African Eagle Resources plc

Zambia

The Republic of Zambia, a landlocked country in Southern Africa slightly larger than the US state of Texas, is bordered by eight other countries, all members of the Southern African Development Community (SADC). The country has a long history of mining, based mainly on the prolific Central African Copperbelt, which Zambia shares with the Democratic Republic of Congo (DRC). In recent years, deposits of other minerals have been developed, including nickel, uranium and gold. Zambia is the second most urbanised country in sub-Saharan Africa, after South Africa, and has a large and well educated professional class and vibrant capital markets.

Mineral regime:

In April 2008, the Government of Zambia enacted new mining legislation. This is based closely on the previous Mines and Minerals Act (1995), which had abolished mandatory state participation and simplified licensing procedures and minimised constraints on prospecting and mining activities, creating a favorable inward investment environment. The new 2008 Act introduces a simplified "cadastral" mineral title system and reserves small-scale mining for companies in which the majority interst is held by Zambians.

African Eagle presence

African Eagle has offices in Lusaka and Ndola. The Company’s operating subsidiary in Zambia is Katanga Resources Limited, which has a staff complement of 29 people, including long-term contractors.

Key facts about Zambia:

Full Name:: Republic of Zambia
Population:: 11,669,500 (2008 est.)
Capital:: Lusaka
Area:: 752,614 sq km
Monetary Unit:: Zambian Kwacha (ZMK)
Main Exports:: Copper, cobalt, electricity; tobacco, cotton, copper rods and cables, yarn, lint, sugar and fresh flowers
GNI per capital:: US$ 630.00 (2008 est.)
Government:: Zambia is a multi-party republic headed by the democratically elected President Levy Mwanawasa

For more information on Zambia, see Wikipedia.

Our projects

We have four advanced projects in Zambia, namely Mkushi, Mokambo, Ndola and Sasare Eagle Eye.

Mkushi Project

Mkushi Copper Mines in central Zambia are former open pit and underground mines which African Eagle is developing in joint venture with CGA Mining Limited. A pre-feasibility report dated January 2008 indicates that the project will be profitable. The definitive feasibility study is scheduled for completion in Q4 2008.

Mokambo Project

The Mokambo Copper Project is situated in the Zambian Copperbelt, 90km northeast of Ndola, and forms a narrow strip running along the border between Zambia and the Democratic Republic of Congo (DRC). The project area, which is a 50-50 joint venture between African Eagle and Copperbelt Minerals, contains significant known copper deposits within the Lower Roan geological unit.

Ndola Project

The Ndola Copper Project is located in the southern part of Central African Copperbelt in Zambia. In August 2006, African Eagle signed an earn-in agreement under which Freeport McMoRan (then Phelps Dodge) can acquire up to 70% of the project. The partners are collaborating on a systematic exploration programme at Ndola funded by Freeport.

Sasare Eagle Eye Project

The Sasare Eagle Eye Copper-Gold Project, which lies in eastern Zambia, 450km from the capital city, Lusaka, contains a large iron-oxide-copper-gold (IOCG) system and other mineralised targets including Karoo-hosted uranium and iron ore.

Lunga Project

The Lunga Copper-Gold Project is located in the Lunga Basin in Central Zambia, approximately 320km northwest of the capital city, Lusaka and 200km southwest of the Zambian Copperbelt. The area contains multiple targets including copper-gold, zinc and calcrete uranium mineralisation.