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African Eagle drilling reveals 3% copper in Mkushi project

African Eagle drilling reveals 3% copper in Mkushi project
By Kabanda Chulu
Monday October 20, 2008 [04:00]

AFRICAN Eagle Resources managing director Mark Parker has said latest drill results from the Mkushi copper projects have revealed higher grades of copper at 3.12 per cent.

And Parker said that the new taxation system announced earlier this year in Zambia did not appear to negate the viability of the project but would be the subject of detailed financial analysis by the company.

Giving an update on the project that is expected to commence production in 2010, Parker said that the results also revealed the extended potential of the project’s mineralised zones.

“The latest drilling results are very encouraging, notably the very good intersection reported from hole MMU038 and continue to confirm the high grade of some of the mineralised zones," Parker said.

“The Mkushi project remains firmly on schedule, with the feasibility study due for completion at the end of October and the upgraded resource and the Zambian government's approval of our application for a full mining licence are major steps on the road to production, which could begin by mid-2010.”

Parker explained that continued resource drilling was yielding encouraging results in the south and that further resource drilling was planned within the old open pit (Munshiwemba), from which the water had been pumped out for this purpose.

He said that African Eagle Resources had recorded higher-grade copper results at 3.12 per cent and there was strong indication that the high-grade mineralisation stretch continues deeper below the surface.

"These results extend the resource potential of the principal mineralised zones and indicate extensions of the zones at depth. We look forward to completion of the prefeasibility study and resource update in the next few weeks," Parker said.

He expressed optimism that the marketing of the copper concentrate, including direct discussions with off-take companies, indicates that sales agreements would be negotiable within Zambia itself.

The Mkushi copper project is located 30 kilometres away from the Boma and it would draw water from the Lunsemfwa River and power sources would come from the Zesco grid and the Lunsemfwa Hydro Power Company that would be complemented by diesel generation.

Labels: AFRICAN EAGLE RESOURCES, COPPER, MINING

posted by MrK @ 2:44 PM