African Eagle Resources PLC : African Eagle Resources PLC : Dutwa Beneficiation Results and Metallurgical Update

      African Eagle Resources PLC : African Eagle Resources PLC : Dutwa
                Beneficiation Results and Metallurgical Update

22  January  2013:  African  Eagle  Resources  plc  ("African  Eagle"  or  the 
"Company") (AIM: AFE; AltX: AEA) is pleased to announce test work results that
confirm the  positive  beneficiation results  for  the Wamangola  and  Ngasamo 
Ferruginous Siliceous ("FeSi") and Transition ores, following completion of  a 
targeted metallurgical  variability test  work campaign.  The results  compare 
favourably to those already  obtained for the Wamangola  FeSi ores (see  press 
release dated 12 September  2012) and extends  the knowledge of  beneficiation 
performance to the full resource base.

The variability  test work  programme involved  tests on  both Dutwa  deposits 
(Wamangola and Ngasamo) and  both principal ore  types (FeSi and  Transition). 
Further test work  on the leach  response of the  beneficiated ores is  still 
underway and will be finalised and reported later in Q1 2013.

Principal Conclusions from recent tests:

  *Beneficiation prior to downstream  processing optimises the operating  and 
    capital costs of the Dutwa project;

  *The results demonstrate that the  run-of-mine ("RoM") FeSi ores from  both 
    deposits are strongly amenable to beneficiation via silica rejection;

  *RoM Transition ores from both deposits are also amenable to beneficiation,
    although for Wamangola  these upgrade  to a  lesser extent  than the  FeSi 

  *Improved geometallurgical understanding of  the beneficiation response  of 
    ores from the two  deposits has resulted in  an improved understanding  of 
    reagent consumptions and their influence on operating costs; 

  *The  test   work  has   enabled   development  of   mathematical   upgrade 
    relationships for the key metals:  nickel, iron, magnesium and  aluminium, 
    as a function of the silica content  in the RoM ores which can be  applied 
    in the optimisation of the mining schedule; 

Additional Metallurgical Leach Testing Undertaken:

Prior test  work performed  in  2012 indicated  that  the leach  behaviour  of 
beneficiated FeSi ore from Wamangola is generally superior to that of RoM ore.
As a  means  of confirmation,  a  further metallurgical  programme  has  been 
undertaken to confirm the leach response of the beneficiated ores. This  test 
programme is nearing completion and the  results are expected to be  announced 
during Q1 2013.  The leach  test programme is  designed to  confirm the  leach 
response (metal recoveries and  acid demand) of  both beneficiated "FeSi"  and 
beneficiated  Transition  products  with  testing  of  further  samples   from 
Wamangola and  Ngasamo  and extend  the  understanding of  the  overall  leach 
performance and acid demand.

Ore beneficiation is anticipated to positively impact the Dutwa project, as it
minimises both the acid requirements per unit of nickel leached and  optimises 
the capacity of the processing plant.

Summary Details of Beneficiation Test Results
Extensive and comprehensive metallurgical variability test work has been
conducted to verify the beneficiation responses observed on bulk samples by
taking measurements across a range of ROM ore grades on samples from both the
Wamangola and Ngasamo deposits.

In conformance with expectations, the results indicated that:

  *Moderate scrubbing power input between 2 and 4 kWh/t will be required  for 
    the majority of ores from both Wamangola and Ngasamo; and

  *The optimal economic cut-point for the Dutwa ores (defined as the particle
    size above which material  is either rejected to  low grade stockpile  (or 
    waste) and below which is processed is likely to be 3.35 mm.

Statistical analysis of the overall results from the variability testing  has, 
importantly,  determined  empirical  mathematical  relationships  between  the 
upgrade factors of the  key metals (Ni,  Fe, Mg, Al)  and the silica  (SiO[2]) 
concentrations in  the  RoM ores.  These  relationships in  turn  enable  the 
reasonable prediction of beneficiation recoveries and product grades by mining
block, and  will be  applied to  optimise the  mining schedule  for the  Dutwa 
project. The key findings  of the variability test  program are summarised  in 
Table 2 below.

Furthermore  the  reliability  of  reagent  consumption  and  operating  costs 
estimations has been significantly  improved through greater  geometallurgical 
understanding of the  beneficiation response  of the ores  from Wamangola  and 

The beneficiation  batch test  work was  performed by  ALS Metallurgy  (Perth, 
Western  Australia)  to  determine  the  energy  requirements  for   effective 
scrubbing. The work with bulk samples was performed using a large ~0.8  tonne 
composite  sample  prepared  from  multiple  drill  holes  whilst  variability 
programmes undertaken by SGS Lakefield  Oretest (Perth, Western Australia)  as 
well as  by ALS  Metallurgy  utilised smaller  sample sizes  corresponding  to 
either 3m or 9m lengths of core from single drill holes. In both cases samples
were  created  from  diamond  drill  cores  from  each  deposit,  selected  in 
accordance with the expected mining schedule. 

The diamond drill hole locations were selected to be spatially  representative 
of the  planned pit  shells.  Beneficiation tests  comprising scrubbing  in  a 
simple rotating drum mill followed by  size separation by screening. The  test 
work was performed with nip-crushed  (100% passing 50mm) ore samples  prepared 
with potable water.

Mass and  metal  recoveries from  individual  beneficiation tests  (at  4kWh/t 
energy input) on  representative sub-samples  (~50kg dry weight)  of the  bulk 
composites and variability composites are summarised  in Table 1 and Table  2, 

Table 1: Beneficiation Results for Dutwa Bulk Composite Ore Samples

  Deposit/Ore    % Mass   % Nickel     Feed     Beneficiated Grade %   Upgrade
     Type       Recovery Recovery ^1  Grade            Nickel          Factor
                                     % Nickel
Wamangola -       40.0      78.5       1.01             1.99            1.97
Wamangola         58.4      79.3       1.15             1.56            1.36
Ngasamo - FeSi    40.3      59.9       0.93             1.39            1.49
Ngasamo -         40.2      57.3       0.73             1.05            1.43

1.Percentage recovery to beneficiation product only.

Table 2:  Beneficiation  Characteristics of  Dutwa  Ores (Mean  values)  from 
Variability Testing

Deposit - Ore     % Mass   % Nickel     Feed Grade (ROM   Beneficiated Upgrade
Type             Recovery Recovery ^1      ore) % Ni         Grade     Factor
                                                            % Nickel
Wamangola "FeSi"   47.0      75.9            1.01             1.68      1.67
Wamangola "FeSi"   48.6      77.2            1.17             1.85      1.62
(PW core)
"Transition"       55.5      63.5            1.72             1.89      1.17
(PQ and PW)
Ngasamo "FeSi"     40.0      69.9            1.01             1.77      1.79
Ngasamo            48.0      78.0            1.10             1.91      1.78

1.Percentage recovery to beneficiation product only.

The Wamangola FeSi variability samples  achieved an upgrade factor of  between 
1.62 and 1.67 on average for a 3.35 mm cut size, with nickel recoveries of  76 
to 77%. 

For the variability samples, increase in the upgrade factor for Wamangola FeSi
to 1.86 was noted with a hypothetical 0.5 mm cut size although nickel recovery
was lowered to 73.15%. The difference  in the beneficiated FeSi grade at  the 
0.5 mm cut size was slight (0.2% Ni increase).

Whilst the results from both the bulk and variability beneficiation test  work 
indicate the potential to beneficiate the transition ores, it is evident  that 
transition ores  are  less amenable  to  beneficiation by  wet  scrubbing  and 
screening than FeSi ores, particularly for Wamangola, as shown in Tables 1,  2 
and 4. However, the ability to  recover nickel from RoM transition ores  using 
atmospheric tank leaching has been previously demonstrated, as announced on 12
September 2012.

Further  work  to   quantify  the  cost-benefit   relationships  of   leaching 
beneficiated versus un-beneficiated transition ores has been undertaken by the
Company, with results expected later in Q1 2013.

Table 3:  Beneficiation Results  for Wamangola  Bulk FeSi  Ore versus  Screen 
(Cut) Size used to obtain Product

Screen Size  % Mass   % Nickel    Feed Grade (ROM ore) %  Beneficiated Upgrade
(mm)        Recovery Recovery ^1            Ni               Grade     Factor
                                                            % Nickel
- 3.35        43.3      81.2               1.09               2.04      1.88
- 1.18        40.3      80.2               1.09               2.16      1.99
- 0.5         38.0      79.2               1.09               2.27      2.08

1.Percentage recovery to beneficiation product only.

Table 4:  Beneficiation  Results for  Wamangola  Bulk Transition  Ore  versus 
Screen (Cut) Size used to obtain Product

Screen Size  % Mass   % Nickel    Feed Grade (ROM ore) %  Beneficiated Upgrade
(mm)        Recovery Recovery ^1            Ni               Grade     Factor
                                                            % Nickel
- 3.35        58.4      79.3               1.15               1.56      1.36
- 1.18        55.7      77.3               1.15               1.60      1.39
- 0.5         52.6      74.6               1.15               1.63      1.42

1.Percentage recovery to beneficiation product only.

Reasonable upgrade factors were  obtained from Ngasamo FeSi  ores as shown  in 
Tables 2 and  5, but  also resulted  in more  nickel reporting  to the  reject 
stream, with  lower  nickel  recoveries versus  Wamangola.  Overall,  slightly 
better results were determined for the Ngasamo variability samples with around
69.9% of the nickel being recovered on average from FeSi ores using a 3.35  mm 
cut point. The beneficiated grade averaged 1.77% Nickel (at 3.35mm).

Table 5: Beneficiation Results for Ngasamo Bulk FeSi Ore versus Screen  (Cut) 
Size used to obtain Product

Screen Size  % Mass   % Nickel    Feed Grade (ROM ore) %  Beneficiated Upgrade
(mm)        Recovery Recovery ^1            Ni               Grade     Factor
                                                            % Nickel
- 3.35        40.3      59.9               0.93               1.39      1.49
- 1.18        36.7      58.4               0.93               1.48      1.59
- 0.5         34.4      57.4               0.93               1.58      1.67

1.Percentage recovery to beneficiation product only.

Technical terms
A glossary of technical terms used  by African Eagle in this announcement  and 
other       published       material        may       be       found        at

Qualified Person
Information in this report relating to metallurgical test results is based  on 
data reviewed by  Chad Czerny PhD,  Project Manager -  Metallurgy for  African 
Eagle Resources, who is a Member  of the Australasian Institute of Mining  and 
Metallurgy, has more  than 20  years' relevant  experience in  the mining  and 
metallurgical industry, and  is a  Qualified Person under  AIM guidelines.  Dr 
Czerny consents to the inclusion of the information in the form and context in
which it appears.

For further information, please visit contact:

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

Canaccord Genuity Limited (NOMAD and Joint Broker)
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 explorationcompany
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.


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information contained therein.

Source: African Eagle Resources PLC via Thomson Reuters ONE
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