London, England — MININGREVIEW.COM — 17 May 2010 – African Eagle Resources plc “’ a diversified mineral exploration and development company operating in eastern and central Africa “’ and ASX-quoted minerals group Macquarie Harbour Mining Limited (MHM) have signed a letter of intent to enter a joint venture to develop a gold mine at African Eagle’s Miyabi project in Tanzania.
A statement issued here confirmed that in terms of the agreement, MHM would provide all the technical expertise and funding for a feasibility study which would enable MHM to make a decision to develop a mining operation at the Miyabi gold project. African Eagle would retain 25% of its interest in the project, and its past exploration expenditure would be credited against the development costs.
African Eagle managing director, Mark Parker commented: "This transaction provides a quick and effective route to take Miyabi into production, fully crediting African Eagle’s past exploration expenditures against the costs of developing the mine, which we believe will amount to a free-carry into production. Macquarie Harbour Mining is keen to advance Miyabi into production as quickly as possible, based on the resources already defined by African Eagle. Part of the revenue from production will be invested in expanding the current JORC resource of 520000oz of gold and extending the mine life,” he added.
Parker went on to say that the transaction represented further delivery on African Eagle’s stated intention of developing into an operator, bringing in like-minded partner companies for its extensive ‘non-core’ copper, gold and uranium portfolio. “African Eagle is currently undertaking a pre-feasibility study at its Dutwa Nickel Project in Tanzania, which will be completed around the end of the year," he said.