African Eagle estimates 700,000 oz gold deposit

Ines Schumacher | Wed, 13 May 2009 08:51

[miningmx.com] -- DIVERSIFIED mineral exploration and development company African Eagle Resources is looking for a joint venture (JV) partner for its Igurabi project in Tanzania after it calculated an “in-house” figure of 700,000 ounce of gold deposit.

“Although the drill data are not detailed enough to support a formal resource estimate, the modelling gives strong indications of the potential for least 700,000 gold ounces. It also shows us exactly where confirmation drilling is required,” African Eagle managing director Mark Parker said in a company announcement regarding the discovery.

A week ago African Eagle released its financial results for the year to end-December 2008. Parker said the company was focusing on bringing its Dutwa nickel project in Tanzania to the bankable feasibility stage.

“We consider all of our assets except Dutwa non-core. Dutwa is our top priority for 2009. We would sell any of the other projects to raise money,” Parker told Miningmx.

The Dutwa scoping study will be completed in June 2009, when African Eagle will receive a feasibility study cost estimate. The company is considering other financing options for the project’s future development, including raising money on the equity markets and selling non-core assets.

“African Eagle’s priority for 2009 remains our major nickel discovery at Dutwa, so we shall be looking for a partner to join us in the development of Igurubi. The new evaluation nonetheless contributes significantly to our growing asset base in Tanzania,” Parker said on Wednesday.