AFRICAN EAGLE (AFE) – SIGNS OPTION ON NGASAMO LICENCE

POTENTIAL TO INCREASE DUTWA RESOURCE TO 50 MILLION TONNES

• Option and Joint Venture agreement signed with SAFINA

• African Eagle can earn up to 75% of Ngasamo nickel laterite, 5km west of Dutwa

• Potentially increases Dutwa resource by more than 50%

African Eagle Resources plc has signed a Letter of Intent for an option and joint venture with SAFINA a.s. of the Czech Republic and its subsidiary Tanzania Precious Metals Refinery Limited (TPMRL), over the Ngasamo licence, adjacent to the Dutwa nickel laterite project in Tanzania. 

Under the agreement, African Eagle can earn an interest of up to 75% in Ngasamo by carrying out exploration and evaluation work, leading up to a feasibility study.  The licence area contains a nickel laterite which appears very similar to the Dutwa deposit.

Mark Parker, Managing Director of African Eagle Resources plc comments: “This is a very significant agreement for African Eagle, as Ngasamo has the potential to increase the global resource at Dutwa to 50 million tonnes, from the current 31 million tonnes at 1.1% nickel. Ngasamo Hill lies just 5km west of the Dutwa deposit and has very similar geology, with a thick laterite blanket overlying identical ultramafic rocks. Our geologists believe that the Ngasamo deposit is of the order of 15 to 20 million tonnes, but obviously, drilling and metallurgical tests will be needed to confirm the size, grade and compatibility with the Dutwa ore.

“Our partner TPMRL is the Tanzanian subsidiary of SAFINA Group, a substantial metals and chemicals group from the Czech Republic.  SAFINA is keen to become a fully contributing partner in the nickel project, and could bring significant capabilities to the partnership.”