24/03/2009 07:00:00

Dutwa Nickel Project Update

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FINAL BOTTLE ROLL LEACH TEST RESULTS

AND MINERALOGICAL ANALYSIS

FROM AFRICAN EAGLE'S DUTWA NICKEL PROJECT, TANZANIA

High nickel extraction and low acid consumption bodes well for

project

* Exceptionally low acid consumption and good nickel recovery

confirmed

* High nickel extraction averaging 83% from solids

* Unique laterite mineralogy: high silica, low iron, low magnesium

account for the low acid and high recovery

* Low acid consumption will have a major impact on capital and

operating costs, favouring low cost heap or tank leach processing

technology

* Scoping study contract to be awarded

African Eagle Resources plc has received the final results of acid

leach tests and mineralogical analyses on drill samples from its

Dutwa nickel laterite project in Tanzania. The tests were carried

out by Mintek in South Africa.

The leach test results show high nickel extractions, averaging 83% on

a solid basis, and very low sulphuric acid consumption, averaging 210

kilograms per tonne. These compare very favourably with laterite

deposits elsewhere in the world.

The mineralogical analyses show that Dutwa is a unique laterite,

dominated by silica and with very low iron and magnesium. These

characteristics account for the exceptionally low acid consumption

and high nickel recovery.

In November 2008, the Company announced a JORC compliant resource at

Dutwa of 31 million tonnes at 1.1% nickel and 0.034% cobalt,

containing 340,000 tonnes of nickel and 11,000 tonnes of cobalt.

Mark Parker, African Eagle's Managing Director comments: "We are

delighted with these results. Dutwa is a unique deposit, with

unusual mineralogy which results in high nickel recovery with

exceptionally low acid consumption. This bodes very well for

commercial development, as the ore should be amenable to tank or heap

leaching at atmospheric pressure. Either technology can be

implemented at relatively low capital cost.

"We will now commission a scoping study to assess the viability of

the project and indicate the best way to proceed. We are currently

evaluating bids and expect to award the contract in the next few

days. We then expect to commence a second phase of metallurgical test

work to evaluate the heap and tank leaching nickel-cobalt extraction

technology options in greater detail."

Leach tests

The table below shows the total acid consumption and nickel and

cobalt extractions from "bottle roll" leach tests on ten 500g

samples, five from diamond drill cores and five from reverse

circulation cuttings. Each sample was placed in a glass bottle with

two litres of dilute sulphuric acid and agitated continuously by

rolling on rotating rollers. Mintek completed the tests in

mid-February 2009 after 82 days rolling. The metal extractions

levelled off after 60 days; Mintek notes that similar results from

other laterite ores subsequently gave heap leach cycles of less than

200 days.

Nickel extractions were between 70-90% averaging 83%, based on assays

of the samples prior to the test and of the solid residues at the end

of the test. Extractions calculated from the daily assays of the

liquid leachate were higher, at 80-95%, but are generally less

reliable. The acid consumptions, averaging 209kg/t, are very low

compared with other nickel laterite ores. The solids-based cobalt

extractions were mostly in the range 70 to 85%.

DH1 DH4 DH6 DH7 DH8 RC25 RC30 RC36 RC55 RC71 Average

Acid kg/t 352 196 233 114 200 159 207 304 190 138 209

Ni% 85 80 89 78 91 88 71 88 86 75 83

Co% 69 71 77 55 85 76 18 77 86 73 69

See our web site for day-by-day nickel extraction and acid

consumption charts:

www.africaneagle.co.uk/african-eagle-projects-dutwa-bottleroll.html

Mineralogy

Mintek used X-ray Diffraction (XRD), and scanning electron microscope

(SEM) backscattered electron images to investigate the mineralogy of

the drill core and chips. Sixteen samples of drill core and five

samples of reverse circulation (RC) cuttings were submitted for XRD

analysis. The five RC samples and five composited drill core samples

were investigated by SEM.

The results showed two broad classes of material: a dominant class

composed largely of silica and a mixed class. The latter also

contains silica, together with variable amounts of the iron-chromium

oxides magnetite and chromite; the hydrated iron oxide goethite;

"manganese wad", (in which manganese, nickel, cobalt and other metals

replace some of the iron in amorphous goethite); and small quantities

of serpentine and clays.

The silica-rich nature of these samples and their low iron and

magnesium content, indicates that Dutwa is not a typical laterite

nickel deposit as the normal laterite mineralogy is diluted by the

high silica. The unusual mineralogy of the deposit is potentially

beneficial, as in heap leaching, the high silica and low iron should

help maintain the structural integrity of the heap and aid

percolation of fluids through the heap, reducing residence times,

while in tank leaching, the high silica should allow good

filterability.

In addition, the low iron concentration will result in low impurity

levels in purification steps and potentially, lower capital and

operating costs. The lower iron will also result in commensurately

less iron residue for disposal.

Mintek believes that most of the nickel and cobalt occurs in the

manganese wad. The SEM work showed that this can have a manganese

content of 20-60%, a nickel content of up to 20% and a cobalt content

of up to 10%. The concentration of nickel and cobalt in the manganese

wad offers possibilities that mechanical selection of high-grade

material may allow reduced throughput and hence a lower cost

processing plant

Technical terms

A glossary of technical terms used by African Eagle in this

announcement and other published material may be found at

www.africaneagle.co.uk/african-eagle-projects-glossary.html

For further information:

Mark Parker

Managing Director

African Eagle

+44 20 7248 6059

+44 77 5640 6899

Nicola Marrin

Seymour Pierce Limited, London

Nominated Adviser

+ 44 20 7107 8000

Charmane Russell

Russell & Associates, Johannesburg

+ 27 11 8803924

+27 82 8928052

Ed Portman / Gareth Tredway

Conduit PR, London

+44 20 7429 6607

+44 (0) 7733 363 501

About Dutwa

African Eagle has discovered a significant nickel laterite deposit

within the Dutwa project area, which lies in the Kilimafedha belt

(Swahili for "money hills") of the Lake Victoria Goldfield.

Operationally, the project is favourably situated, 100km east of the

railhead at Mwanza and close to the main Mwanza-Nairobi trunk road, a

major power line and the shore of Lake Victoria.

Greenstones and granites underlie the area. The greenstones, of

Archaean Nyanzian age, are mostly metamorphosed volcanic and

sedimentary rocks, with some banded iron formation in the east.

Several large ultramafic bodies intrude the greenstones and the

nickel laterites form a blanket up to 60m thick on top of these.

The Dutwa project area is composed of several prospecting licences

covering a total area of about 750km². The Company holds 90%

interests, with options to acquire 100%, over most of this ground,

including the area of the laterite discovery, and the remainder is

under application.

African Eagle acquired the Dutwa project for its gold potential, but

its exploration team quickly recognised that there was significant

nickel laterite potential. Geochemical soil surveys carried out by

African Eagle over the whole of the project area identified a

promising 5km-long nickel anomaly and a number of gold anomalies.

There is very little outcrop, so the Company conducted extensive

ground magnetic surveys to reveal the underlying structure and

geology. The Company has also compiled historical data, including

detailed geological maps and trench results dating from 1956, when

rock chip samples from the trenches over the ultramafic rocks were

reported as yielding up to 1.9% nickel and 10% chromium.

To investigate the nickel anomaly, the Company undertook trial

drilling in June 2008. The results were very encouraging and a

139-hole reverse circulation (RC) drilling programme was completed to

delineate the resource. African Eagle also undertook a 10-hole

diamond drill programme to obtain core samples for metallurgical

testing and density measurements.

In November 2008, African Eagle announced an initial Inferred Mineral

Resource estimate of 31 million tonnes at an average grade of 1.1%

nickel and 0.034% cobalt. At a cut-off grade of 0.5% nickel, this

gives Dutwa a contained metal endowment of some 340,000 tonnes of

nickel and 11,000 tonnes of cobalt. The estimate was prepared by

independent consultants SRK Consulting (UK) Ltd in line with the

Australasian Code for Reporting of Mineral Resources and Ore Reserves

(the JORC Code). SRK classified the estimate as an Inferred Mineral

Resource in terms of the JORC code, but noted that the deposit is a

continuous mineralised body of simple geometry, which has been well

delineated by the drilling, and could be promoted easily to Indicated

category with more density measurements and improved knowledge of the

metallurgy.

The Company despatched 100 kilograms of mineralised drill core and RC

chip samples to Mintek Laboratories in Johannesburg for

investigations into the mineralogy and metallurgy of the deposit,

especially tests of the amenability of the material to sulphuric acid

leaching. Mintek carried out mineralogical characterisation by X-ray

diffraction (XRD), scanning electron microscopy (SEM) and polished

section work, to determine the nature of the ore body, and extended

'bottle roll' acid leach tests on ten samples, to investigate metal

recoveries and acid consumption.

The bottle roll test results show nickel extractions of 70-90% with

an average of 83%, based on assays of the samples prior to the test

and of the solid residues at the end of the test. Cobalt extractions

were mostly in the range 70 to 85%. The acid consumptions, averaging

209kg/t, are very low compared to other nickel laterite ores

worldwide.

The mineralogical investigations show that the laterite is extremely

silica-rich, with low iron and magnesium content, indicating that

Dutwa is not a typical laterite nickel deposit. Mintek believes that

much of the nickel and cobalt occurs in "wad" with manganese content

of 20-60%, nickel content of up to 20% and cobalt content of up to

10%.

The unusual mineralogy of the deposit is beneficial, as the low iron

concentration will result not only in lower acid consumption, but

also in commensurately less iron residue for disposal. In a heap

leach, the low iron and high silica should help maintain the

structural integrity of the heap and aid percolation of fluids

through the heap, reducing residence times. The concentration of

nickel and cobalt in the manganese wad offers possibilities that

mechanical selection of high-grade material may allow reduced

throughput and hence a lower cost processing plant.

As the next step in the process, African Eagle is commissioning a

Scoping Study to investigate the key operating parameters and to

assess the economic potential of the project.

The Company has also completed a trial programme of RC drilling to

test a laterite at its Zanzui project, 70km to the south of Dutwa.

Results included 42m at 1.05% nickel (including 6m at 2.80%) and 33m

at 0.91% nickel (including 9m at 1.41%).

About African Eagle

African Eagle is a diversified mineral exploration and development

company operating in eastern and central Africa. The Company's

principal advanced projects are the Dutwa nickel laterite discovery

in Tanzania, where the Company announced a significant resource at

the end of 2008, and the Mkushi Copper Mines project in Zambia, for

which a draft Feasibility Study was completed in Q4 2008.

African Eagle has also defined a gold resource estimated at half a

million ounces at the Miyabi gold project in Tanzania, and is

evaluating a second promising nickel laterite deposit which it

recently discovered in Tanzania. The Company holds a well-balanced

portfolio of promising earlier stage gold and base metal projects,

including the Ndola and Mokambo projects in the Zambian Copperbelt.

Zambia, Tanzania and Mozambique, the sites of African Eagle's

projects, are all countries which have highly prospective geology,

relatively low above-ground risks and track records of successful

major investments in the metals and minerals industries.

African Eagle specialises in project generation and exploration. To

take its discoveries into production, it seeks to sign up industry

partners with records of successful mine development. These joint

ventures and, in time, the revenue from advanced projects, will

finance future exploration and new discoveries.

---END OF MESSAGE---

This announcement was originally distributed by Hugin. The issuer is

solely responsible for the content of this announcement.

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