Profile

African Eagle is a UK-incorporated mineral development company traded on London AIM (AFE) and Johannesburg AltX (AEA). Its shares are also traded on the London Plus Market.

African Eagle is developing the major Dutwa nickel project in Tanzania. The Company discovered Dutwa in 2008 and is now conducting a feasibility study.

Economic modelling in late 2010 indicated a pre-tax project NPV of US$650 million at a nickel price of $8/lb, based on throughput of 3 million tonnes per year from an indicative, unclassified mineable reserve of 80Mt at a diluted grade of 0.97% nickel, from Whittle pit optimisations of block models of the October 2010 Inferred Mineral Resources, with processing by atmospheric tank leaching to a mixed hydroxide intermediate product.

The project consists of two nickel laterite deposits which form the caps of two ridges about 7km apart. Mineral Resources are currently 98.6 million tonnes grading 0.93% nickel and 0.02% cobalt, of which 46.2 million tonnes are in JORC Indicated category and the remainder in JORC Inferred category. The Company believes that further drilling will increase the resources by up to 10 million tonnes. Because the deposits are at the surface, mining will be straightforward and strip ratios very low.

Metallurgical tests have shown that the nickel ores are unusually easy to process, giving good recoveries from heap or tank leaching at atmospheric pressure, with no need for costly high pressure acid leach (HPAL).

African Eagle currently holds a 90% interest in the eastern Wamangola deposit, which holds approximately 60% of the total resource, with an option to acquire 100%. The Company has signed a joint venture with the SAFINA Group of the Czech Republic under which African Eagle will earn between 50% and 75% interest in the western Ngasamo deposit by conducting and funding evaluation work. On completion of the feasibility study, the two companies' joint venture interests will be converted into equity in the combined project. African Eagle estimates that it will then hold about 76% of the equity.

African Eagle also holds significant interests in several "legacy" mineral ventures, acquired before it discovered Dutwa. These include copper in Zambia, gold in Tanzania and uranium in these two countries and Mozambique.

History

African Eagle Resources plc was set up by Company director, Mark Parker and was admitted to trading on AIM in June 2003 and obtained a secondary listing on the Johannesburg AltX in August 2007. The Company discovered the Dutwa nickel deposits in mid-2008 and has since transformed itself from a diversified explorer into a nickel development and mining company.

UK Office & Registered Address : 2nd Floor, 6-7 Queen Street, London, EC4N 1SP, UK,
+44 20 72 48 60 59 Fax +44 20 76 91 77 45 e-mail info@africaneagle.co.uk
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