African Eagle Resources PLC
03 May 2007
AFRICAN EAGLE AGREE TO JOINT VENTURE WITH RANDGOLD RESOURCES ON THE MIYABI GOLD
PROJECT IN TANZANIA
•Option and farm-in agreement signed between African Eagle and Randgold
•Randgold will fund, perform and accomplish a pre-feasibility study to
earn a 50% interest in the Miyabi project
•African Eagle can then retain a 49% stake in the Project by co-funding a
full feasibility study, or dilute to 35%
•Randgold to arrange development finance on a production decision
African Eagle Resources plc ('African Eagle' or 'the Company', ticker AIM: AFE)
today announces that it has entered into a Joint Venture with a wholly-owned
subsidiary of Randgold Resources ('Randgold') on its +500,000 ounce Miyabi Gold
Project in the Lake Victoria Goldfield of Tanzania.
The Joint Venture has the form of an option and farm-in agreement. Under the
initial option, Randgold will carry out and fund an agreed phase-1 exploration
programme by end of May 2008. This programme will consist principally of a
series of diamond drill hole fence lines to investigate the geology, structure
and controls on mineralisation across the width of the Miyabi corridor. Randgold
will then have the right to earn a 50% interest in the project by conducting and
funding a pre-feasibility study to agreed parameters. Following the
pre-feasibility study, African Eagle can retain a 49% stake in the Project by
co-funding a full feasibility study, or dilute to a 35% stake if Randgold
provides the funding in full. Randgold, as Project Manager will also arrange the
financing for the development of a mine.
Randgold Resources is an Africa-focussed international gold mining and
exploration business with listings on the London and New York Nasdaq exchanges.
Randgold has a strong track-record of exploration and development success
including the 7.5 million ounce Morila deposit in southern Mali, the six-plus
million ounce Yalea deposit at Loulo in western Mali and the three million ounce
Tongon deposit in Cote d'Ivoire. Randgold successfully financed and developed
the Morila mine, which has produced more than four million ounces of gold since
it was brought into production in October 2000. It also financed and developed
the Loulo Mine which was officially opened in November 2005 and is scheduled to
produce 250,000 ounces per year for six years, from an open pit operation.
Development of the Loulo underground operation has commenced and will
significantly enhance the value and extend the life of mine. Randgold recently
completed a pre-feasibility study on the Tongon deposit and holds a portfolio of
exploration projects in Mali, Cote d'Ivoire, Senegal, Burkina Faso, Ghana and
African Eagle's Managing Director Mark Parker commented 'We are delighted to
have signed one of Africa's most exciting and successful gold companies, as our
partner at Miyabi. Randgold has a strong mining and geological team and African
Eagle will benefit enormously from this additional expertise in evaluating the
Miyabi project and taking it through to production. We look forward to making
swift progress with Randgold on the Miyabi project'.
For further information, see the Company's web site www.africaneagle.co.uk or
contact one of the following:
+44 20 7248 6059
+44 77 5640 6899
Ed Portman/ Leesa Peters
+44 20 7429 6607 / +44 (0) 7733 635 01
Information in this report relating to exploration results is based on data
reviewed by Mr Christopher Davies BSc, MSc, DIC, Operations Director for African
Eagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy,
has more than 25 years relevant experience in mineral exploration and is a
Qualified Person under AIM rules. Mr Davies consents to the inclusion of the
information in the form and context in which it appears.
A glossary of technical terms used by African Eagle in this announcement and
other published material may be found at www.africaneagle.co.uk/
The Miyabi Gold Project lies in the southwest part of the Lake Victoria
Goldfield of Tanzania, about 50km west-southwest of Kahama township in Shinyanga
District. The gold system at Miyabi, discovered by African Eagle's geochemical
prospecting team, forms a corridor of about 7km x 2km associated with a major
shear zone cutting greenstone and granite rocks, within which occur a number of
gold mineralised zones. To date, African Eagle's drilling has delineated five
principal orebodies: Faida, Shambani Main and North, Ngaya and Kilimani.
In early 2006, the Company commissioned SRK Consulting Ltd to conduct a formal
resource estimate based on all drill results to date. The total JORC compliant
Mineral Resource was estimated to be 12.4Mt at a grade of 1.3g/t, containing
520,000 ounces of gold, using a cut-off grade of 0.5g/t, which is appropriate to
Tanzanian deposits of the Miyabi type. Of this, 71% is in the Indicated
Independent metallurgical testing of systematically selected gold-bearing drill
samples representative of all of the principal mineralised zones at Miyabi
showed that standard leaching recovers 95% of the gold from the ore.
The potential for adding to the gold resource at Miyabi is very good, with many
targets identified from geophysical and geochemical surveys within the main
mineralised corridor remaining to be drilled, and African Eagle believes that
the project could hold at least one million ounces.
The Company's prospecting licences also cover more than 500 square kilometres of
highly prospective granite-greenstone terrain around the main mineralised
corridor and regional exploration of these areas has identified several
promising targets. The Idahina East prospect, for example, yielded a geochemical
soil gold anomaly in excess of 0.5 g/t which has yet to be drill tested.
About African Eagle
African Eagle is a mineral exploration and development company operating in
eastern and central Africa. The Company's principal advanced projects are the
Mkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,
which are being prioritised towards production. The Company also holds a large
well-balanced portfolio of promising earlier stage gold and base metal projects,
including the Ndola copper project and the Eagle Eye iron-oxide copper gold
African Eagle's projects are in Zambia, Tanzania and Mozambique, countries which
all have highly prospective geology, relatively low above-ground risks and track
records of successful major investments in the metals and minerals industries.
African Eagle specialises in project generation and exploration. To take its
discoveries into production, it seeks to sign up industry partners with records
of successful mine development. These joint ventures and, in time, the revenue
from advanced projects, will finance future exploration and new discoveries.
The Company has a highly motivated team, proven management and an experienced
board. African Eagle prides itself on being a low cost operator and on average
80p or more of every £1 is spent 'in the ground'.
This information is provided by RNS
The company news service from the London Stock Exchange