African Eagle Resources PLC : Dutwa Project - Wamangola Deposit Resource Upgrade

African Eagle - Dutwa Project - Wamangola Deposit Resource Upgrade
RNS

Wamangola Resource Upgrade and Dutwa Project Revised Resource Statement

20 September 2012: African Eagle Resources plc ("African Eagle" or the
"Company") (AIM: AFE; AltX: AEA) is pleased to announce a revised and upgraded
JORC compliant resource estimate for the Wamangola deposit, part of the Dutwa
Nickel Project.  This new resource estimate, combined with the associated
resource estimate at the nearby Ngasamo deposit which was also recently
upgraded, raises the total estimated resource at the Dutwa Nickel Project to
107Mt at 0.92% Ni.

Highlights:
* Wamangola Indicated resource increases 13%* to 55.2 million tonnes ("Mt")
with a grade of 0.94% Nickel ("Ni");
* Total Dutwa Indicated resource increases to 101Mt at 0.93 Ni; and
* Total metal content of Dutwa increases 9%* to 984,000 tonnes ("t")


The revision to the resource results from drilling campaigns performed by the
Company in late 2011 and early 2012 at both the Wamangola and Ngasamo deposits.
A full 101Mt of the current 107Mt resource (94%) now resides in the Indicated
category with the ferruginous siliceous ore ("FeSi") comprising 70% of the total
resource.  As recently announced, the Wamangola FeSi ore is strongly amenable to
beneficiation and demonstrates improved leach characteristics compared to run-
of-mine ore, and FeSi ore comprises the majority of the ore resource.
At the Wamangola deposit, the Indicated JORC category has increased by 7Mt* to
55.2Mt at a grade of 0.94% Ni and the overall JORC resource is now 57.9Mt.
* For comparison the prior 2010 resource has been revised to report the
estimated resource above a 0.55% Ni cut-off grade
Total September 2012 Wamangola Mineral Resource - Indicated Resource estimate
reported above a 0.55% nickel cut-off grade.

---------------------------------+----------------------------------------------
JORC (2004) | Ni Co SiO2 Al2O3 Fe2O3 MgO
Resource Lithology |Tonnes (Mt) (%) (%) (%) (%) (%) (%)
category |
---------------------------------+----------------------------------------------
Indicated Ferruginous- |  42.0 0.93 0.027 72.30 2.83 12.33 3.90
siliceous |
|
  Transitional |  13.2 0.99 0.019 51.61 1.77 11.31 19.20
---------------------------------+----------------------------------------------
Total Indicated |  55.2 0.94 0.025 67.36 2.58 12.08 7.55
---------------------------------+----------------------------------------------
Inferred Ferruginous-siliceous |  1.48 0.72 0.031 73.23 2.81 11.96 4.14
|
  Transitional |  0.37 0.66 0.018 52.21 2.48 12.08 19.40
|
  Saprock |  0.84 1.00 0.016 36.07 0.66 7.78 33.54
---------------------------------+----------------------------------------------
Total Inferred |  2.68 0.80 0.025 58.80 2.10 10.67 15.37
---------------------------------+----------------------------------------------
Total |  57.9 0.94 0.025 66.96 2.56 12.02 7.91
---------------------------------+----------------------------------------------


Small discrepancies may occur due to the effects of rounding

Total September 2012 Dutwa Project Mineral Resource - Indicated Resource
estimate reported above a 0.55% nickel cut-off grade.



-----------+---------+--------------+-------------------------------------------
JORC (2004)| | | Tonnes Ni Co SiO2 Al2O3 Fe2O3 MgO
Resource | Deposit | Lithology | (Mt) (%) (%) (%) (%) (%) (%)
category | | |
-----------+---------+--------------+-------------------------------------------
Indicated | Ngasamo |Ferruginous- | 30.5 0.87 0.035 71.96 1.85 12.95 6.23
| |siliceous |
| | |
  |   |Transitional | 10.9 0.97 0.028 52.35 1.19 14.29 17.74
| | |
  |   |Saprock | 4.70 1.01 0.026 37.71 0.33 7.81 33.31
| +--------------+-------------------------------------------
  |   |Sub-total | 46.1 0.91 0.032 63.84 1.54 12.74 11.70
+---------+--------------+-------------------------------------------
  |Wamangola|Ferruginous- | 42.0 0.93 0.027 72.30 2.83 12.33 3.90
| |siliceous |
| | |
  |   |Transitional | 13.2 0.99 0.019 51.61 1.77 11.31 19.20
| +--------------+-------------------------------------------
  |   |Sub-total | 55.2 0.94 0.025 67.36 2.58 12.08 7.55
-----------+---------+--------------+-------------------------------------------
Total Indicated | 101 0.93 0.028 65.76 2.11 12.38 9.44
-----------+---------+--------------+-------------------------------------------
Inferred | Ngasamo |Ferruginous- | 0.70 0.99 0.027 74.32 1.67 13.29 4.84
| |siliceous |
| | |
  |   |Transitional | 0.41 0.91 0.020 50.25 1.85 12.24 18.60
| | |
  |   |Saprock | 1.62 0.74 0.019 39.58 0.32 8.62 31.87
| +--------------+-------------------------------------------
  |   |Sub-total | 2.73 0.83 0.021 50.04 0.89 10.35 22.99
+---------+--------------+-------------------------------------------
  |Wamangola|Ferruginous- | 1.48 0.72 0.031 73.23 2.81 11.96 4.14
| |siliceous |
| | |
  |   |Transitional | 0.37 0.66 0.018 52.21 2.48 12.08 19.40
| | |
  |   |Saprock | 0.84 1.00 0.016 36.07 0.66 7.78 33.54
| +--------------+
  |   |Sub-total | 2.68 0.80 0.025 58.80 2.10 10.67 15.37
-----------+---------+--------------+-------------------------------------------
Total Inferred | 5.41 0.81 0.023 54.39 1.49 10.51 19.21
------------------------------------+-------------------------------------------
Grand Total | 107 0.92 0.028 65.18 2.07 12.29 9.94
------------------------------------+-------------------------------------------

Small discrepancies may occur due to the effects of rounding



Two nickel laterite deposits, Wamangola and Ngasamo, comprise the Dutwa Nickel
Project located at the top of low hills rising above the plain. The Wamangola
deposit has three main mineralised (weathering) horizons overlying the bedrock;
a ferruginous-siliceous horizon, a transitional horizon, and a saprock horizon.



The Wamangola deposit host rocks and mineralisation strike east-west and dip
gently to the north and to the south following the topography of the hill.



The Wamangola resource upgrade drill programme of 93 vertical holes comprised
4,378 metres ("m") of reverse circulation ("RC") drilling, bringing the total
number of RC drill holes at Wamangola to 421.  African Eagle commenced the
drilling in early November 2011 and completed the work in early February 2012.
 Assays were carried out at Omac Laboratories in Ireland on 3m composited RC
drill cuttings, with overall approximately 15% of quality control samples
(reference standards, blanks and duplicates) inserted into the sample stream.
The programme was specifically designed to upgrade the previously classified
Inferred resource to Indicated category and was defined with the assistance and
approval of Snowden of Perth, Australia, African Eagle's deposit modelling and
resource geology contractor. African Eagle has completed a total of 23,255m of
resource drilling at Wamangola.

The previous publically reported resource estimate for the Wamangola deposit was
completed by Snowden in December 2010 at which time the Mineral Resource was
reported above a 0.43% Ni metal equivalent cut-off.  In order to allow direct
comparison between the December 2010 and current September 2012 Mineral
Resources the 2010 model was revised to report above a 0.55% Ni cut-off grade.


The total September 2012 Mineral Resource estimate for the Wamangola deposit was
developed by Snowden and is summarised in the Table above. The Mineral Resource
has been classified and reported in accordance with the 2004 Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code and ASX Companies Updates). The resource classification was based on a
review of the data quality and an assessment of the confidence in the geological
and nickel grade continuity.


As part of the updated resource estimate, Snowden updated the September 2010
geology and nickel mineralisation interpretation with data collected from the
recent drilling and built a new resource block model. Snowden elected to use the
Datamine Unfold process to address the impact of the dipping mineralisation on
the variogram modelling and the grade estimation. In situ density values were
assigned to the model blocks based on assigning fixed (mean) values based on
rock type derived core measurements. Estimates of all grades including Ni, Co,
SiO2, Al2O3, MgO, and Fe2O3 were made using ordinary block kriging.

The Wamangola Mineral Resource estimate is reported above a 0.55% nickel cut-off
grade. The cut-off grade was provided by African Eagle and was based on the
following assumptions:



·           Based on atmospheric tank leach testing African Eagle expect the
overall process recoveries of nickel and cobalt will be approximately 80% and
70% respectively.

·           Average three-year LME metal prices of US$10 per pound of nickel and
US$17 per pound of cobalt, based on historical prices over the period May 2010
to May 2012.

·           Acid consumption per tonne of dry ore between approximately 357 kg
to 566 kg.



Qualified Person

Richard Sulway is a member of the Australasian Institute of Mining and
Metallurgy (MAusIMM(CP)) and has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity to which he is undertaking to qualify as a competent person as defined
in the 2004 edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Richard Sulway is a full-time
employee of Snowden Mining Industry Consultants Pty Ltd and is a Qualified
Person under AIM rules.  Richard Sulway consents to the inclusion in the report
of the matters based on his information in the form and context in which it
appears.


For further information, please visit www.africaneagle.co.uk or contact:

African Eagle Resources plc
Trevor Moss, CEO
Alex Buck
+44 20 7248 6059

Canaccord Genuity Limited (NOMAD)
Rob Collins or Andrew Chubb
+ 44 20 7523 8000

Ocean Equities Limited (Joint Broker)
Guy Wilkes
+44 20 7786 4370

Russell & Associates, Johannesburg
Charmane Russell or Marion Brower
+27 11 880 3924

About African Eagle
African Eagle Resources plc is a nickel development and exploration company
listed on the London AIM (AFE) and Johannesburg AltX (AEA) stock exchanges. The
Company's flagship project is the Dutwa Nickel project in Tanzania located about
25km south of Lake Victoria and 110km east of Mwanza within greenstone gold
belts which host many of Tanzania's operating and developing gold mines. The
Company is currently conducting a Bankable Feasibility Study, which is due for
publication during 2013.



This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: African Eagle Resources PLC via Thomson Reuters ONE
[HUG#1642555]




Unternehmen: African Eagle Resources PLC - ISIN: GB0003394813