African Eagle Resources plc

Tanzania

The United Republic of Tanzania is in East Africa, covering an area three times that of New Mexico. It is bordered by Uganda and Kenya to the north, the Indian Ocean to the east, Mozambique, Malawi, and Zambia to the south, and the Democratic Republic of the Congo (DRC), Burundi, and Rwanda to the west. Tanzania contains three of Africa's best-known lakes: Victoria in the north, Tanganyika in the west, and Nyasa in the south. Mount Kilimanjaro in the north (5,895 m) is the highest point on the continent.

Mineral regime:

Together with tourism, the mining sector is the leading recipient of inward investment a key foreign exchange earner and 'growth sector' of the Tanzanian economy. Since 1998, Tanzania has gone from being an insignificant mineral exporter to the third biggest gold producer in Africa, with more than 50 million ounces of gold reserves and resources. The country’s successful economic and structural reforms have improved economic performance and led to sustained growth of about 6% over recent years.

African Eagle presence

African Eagle has an office in Mwanza, the main city of the Lake Victoria Goldfield area, and a representative office in the capital, Dar es Salaam. The Company’s operating subsidiary in Tanzania is Twigg Gold Limited, which has a staff complement of 12 people, including long-term contractors.

Key facts about Tanzania:

Full Name:: United Republic of Tanzania
Population:: 40,213,000 (2008 est.)
Capital:: Dodoma
Area:: 945,087 sq km; (Note: includes the islands of Mafia, Pemba, and Zanzibar)
Monetary Unit:: Tanzanian Shilling (TSh)
Main Exports:: Gold, cloves, coffee, cotton, tobacco, tea, cashew nuts, sisal, diamonds, coconuts, pyrethrum, sugar, cardamom, peanuts, meat
GNI per capital:: US$ 350.00 (2008 est.)
Government:: Tanzania is a multi-party republic headed by the democratically elected President Jakaya Mrisho Kikwete

For more information on Tanzania, see Wikipedia.

Our projects

We have four advanced projects in Tanzania, namely Miyabi, Rupa, Igurubi, and Dutwa.

Miyabi Project

The Miyabi Gold Project, in the Lake Victoria Goldfield of Tanzania, was discovered by African Eagle’s own geochemical prospecting team. Although African Eagle has drilled only part of the system to date, it has defined a JORC-compliant resource of 520,000oz of gold. The Miyabi project is currently subject to an earn-in option agreement under which Randgold Resources Ltd can earn an interest of up to 65%.

Rupa Project

The Rupa Gold Project lies in the Musoma region of the Lake Victoria Goldfield (LVGF). African Eagle is mapping and evaluating shear-zone hosted gold mineralisation in the project area, known from past drilling and artisanal mining. Results so far are promising.

Igurubi Project

The Igurubi Gold Project, located in the southeastern Lake Victoria Goldfield, contains several parallel gold-bearing shear zones in a contact between granites and greenstone rocks.

Dutwa Project

The Dutwa Gold, Nickel and PGM Project is located in the Kilimafedha greenstone belt of the Lake Victoria Goldfields (LVGF), 100km east of Mwanza. Though primarily a gold project, it exhibits excellent potential for the discovery of nickel and platinum group elements.

Zanzui Project

The Zanzui Nickel and PGM Project covers a strongly layered circular ultrabasic complex in the eastern Lake Victoria Goldfield. Soil geochemistry and geophysics have identified promising target areas.

Other projects in Tanzania

In southern Tanzania, has signed a strategic alliance with Troll Mining Limited over exploration licences with known uranium, copper, gold and coal occurrences. African Eagle has an option to earn 80% interest on any discoveries it makes over these areas.

At Msasa, African Eagle’s partner MDN Northern Mining is re-evaluating the data amassed from their exploration carried out over the past two years.

In line with our policy of spreading geological risk across multiple projects while signing up partners to explore and develop them, the Company entered an agreement last September with UK-based Sloane Developments Ltd. Sloane is exploring six of African Eagle’s projects in the Lake Victoria Goldfields under an option which allows it to earn up to 51% interests in them.