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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (45611)	10/20/2009 10:45:46 PM
From: LoneClone	Read Replies (1) \| Respond to of 194043

African Eagle Resources upbeat on progress at Dutwa nickel project 20 October 2009 smallcapnews.co.uk Mark Parker, the managing director of mining group African Eagle Resources, today said the company was making significant progress at its Dutwa Nickel Project in Tanzania. Parker said that a 120-hole reverse circulation drilling programme was now underway and laboratory testwork was well advanced. The company has chosen a contractor for a transport and logistics study and is due to appoint a contractor for advanced deposit modelling shortly. African Eagle is also looking for a project manager with a process metallurgical background, as it prepares to transform from an exploration group into a nickel development and mining company. A scoping study of Dutwa in July made a strong investment case for the project, indicating a likely Internal Rate of Return of about 25% at the current nickel price of around US$8.50/lb, or 17% at the base case price of US$7/lb. Net Present Value estimates at these nickel prices were US$530 million and US$200 million (pre-tax) respectively. The company has now begun a programme of approximately 60 infill and step-out drill holes on the main nickel deposit at Wamangola Hill, with the objective of increasing the JORC Inferred Mineral Resource of 31 million tonnes at an average grade of 1.1% nickel, estimated by SRK in November 2008. The drilling should allow the resource to be delineated to Indicated category. An updated resource estimate is expected in the first quarter of 2010.