News > News Releases

NEW RESOURCE ESTIMATE OF 400,000 OUNCES GOLD
FOR THE MIYABI GOLD PROJECT, TANZANIA

News Report
9 March 2005

African Eagle ("the Company", Ticker: AFE) today announces that independent geological consultants SRK have completed a technical audit of the Company's drilling and assay work at the Miyabi gold project in Tanzania and calculated a new independent resource estimate for the project. The total resource outlined to date is 8.3 million tonnes at an average grade of 1.5 grams per tonne, containing 400,000 ounces of gold, of which 75% is in the JORC Indicated category.

Mark Parker, the Company's Managing Director, comments "This work, carried out to the widely accepted JORC standard by a respected independent consultant, will permit future drill results to be incorporated into the data base with a high level of confidence and will allow the resource estimate to be upgraded incrementally as drilling progresses. The resource provides a sound footing to African Eagle's 2005 drilling programme which has now started at Miyabi, and we expect to add to it substantially over the coming months".

During early 2004, the Company's geologists carried out a complete re-appraisal and interpretation of the entire Miyabi exploration database and identified several promising targets. Drilling on the first of these targets, Faida, intersected a wide, consistent zone of gold mineralization. By the end of 2004, African Eagle had demonstrated from geophysical surveys and geochemical mapping that this zone extended for at least 500m along strike. Although only half of this interpreted strike length has been drilled to date, drill intersections, including 58m at 4.03g/t and 60.7 metres at 1.57g/t, demonstrated that the zone extends to at least 150m down-dip.

The discovery of the Faida zone shifted the Miyabi gold project from exploration phase to resource evaluation phase. Consequently, the Company commissioned SRK Consulting of Cardiff, UK to conduct an independent technical audit of the drilling and assaying procedures used by the Company and to make a formal resource estimate based on all the results to date. Four other mineralised zones within the Miyabi project area, Kilimani, Shambani North and South, and Ngaya, were also included in the SRK audit and estimate.

The drill core from Faida has given the Company's geologists a much better understanding of the structural controls on the mineralisation at Miyabi. This knowledge will now be applied to the other three zones, where mainly reverse circulation drilling has been carried out so far, and to the other, yet undrilled target zones identified by the data re-appraisal. The Faida core will also be tested to determine the metallurgical recoverability of the gold in the zone.

Diamond drilling to add to these resources is now underway and a reverse circulation rig is expected to mobilise in May. Drilling will continue through much of the next ten months.

The table below sets out the Mineral Resources in each of the mineralised zones drilled to date. Mineral Resources are above a cut off grade of 0.5 g/t gold and are reported using the terminology and guidelines given in the December 2004 JORC Code. Following the table are SRK's notes on each of the zones.

Note : appropriate rounding has resulted in apparent summation errors

In summary, the Miyabi deposits have been interpreted as several similarly orientated continuous lenses with within a clearly defined structural corridor. Each deposit in the resource model has been interpreted as a tabular, northeast-striking, steep-dipping shear zone. The deposits contain a small amount of low grade material but otherwise are remarkably continuous in geometry. Higher grade patches are discernable and these may be more effectively outlined in the future by infill and extension drilling. The current drilling programme has been designed, in part, to test the continuity of these higher grade areas.

Faida has been modelled to 150m down dip over a strike length of 300m. The deposit is mostly over 25m wide. Although only 10 drillholes intersect the deposit, their results suggest a consistent width and grade of mineralisation, most of which can be classed as an Indicated Mineral Resource. The deposit is open at depth and to the northeast.

The Kilimani resource model has a strike length of 550m and a dip extent of some 130m, defined by 43 drillhole intersections. The thickness varies between 5 and 20m in the main part of the deposit. Drilling is concentrated in the northeast where an Indicated Mineral Resource has been defined whilst wider spaced drilling in the southwest supports an Inferred Mineral Resource. The deposit is open at depth and along strike, particularly at depth to the northeast.

The Shambani North resource model has a strike length of 450m and a dip extent of some 120m defined by 15 drillhole intersections. The thickness is generally less than 7m although locally, it swells to 25m. The drilling coverage is sufficient to support Indicated Mineral Resource status in the southwest. The deposit is open at depth and to the southwest.

The Shambani South resource model has a strike length of 450m and a dip extent of 100m. This deposit is situated some 160m to the southeast of Shambani North. The thickness is a reasonably constant 5-8m thinning towards the edges. Drilling, consisting of 24 intersections, has concentrated in two broad areas, which together constitute an Indicated Mineral Resource, whilst wider spaced intersections support an Inferred Mineral Resource. The deposit is open at depth and along strike.

The Ngaya resource model extends for 300m along strike and 115m down dip. The deposit is relatively narrow but reaches a width of 20m in the central part. Thirteen drillholes intersect the deposit but they are not on a set of regular sections, making interpretation relatively difficult. However, two lenses of mineralisation with similar strike and dip orientations to the neighbouring deposits have been interpreted with enough confidence to support an Inferred Mineral Resource. The deposit is open at depth and to the northeast and will benefit from a regular pattern of infill drilling.

John Park
Chairman
African Eagle Resources plc