Nickel sulphide exploration
Progress is continuing at the Dutwa nickel laterite project and African Eagle (AFE:AIM) has now also identified potential for nickel sulphide and platinum group element mineralisation at Dutwa which could add a significant extra dimension to the project. A six-month geophysics and exploration drilling programme is now planned to delineate potential areas of mineralisation. Further nickel sulphide targets exist at Zanzui and the newly identified Nyawa prospect. We anticipate a capital raising to fund the Dutwa exploration programme.
Nickel sulphide exploration potential
African Eagle has identified potential for nickel sulphide and platinum group element (PGE) mineralisation at its Dutwa nickel project in northern Tanzania and now plans a six-month geophysics and exploration drilling programme to delineate potential areas of mineralisation which we estimate will cost around US$4m. Through this near-term focus on exploring the potential of the Dutwa and nearby Zanzui licences to hold economic nickel sulphide mineralisation, African Eagle seeks to generate a significant additional dimension to the Dutwa nickel project.
Strategic partner search
The search for a strategic partner for the Dutwa nickel laterite project is continuing alongside the sulphide exploration programme. A number of interested parties have signed confidentiality agreements and entered the data room, one of whom has already undertaken a site visit. The planned integrated laterite mini-pilot plant test work has been deferred as it is expected that any strategic partner will wish to influence the nature of the test programme as part of any funding it may provide to finalise the bankable feasibility study (BFS).
Valuation: Exploration upside potential
The two key near-term drivers of our African Eagle valuation are the nickel sulphide exploration results and the dilution impact from the anticipated capital raising. The upside potential from nickel sulphide exploration could be significant, but indications of the potential scale of the resource will be required before we attribute any value to this. We estimate a capital requirement in 2013 of around US$4m (£2.6m) for nickel sulphide exploration and we expect this to be funded through an equity raising. Ahead of an agreement being signed with a strategic partner, we assume the funding to complete the nickel laterite project BFS will be provided by the strategic partner taking an equity stake in the project during FY13.
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Progress is continuing at the Dutwa nickel laterite project and African Eagle (AFE:AIM) has now also identified potential for nickel sulphide and platinum group element mineralisation at Dutwa which could add a significant extra dimension to the project. A six-month geophysics and exploration drilling programme is now planned to delineate potential areas of mineralisation. Further nickel sulphide targets exist at Zanzui and the newly identified Nyawa prospect. We anticipate a capital raising to fund the Dutwa exploration programme.
Nickel sulphide exploration potential
African Eagle has identified potential for nickel sulphide and platinum group element (PGE) mineralisation at its Dutwa nickel project in northern Tanzania and now plans a six-month geophysics and exploration drilling programme to delineate potential areas of mineralisation which we estimate will cost around US$4m. Through this near-term focus on exploring the potential of the Dutwa and nearby Zanzui licences to hold economic nickel sulphide mineralisation, African Eagle seeks to generate a significant additional dimension to the Dutwa nickel project.
Strategic partner search
The search for a strategic partner for the Dutwa nickel laterite project is continuing alongside the sulphide exploration programme. A number of interested parties have signed confidentiality agreements and entered the data room, one of whom has already undertaken a site visit. The planned integrated laterite mini-pilot plant test work has been deferred as it is expected that any strategic partner will wish to influence the nature of the test programme as part of any funding it may provide to finalise the bankable feasibility study (BFS).
Valuation: Exploration upside potential
The two key near-term drivers of our African Eagle valuation are the nickel sulphide exploration results and the dilution impact from the anticipated capital raising. The upside potential from nickel sulphide exploration could be significant, but indications of the potential scale of the resource will be required before we attribute any value to this. We estimate a capital requirement in 2013 of around US$4m (£2.6m) for nickel sulphide exploration and we expect this to be funded through an equity raising. Ahead of an agreement being signed with a strategic partner, we assume the funding to complete the nickel laterite project BFS will be provided by the strategic partner taking an equity stake in the project during FY13.
To Read the Entire Report Please Click on the pdf File Below.