Companies: AFE   

Mineral company African Eagle says copper production at Mkushi in Zambia could begin by mid 2010 after a resource upgrade.

The AIM-quoted company says the Zambian authorities have approved its application for a full mining licence at Mkushi, where latest drilling results are encouraging and include six metres at nine per cent copper, 22 metres at 1.9 per cent, 18 metres at 2.4 per cent and 13 metres at 2.9 per cent copper. London-based African Eagle says the overall resource at Mkushi has been upgraded to 18.5 million tonnes of ore at an average grade of 0.83 per cent copper and a feasibility study on the project is on schedule for completion in the fourth quarter of this year.

Chaired by Australian mining entrepreneur John Park, with Mark Parker as managing director, the company has another core project at Miyabi in Tanzania, which claims an estimated gold resource of 500,000 oz, as well as several other earlier-stage gold and base metal projects in eastern and central Africa. At 5.75p, up 0.12p this morning, the shares have collapsed from 25.25p in late 2005, but should rally if its projects near production and the company signs up credible partners and funding arrangements.     

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.

African Eagle Resources	AIM	£4.78m	2.25p	0.12p
Click here for interactive charting
Other company articles:
African Eagle states new resource			27/11/2008
Grades boost for African Eagle			22/10/2008
African Eagle hails nickel find			26/08/2008
Upgrade cheers African Eagle			18/07/2008
Miner moots Zambian listing			08/05/2008