African Eagle Resources (AIM: AFE; AltX: AEA) today announced a 20% resource increase at its first copper project, Mkushi in Zambia, that will extend the life of the mine by two years. The project is the company's most advanced project and will generate first revenue for African Eagle over the next three to five years. Mark Parker, managing director of African Eagle, told Mineweb today the Mkushi project's feasibility study was scheduled to be completed by the fourth quarter of this year and the company plans to be in open pit production here by 2010. A full mining licence for the project has also been approved. The project's larger resource of 18.5mt at a grade of 0.83% copper has been upgraded to the indicated category which gives the company and investors greater confidence in it. The bigger resource has extended the life of the mine from six to about eight years, while its profitability level will still be further refined. Parker said the feasibility study has not produced any unwanted surprises at this stage and the company has covered any "unknown unknowns" around the project. Mkushi will produce about 30,000t of contained copper annually once the project is up and running.

Tags: copper mineral royalty taxation zambia on 07-22-2008 -Cached -About Shared by:Emil Milker

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