LONDON, June 15 (Reuters) - African Eagle Resources Plc has more than doubled the size of the resource estimate at its Dutwa nickel project in Tanzania, the firm said on Tuesday.
'This is a significant step forward in our feasibility work at Dutwa,' Managing Director Mark Parker said in a statement.
'The new resource estimate exceeds our expectations, tripling the tonnage and more than doubling the contained nickel equivalent from 345,000 to 845,000 tonnes.'
Tests by consultants also show that the nickel laterite deposit has favourable characteristics for processing, it added.
'Metallurgical tests have shown that the Dutwa ore is unusually, perhaps uniquely, amenable to acid leaching, with very low acid consumption and a very fast leach reaction compared to other nickel laterites around the world,' the firm said.
A preliminary study in July 2009 found that operating earnings over the life of mine would be about $2.3 billion, giving an internal rate of return of around 25 percent.
The company, listed in London and Johannesburg, is currently working on a definitive feasibility study.
(Reporting by Eric Onstad) Keywords: AFRICAN EAGLE/ (eric.onstad@thomsonreuters.com; +44 20 7542 7093; Reuters Messaging: eric.onstad.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'This is a significant step forward in our feasibility work at Dutwa,' Managing Director Mark Parker said in a statement.
'The new resource estimate exceeds our expectations, tripling the tonnage and more than doubling the contained nickel equivalent from 345,000 to 845,000 tonnes.'
Tests by consultants also show that the nickel laterite deposit has favourable characteristics for processing, it added.
'Metallurgical tests have shown that the Dutwa ore is unusually, perhaps uniquely, amenable to acid leaching, with very low acid consumption and a very fast leach reaction compared to other nickel laterites around the world,' the firm said.
A preliminary study in July 2009 found that operating earnings over the life of mine would be about $2.3 billion, giving an internal rate of return of around 25 percent.
The company, listed in London and Johannesburg, is currently working on a definitive feasibility study.
(Reporting by Eric Onstad) Keywords: AFRICAN EAGLE/ (eric.onstad@thomsonreuters.com; +44 20 7542 7093; Reuters Messaging: eric.onstad.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
