Companies: AFE �� RRS ��

Africa-oriented Randgold Resources has entered into a joint venture at African Eagle Resources’ Miyabi gold project in Tanzania.

Jersey-registered Randgold has agreed to fund a preliminary �125,000 drilling programme at Miyabi, now estimated to hold more than 500,000 ounces of gold. This will entitle fully listed Randgold (up 9p this morning to �12.30) to fund a pre-feasibility study on the project, thereby earning itself a 51 per cent stake.

Mark Parker, African Eagle’s managing director, says the pre-feasibility findings are likely in the third quarter of this year. If Randgold then decided to fund on its own a full bankable feasibilty study at �1.5 to �2 million, African Eagle’s share in Miyabi would fall to 35 per cent. However, if it co-funded the feasibility study, its holding would stay the same.

Once the jewel in African Eagle’s crown, Miyabi is now one of several company projects. Another is the Mkushi copper project in Zambia, with an estimated ten million tonnes of ore at 0.7 per cent copper.

That is equivalent in value to one million ounces of gold, but Parker suggests drilling could double the grade and hence the value of Mkushi. At 12p, African Eagle shares, which have swung between 28.75p in 2004 and 9p last September, are no sure thing, but offer potentially significant recovery prospects for the risk-friendly.