A letter of intent has recently been signed for an option agreement and a joint venture between African Eagle Resources and the Czech Republic mining company, Safina, over the Ngasamo license area that is located in one of the Tanzania mining districts of Mwanza.
According to the Managing Director of African Eagle Resources, Mark Parker, this project is very significant with the potential for positive results.
“This is a very significant agreement for African Eagle, as Ngasamo has the potential to increase the global resource at Dutwa to 50 million tons, from the current 31 million tons at 1.1% nickel,” he said.
Mr. Parker went on to explain that the proximity and geological similarity of the Ngasamo Hill to the Dutwa deposit has led his company’s geologists to believe that there are approximately 15 to 20 million tons of resources available at the Ngasamo, but more will be clear after drilling and metallurgical tests have been conducted in order to confirm the size, grade and compatibility with the Dutwa ore.
According to a recent statement that was reported by the Citizen, Safina entered into this deal through its subsidiary in the country Tanzania Precious Metals Refinery Limited (TPMRL).
“Our partner TPMRL is the Tanzanian subsidiary of SAFINA Group, a substantial metals and chemicals group from the Czech Republic,” said Mr. Parker, “SAFINA is keen to become a fully contributing partner in the nickel project, and could bring significant capabilities to the partnership.”
The area in the Magu district that is covered by the Ngasamo license is located next to the African Eagle Resources’ Dutwa nickel laterite project in Shinyaga’s Bariadi district.
According to the most recent agreement, African Eagles Resources could potentially earn an interest of as much as 75 percent in Ngasamo through its exploration and evaluation work as well as the eventual feasibility study.
Following the completion of the feasibility study or the joint Dutwa and Ngasamo project, TPMRL will become a partner with the equity percentages of each party being calculated from the each member’s relative attributable values of the project.
The Citizen reported that a statement concerning this agreement explained that the area that is covered by the license area contains a similar nickel laterite to that which has been found in the Dutwa deposit.
Based on the terms of this agreement, African Eagle will be responsible for completing the initial surface surveys program as well as for collecting samples from old prospectors’ pits and trenches, the results of which will determine how the company will begin a formal earn-in agreement in which it will acquire a 35 percent interest through the management and co-funding of a drilling program in order to define a joint ore reserves committee (Jorc) inferred service.