Projects Overview: Ndola

Project Highlights

• In the heart of the Zambian Copperbelt
• Surrounds the historic Bwana Mkubwa Mine
• Midway between Frontier Mine (290Mt @ 1.15% copper) and Lonshi Mine (5.9Mt @ 4.6% Cu).
• Past reports of a 40Mt @ 0.8% copper in NW of licence.
• Basic exploration completed over whole licence
• Several drill targets identified.
• Phelps Dodge Mining Zambia Ltd funding exploration under option.

Location and History:

The Ndola prospecting licence covers 428km² in the Zambian Copperbelt, near the town of Ndola.

The Copperbelt is one of the great mining districts of the world and contains a global resource of almost 200Mt of copper metal, mostly in very high grade deposits including two of the world's ten biggest copper deposits. Many of the deposits also contain high cobalt concentrations, with the Copperbelt accounting for around 40% of the world's cobalt reserves. Some Copperbelt deposits also hold significant uranium resources.

African Eagle Interest:

In August 2006, African Eagle (AFE) signed an Earn-in Agreement with Phelps Dodge Mining Zambia (PDMZ) Limited. Under the agreement, PDMZ is subscribing for AFE shares to the value of US$2.27 million at a 10% premium to the market price of AFE's shares. AFE is using 75% of the funds on an agreed exploration programme at Ndola, with the balance on other AFE projects and general working capital. PDMZ will gain an exclusive right to earn an ownership interest of up to 70% in the Ndola project by making agreed expenditures on further exploration up to and including completion of a bankable feasibility study.

Geology

Much of the licence is underlain by the highly prospective Lower Roan and Mine Series geological sequences, which host most of the world class deposits of Zambia. The licence area also contains large areas of the Upper Roan and Lower Kundelungu units, which host many significant copper deposits in the Democratic Republic of Congo (DRC) and Zambia, notably First Quantum Minerals’ operations at Frontier (290Mt @.15% copper) and Lonshi (formerly 6Mt @ 4.6% copper). These two deposits lie either side of the Ndola licence.

Equinox’s recent report of a drill intercept of 64m @ 2.33% copper from a geologically similar location just 15km from AFE’s licence shows that despite more than a century of exploration in the Zambian Copperbelt, new discoveries are still being made.

Current Status:

A thorough review of existing information on the mineral resources and potential of the area concluded that the Ndola licence is highly prospective and identified two reported pre-JORC mineralised targets:

• 40Mt of 0.8% copper in the Lower Roan unit northeast of Ndola town
• 3Mt of 3.5% combined lead and zinc near the centre of the licence.

In early 2007, a high resolution helicopter geophysical magnetic and gamma-ray spectrometric survey was completed, followed by a 1600 sample reconnaissance geochemical soil survey over the entire licence. A 20,000 sample follow up soil geochemical programme identified several copper targets for investigation.

AFE has drilled three diamond drill holes and a number of percussion drill holes. Diamond drill hole NDE1 was drilled to a depth of 603m with wedged offsets, to define the stratigraphic succession and to gain a better understanding of the structural complexity and mineralisation at Misindu. Mineralisation grading 1.1% copper was intersected at 58 vertical metres over a width of 7m and further drilling is planned.

Potential Exploration Targets:

Several copper targets identified for further investigation are:

• Ndola East, a target area containing the reported pre-JORC 40Mt copper deposit in Lower Roan sediments northeast of Ndola town.
• Misindu, a priority target in the northwest of the licence, where copper mineralisation occurs in probable Upper Roan Dipeta age sediments within a structurally complex zone. The Dipeta is known to host significant copper deposits in neighbouring DRC.
• Chiwala, a priority target associated with Kundelungu rocks in the central part of the licence.
• Ndola South, a priority target associated with Lower Roan sediments in the southern part of the licence. This mineralisation may be stratigraphically continuous with Bwana Mkubwa, one of Zambia’s oldest former copper mines.

The Ndola South zone will be tested during the first quarter of 2008 by shallow rotary air blast (RAB) drilling together with an induced polarisation (IP) geophysical survey. RAB drilling will also be used to test the zones at Ndola East and in the central part of the licence. Contingent on results, follow up diamond or RC drilling will be conducted.

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Ndola fact sheet - January 2008
(PDF - 2.19MB)