News > News Releases

NEW DRILLING AT AFRICAN EAGLE'S HIGH-GRADE MSASA GOLD PROJECT

News Report
20 July 2006

AIM quoted African Eagle Resources plc ("African Eagle" or "the Company", ticker AIM: AFE) is pleased to announce that MDN Northern Mining ("MDN", TSE:MDN) has started reverse circulation drilling at the Company's 90 per cent owned Msasa Gold Project in Tanzania.

Under an option agreement signed in May 2006, MDN is investing US$200,000 in exploration at African Eagle's Msasa project, to earn the right to acquire a 51% interest in the project by investing a further US$1.7m. MDN can then increase its participation to 65% by financing a feasibility study.

Exploration already carried out by African Eagle has returned gold assay values indicating that the Msasa area holds high-grade mineralisation with similarities to that at Tulawaka Gold Mine, 15km to the northeast, which is a joint venture between MDN (30%) and Barrick Gold Corporation (70%). African Eagle's Msasa drilling intersected gold-bearing quartz veins, including one very high grade section which assayed 81 grams per tonne of gold over 9 metres.

MDN's programme of reverse circulation drilling will follow up these promising indications, to determine the extent of the gold mineralisation and to test further geochemical and geophysical targets.

African Eagle's Managing Director Mark Parker comments "Our own drilling, geophysics and geochemistry has revealed that Msasa could be a significant high-grade deposit. At this location, which is within easy trucking distance of the Tulawaka plant, even a small high-grade deposit would be significant. MDN is showing a strong commitment to this project and we are looking forward keenly to the results of the drilling programme".

John Park
Chairman
African Eagle Resources plc

Qualified Person

Information in this report relating to the exploration results is based on data reviewed by Mr Christopher Davies B.Sc, M.Sc, DIC, Operations Director for African Eagle Resources, who is a Fellow of the Australasian Institute of Mining and Metallurgy, has in excess of 25 years experience in mineral exploration and is a Qualified Person under AIM Rules. Mr Davies consents to the inclusion of the information in the form and context in which it appears.