African Eagle cautious on larger Zanzui

Ines Schumacher | Mon, 03 Aug 2009 11:41

[miningmx.com] -- AFRICAN Eagle Resources unveiled promising results from its Zanzui nickel laterite project in Tanzania, but it was still too early to say if it would take priority over flagship project, Dutwa.

The company received the final report on acid leach tests on drill samples from Zanzui which showed promising nickel extractions with lower acid consumption than Dutwa. As a resource, acid is often in short supply and an important input cost.

“Geological mapping, together with the results of the limited drilling to date, suggest that whilst the nickel grades at Zanzui appear to be marginally lower than at Dutwa ... this laterite is even larger than Dutwa,” MD Mark Parker told Miningmx.

African Eagle said while the results are comparable to the data received from Dutwa, the company could not commit to action. “The results are obviously very promising, but we have no immediate plans to focus our attention on Zanzui,” Parker said.

The company is continuing with its drilling programme at Zanzui and would wait for Dutwa’s feasibility study to be completed before making any decisions on its direction in the future, it said.

African Eagle has an advanced copper exploration project in Zambia, a gold resource of half a million ounces in Tanzania, and the two nickel laterite deposits Zanzui and Dutwa in Tanzania. It also holds other early stage gold and base metal prospects throughout Africa.

Over the past few months, African Eagle has introduced a number of cost-cutting measures, including a reduction in directors’ salaries, renegotiation of all contracts and cuts in general operating costs to steer more money towards Dutwa.