Johannesburg, South Africa — MININGREVIEW.COM — 08 April 2009 – African Eagle Resources plc – a UK-incorporated mineral exploration and development company operating in Tanzania, Zambia and Mozambique – has taken on a joint venture partner for its Ngasamo licence – adjacent to the Dutwa nickel laterite project in Tanzania – which could lead to a more than 50% increase in the Dutwa resource.
Fin24 reports that the company has signed a letter of intent for an option and joint venture with Safina of the Czech Republic, and its subsidiary Tanzania Precious Metals Refinery Limited (TPMRL) for the licence.
“Safina is keen to become a fully contributing partner in the nickel project, and could bring significant capabilities to the partnership,” said African Eagle managing director Mark Parker.
In terms of 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, and could increase the Dutwa resource by more than 60% from 31 million to 50 million tonnes at 1.1% nickel.
“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,” Parker said.
If African Eagle solely funds the cost of the development, then its interest in Ngasamo would increase to 75%, while its existing 100% interest in Dutwa would remain unchanged. Once the bankable feasibility study of the combined Dutwa and Ngasamo project has been completed, TPMRL will become a partner in the combined project.