African Eagle Resources (LON:AFE) has announced a first resource estimate at their 85% owned Zanzui project in Tanzania. This resource estimate covers only 3km² of the total land package of 140km², so there is considerable room for expansion.
This first JORC-compliant estimate consists of in excess of 480M lbs Nickel as well as 35M lbs of Cobalt, for a combined in-situ value of just over 4 billion dollar.
We hope Zanzui will have the same economics as African Eagle’s Dutwa Nickel project, also located in Tanzania. They outlined an after-tax NPV of $385M at a Ni price of $8/lbs. Should the nickel price increase to $10/lbs, the NPV increases to $870M.
This development at Zanzui is excellent news for African Eagle, which is developing itself to be the main Nickel-player in Africa, which might attract interest from Chinese nickel consumers.
Disclosure: The author holds no position. Please see our disclaimer for current positions.
