The shares of a major Tanzania gold mining company, African Eagle Resources (AFE), have increased by as much as 29 percent following an announcement earlier this week that exploration data from its Igurubi project have indicated the presence of significant gold deposits.
The Tanzania mining and tourism sectors together receive the majority of the country’s inward investment, thus proving to be a key foreign exchange earner and sector of potential growth for the country’s economy, with over 50 million ounces of gold reserves and resources being accounted for.
Since 1998, Tanzania has steadily grown in its potential and achievement of mineral exportation to become the third largest producer of gold in Africa.
Recent reports have indicated that AFE is currently looking for a partner to help them further develop this gold project in order to allow their focus to remain with their current 2009 strategy, which lies relies partially on the current Dutwa Nickel laterite project,.
“African Eagle’s priority for 2009 remains our major nickel discovery at Dutwa,” said Managing Director Mark Parker said in a recently reported statement, “so, we shall be looking for a partner to join us in the development of Igurubi.”
Currently, the company has said that their reports have revealed the potential for an increase in as much as 700,000 ounces of gold at the project site,
“Although the drill data are not detailed enough to support a formal resource estimate,” said Mr. Parker, “the modeling gives strong indications of the potential for at least 700 000 gold ounces.”
Calculations for this estimate were based on an African Eagle polygonal deposit model that was created with data from 2005 to 2008.
According to a statement that was released from the company, the results are not definitive, but do indicate a significant presence of gold nonetheless.
“These results do not constitute a resource conforming to the joint ore reserves committee or South African mineral resource committee codes because the drilling is relatively widely spaced and continuity of the mineralization could not be established with full confidence on some sections,” read the company’s statement, “Nevertheless, the result indicates that the area has a significant gold endowment and would be very likely to reward further exploration.”
Following the announcement, the company’s shares in Johannesburg increased 27 percent, from 51c a share to 65c a share, while reports from the London Stock Exchange also indicated an increase in African Eagle, originally to 5,5 pence, but since which time, have settled to 5 pence.