[miningmx.com] — AFRICAN Eagle Resources said on Thursday its Zanzui project in Tanzania has shown potential of a significant nickel oxide deposit, based on drilling completed to date.
Furthermore, the interpretation of geophysical data from the project has identified a number of conductive targets which further enhance the prospectivity of the deposit.
Deposit modelling based on the drilling to date shows an exploration target of at least 20 million tonnes at 0.9% to 1% equivalent nickel, while geochemical data indicated good potential to increase this tonnage. There also are possible nickel sulphide and platinum targets, as well as oxide nickel targets.
“Our in-house deposit modelling shows good potential for a significant nickel deposit at Zanzui, even within the modest area drilled to date,’ said African Eagle MD Mark Parker.
“VTEM geophysical data also indicated other areas of thick laterite that remain to be tested and also possible bedrock conductors which may be nickel sulphides. Together, African Eagle’s Zanzui and Dutwa nickel deposits are shaping up to be an important nickel province.
“The company has already delineated close to one million tonnes of contained nickel equivalent in its Dutwa inventory and the deposit at Zanzui should help surpass this significant milestone.”
African Eagle is currently developing the major Dutwa nickel laterite in Tanzania. The company discovered Dutwa in 2008, completed a scoping study in June 2009, and is now conducting a feasibility study.
Initial metallurgical work indicates that the laterite will be able to be processed with standard heap leaching and no need for a costly high pressure acid leaching facility.
African Eagle is also evaluating a second promising nickel laterite deposit at Zanzui in Tanzania, 50km south of Dutwa which is currently in the drilling and testing phase.
In December 2008, African Eagle resolved to prioritise the Dutwa project, because the board believed that it offered the greatest potential to add value out of all the company’s assets.
Shares in the group have since Tuesday gained 7.14% to 75c as investors react positively to news that the nickel group has spun off its uranium assets to Jacana Resources, a private Australian firm, in return of shares and cash.
