Name and Location
Dutwa nickel laterite project, Tanzania.

Client
Blackdown Resources.

Project Description
The Dutwa project comprises two nickel laterite deposits – Wamangola and Ngasamo Hills – located about 7 km apart.

The project is targeting openpit mining, with minimal prestripping required.

Nickel ores will be processed in a hydrometallurgical treatment plant, with a nominal throughput of three-million tons a year to produce about 27 000 t/y nickel in concentrate using atmospheric tank leaching.

The concentrate is expected to contain about 50% metal in the case of a mixed sulphide product or 35% metal in the case of a mixed hydroxide product.

Dutwa has an estimated life-of-mine of more than 20 years.

Value
Should an atmospheric tank-leach plant be considered, the project would require an estimated capital expenditure of $600-million. Alternatively, a heap-leaching plant will cost an estimated $550-million to develop.

Duration
A bankable feasibility study is expected to be completed in 2013 and first production is targeted for 2016.

Latest Developments
African Eagle recently sold substantially all of its subsidiaries, assets and liabilities to Blackdown Resources, a subsidiary of Cienega, but retains a 10% free carried interest in the Dutwa nickel project.

The interest is nondiluting until Blackdown has spent $20-million on exploration and the development of projects and assets in the business of the group, or a bankable feasibility study on the Dutwa project has been completed.

Key Contracts and Suppliers
GRD Minproc, now part of the Amec group of companies (scoping study); Mintek Laboratories (acid-leach tests and mineralogical analyses); Cutfield Freeman and Company (advisory services – overall project financing and securing a strategic partner); Lycopodium Minerals (BFS engineering contractor); Knight Piésold (geotechnical engineer); SGS (pilot plant laboratory); and Citrus Partners and MTL Consulting (ESIA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
African Eagle Resources, tel +44 20 7248 6059, fax +44 20 5640 6899 or email info@africaneagle.co.uk.
Mintek Laboratories, tel +27 11 709 4111, fax +27 11 793 2413 or email info@mintek.co.za.
Cutfield Freeman and Company, tel +44 207 349 5250 or fax +44 207 349 5270.
Lycopodium Minerals, tel +61 8 6210 5222 or fax +61 8 6210 5201
Knight Piésold, tel +27 11 806 7111 or fax +27 11 806 7100.
SGS, tel +27 11 680 3466 or fax +27 11 433 3654.
Citrus Partners, email info@citrus-partners.com.
MTL Consulting, tel +255 22 2120882.