African Eagle’s Zanzui nickel project may offer economies of scale for nearby Dutwa

African Eagle Resources’ (LON:AFE) has revealed ‘very favourable’ drilling results from the Zanzui project, which potentially offer economies of scale for the development of the nearby Dutwa nickel project, in Tanzania.

At Zanzui the drilling results indicate significant nickel and cobalt intersections, the company said. The highlights ranged from 39-42m with nickel grades between 0.9 and 1.5%, and 27-36m with cobalt grades between 0.14 and 0.30%.

“The nickel grades are marginally lower than at Dutwa, but the cobalt grades are significantly higher,” African Eagle MD Mark Parker commented.
“Potentially, this offers economies of scale for the development of Dutwa and augurs well for the long term sustainability of African Eagle's nickel activities in this promising region."

Zanzui is located just 50km south of African Eagle’s flagship Dutwa nickel project, which has a total contained resource of 845,000 tonnes of nickel equivalent - 806,000t nickel & 30,000t cobalt - after a recent upgrade in June.

African Eagle drilled 49 reverse circulation hole, averaging depths of 61m.

Drilling highlights include intersections with 39m at 1.5% nickel, including 6m at 3.1%, another with 42m at 1.1% nickel including 6m at 2.8%, and 39m at 1% nickel, including 15m at 1.48%. For Cobalt the best two intersections were 27m at 0.30% cobalt, including 15m at 0.47% and 42m at 0.15% cobalt, including 9m at 0.46%.

The company described the latest results as ‘very favourable’ and emphasised that, together with 2008’s drilling data, it is expected to provide sufficient data to conduct a preliminary resource estimate for Zanzui.

Previously in 2008, a 30-hole, 1,940m drilling programme indicated that parts of the Zanzui complex have a
nickel-enriched laterite blanket, similar to that at Dutwa. Later in 2009, African Eagle received favourable metallurgical results, from acid leach tests, on these drill samples.

Parker noted that although “efforts are directed principally towards completing the feasibility study at the Dutwa nickel project,” African Eagle is also pursuing “future upside by evaluating other nearby oxide nickel deposits”.

Since it discovered the major oxide nickel deposits at Dutwa, African Eagle has been in transition from a diversified explorer into a nickel mining company. At Dutwa, the company has already completed a positive scoping study, and is now working towards a full feasibility study.