African Eagle Resources

After increasing estimated nickel resources at Dutwa in Tanzania by 145% to 845,000 tonnes, African Eagle hopes to have a bankable feasibility study ready by late 2011.

The AIM-quoted company, which reckons it could have 92.1m tonnes there at 0.92% nickel equivalent (including cobalt), intends to complete a pre-feasibility study in the first half of next year and has been hiving off other interests to focus on Dutwa.



Steered by managing director Mark Parker, African Eagle agreed earlier this year to put its Miyabi gold project in Tanzania into a joint venture with Aussie-listed Macquarie Harbour Mining, retaining a 25% stake, worth an estimated £4m.

The company sold 75% of Tanzania's Igurubi gold project to another Australian concern, Peak Resources, for up to £2.6m in staged payments and retains a minority holding in Zambia's Mkushi copper project, which Parker surmises might be floated off, perhaps on the Lusaka Stock Exchange in Zambia, seen by him as gaining credibility as a capital raising centre.



Arguing world nickel demand is growing at 5% a year on the back of increasing stainless steel use in China and elsewhere, Parker contends it makes sense for African Eagle to concentrate on Dutwa. It would certainly help establish a stockmarket identity for the company, whose past shifts of focus have lost it support.

Floated at 6p seven years ago, the shares have been notably lacklustre performers. Highlighted by Growth Company Investor in June at 4.13p, they have so far inched forward to 4.25p, but, if Dutwa lives up to expectations, they could regain a following.