered Dutwa in 2008, we have made excellent progress. So far this year, we have upgraded half the resource to JORC indicated category, delivered an updated financial model, completed drilling for the second bulk ore sample and received the mining geotechnical report.

"Our metallurgical process tests are well advanced and we are busy drilling the final resource programme. These studies have shown us several ways which should cut Dutwa's operating costs and improve the economics."

Running through this year's highlights, the firm noted it was pleased to have secured the services of Trevor Moss to steer the development of the Dutwa mine and had been interviewing candidates for the role of finance director.

Regarding the new company - Cobra Copper - to hold its Zambian copper assets, the firm said it had recruited a CFO and a new country manager and discussed investment with a number of parties.

At the Myabi gold project in Tanzania, partner BrightStar Resources has been testing extensions to the 520,000 ounce JORC resource there.

BrightStar announced, in mid-August, that it had completed a 400-hole, 11,000 metre drilling programme outlining mineralised shear zones at the granite/greenstone contact and in splays off the contact, with good potential to host additional gold resources.

Intersections to date include: 9 metres with 1.82 grammes per tonne (g/t) gold from 21m, and 6m at 1.14 g/t gold from 18 metres including 3 metres at 2.1 g/t.

African Eagle Resources' JV of Miyabi was "appropriate measure", says Ocean Equities

Wed, 21 Sep 2011 12:47:00 +0100

Releasing the Miyabi gold project to a joint venture partner earlier this year was the right move by African Eagle Resources (LON:AFE) as yesterday's drilling results demonstrated, says broker Ocean Equities.

The firm's JV partner BrightStar Resources discovered a substantial additional gold-mineralised system at the Tanzanian project, it was revealed.

Analyst Christopher Welch, at Ocean Equities, said in a note: "Miyabi was a non-core asset for African Eagle and the company has taken the appropriate measure by releasing it to a joint venture partner to continue exploration."

The news yesterday was the result of this decision and, considering African Eagle is concentrated solely on the development of the nickel project Dutwa, these results could not have been produced had African Eagle retained sole ownership of the asset, he added.

The results confirmed the belief that the Miyabi structural corridor is highly prospective and that systematic exploration will be likely to make significant additions to the 0.5 million ounce resource that has been delineated by the company.

The findings included: a 9m section at 0.89 grams per tonne of gold from 18 metres depth; seven metres at 0.64 grams per tonne from 18 metres; one metre at 6.08 grams per tonne from 24 metres; and 18 metres at 0.99 grams per tonne from 0 metres.

Four gold mineralised structures have now been discovered, from 20 metres to 150 metres wide, all requiring follow-up drilling. The gold mineralisation is strongly open to the east where prospective greenstones remain untested for a further three kilometres, African Eagle had said.

The discovery will now be followed up by a programme of deeper reverse circulation drilling, added the company.

Analyst Welch added: "The drilling results indicate there is good potential for BrightStar to add to the existing resource with shallow grade ore. The discovery of further zones of mineralisation indicates that Miyabi will produce good exploration results in the short term.

"We believe that deeper drilling across the contact zone below the oxide zone should return higher grade intersections. An RC drill rig should reach the site soon that will test the deeper potential of the deposit."

African Eagle Resources’ partner discovers more gold at Miyabi

Tue, 20 Sep 2011 15:04:00 +0100

African Eagle Resources (LON:AFE) reported this afternoon that its joint venture partner BrightStar Resources has discovered a substantial additional gold-mineralised system at its Miyabi gold project in Tanzania.

African Eagle, which also has interests in Mozambique and Zambia, said that the results confirm its belief that the Miyabi structural corridor is highly prospective and that systematic exploration will be likely to make significant additions to the 0.5 million ounce resource that has been delineated by the company.

BrightStar’s technical director, Paul Payne, said: “We continue to be encouraged by the results from this first pass RAB [rotary air blast] programme. We have discovered a gold mineralised system similar in geometry and nature to the Miyabi Structural Corridor which hosts the 520,000-ounce mineral resource. Deeper drilling will proceed in the next few weeks.”

Results announced today included: a nine-metre section at 0.89 grams per tonne of gold from 18 metres depth; seven metres at 0.64 grams per tonne from 18 metres; one metre at 6.08 grams per tonne from 24 metres; and 18 metres at 0.99 grams per tonne from 0 metres.

Four gold mineralised structures have now been discovered, from 20 metres to 150 metres wide, all requiring follow-up drilling. The gold mineralisation is strongly open to the east where prospective greenstones remain untested for a further three kilometres, said African Eagle.

The discovery will now be followed up by a programme of deeper reverse circulation drilling, added the company.

At 2:54pm today, African Eagle’s shares were trading 7.4 per cent higher at 7.65 pence each.

African Eagle Resources is set for next stage in cycle, says City analyst

Fri, 16 Sep 2011 12:55:00 +0100

African Eagle Resources continues to move forward and has set itself up for the next stage in its lifecycle, according to analyst Matthew McDonald, at broker Seymour Pierce, who rates the stock a "buy" with a price target of 20 pence.

African Eagle Resources appoints Moss as new CEO to progress Dutwa project

Thu, 15 Sep 2011 10:59:00 +0100

Seasoned mining executive Trevor Moss has been appointed as director and chief executive designate of African Eagle Resources (LON:AFE) as it progresses its Dutwa nickel project in Tanzania.

The appointment is a landmark in the project's development and a major milestone in the firm's transition from explorer to nickel producer, the company said in a statement today.

Moss, 54, will be responsible for completing the bankable feasibility study, mine construction and commissioning of the proposed nickel/cobalt mine at Dutwa.

He will join the board immediately and will become full-time CEO on December 1. At that time, Mark Parker will change role from managing director to director for business development, the company added.

African Eagle discovered Dutwa in 2008 and is now conducting a feasibility study. The project has a JORC resource of 99 million tonnes at 0.93 percent Nickel, readily mined from two hilltop deposits and amenable to simple, low consumption atmospheric acid leaching.

It is also evaluating a second promising nickel deposit at Zanzui, 50km south of Dutwa and holds significant interests in several "legacy" mineral ventures. These include copper in Zambia, gold in Tanzania and uranium.

African Eagle's chairman Euan Worthington said: "I am very pleased that we have been able to entice an executive of Trevor`s calibre to join us to drive African Eagle forward, after an extensive international search in a very competitive market.

"I can also report that we are making good progress in our search for a full time finance director to work with Trevor and the board. I'm pleased that Mark Parker will remain on the board to ensure a smooth handover to Trevor and to guide the evaluation of Zanzui and
other promising nickel projects in East Africa."

Moss has more than 30 years experience in the international minerals industry and most recently, he was responsible for the construction, completion and successful start up of the Bisha mine in Eritrea, as COO and executive vice president of Canadian company Nevsun Resources.

UPDATE: African Eagle Resources making promising progress at Dutwa

Thu, 04 Aug 2011 16:26:00 +0100

Adds broker comments......

African Eagle Resources (LON:AFE) revealed it is continuing to make promising advances with exploration of its key Dutwa nickel venture in Tanzania, with latest results reinforcing its positive views on the economic aspects of the project.

In an update on developments with work aimed at improving its understanding of Dutwa, the company says mineralogical analysis by the London Natural History Museum has identified the mineral species which hold most of the nickel within the deposit.

African Eagle's managing director Mark Parker says the ongoing work is part of the company’s effort to get to grips with the detail of Dutwa ore processing.

Understanding the mineralogy of Dutwa is crucial in developing efficient ore treatment and processing.

He says: “The financial modelling to date has shown that the project is economically viable, but we believe that many opportunities exist to reduce operating and capital costs by smart adaptations of the processing flow sheet.

“These new results are promising in that they show that there is potential to upgrade much of the nickel into a fine-grain fraction which requires no grinding and might be processed in a smaller plant in the early years, with benefits to the bottom line."

Another cost-cutting measure the company is investigating is the use of ore from the higher magnesium parts of the deposit in place of limestone acid neutralisation. This would reduce the amount of limestone needed, which would also cut transport costs for a key reagent.

Testwork is currently underway on material from the first batch of bulk ore samples (BOS1) to quantify these and other potentially advantageous routes for treatment and processing.

Drilling is now complete for Bulk Ore Sample 2 and results from its analysis will contribute to the detailed plant design and costing for the definitive feasibility study, as well as generate product samples for off-takers.

Results of the testwork on BOS1 will form a key element of the pre-feasibility study, which is expected to be completed before the end of the year.

The company’s intention is to deliver a definitive feasibility study (DFS) on Dutwa by the end of the fourth quarter of 2012. Several elements of the DFS are already underway in parallel with the pre-feasibility work, including the environmental and social impact assessment.

African Eagle says Dutwa is a “unique” nickel project with a JORC resource of 99 million tonnes at 0.93% Ni, easily mined from two hilltop deposits and amenable to simple, low acid consumption atmospheric leaching, leading to world class economics.

Financial modelling indicates a net present value for a 3 million tonnes per annum project of $870 million at today's nickel price of $10/lb, with cash operating costs of approximately $3.40/lb and a projected capital payback of between three and five years.

Analyst Matthew McDonald, of broker Seymour Pierce, which rates the stock a "buy" targeting a price of 20 pence (current price: 7.63 pence) noted the arrival of a new drill rig, designed to operate on steep slopes.

"The arrival of the rig will allow the drilling of an area of the deposit, which has previously been inaccessible and has the potential for resource expansion of up to 10Mt (an increase of approximately 10 percent on its current resource base). The company reiterated that it expects to complete its PFS before the end of the year," he said.

The analyst reckons the stock is undervalued.

African Eagle Resources making promising progress at Dutwa

Thu, 04 Aug 2011 07:49:00 +0100

African Eagle Resources (LON:AFE) revealed it is continuing to make promising advances with exploration of its key Dutwa nickel venture in Tanzania, with latest results reinforcing its positive views on the economic aspects of the project.

In an update on developments with work aimed at improving its understanding of Dutwa, the company says mineralogical analysis by the London Natural History Museum has identified the mineral species which hold most of the nickel within the deposit.

African Eagle's managing director Mark Parker says the ongoing work is part of the company’s effort to get to grips with the detail of Dutwa ore processing.

Understanding the mineralogy of Dutwa is crucial in developing efficient ore treatment and processing.

He says: “The financial modelling to date has shown that the project is economically viable, but we believe that many opportunities exist to reduce operating and capital costs by smart adaptations of the processing flow sheet.

“These new results are promising in that they show that there is potential to upgrade much of the nickel into a fine-grain fraction which requires no grinding and might be processed in a smaller plant in the early years, with benefits to the bottom line."

Another cost-cutting measure the company is investigating is the use of ore from the higher magnesium parts of the deposit in place of limestone acid neutralisation. This would reduce the amount of limestone needed, which would also cut transport costs for a key reagent.

Testwork is currently underway on material from the first batch of bulk ore samples (BOS1) to quantify these and other potentially advantageous routes for treatment and processing.

Drilling is now complete for Bulk Ore Sample 2 and results from its analysis will contribute to the detailed plant design and costing for the definitive feasibility study, as well as generate product samples for off-takers.

Results of the testwork on BOS1 will form a key element of the pre-feasibility study, which is expected to be completed before the end of the year.

The company’s intention is to deliver a definitive feasibility study (DFS) on Dutwa by the end of the fourth quarter of 2012. Several elements of the DFS are already underway in parallel with the pre-feasibility work, including the environmental and social impact assessment.

African Eagle says Dutwa is a “unique” nickel project with a JORC resource of 99 million tonnes at 0.93% Ni, easily mined from two hilltop deposits and amenable to simple, low acid consumption atmospheric leaching, leading to world class economics.

Financial modelling indicates a net present value for a 3 million tonnes per annum project of $870 million at today's nickel price of $10/lb, with cash operating costs of approximately $3.40/lb and a projected capital payback of between three and five years.

African Eagle making good progress on Dutwa DFS

Tue, 21 Jun 2011 09:17:00 +0100

African Eagle (LON:AFE) is making good progress on the DFS (definitive feasibility study) for its Tanzanian Dutwa Nickel project, which it hopes to deliver by the end of 2012, it says.

Key components of the study - mineral processing and metallurgical testwork - are currently underway on choice bulk samples of each ore type with a view to pre-feasibility being complete by late this year, said the firm.

It released a mid-year progress report today, updating investors about Dutwa and other projects, including the Miyabi gold project - also in Tanzania.

After an upgrade last year the total Dutwa resource is now estimated to contain 98.6 million tons of 0.93 per cent nickel and 0.03 per cent cobalt as measured by JORC.

This suggests that there are about 917,000 tons of nickel at Dutwa.

The firm says the two hilltop deposits are easily mined and suitable for simple , low acid consumption atmospheric leaching, leading to world class economics.

Managing director of African Eagle Mark Parker said today of the Dutwa DFS: "Geotechnical tests have been completed on bulk ore sample 1, metallurgical test programmes are well underway, and diamond drilling to obtain bulk ore sample 2 is almost complete.

"We expect to recommence drilling for the resource upgrade at the Ngasamo part of Dutwa in early July. We have made a start on the baseline work for our environmental and social impact assessment and advanced our logistics and reagents studies.

"We are on schedule with the DFS and expect to establish the preferred treatment process for Dutwa ore and complete the pre-feasibility stage of the study in late 2011."

He added that a management reorganisation, intended to put in place the skills needed to develop Dutwa was making good progress.

Also the planned spin-out of its non-core legacy projects - the Zambian copper projects - was on track. This will be into a new company called Cobra Copper.

Also, Parker said that the firm's partner BrightStar Resources has begun a major drill programme at the Miyabi gold project in Tanzania - encompassing 10,000m of drilling over a 3km strike length.

Aside from Dutwa, the company is also evaluating a second promising nickel oxide at Zanzui - 60 km from Dutwa. African Eagle holds a 49 percent interest in the Mkushi Copper Mines joint venture in Zambia, for which a draft feasibility study was completed in Q4 2008.

It also holds a half million ounce gold resource at the Miyabi project and a portfolio of gold and base metal exploration assets, including two projects in the Zambian copper belt.

African Eagle: a tale of two companies

Thu, 26 May 2011 10:48:00 +0100

The shares have more than doubled in value since the group unveiled plans to spin out its Zambian copper division. Here we take a closer look at African Eagle and consider the value triggers that could send the stock soaring even higher.

McIntyre becomes non-exec director at African Eagle with immediate effect

Thu, 05 May 2011 07:23:00 +0100

Julian Alexander McIntyre has become a non executive director with immediate effect, African Eagle Resources (LON:AFE) announced today.

The exploration and development company, which operates in Zambia, Tanzania and Mozambique, said that 36-year-old McIntyre is a successful entrepreneur and investor.

He was a founder and controlling shareholder of Gateway Communications Group - a pan African telecommunications business, which established infrastructure in more than 40 African countries.

McIntyre is also founder and a principal of MWB Capital - a private investment company which currently holds 10.04 percent of the issued share capital of African Eagle, it revealed.

Last month the firm announced that it had much to look forward to in 2011 and said it believed it remained undervalued compared to its peers, as it released its results to 31 December 2010.

"I am sure that we can continue to add value in 2011 and close the wide gap between our market capitalisation and the underlying value of our assets," chairman Euan Worthington had said.