The Company will:
• Restrict active operations principally to the Dutwa Nickel Project in Tanzania
• Continue to explore other promising nickel laterites in Tanzania, eg Zanzui
• Defer a development decision on Mkushi Copper Mines in Zambia
• Carefully prioritise other projects
• Conserve current cash of £2.5 million
• Review and renegotiate all active contracts and cut operating costs
African Eagle Resources plc has completed a thorough review of its strategy for 2009, in view of the current unprecedented global market conditions and commodity prices. The Company will, for the time being, prioritise its projects carefully, restricting active operations largely to the Dutwa Nickel Project in Tanzania, placing most other advanced projects of merit on care and maintenance and relinquishing many of its earliest stage projects.
John Park, Chairman of African Eagle Resources plc states:
“Our Dutwa nickel discovery in 2008, which added some $4 billion of metal in the ground to the Company’s account within the past six months, demonstrates the validity and the strength of our past strategy of remaining diversified and capitalising on opportunities as they arise. Now, however, we are operating in very challenging times and our first and foremost duty to our shareholders is to remain in business so that we can realise the benefits of Dutwa and other advanced assets when markets improve.
“It is important that we continue to make progress and we will therefore commission an economic scoping study at Dutwa when the current metallurgical tests are completed later this quarter. The scoping study will be conducted over the first half of 2009 and will assess the economic viability of the project. We are also looking at other nickel laterites in Tanzania, such as that at Zanzui, where we have promising early drill results.
“Mkushi Copper Mines in Zambia remains our most advanced near term production project. Our JV partner CGA Mining Limited delivered its draft feasibility study in November 2008, but in the light of current market conditions and copper prices, the two companies have agreed to defer a decision on project development for the time being. With a 25 year mining licence in place, the project can afford to take a breather while the partners look at ways in which the short term project economics can be improved. We will shortly conduct a VTEM survey, co-funded by CGA, to search for additional “blind” copper zones
The Company will: