New Drilling at African Eagle’s High-grade Msasa Gold Projectadmin
AIM quoted African Eagle Resources plc (”African Eagle” or ”the Company”, ticker AIM: AFE) is pleased to announce that MDN Northern Mining (”MDN”, TSE:MDN) has started reverse circulation drilling at the Company’s 90 per cent owned Msasa Gold Project in Tanzania.
Under an option agreement signed in May 2006, MDN is investing US$200,000 in exploration at African Eagle’s Msasa project, to earn the right to acquire a 51% interest in the project by investing a further US$1.7m. MDN can then increase its participation to 65% by financing a feasibility study.
Exploration already carried out by African Eagle has returned gold assay values indicating that the Msasa area holds high-grade mineralisation with similarities to that at Tulawaka Gold Mine, 15km to the northeast, which is a joint venture between MDN (30%) and Barrick Gold Corporation (70%). African Eagle’s Msasa drilling intersected gold-bearing quartz veins, including one very high grade section which assayed 81 grams per tonne of gold over 9 metres.
African Eagle’s Managing Director Mark Parker comments ”Our own drilling, geophysics and geochemistry has revealed that Msasa could be a significant high-grade deposit. At this location, which is within easy trucking distance of the Tulawaka plant, even a small high-grade deposit would be significant. MDN is showing a strong commitment to this project and we are looking forward keenly to the results of the drilling programme”.
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