Significant Nickel Deposit

Geology

Dutwa lies in the Kilimafedha (Swahili for "money hills") greenstone belt of the Lake Victoria Goldfields. The greenstones, of Archaean Nyanzian age, are mostly metamorphosed volcanic and sedimentary rocks, with some banded iron formation in the east. Several large ultramafic bodies, possibly of early Proterozoic age, are intruded within the greenstones, and in a number of instances surficial nickel laterites have form on top of these.

Ground magnetic surveys and soil sampling have delineated a number of these ultramafic bodies which, in addition to hosting nickel laterite deposits, may contain nickel sulphide and Platinum Group Metals (PGM’s). Exploration to date has also defined a number of gold in soil anomalies.

Resource

In June 2008, African Eagle Resources plc undertook trial drilling over the main nickel anomaly at Wamangola Hill. The results were very encouraging and a 139 hole reverse circulation (RC) drilling programme was completed, delineating a maiden JORC inferred mineral resource in November 2008.

Since 2008 the project has expanded and now includes two hill top deposits, Wamangola and Ngasamo, which form thick residual lateritic caps on the tops of low ridges 7km apart. To date a total 42, 864m of RC drilling has been completed and 8,147.33m of diamond drilling.

An updated JORC resource was completed in 2013 and indicated and inferred resources of approximately 106 Mt @ 0.93% Ni have been defined by Snowden Mining Industry Consultants Ltd of Perth, Australia.

The resource estimates of the Wamangola and Ngasamo deposits are summarised in the tables below.

 

 

 

 

 

 

 

 

 

 

 

 

July 2012, Wamangola Mineral Resource Estimate - 0.55% nickel cut-off.

                             

JORC (2004) Resource Category

Lithology

Tonnes (Mt)

Ni (%)

Co (%)

SiO2 (%)

Al2O3 (%)

Fe2O3 (%)

MgO (%)

Ca (%)

S   (%)

Cr2O3 (%)

Mn (%)

Cu (%)

Zn (%)

Indicated

Ferruginous-Siliceous

42

0.93

0.027

72.3

2.93

12.33

3.9

0.26

0.025

0.63

0.17

0.005

0.011

Transitional

13.2

0.99

0.019

51.61

1.77

11.31

19.2

1.09

0.026

0.67

0.12

0.004

0.008

 

Total

55.2

0.94

0.025

67.36

2.58

12.08

7.55

0.46

0.025

0.64

0.16

0.005

0.011

Inferred

Ferruginous-Siliceous

1.48

0.72

0.031

73.23

2.81

11.96

4.14

0.31

0.026

0.54

0.17

0.005

0.012

Transitional

0.37

0.66

0.018

52.21

2.48

12.08

19.4

1.23

0.027

0.68

0.12

0.006

0.007

Saprock

0.84

1

0.016

36.07

0.66

7.78

33.54

1.05

0.025

0.44

0.08

0.004

0.006

 

Total

2.68

0.8

0.025

58.8

2.1

10.67

15.37

0.67

0.026

0.53

0.14

0.005

0.009

                             

Small discrepancies may occur due to the effects of rounding

                             

June 2012, Ngasamo Mineral Resource Estimate - 0.55% nickel cut-off.

                             

JORC (2004) Resource Category

Lithology

Tonnes (Mt)

Ni (%)

Co (%)

SiO2 (%)

Al2O3 (%)

Fe2O3 (%)

MgO (%)

Ca (%)

S   (%)

Cr2O3 (%)

Mn (%)

Cu (%)

Zn (%)

Indicated

Ferruginous-Siliceous

30.5

0.87

0.03

71.96

1.85

12.95

6.23

0.18

-

0.75

0.16

0.01

0.02

Transitional

10.9

0.97

0.03

52.35

1.19

14.29

17.74

0.91

-

0.72

0.12

0

0.01

Saprock

4.7

1.01

0.03

37.71

0.33

7.81

33.31

0.76

-

0.43

0.07

0

0.01

 

Total

46.1

0.91

0.03

63.84

1.54

12.74

11.7

0.41

-

0.71

0.14

0

0.01

Inferred

Ferruginous-Siliceous

0.7

0.99

0.03

74.32

1.67

13.29

484

0.24

-

0.46

0.14

0.01

0.01

Transitional

0.4

0.91

0.02

50.25

1.85

12.24

18.6

1.63

-

0.89

0.11

0.01

0.02

Saprock

1.6

0.74

0.02

39.58

0.32

8.62

31.87

0.83

-

0.56

0.08

0

0.01

 

Total

2.7

0.83

0.02

50.04

0.89

10.35

22.99

0.8

-

0.58

0.1

0

0.01

                             

Small discrepancies may occur due to the effects of rounding

 

Images

Drilling at Dutawa site

Perspective view of Ngasamo hill showing the base of mineralisation

Westward view of the ore-body at Wamangola Hill with vertical RC drill holes

JORC 2010 Resources* MT % NI eq. NI % Co% Si02% AI203% Fe203% Mg0%
Indicated
Wamangola 46.2 0.97 0.93 0.03 69.0 2.4 12.1 6.9
Inferred
Wamangola 14.1 0.85 0.82 0.02 60.5 2.3 11.7 13.1
Ngasamo 38.2 1.01 0.97 0.03 63.1 1.6 13.7 11.6
Total 98.6 0.96 0.93 0.02 65.5 2.1 12.6 9.6

* Source Snowden

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