Mining Weekly Online quoted Mr Chris Davies operations director of African Eagle as saying that the major nickel discovery at Dutwa in Tanzania was poised to eventuate into a low cost mine by 2012 when some analysts were forecasting a nickel price of USD 8 per pound.

Mr Davies said that the economic viability of the proposed nickel project had been based on a nickel price of USD 7 per pound and a breakeven price of USD 6.50 per pound. He added that at USD 7 per pound, the project would yield USD 1.5 billion in revenue over the life of mine, which was currently 21 years.

He added that agitated tank leach technology was found to be the most viable of the processing options, followed by heap leaching, and no recourse would be necessary to the expensive, high pressure acid leach technology that had given nickel laterites a bad name.

Mr Bevan Metcalf finance director of African Eagle said that the Aim and JSE listed company still had GBP 1.5 million in cash. He added that the pre feasibility study under way would require an investment of between GBP 2 million and GBP 2.5 million and the company would need to raise additional funds in the coming months.

(Sourced from www.miningweekly.com)