Ive always said I would not start looking at the Gold Explorers untill POG broke through $420, well its done that today and this company in my mind is the best potential producer around, and heres why.

MANAGEMENT

Has two experinced Managers in mining in Mark Parker and John Park, both have extensive exploration management in Africa in mining and have proved themselfs in the past selling out small mines to the big boys.

THE MINES

ZAMBIA.

Here the company as 5 potential Block busters but the REAL GEM of the company Sasere, known as EAGLE EYE is an old Gold mine but recent sampling shows that it could provide massive deposits of Copper and Gold.

These are the drilling results we are waiting for. Estimations are fantastic and we could see that the company is sitting on deposits worth many times over of the market cap of the company of circa 12.2 million.

MOZAMBIQUE

Three sites here and Nickel is the one they are looking for. Dont forget Nickel is the highest commodity riser after Gold and is hitting new highs.


TANZANIA

Big prospect here is Miyabi.

African Eagle are carrying out a joint venture with the giant Miner Gold Fields. Drilling results are to be given to Goldfields by 31/January this year.

If results are expected what the management of Goldfields want, African Eagle retain a 30% stake in one massive deposit.

This is an exciting investment but one that is HIGH RISK like any other gold explorer.

We should have news very early on two fronts.

If this news is positive we are looking at one hell of an investment.

Please Dyor and remember your buying and selling actions are in your own hands.

Cheers GF.

ps, up 19% today waiting for the results.

From UK-Analyst.com: today.
"African Eagle (a gold and base metals exploration play in Africa) gained 3p to 21p today. The company will announce before the end of this month whether giant Gold Fields has elected to farm in to its Miyabi gold property in Tanzania and the announcement could well come before the period end. Note only would this underpin the value of Miyabi but it would also free up resource to fast-track exploration at other properties notably the exciting base metals site at Sasare (Eagle Eye) in Zambia. Results from a 4,000 metre drill programme from Sasare should also be out within weeks and the company seems confident."

cheers GF.

And dont forget that few big investment houses are increasing their stakes, notably JP Morgan for its Natural Resources Fund. This fund is already 70% up since a year ago. For more info look at www.eagleye.co.uk/news

Xmortal thanks for pointing that out. Think they have just gone up another penny.

cheers GF.

Nice one GF just top sliced some OXS to buy into these !

Thanks Scottie, I feel we are on well hell of a roll.

More to come from me on this one. Fantastic prospects and could be the find of the year. Wheres my pal andy????????.

Hes a good online freind and I would like his opinion.

Cheers GF.

AFE is up 7.95% today. Low voumes though. I feel this will continue to go up until the news are released. Hold on there.

Come on news, 'make my day'.

cheers GF.

ps, dont forget aswell, theres two lots of news to come.

No news today but keep a watch out for it, its coming.

cheers GF.

Strong looking TA.



cheers GF.

African Eagle just touched up to 9% rise this morning.

cheers GF.

Yep, I got in just before this mornings rise.
A good profit already. Let's just hope there is more to come with the news we are waiting for.

Thanks for the tip on this one GF.

Rich

Hey GF. Do u know a UK company that may have oil & gas exploring interests in Libya? as you sanctions are not lifted (or near) I thinmk there is potential in that land.

Xmortal sorry no, not a big oil fan. Always seem to get burnt with oil stocks.

cheers GF.

African Eagle just been tipped by the analyst.com.............

Buy African Eagle at 22.5p
argues Dru Edmonstone

With gold breaking through US$420/oz to a fourteen year high driven by a combination of low interest rates, a falling US dollar and limited new mine supply the hunt is on for new sources of the yellow metal. In the years between 1997 and 2002 global expenditure on mineral exploration slumped from US$5.7bn to less than US$2bn in line with declining precious and base metal prices. This lack of investment in exploration has meant that not enough new gold has been discovered to replace that which has been mined.

African Eagle has a portfolio of assets in Tanzania, Zambia and Mozambique. The company successfully moved from OFEX to AIM in mid-2003 in conjunction with a 1.46m fund raising at 6.5p, with an additional 1.9m raised from two subsequent institutional placements. This has allowed African Eagle to accelerate work at its principal projects; the Miyabi gold project in the Lake Victoria goldfield in Tanzania, and the Eagle Eye copper and gold project in Zambia. The shares are currently trading at 22.5p with a market capitalization of 17m and an announcement is anticipated over the next two weeks on last years' exploration programmes.

Tanzania

The company has licences covering 900km2 of Tanzania's highly prospective Lake Victoria goldfield and its most advanced project is the 626km2 Miyabi property, where Gold Fields, the world's fourth largest gold miner, has an option to acquire 51% by spending a minimum of 2m, with a decision expected on whether to proceed before the end of this month. Since the mid-1990s mining has become an increasingly important sector of the Tanzanian economy and today it produces over 1Moz/y of gold from mines owned by major international companies including Barrick and AngloGold with over 40Moz of gold resources identified to date.

Recent drilling at Miyabi intersected broad zones of near surface mineralization at potentially economic grades that would be amenable to low-cost open pit mining. Further infill drilling is required to upgrade these results to resources and reserves, however, a 7km by 2km shear hosted gold system has been defined to date. One area within this, which was previously drilled by the company, was found to host an initial resource of 2.06Mt at 2.2g/t, 140,000oz Au. On the basis of the results generated so far, Miyabi has the potential to develop into a substantial gold deposit.

Zambia

The second string to the company's bow is its base and precious metal exploration licence at Sasare in Zambia where it has identified what appears to be an copper and gold deposit known as the Eagle Eye anomaly. The first phase of a 4,000m drilling programme was completed in December 2003 to test the continuity and grade of mineralization. Exploration at Eagle Eye is still at a comparatively early stage, however, preliminary results are extremely encouraging and it could develop into a major asset for the company.

African Eagle's relatively strong cash position will also allow it to fund exploration at other projects. These include the Muazua project in Mozambique where stream sediment sampling has identified a nickel anomaly which has been confirmed by channel chip sampling, and at the Kampumba copper project in Zambia.

It is likely that even with increased exploration the positive conditions in the gold market are likely to persist for at least the next three years and that gold exploration companies such as African Eagle will be well positioned to take advantage of this environment as its projects progress towards either production or acquisition. With exploration results expected from Miyabi and a decision from Gold Fields due within the next month this is definitely a stock worth paying close attention to with the expectation of short term with the expectation of a rise to at least 30p on positive news. Buy

Key Data

EPIC: AFE
Market: AIM
Spread: 22 - 23p
NMS: 10,000
Market Cap: 17 million ENDS.

Tipped by Dru Edmonstone aswell, which makes it even better as he is one of the better pros around.

cheers GF.

GF....Thanks for the update. I have a good gut feeling in AFE. So far in a week I made 30% profits!!! Maybe you need to take a second look at Petrel Resources (PET) it has some good prospects in Iraq. It has risen almost 100% in a 1 1/2 month. It had encouraging reviews.

AFE looks really great, what about avocet mining, this looks really interesting as well, proven mines and t/o up significantly, looks very undervalued to me.

In avocet mining and Evolution beeson gregory updated a buy note on it wednesday, buy up to 105p. Basically they feel the best value gold miner around without any currency risk. Its on my list above.

Petrel, well they really could take off if we see a shortage of oil reserves in the World. Will be interesting to see what the next OPEC meeting turns out.

cheers and have a good weekend, GF.

Will we get news this week?.

GF.

Well no news today.

GF.

Come on wheres the news??????????????????????????.

GF.

patience... they will come b4 end of Jan....fingers cross GF!

Fingers crossed indeed XM.

cheers GF.

Tipped in Aim and Ofex tipsheet as one of four shares for the year 2004.

cheers GF.

I'll double my stake later.....have a good gut feeling about this one.

GF do rate this higher than AFG

Cheers

HT.

Well thats good news. dont know much about african gold other than malcolm Stacey as it as a ten bagger this week. Jammy devil.

cheers GF.

drilling report now in and shares up 7.5%.

rns report timed at 9.02


AFRICAN EAGLE RESOURCES PLC

DRILL RESULTS FROM MIYABI IN TANZANIA CONFIRM MINERALISED BODIES EXTEND TO DEPTH
WITH INTERSECTIONS UP TO 24 g/t GOLD


African Eagle has received the results from a programme of drilling completed in
December 2003 at its Miyabi gold project in the Lake Victoria Goldfield of
Tanzania. The results included some significant gold intersections, up to 24
g/t gold over a width of 3m.


Mark Parker, African Eagle's Managing Director, commented "As we expected, the
2003 Miyabi drilling has improved the definition of the known mineralised
structures and demonstrated their continued extension at depth. It has also
revealed some new mineralised structures. Most importantly, the results will
allow our geologists to generate a predictive model of the structure and geology
of the gold deposit at Miyabi. We have achieved the main aim of the drilling
programme, which was to understand the mineralisation and target the areas where
future drilling can quantify gold resources."


Miyabi is an extensive shear hosted gold system which the Company is exploring
together with a subsidiary of Gold Fields Limited. The new drilling results
have now been provided to Gold Fields, which has until 31 January 2004 to
exercise its option to enter a joint venture with African Eagle over the Miyabi
project.

____________________________________________________


The Miyabi project area contains a shear zone hosted gold system discovered by
African Eagle in 1999. The gold system lies within a 300 square km area of
poorly exposed Nyanzian greenstone rocks, over which African Eagle now holds
almost all the exploration rights. The current drilling programme focused on the
7km x 2km "Miyabi Mineralised Corridor" along the northwest of the greenstones,
which contains several distinct gold-bearing structures. The principal purposes
of the drilling were to demonstrate continuation of the known gold
mineralisation at depth and along strike, and to develop structural models.
These structural models will enable African Eagle to target specific areas for
future drilling to establish reliable estimates of the gold resources.


African Eagle has granted Orogen Holding Ltd, a subsidiary of Gold Fields
Limited, an exclusive right until 31 January 2004 to enter into a joint venture
with African Eagle on the Miyabi project. If Gold Fields exercise this right, it
can acquire 51% of the project by spending 2 million on exploration and 70% by
completing a bankable feasibility study.


The recent drilling programme, completed on the 6 December, consisted of 53
reverse circulation (RC) holes for a total of 6461 metres. Samples were
collected over 1m intervals and composited over 3m for assay. Laboratory results
now received include the following intersections:


From Intercept Au
Prospect Hole (m) (m) (g/t)

Kilimani MBRC 123 90 18 1.1
MBRC 124 72 3 9.7
and 93 3 24.0
MBRC 125 120 12 2.7
incl 129 3 7.3
MBRC 151 27 12 2.0
MBRC 152 84 6 3.9
and 93 3 8.0

Shambani MBRC 80 82 18 3.4
incl 91 3 15.9
MBRC 81 93 3 3.2
MBRC 139 33 3 3.8
MBRC 155 51 6 3.4

Ngaya MBRC 143 51 6 10.2
incl 51 3 19.8
and 93 15 1.6
MBRC 144 102 3 6.0
and 123 12 2.4

Faida MBRC 156 66 39 1.5
incl 66 3 2.2
incl 90 3 7.1
MBRC 157 42 39 1.3
incl 57 9 2.1


The Company's geologists are now analysing and interpreting these new results,
together with the data, maps and sections from previous drilling and other
exploration, and will then prioritise future drilling targets to establish
reliable estimates of the gold resources


John Park
Chairman, African Eagle Resources plc

For further information Tel Fax

John Park (Chairman) African Eagle 00 61 7 5528 6750 00 61 7 5528 6750

Mark Parker (MD) African Eagle 015 9067 9420 020 7691 7745

Leesa Peters or Laurence Conduit PR 078 1215 9885 020 7936 9100
Read

Matthew Robinson or Martin Potts Durlacher 020 7459 3600

John Robertson Nabarro Wells 020 7710 7400 020 7710 7401

This information is provided by RNS
The company news service from the London Stock Exchange
END

BJ, we will see the shares really take off if Goldfields agree to the joint venture before the 31st of this month.

cheers GF.

lets hope so. Apart from this drilling report and the deal with Gold fields, what else is in the pipeline to keep the shares moving up??

Well this positive broker note I have just received from Seymour Pierce.

"African Eagle has today announced the results of a drilling programme at the company’s Miyabi project in the Lake Victoria Goldfield of Tanzania. The focus of the company’s work at the project has been on a 7km by 2km area known as the Miyabi corridor, where shear hosted gold mineralization has been intersected within several discrete structures. The results from this drilling have been made available to Gold Fields, which has an option over the project, and who are expected to make a decision about whether to proceed with a full joint venture at Miyabi before the end of this month.

The current drilling programme was completed in December 2003 and consisted of approximately 6,500m of reverse circulation drilling from 53 holes. The results confirm our view that mineralization at the project is more extensive than that which had been previously identified and that it is also likely to extend at depth. Some of the better results included 18m at 3.4g/t from 82m, 39m at 1.5g/t from 66m and 39g/t at 1.3g/t from 42m.

We believe that these results increase the probability Gold Fields will exercise its option to proceed with a full joint venture. At this stage it would require them to expend 2 million on exploration at the project to obtain a 51% interest in Miyabi. With a short term target price of 30p we continue to rate the company as a SPECULATIVE BUY."

cheers GF.

Not long to go before we get the Goldfields decision.

cheers Gf.

Still some news to come from their drilling projects at Eagle Eye. This hopefully come in different dates. If both are good then we can make some nice dosh. There are some speculative comments on Shares Mag today.

Xmortal, thanks will get a copy.

cheers GF.

ps, do you think they are holding results back until POG rises again?

Hello GF.

I hope Goldfields releases its decision as late as possible next week. This will help the price to go up as speculators will buy shares. I feel is 50/50 in regards of Goldfields taking advantage of this. There are other drilling results in the pipeline coming in the next 4 weeks so this will keep the share attractive to speculators. I have a good gut feeling about this, I will wait till we get the next set of the drilling results. Lets keep in mind that gold is high and the dollar down. gold at present s a safe investment for now (till next USA presidential elections anyway)

Good point Xmortal and the share is up this morning.

Cheers GF.

On a break out late this afternoon.

Up 17% on the day and results of the gold field tie out due any time now.

cheers GF.

Went down again but hold on there..... Went up this morning nearly 13% but nervy traders began to sell. Like I said will hold till the next batch of drilling reports are out. Ta

XMortal, news of the partnership with goldfields should be out this week. Even if Goldfields dont sign up to a farm in, AFE have another big miner waiting in the wings. I think initially if they dont sign up we will have a price fall, but that would be a buying opportunity with other senior miners waiting to move in.

cheers GF.

The Goldfields partnership would be a significant signing...if it goes ahead (which I'm optimistic it will), then we will be seeing a quick movement north of the share price...a short term price of 40-50p would be easily achiveable.

There are several other drillings going on at the moment and if the results are positive, then a medium-long term price range significantly above that of the short-term range is foreseeable. Massive upside on this stock, but limited downside IMHO

DYOR!!

from iiiboard

From (of all places) neftegaz.ru.


The Safety of Gold

26.01.2004 9:26


Gold prices are predicted to reach a 16-year high of $ 450 an ounce by mid-2004, benefiting from continuing terrorism fears and the weak dollar. Tensions over future attacks on the US and ongoing instability in Iraq mean investors are looking to gold as a safe haven. Gold prices rose by 14% in 2003.

In such a market, it's no surprise gold producers are keeping busy. For example, Tanzania, already Africa's third largest gold producer, is preparing to open its sixth gold mine. Canada's Barrick Gold, the world's third largest bullion producer, is putting $ 50m into the construction of the Tulawaka mine on the south-west shore of Lake Victoria. Production of some 100,000oz a year is scheduled to start in early 2005. The mine will have a life span of about five years, with the possibility of underground work after that.

Meanwhile, South Africa's Gold Fields is considering entering into a joint venture with African Eagle in another Lake Victoria project in Miyabi where drilling to quantify resources is ongoing.

Well Goldfields have opted not to go for the joint venture but there are other miners waiting in the wings. Im staying put in this one as I feel POG will rise again and the sample results are due fromthe drilling in 3 weeks time.

Heres the RNS...........

African Eagle Resources PLC
02 February 2004

AFRICAN EAGLE RETAINS ITS INTEREST IN THE MIYABI PROJECT, TANZANIA



African Eagle has received notice from Gold Fields Limited that following a
recent review of its exploration projects, subsidiary Orogen Holding (BVI) Ltd
will not exercise its option to enter into joint venture with African Eagle on
the Company's Miyabi project in Tanzania.



Gold Fields acquired an option to enter into a 51% joint venture on the Miyabi
project under two Subscription Agreements signed in May 2002 and June 2003,
under which Orogen subscribed for African Eagle shares and warrants to a total
of 820,000.



John Park, African Eagle's Chairman, said 'Miyabi has benefited greatly from
Gold Fields' technical and financial expertise over the last two years.
Although they have chosen not to exercise their option, Gold Fields will remain
significant shareholders in African Eagle and will continue to monitor progress
at Miyabi in that capacity. To our minds, this demonstrates their belief that
our exploration programme has the potential to uncover a significant gold
resource.'



African Eagle now retains the Miyabi project unencumbered and will continue its
aggressive exploration there, focussing on resource definition. African Eagle's
geologists are currently analysing and interpreting the results of recent
drilling, together with the data, maps and sections from all the drilling and
other exploration carried out over the past 18 months, with a view to
prioritising future drilling targets to add to the gold resources on the
property and to locate the mineable ounces Gold Fields believe the area has the
potential to yield.



Although African Eagle plans to undertake the next phase of exploration from its
own resources, several other mining groups have expressed considerable interest
in the Miyabi project and the Company may enter into discussions with them.



In line with its strategy of assessing other licence areas in the Lake Victoria
Goldfield, the Company has recently signed a six month option with Eb-Hance Ltd
to evaluate the gold potential of prospecting licence 1975/2002 at Ugambilo in
Kwimba District and has relinquished its rights over prospecting licences 1747/
2001 (Ekta) and 2084/2002 (Zig-zag). Other possible projects are under
negotiation.





John Park

Chairman, African Eagle Resources plc



cheers Gf.

im holding on too at least to see how the other set of results turn up.

Xmortal, as you probably know this businese is all about staying calm when you have done your research and come up with your pick.

Im styaying put and not moving one jot. Many a time you see guys squelching and moving out because they dont have the balls. Sorry not me.

I may come a cropper but then I could earn a lot of money. I will take the risk on this ome and the other gold shares I own.

good luck and cheers GF.

2.38% up today...... GF what do u think of Monterrico Metals (MNA)...... has not stop going up since August lst year. I have faith on this company too. Of course hold something and have doubled already!!

IT JUST DEPENDS IF HOW LOYAL YOU ARE TO THE CO.
HAVE BEEN WITH THEM SINCE LATE 2000WHEN ARTICLE WAS FIRST WRITTEN ABOUT TWIGG MINING WHEN THEY WERE ON OFEX BY SHARES MAG

Hi , XM, Montericco, is that copper? if it is that would interest me. Big demamand from China.

GF.

it seemed it is the rihgt time to buy...

by Zak Mir of www.Zaks-TA.com and Tom Winnifrith of www.t1ps.com

It would appear that having African in you company name is as hot today as being a dot com was in 1999. As a pure exercise in fun, we thought it apt to review three of the winners from this stable. We have to admit the three are all resource stocks which are pretty hit right now. Two of them also emerge from the same stable: The John Teeling emporium of resource juniors based in Dublin. This analysis is a two part one. On the one hand Zak serves up a technical analysis, on the other there are some fundamentals from Tom.

African Eagle

Zak: African Eagle (AFE) had it first breakout from an extended base like many stock market minnows in the autumn and after a period of consolidation we saw the second spike last month. In fact though there has been a pullback to both the 50 day moving average and the October support line at 19p, I would regard the current position as quite an appealing buy that would target the top of the price channel at 37p. The downside risk is minimised by setting a stop loss of a weekly close below the aforementioned October support line at 19p. All in all a very decent risk reward play.



Tom: Before the analysis, I should declare that I own this stock in my SIPP. I run my SIPP in public and in full view on www.t1ps.com and bought in on Monday at 19.88p. I tipped the stock in November at 17.75p. earlier this week the shares slipped a bit when Gold Fields decided not to exercise an option to farm into the Miyabi gold project in Tanzania. Gold Fields needs 2 million ounces to be interested, Miyabi is - I suspect a 1 million mine. But that is still highly commercial and on its own worth more than African Eagle's current market value (at 22p - 16.6 million pounds). African also has a very exciting base metals project (eagle Eye) in Zambia where recent drilling data has been cracking and with more than two million pounds in the kitty can explore aggressively so that when it does farm out it is on the right terms. The stock is clearly speculative but very exciting.

GF yes monterrico have few copper sites in Peru, they also have a good portfolio of projects.... I have started a thread a while ago, search for it. Just to let you know that together with Chile, Peru is in the World top 5 copper exporter.

GOOD MORNING EAGLES.... UP TO 10.23% SO FAR.... KEEP ON FLYING PLEASE. NEED TO CATCH UP TO DO.

The Eagle has taken off....keep on flying and i will no longer be Piston Broke

After the news last monday just shows how robust this share is to bounce back so quickly.

up nearly 9% today

seemed lots of profit taking in the morning....

yes, such a shame with the news we got now. Nearly 50% accumulated gains by this morning performance. Mind you a lot of the mining stock are down too. Still it is a hold, has to bounce back.

GF, u still here or sold?? any inputs on the latest?

Still in and added XM. If you look on the companys site there are more details today about eagle eye and the copper find. Exciting news. Still waiting news of a partner instead of goldfields, but Im sure they will get one.

cheers gf.

Heres a very bullish article...........

Feature Story



Date : February 11, 2004



Looks Like African Eagle Has An Elephant By The Tail At Its Sasare Project in Zambia.

As anticipated yesterday in our piece setting the scene at Indaba, AIM listed African Eagle has come out with further drilling results which confirm an iron oxide copper gold deposit at its Sasare project in eastern Zambia. It is still early days and rain interfered with the drilling programme, but the significance should not be overlooked. There are only about half a dozen such deposits in the world; Australia has two of them and Africa none. Olympic Dam has a resource of around 1 billion tonnes of copper and gold and Ernest Henry 170 million tonnes. People close to African Eagle see geological similarities with Ernest Henry which is a dipping breccia style deposit. To give an idea of scale it extracts 10 million tonnes/year of ore from an open pit operation and produces around 360,000 tonnes of concentrate containing 100,000 tonnes of copper and 125,000 ounces of gold a year..

If the African Eagle team is right about this, and all of them – John Park, Mark Parker Chris Davies and Euan Worthington – have track records of success and plenty of expertise and experience, they could have an elephant by the tail. And an elephant with an even wider suite of metals and minerals than Ernest Henry as silver has also been confirmed and cobalt and bismuth are suspected.

The drilling programme on which they are reporting was designed to test some of many targets identified within an extensive copper bearing zone revealed by geochemical and geological surveys since the project was acquired as part of a package owned by a private company in 2002. The results to date show mineralised zones up to 66 metres wide containing higher grade zones with up to 5% copper. According to operations director Chris Davies,” “Eagle Eye is a large mineralised system which we have only pinpricked by drilling so far. The assays from the first holes eleven holes confirm the presence of a large area of copper mineralisation containing narrower, richer copper and silver bearing zones. These results and the geology revealed by the drilling confirm an iron oxide copper gold association.”

Statements such as this by an experienced field geologist are not made until a fair amount of evidence has been assembled to confirm the facts. It is still early days, however, and Davies admits that much of the geochemical anomaly remains to be tested and there is plenty more drilling to be done once the rains ease off in April. The original discovery was made back in March when African Eagle announced that sampling of old prospecting pits, trenches and shafts at Sasare, coupled with remote sensing studies, geological modelling and a thorough review by the company of past exploration data from the area, all indicated that the licence area contained an iron oxide copper gold deposit

As a result African Eagle designed a programme of reverse circulation drilling to test numerous targets within the extensive anomalous copper zones. Eleven drill holes totalling 1,437 metres were successfully completed before the rain brought it to a close. Drill samples were collected over 1metre intervals and composited over 3metres for assay. In addition to the drilling, African Eagle carried out chip channel sampling of trenches to the north and northeast of the Mweze prospect, to investigate the strike extension of the copper anomaly. These provided further encouraging results, including 22 metres at 0.9% copper from a trench situated 600 metres northeast of Mweze. Earlier grab sampling in the same area returned values of 8.7 and 2.9 g/t gold.

It appears that sulphidic mineralisation in several drillholes a long way apart is continuous over up to 80 metres in depth. This is significant as it gives some idea of the size of this particular elephant as the eleven holes were spread over more than five kilometres in length and at least 2 kilometres in width. The mineralisation is also close to surface as evidenced by the drilling statistics. When work restarts in a couple of months time, detailed geochemical soil sampling, ground magnetic and IP geophysical surveys, geological and alteration mapping will also be extended towards the north-east to test anomalous areas defined from last year’s reconnaissance sampling. There should be a whole lot more news to come from this one over the coming months . In the meantime it is worth remembering that all the big boys are on the spot at Indaba to grill the African Eagle team and the company is only capitalised at just over 20 million.

cheers GF.

GF you are a star!! where did u get this article from? Thank you for these input. I would like you to read a bit more about Monterrico copper site in Peru and take a look at its chart. Monterrico are doing extremely well, 400% up since its inception in AIM this year. If African Eagle's copper find is as good as Monterrico or better, believe you me, we are in for excelent dividends. I will hold and perhaps add.

Hi XM. Monterrrico is on my watch list but I think I have too many miners. Got to keep a balanced portfolio.

Heres the site, you probably know of it...............

http://www.minesite.com/

cheers GF.

My portfolio is where the money really is. Mining, nearly 75% the rest is techs. Had a mix portfolio but other sectors are not giving me the income mining is. My star performers are so far Monterrico and African Eagle, Jubilee Platinum and Petrel Resources. My worst are CMS Webview, Peacock and Protec.

Here are some encouraging news.... Another fund management company placing their faith in this company by topping up their portfolio.

African Eagle Resources PLC
24 February 2004

African Eagle Resources plc

ISSUES OF SHARES ON EXERCISE OF WARRANTS

CHANGE OF SIGNIFICANT SHAREHOLDING

African Eagle announces that the holders of 780,001 warrants have exercised at a
price of 6p, bringing the total number of shares in issue to 76,469,569. The
Company has made application for the new shares to be admitted to trading on
AIM.

Also, the Company was notified by Carmignac Gestion on 9 February that it
acquired 1,075,000 shares on 5 February, bringing the total held by funds
managed by Carmignac to 5,575,000 shares or 7.29% of the shares now in issue.

24 February 2004




This information is provided by RNS
The company news service from the London Stock Exchange

What has it started dropping recently? Any news or views

Good news. Copper has risen 1000 points since november last year now standing at 3000$/tonne. Great reads regarding copper in IC and Shares Magazine. If this continues AFE could reach reach 100p by the end of the year. Lets hope Eagle Eye is a top copper find. See report.

Price soars on solid demand
Base metal prices have rallied in recent weeks and copper is one of the metals leading the charge. In the past few weeks, the copper price has risen 10% to a new eight-year high of USc124/lb and analysts at Deutsche Bank think it still has momentum left. They think the copper price could test the 1995 high of $3,230/t in the coming months, if not weeks. There have been four such rallies in the past 35 years, but this is no flash in the pan, they say. Higher prices could be here to stay as improving demand and limited new mine capacity should support higher prices over the longer term.

Copper is the metal of choice for analysts at Deutsche Bank for its increasingly tight underlying fundamentals. A range of more speculative factors have also all aligned to give the price a fillip, in particular Chinese demand and US dollar weakness. In China, imports of copper rose a solid 15% year on year in 2003 and this momentum is expected to be a significant short and long-term driver of price. There are also signs of improving demand in some of the more developed markets, according to Deutsche Bank, particularly in the US and Europe, which are currently reflected in higher inventory outflows. Added to this, a strong speculative interest in copper has contributed to higher prices.

On the fundamental side, analysts cite tight supply as the key reason behind the price gain. A review of the projects in production, or due for production, in the next two years reveals just how limited these growth opportunities are. Apart from smaller expansions, there are only five large projects contributing to the growth in mine supply this year Sessego, El Teniente, Escondida, Collahausi and Olympic Dam.

A number of mining restarts should add to volumes, but the net result is more than offset by the impact of the Freeports Grasberg mine slippage and other disruptions, says Deutsche Bank. Freeport recently reduced its copper production targets for 2004 by 28% from 1.4mlb to 1.0mlb because of a delay in the mining of high-grade ore at the site. While these sort of disruptions tend to be once-offs, the main reason behind the fall in supply is the decline in exploration, R&D spending and capital investment across the commodity industry. These supply constrictions should place strong upward pressure on refined prices, increasing the probability of further price spikes.

Given this price momentum, Deutsche recommends investors take positions in mining stocks with exposure to the copper cycle. Its preferred pick is Anglo-Australian mining giant, BHP Billiton (BHP), which is in the process of ramping up its production of both copper and aluminium to tap into the improving demand. Analysts say: It continues to benefit from broad commodity exposure, while the expansion in copper and aluminium is proving well-timed. The groups opportunities are not just limited to earnings from copper; analysts also see the potential for expansion in its iron ore business. The volume expansion in iron ore, planned for 2006/07, would offset any momentum lost from the scaling back in its capital expenditure programme.

Australian-based mining giant Rio Tinto (RIO) is another miner offering exposure across a range of base metals. The company recently reported net earnings of $1.382 billion pre-exceptionals in 2003 against $1.53 billion the previous year. The result was weaker than expected, particularly in industrial minerals, aluminium and energy coal. Copper earnings were a strong point, as were earnings from iron ore and diamonds, according to analysts.

WMC Resources (A:WMRX) also recently reported full-year 2003 results. Full-year profits of A$246 million after tax were well ahead of consensus expectations of A$216 million. The income split revealed mixed results across its various divisions, with a particularly strong nickel contribution offset by weaker copper and fertiliser contributions, according to analysts. The surprise factor was the strong performance of the nickel price, particularly in the second half, which led to a premium in contained metal sales contracts.

Picking stocks with exposure to copper earnings is an investment choice that is underscored by strong fundamentals, according to Deutsche Bank. It is expected that the decline in copper inventory will increase the likelihood of further price rises, say the analysts, and for the mining giants which have a hand in this production, increased copper earnings may be a feature of balance sheets for years to come.


Copper mine expansions - major mine (Kt)
Country Mine 2003 2004 2005
Brazil Sossego 80 180
Chile El Teniente 283 458 454
Chile Escondida 860 1050 1200
Chile Collahuasi 393 465 475
Australia Olympic Dam 172 240 245
Source: Deutsche Bank estimates

I think will play some more money in AFE, im confident on its copper venture in Zambia.

Anyone got any thoughts about why AFE is sliding. I hoped it was having a breather before going north again. I have heard no news that would explain the slide.

Cheers in anticipation of any responses

B

I agree, The reason probably is because there isn't likely to be any news for 4-8 weeks and so people are going to be tempted to be sell and possible come back in later. I would say if you can afford to hold then you wont miss a sudden rise if there is early news.
I am tempted to buy some more at this price. I can't see this going below 19/20p at the most however I can see it racing up to 30+.
Only my opinion though ..

Hi G
Thanks for the comment.
It is difficult to get your head around shares like this which are quite volatile. On the one hand I want to limit any losses yet allowance has to be made for relatively large changes in share price. How do other folks cope with this? Do you simply accept a larger stop loss of perhaps 20 or 30% rather than 10 or 15%? Or is that the skill of share dealing I have yet to learn?
Sitting tight at the minute. Hope they find some more of the shiney stuff soon.

B

well i should have taken profits when it reached 27p but thought will go up. Now i will hold till at least it reaches 50% from this prices. I assume this will not move significantly till some more soil analysis is release. I think one should be really strict and have investing rules and strategies and MUST really stick to them, especially with such volatile shares. Sometimes one will make profits, sometimes not.

This is the response I got when I wrote to AFE: Need patience investors!!

Thank you for your interest.

You will be aware that this is the rainy season in East Africa so it is difficult to resume drilling until the rains stop.

There has been a good deal of interest in Miyabi since Gold Fields decided not to exercise their option, and we are negotiating. Likewise there has been interest in Eagle Eye.

There are soil and other geochemical results for several projects in the pipeline and we will announce them in due course.

We are an active company and you can expect to see a regular flow of news over the coming months.

Best regards,

Mark Parker
MD

Thanks XM

I get the impression that AFE know that they are sitting on a mountains of copper and a tidy sum of gold. They are just biding their time to give a full picture after the rains for the copper. The gold would be a bonus!!

remember...(afe website)
"The results show that the mineralisation is far more extensive and potentially richer than previously anticipated."

"Eagle Eye is a large mineralised system which we have only pinpricked by drilling so far. We were able to complete 11 of 30 planned drill holes and the results show the highly prospective nature of Eagle Eye"


Basically what they have found so far in eagle eye than expected.
The price is stable although in my opinion undervalued, however as highlighted previously patience is key. more tests at eagle eye may not START until the end of April.(Such a shame the rains came early.)...However there could be movement in the mean times on miyabi or even an announcement that the drilling on eagle eye has started early.

If they find a large Copper deposit we are in for a big party. Copper is at its highest, though gave way a little. Demand is at its highest and reserve are very low. See earlier comments I posted on this. Also take the example of MNA, a superb case in share rising in the copper market.

This has been well oversold and has started to rise back in the last 2 days. Should get back to between 24-26p and will rocket after the rains in 6+ weeks.

Spread has just closed to 20-20.5 and you can buy online at 20.25. this share should go up strongly purely on the price of copper which is going to become headline news in the next few weeks as reserves run out. Get in ahead of the crowds as this is now a copper play and the way forward, gold has lost its shine!

GF, any views on this at the moment with reference to the copper price, how many days are the exchanges tradin on at the moment, anyone know?

I EH, everythings gone quite on this one for the time being, seemingly its the rainy season until April where they are a prospecting/etc. Think theres an e-mail from the gaffer on this, on the thread a page back.

cheers GF.

I think that this is a short term winner at least, on thursday when everything was dropping like a stone, AFE went up proving that picking the right stock pays and that there is strong support for AFE in the short term. this also indicates that investors believe that this is undervalued at the current price. I would expect the strength to continue and that a re-evaluation will occur due to the copper deposits found, espcially given the price of copper at the moment. If the worlds copper reserves fall even more then it could make front page news as virtually everything electronic uses copper in one way or another. My experience is that a situation where there is an excess demand for a raw material, given a short term fixed supply, should lead to significant increases in share prices of producers/owners of that raw material.

Still everything a buy (like most of lat week and this week), the MM's are holding out but not for much longer, you can run but you can't hide boys!

The MM's will have to move the spread up soon, can anyone shed any light on why AFE didn't go down last week when everything else was falling?

Can't understanda why this is going down, a nice 100k buy at the close. AFE is into copper and gold, both of which are showing strength.
SAN FRANCISCO (AFX) -- Inflationary concerns drove investors to the precious metals market, sending April gold to a close of $411.30 an ounce, up $4.20. It's the highest closing level for futures since Feb. 18. It's the fourth-straight session of gains for the precious metal. And most metals futures follow suit, with May silver up 2.8 percent, May copper up 1.5 percent, and June palladium up 2.4 percent, but April platinum logged a minor loss, down 0.9 percent.

I here T1ps.com have a web cast out on this today with the CEO who is very bullish on all aspects of the company. Anyone a member who can give us a quick report??????.

cheers Gf.

hello all,

Another play Monterrico Metals have gone up 20% passing the 300p as I suggested. they have redefined for the better its copper and molybdenum reserves in Peru. This a good indicator of how may AFE behave if their copper in Eagle Eye proves to be viable.

Very surprised it hasn't jumped already, some information already out regarding the copper find from their last announcement. copper prices are rising faster than virtually anything else and there's very few copper related stocks that are listed apart from Monterrico and a couple of big buys. strong buy at the moment because the city will soon be jumping on anything copper related.

Still far more buys than sells yesterday and gold jumping $8 an ounce. Not just AFE but several gold stocks didn't tick up yesterday which is surprising as every extra $ on gold is more profits. I think the market is somewhat confused at the moment!

fill ya boots up this ones going north!!!
already up 1.5p today

RNS Number:0788X
African Eagle Resources PLC
30 March 2004



REVIEW OF PROGRESS, FIRST QUARTER OF 2004



In an extremely active first quarter of 2004, African Eagle has....


* Instigated a thorough review of all data generated from the Miyabi
gold project to date

* Received the first drill results from the Eagle Eye copper-gold
project in Zambia

* Recruited an experienced exploration manager for Zambia and Mozambique

* Signed an agreement to explore the Zanzui nickel/PGM project

* Signed option agreements over seven additional licences in the Lake
Victoria Goldfield

* Opened an office in the City of London



____________________________________________________



Miyabi data review


Over the past two years, African Eagle has completed extensive geological,
geochemical and geophysical surveys and carried out drilling programmes at
Miyabi. The Company's geologists are currently making use of a cessation in
drilling during the height of the rainy season to carry out a thorough review of
all results to date.



The 7km x 2km Miyabi mineralised corridor contains a major gold mineralised
shear-zone complex within altered mafic greenstone rocks characterised by high
soil gold geochemistry, low electrical resistivity, high IP and strong magnetic
anomalies associated with massive sulphides containing pyrrhotite. A schematic
map of the Miyabi mineralised corridor may be found on the Company's web site at
www.africaneagle.co.uk/projects-miyabi.html



African Eagle's past drilling at Miyabi has largely focussed on structures that
have been worked by local miners. The data review has revealed a number of
other drill targets, however, notably:



* Strike extensions to known mineralised structures, such as Ngaya,
Faida and Kilimani

* A granite-greenstone contact along the northwest of the mineralised
corridor

* A resistivity / IP boundary along the south of the corridor

* Numerous other IP, resistivity, magnetic and geochemical targets
within the corridor



African Eagle has also carried outgeochemical and geophysical surveys over a
wider area around the main corridor, covering all 625 square kilometres under
the Company's control. These surveys have revealed a significant new gold
anomaly, confirming that gold targets exist beyond themain corridor.



The Company's geologists believe that there is potential for a gold deposit of
at least 1 million ounces to be discovered within the corridor by following up
the targets identified to date, and they are currently designing a drilling
programme aimed at testing these targets and building up the gold resource
inventory. With African Eagle now holding more than 90% of the project, the
Company is well placed to add substantial value and plans to undertake the next
phase of exploration utilising its own resources. For the longer term, several
major mining groups have approached the Company to discuss the future of the
project.





Drill results from Eagle Eye



Early in the quarter, African Eagle received the first results from its drilling
and trenching programmes at the Eagle Eye copper and precious metals project in
Zambia. The programme was designed to test some of many targets within extensive
iron-oxide-copper-gold (IOCG) mineralisation which had been revealed by the
Company's earlier geochemical and geological surveys. The results, which were
reported of 10 February 2003, were encouraging, demonstrating copper sulphides
in the system and showing some impressive mineralised intersections. The
drilling programme will recommence at the end of the rainy season expected in
May 2004. The Company plans soon to begin extending its detailed geochemical
survey to cover anomalies in the northeast, and is obtaining quotes for a
high-resolution airborne geophysical survey to be flown in May or June over the
whole licence area.





Recruitment of an exploration manager for Zambia and Mozambique



Now that African Eagle has demonstrated the potential of its holdings in the
region, the Company is pleased to report that it has recruited Clive Arthur as
Exploration Manager responsible for operations in Zambia and Mozambique. Clive,
who will be based in Lusaka, is an experienced economic geologist with over
twenty years in precious metals, base metals and precious stones exploration.



After graduating from the University of Aberystwyth in 1980, Clive joined
Anglovaal Ltd as a mine geologist, moving to exploration after three years. In
1987, after returning to Aberystwyth to take his MSc, Clive was appointed by JCI
as Senior Exploration Geologist. In 1990, he joined Anglo-American's basin
analysis team, working on the gold-bearing volcano-sedimentary basins of
southern Africa. In 1997, Clive left Africa to become Exploration / Project
Manager with Kazakhstan Minerals Corporation. Since 1999, he has been working
as an independent consultant, mostly on projects in Eastern Europe and the FSU.
He gained his MBA in 2003.



Clive is accustomed to working in Africa and is familiar with a wide range of
prospecting techniques, evaluation, engineering and extraction methods. He has
a thorough understanding of the business of exploration and mining and is highly
proficient in IT.





Agreement to explorethe Zanzui nickel/PGM project



The Company has signed an agreement with Shanta Mining Ltd for joint exploration
of the Zanzui basic complex in Tanzania, which has potential for nickel,
platinum group metals and gold. African Eagle controls thesouthern part of
this 180 square kilometre complex while Shanta holds options over the licences
covering the northern part. Under the agreement, the two companies will fund
exploration and share any discoveries in the ratio of the areas contributed, 60%
Shanta and 40% African Eagle. Shanta is managing the work and has already
almost completed a reconnaissance soil geochemical survey.





Option agreements over seven licences in the Lake Victoria Goldfield



In line with the strategy of acquiring and cost-effectively investigating areas
with gold potential, the Company has recently signed 6-month option agreements
with local Tanzanian partners over 7 prospecting licences in the Lake Victoria
Goldfield. If exercised, these options will grant the Group 90% holdings in the
properties, in consideration of the Group undertaking the exploration of the
licences and making annual payments between US$ 700 and US$ 6,000 per licence.



A schematic map showing the geology of the Lake Victoria Goldfield and the
locations of all the Company's current options and licence holdings may be found
on the Company's web site at www.africaneagle.co.uk/projects-tanzania.html



Also in line with its strategy of rapidly assessing licence areas, the Company
has relinquished its options over prospecting licences 1747/2001 (Ekta) and 2084
/2002 (Zig-zag).



London office



During March, the Company opened an office in the City of London. The new
office will be the Group'sheadquarters and will allow the Company better to
maintain contact with its investors and stakeholders and to expand its UK-based
technical capabilities.



The office is at:


2nd Floor Tel +44 20 72 4860 59
6-7 Queen Street Fax +44 20 76 91 77 45
London EC4N 1SP Email info@africaneagle.co.uk



John Park

Chairman, African Eagle Resources plc




For further information Tel Fax
John Park (Chairman) African Eagle 00 61 7 5528 6750 00 61 7 5528 6750
Mark Parker (MD) African Eagle 015 9067 9420 020 7691 7745
Leesa Peters or Laurence Conduit PR 078 1215 9885 020 7936 9100
Read
Matthew Robinson Durlacher 020 7459 3600
John Robertson Nabarro Wells 020 7710 7400 020 7710 7401



Note to editors



African Eagle is an AIM-listed exploration company active in East Africa. The
Company's strategy is to build up an asset base by discovering or acquiring gold
and other mineral deposits, and to realise value for shareholders by selling or
spinning-off successful projects or though a takeover of the Company.



See our web site www.africaneagle.co.uk for information aboutthe company and
its projects, and to view past news releases.


This information is provided by RNS
The company news service from the London Stock Exchange
END

(Thanks to smow1)
in summary;
"These surveys have revealed a significant new gold anomaly"
> "potential for a gold deposit of at least 1 million ounces"
> "African Eagle now holding more than 90% of the project"
> "several major mining groups have approached the Company"
> Joint project in Tanzania - "which has potential for nickel, platinum group metals and gold"

All of this on top of Eagle Eye with the huge copper deposit due to start test drilling again in early May. Plus looks like we may have more copper further North - "Company plans soon to begin extending its detailed geochemical survey to cover anomalies in the northeast"

Well undervalued due to a bit of rain. 30p looked cheap at the time before the rainy season started, 20p is a complete bargain. Expect rapid price rise as news gets around and the drilling restarts.

up 3% today. lots more to come

Added to these over the last month. Things starting to develop.

cheers Gf.

up 7.1% today @ 15p
Announcent due very soon to say the rainy season over and drilling to restart. Share price oversold. Get in before the announcement!!!
GB

up another 1.2% today.

Up 8.3%on yesterday... waitng for announcements probably a week away!!

greedy...just so that you dont keep messaging yourself I thought I would join in ...I have always been saying that this one will take off from May onwards once drilling starts again...however like many others I got in too early...about 24p including costs. A lesson to be learnt here but nevertheless 'the only way is up' as they say....Goldfinger you have been very quiet on this one...any views and do you think the sellers are now returning

rgds...piston broke

Cheers Piston for joining.
I will carry on messaging myself if the price goes up as it has in the last 2 days.

If it's any consolation I am averaging at 24p thinking that at the time that this was cheap, although I still believe in this share and would recommend that at this current price is a steal. The rainy season will end...guaranteed. You wont find too much negative on this share check out the advfn thread.

gb...was that messaging or massaging

I think I will be doing both if it keeps going up!!

Up already by 6% Today .....Can't be just down to my ramping!!!

For anyone new thinking about investing in this, check out this article and remember that nothing has changed except that we are waiting for the end of the rainy season to finish and the restart of drilling.

http://www.minesite.com/archives/features_archive/2004/feb-2004/AfricanEagle110204.htm

up 7% Wednesday
up 7% thursday
up 4% Friday
If this doesn't go up on monday (which I am convinced it will) then I will never post on this site again with my ramping comments!!!!!!!
drilling to restart any day now after end of rainy season.

PARIS (Reuters) - Once the darlings of the market, gold funds have posted significant falls in the last month but according to Merrill Lynch Investment Managers recent gold price falls are simply a correction in an upward trend.

"We're very confident gold is going to remain in a rising trend," Evy Hambro, manager of the Luxembourg-based $1.8 billion Merrill Lynch International Investment World Gold fund told Reuters on Friday.

His fund was down 15.85 percent during April, according to fund research firm Lipper, but is still showing a 54 percent gain in the year to April compared with an average for the precious metals sector of 30.9 percent.

The gold price has tumbled in recent weeks to around $381 an ounce from $426.25 at the end of March due to the recovery in the U.S. economy and the dollar.

Gold is often used as a hedge against the dollar so its change in direction has led speculators to unwind their gold positions.

The fall has hurt French funds invested in the precious metals sector. According to Lipper, this was one of the worst performing fund sectors in April with an average fall of 15.48 percent.

Nevertheless, Hambro remains positive on gold and said there were a number of factors, on both the demand and supply side, supporting a strong price.

"The supply of gold is continuing to fall, there have been few significant gold discoveries in recent years and most of the current mines have been producing gold for around 20 years," he said.

The price of gold hit a low of $252 an ounce in September 1999 because of uncertainty over central bank sales of the yellow metal. Since then, central banks have agreed to cap their selling and at the same time investor demand for gold has risen, from 400 tonnes in 2002 to 900 tonnes in 2003.

Hambro said he expects investor demand to remain strong as more institutions consider gold as a tool for diversification.

Regulations by the Chinese government restricting gold purchases are also being lifted allowing the gold market in China, the fourth largest in the world, to open up.

"Our view on gold is that it's trading too low relative to trading capacity. There's a deficit and that has to be positive for prices," said Hambro.

Company World Gold Council
TIDM
Headline Gold Demand Trends 1Q04
Released 07:00 2 Jun 2004
Number 3012Z


PRESS RELEASE

WGC Reports Gold Consumer Demand Up Q1 2004

London, 2 June 2004: Figures published today by the World Gold Council reveal that consumer demand for gold has improved over the last year. Consumer demand for gold (jewellery and net retail investment) was up by 12% in tonnage terms, and by 30% in dollar terms, in the first quarter of 2004, compared to the somewhat depressed levels of a year earlier.



The World Gold Council reports that although complicated by the sharp upward movement in the gold price, consumer demand for gold actually increased in monetary terms during the period since 2001.



Commenting on the supply/demand dynamics for the first quarter 2004, James Burton, Chief Executive of the World Gold Council (WGC), said: In the face of a 55% rise in the dollar gold price, historically we would have expected consumer demand to recede due to the sensitivity of Asian and Middle Eastern markets to price volatility. Actually this quarter, the money flowing into gold from consumers was 37% up on Q1 2002 in dollar terms, and 25% higher than in Q1 2001, demonstrating a positive underlying trend.



He warns, however, that the global economic and political uncertainty of Q1 2003 depressed the figures of the same period a year ago. It is fair to say that confidence is returning to gold, yet gold continues to face competitive pressures for share of wallet in all of its key markets, he said.



Jewellery Demand

Among the markets participating in the recovery in jewellery demand for gold, strong year-on-year rises were recorded in India (21%), Vietnam (36%) and Turkey (38%) in tonnage terms. Highlights for the largest international markets are:



India and East Asia
- Jewellery demand was up in India by 21% in tonnage terms and 33% in local rupee terms on Q1 2003. This is due to favourable (rupee) price trends, a strong economy, and rural consumers (who account for over 60% of demand) benefiting from the after effects of 2003s generally good monsoon.



- In China demand rose by 6% in tonnage terms and 23% in price (renminbi) terms. Despite the booming economy, demand for gold jewellery is still somewhat dampened by the overhang from the earlier restrictions and state controls. The strongest demand in the quarter was for 18 carat gold. This follows the WGC-backed K gold initiative that promotes 18 carat gold, both yellow and white, in Italian-inspired design. This has been selling well with 60-70% of demand in white gold, demand for which has also been stimulated by the high price of platinum.



Middle East and Turkey
- The strong oil price provided a background of consumer optimism in Saudi Arabia and UAE, where both countries reported strong year-on-year rises in tonnage terms, with an increase of 11% and 22% respectively.



- Jewellery demand showed a 14% recovery in Egypt helped by price trends and by the reduced black market rate for the US dollar. Jewellery imports resumed following the disappearance of the local price discount to international prices and scrap outflows lessened.



- Sustained high economic growth coupled with strong promotional spending and heavy media coverage resulted in jewellery demand in Turkey leaping by over a third in tonnage terms from what was already a strong Q1 in 2003.



USA
- Jewellery demand in Q1 in tonnage terms in the USA was 6% higher than a year earlier (23% in dollar terms). The year started well, albeit from a depressed Q1 2003, with a strong Valentines Day and this positive trend has continued into Q2.



Industrial Demand
The first quarter of this year saw a steady rise (8% in tonnage terms and 26% in dollar terms) in industrial demand for gold. The improvement began in mid-2002 as the beneficial technical properties of gold were increasingly employed within new electronic products, and the electronics industry recovered.



Investment Demand
Net retail investment is up 14% year on year in tonnage terms. Demand in Japan was particularly strong (up 48%) on the back of continued concern over the economy. In Vietnam, demand more than doubled.



After the heady rise seen in 2003, net institutional investment demand paused for breath in the first quarter. Demand was brisk in January fuelled by the markets expectation of further price rises as well as growing interest in commodities and in alternative investments generally. However, the fall-back in the gold price caused a natural shift in many investors attitudes; as existing profits were taken, new investment dried up.



Supply

Overall supply of gold was 7% lower in tonnage terms than one year earlier.



The first quarter of 2004 saw the announcement of the renewal of the Central Bank Gold Agreement (CBGA 2)* in March, confirming the importance of gold as a central bank reserve asset. Net central bank selling of 96 tonnes was lower than a year earlier with sales by Switzerland, Norway and routine sales by the Philippines, partly offset by an acquisition of 28 tonnes by Argentina.



Early indications for Q2 2004



Jewellery
Initial indications are that demand for jewellery continues to remain robust in key markets and comparisons with Q2 2003 will be favoured by the effect of SARS a year ago. Provided there is no sudden price increase, consumer demand should be generally higher in tonnage terms than a year earlier. This is not expected to be the case in India, despite a good May wedding season, because of the exceptional levels of Q2 2003.



Initial import numbers for the US suggest that there has been some recovery in demand, whilst the immediate outlook for all the Middle East regions, including Turkey, is for continued good growth off the back of soaring oil prices and strong economies.



James Burton added: While early indications are positive, it is the World Gold Councils function to play a key role in maintaining momentum, and ensuring that gold jewellery is a desirable and relevant product for women in our key markets. Overall, we anticipate that the results of initiatives with leading retail partners will start to have a positive impact on figures going forward. In addition, our promotional activities in China, which saw the introduction of K-gold in Beijing in the beginning of Q2, and our Italian-designed Gold Expressions range, which has been promoted throughout all of our major markets, will help to build on the early positive results of Q1.



Investment
The speculative sell off of gold investment appears generally to have continued, and may have intensified. However, volumes may be positively affected by the increase of tonnes in trust in the WGC-backed Gold Bullion Securities (GBS). When re-launched in the beginning of Q2 in response to market feedback, GBS saw a doubling of net assets under trust to US$660m**.



Central Banks
In Q2, we will continue to see controlled sales of gold by some central banks within the confines of the Central Bank Gold Agreement.



James Burton commented: Now that the central banks have concluded the second CBGA in a timely fashion, the market is likely to take any further central bank activity in its stride. The renewed agreement has set an official framework and will prove to be a significant anchor for the gold market in the future.


Contact:

For further information, contact Anita Saunders, head of public relations, on 0207 826 4716, or 07769 682373 or e-mail anita.saunders@gold.org.



Footnotes:

* Like its predecessor, Central Bank Gold Agreement (CBGA 2) will run for five years, from September 2004 to September 2009. The maximum amount of gold that can be sold is higher than CGBA 1 at 2,500 tonnes (compared with 2,000 tonnes) over five years. Interestingly, while the first agreement specified that sales each year would be around 400 tonnes, under CBGA 2 sales each year will be a maximum of 500 tonnes.

**Correct as of 26 May 2004.



Notes to Editors:



The demand statistics in this note are compiled by GFMS Ltd for the World Gold Council (WGC). The commentary is supplied by the WGC.



Copyright 2004. The World Gold Council (WGC) and GFMS (Gold Fields Mineral Services) Ltd. All rights reserved.



The use of the statistics contained in this press release is permitted for review and commentary (including media commentary) with the clear acknowledgement of GFMS as their source. Whilst every effort has been made to ensure the accuracy of all information used in this document, neither GFMS nor the WGC can guarantee such accuracy and neither GFMS nor the WGC accept responsibility for any losses or damages arising directly, or indirectly, from the use of this document.





World Gold Council
The World Gold Council (WGC), a commercially-driven marketing organisation, is funded by the worlds leading gold mining companies. A global advocate for gold, the WGC aims to promote the demand for gold in all its forms through marketing activities in major international markets. For further information visit www.gold.org.






END

ANNUAL REPORT PUBLISHED AM TODAY FOR 2003 CAN BE SEEN ON WEBSITE A/EAGLES WEBSITEhttp://www.aficaneagle .co

Afe are going to be presenting at the 17th minesite forum. Could they be announcing a major find???

http://www.minesite.com/register15.php

"African Eagle is an AIM listed company with a team of proven mine finders led by John Park concentrating on projects in East Africa. The two priority projects are Miyabi in Tanzanias Lake Victoria goldfield and Eagle Eye, a copper -gold deposit in Zambia. Drilling has just re-started at Eagle Eye following a prolonged rainy season and the indications are that it could prove to be an iron oxide copper gold deposit like Olympic Dam in Australia . This could be a company maker and some interesting results may be to hand by the time of the Forum. The companys portfolio is well spread through projects with potential for gold, PGMs, copper and nickel discoveries"

just a reminder:::

17th Minesite Mining Forum
Tuesday June 22, 2003

Great Eastern Room
Great Eastern Hotel
Liverpool Street
London EC2M 7QN

Times of Seminar: 09:30hrs-Lunch.

Registration will commence at 09:00 and the forum will start at 09:30


The companies due to present at this Forum are:


--------------------------------------------------------------------------------

African Eagle is an AIM listed company with a team of proven mine finders led by John Park concentrating on projects in East Africa. The two priority projects are Miyabi in Tanzanias Lake Victoria goldfield and Eagle Eye, a copper -gold deposit in Zambia. Drilling has just re-started at Eagle Eye following a prolonged rainy season and the indications are that it could prove to be an iron oxide copper gold deposit like Olympic Dam in Australia . This could be a company maker and some interesting results may be to hand by the time of the Forum. The companys portfolio is well spread through projects with potential for gold, PGMs, copper and nickel discoveries.

For you guys : AFE are also attending the Minesite Forum next Tuesday...

Feature Story



Date : June 18, 2004



The 17th Minesite Mining Forum Will Highlight An Eclectic Band Of Junior Mining Companies With Great Prospects.

Minesite Forums for the first half of 2004 go out on a very high note with an eclectic band of companies presenting next Tuesday. Producers are mixed with companies currently at the development stage as well as explorers with major projects on their hands. Half the companies are listed on AIM and half in Toronto and the geographical focus of their operations spans the world from Brazil to Vietnam, Tanzania to Finland and Sierra Leone to the Northwest Territories. The idea of these Forums is to allow selected companies, who have a story of real interest, to have access to London investors. These investors do not receive a surfeit of follow-up research from brokers in London and are not always up-to-date with trailblazers overseas except through Minesite.

African Eagle promoted itself from Ofex to AIM at the turn of the year and is run by a team of proven mine finders led by John Park concentrating on projects in East Africa. The two priority projects are Miyabi in Tanzania’s Lake Victoria goldfield and Eagle Eye, a copper -gold deposit in Zambia. Drilling has re-started at Eagle Eye following a prolonged rainy season and the indications are that it could prove to be an iron oxide copper gold deposit like Olympic Dam in Australia . This could be a company maker and some interesting results may be to hand by the time of the Forum.

Stockbroker Seymour Pierce has recently come out with a recommendation of African Eagle shares entitled ‘Time For Takeoff’. The Forum may provide the necessary acceleration as the company has adopted a low profile since Gold Fields decided not to proceed with the joint venture at Miyabi. Not to much should be read into this as majors have targets for the projects in which they maintain an interest which has little in common with a junior. In the case of Gold Fields it is based on the the ‘2s’ – 2 million ounces of reserves, 200,000 ozs of annual production and 2 years for development. It is a very tall order and decisions are made at an early stage. The brokers think that some interesting drilling results will be forthcoming from the current programme at Miyabi and reckon that patience will be rewarded at Eagle Eye which could prove to be a big one.

http://www.minesite.com/archives/features_archive/2004/june-2004/forum180604.htm

Thank you Sue.

It has been few r buy recommendations on this. I will top up as the price has maintain itself. I like the sound of the potential resource.

Relevant stuff

Why Invest in Gold Now?

Dr David Evans

devans@citigold.com

June 2004




Introduction
The reasons involve currencies, banking, and monetary history. These are complex areas, unfamiliar to most. Everyone knows how money works on an everyday level, but most people are surprised at the way the money system works at the high-finance level. The current money system has some systematic problems and is likely to undergo great stress in the next few years. These stresses will effect the financial lives of everyonemany will lose, some will profit.


Ive tried to present the case as simply and briefly as possible. Due to the inherent complexity of the topic, its almost impossible to do it justice in a shorter piece. No special background or knowledge is required to understand what follows, just some time and an enquiring attitude.

Summary
Here are the fundamental reasons to invest in gold soon (in summary form):


1. Gold is more than just another commodity, its a currency. It is THE currency that evolved in the marketplace over the last 5,000 years.

2. Gold and silver are the only currencies not created and controlled by governments. All of todays other currencies (dollars, euros, yen, pounds, renminbis, rupees, etc) are fiat currencies, which means they do not represent anything tangible but are only worth something due to government decree (namely legal tender laws).

3. Governments always end up creating too much fiat currency out of thin air. All fiat currencies in the past have ended up worth very little, collapsing into hyperinflation or threatening to. All of todays fiat currencies have been fiat currencies for less than 34 years (all government currencies were convertible to gold until 1971).

4. The rate of creation of fiat currency accelerated markedly in 1995, leading to todays worldwide bubble in asset prices. In September 2003 the rate started to slow, suggesting that the bubble might end soon.

5. In the pain of the post-bubble period, governments will come under pressure to return to backing their currencies with gold.

6. Returning to currencies backed by gold is practical. Even the possibility that it might happen will cause the value of gold to rise considerably.

7. Todays fiat currencies are unfair. For example, because the US issues the worlds reserve currency, the rest of the world sends the US real goods and services and just receives bits of paper or electronic bookkeeping entries in returnmany ships travel to the US full of goods, but return half empty.

8. Governments and central banks have been suppressing the price of gold since 1995 by lending and selling their gold. They wont be able to keep it up forever. Then the price of gold and silver will soar.

9. The pressures of enormous debts will increasingly tempt the United States to inflate the US dollar so much that it will become almost worthless, in order that the debts can be easily repaid in near-worthless dollars. Gold will gain as the falling US dollar destroys trust in fiat currencies.

10. The finance industry and governments have promoted fiat currencies at the expense of gold in the publics mind for decades. From here, the investing publics attitude to gold can only become more positive.




Details


1. Gold is more than just another commodity, its a currency. It is THE currency that evolved in the marketplace over the last 5,000 years.

Gold was the main currency in most of Europe, Asia and the Americas for most of the last few thousand years, up until 1971. Silver was also widely used, though to a lesser extent.


Gold evolved independently as money in the worlds main civilizations, because it is:

1. Rare

About 5 parts per billion of the earths crust. Difficult and expensive to mine.


2. Indestructible

It does not tarnish or decay.


3. Compact

If all the gold ever mined were made into a solid block whose base was the size of a football field, then it would be about 1.5 meters (5 feet) high.


4. Malleable and divisible

You can easily reshape it, flatten it, and divide it into tiny pieces.


5. Hard to find

The amount of mined gold has increased only slowly, rarely more than 2% per year.




Until 1971, government currencies were backed by gold. You could, at any time, exchange a unit of any of the worlds main government currencies (such as a dollar, a yen, a pound, or a rupee) for a prescribed amount of gold. Currency notes were just certificates for various weights of gold. For example, from 1934 to 1971 you could exchange 35 US dollars for one ounce of gold.




Progressively from 1913 to 1971 governments withdrew the right to exchange government currency for gold. For example, from 1944 to 1971 a non-US currency unit (such as a yen or a pound) could only be exchanged for US dollars, and only national governments could go to the US government to exchange those US dollars for gold.




In 1971 President Nixon of the United States broke that nations promise to always exchange 35 US dollars for an ounce of gold. Since then the worlds government currencies have been fiat currencies (see point 2 below) they are not defined as a weight of gold, they have no connection to any commodity or anything tangible, and they are only worth what someone else is prepared to trade for them. The fiat currencies now float against one another, with their relative values going up and down with economic trends or fashions.




The only significant use of gold today is for investment, that is, as a currency or a store of value. This includes jewelrythe fundamental purpose of gold jewelry is to store something valuable in your personal safekeeping. Gold has some non-investment uses such as in electronics, but the amount of gold used in these ways is relatively tiny. Almost all the gold ever mined is still in use today. Silver is differentthe industrial uses of silver (photography, utensils, medicinal, electronics) outweigh its investment use, and much of the silver ever mined has been effectively lost because it is hard to recover.





2. Gold and silver are the only currencies not created and controlled by governments. All of todays other currencies (dollars, euros, yen, pounds, renminbis, rupees, etc) are fiat currencies, which means they do not represent anything tangible but are only worth something due to government decree (namely legal tender laws).




All todays government currencies are fiat currencies. A fiat currency is defined and created by a government. It is given meaning only by legal tender lawsnational laws that say that the fiat currency has to be accepted as payment in that country, and thus force people to use the fiat currency.




The term fiat currency came about because the legal tender laws that give it value are a fiat (or authoritative pronouncement) of government. A fiat currency is a currency brought into existence by government decree (that is, by fiat).




The value of gold, on the other hand, is independent of any government laws. Unlike fiat currencies, gold is accepted as valuable without needing protection by laws.





3. Governments always end up creating too much fiat currency out of thin air. All fiat currencies in the past have ended up worth very little, collapsing into hyperinflation or threatening to. All of todays fiat currencies have been fiat currencies for less than 34 years (all government currencies were convertible to gold until 1971).




Fiat currency is created at the whim of politicians and bureaucrats. Historys lesson on this point is clear: those in charge of a fiat currency always, eventually, due to some urgent government priority, create too much of the currency and it becomes worth less, and ultimately worthless.




As a government creates more of its fiat currency then there is an increasing amount of currency to pay for the same amount of goods and services, so the prices of the goods and services rises. The increase in the quantity of currency is called inflation, and the consequent rise in prices is measured to some degree by the CPI (consumer price index). The value of a currency (how many goods and services a unit of the currency can buy) depends in the long run on how much the countrys government inflates its currency.




Gold, on the other hand, treats everyone equally. Unlike fiat currency, no one can conjure gold up out of thin air to spend for themselves and get others to do their bidding. Gold has to be mined, ounce by hard-won ounce. Because the supply of gold can only ever increase slowly, prices in terms of gold tend to stay roughly constant for centurieschanging mainly due to technological influences that make some goods relatively easier or harder to make.




There have been hundreds of fiat currencies in the past, in various countries at various times. In every single case, the currency eventually became worth much less and was abandoned because the people in charge of making it eventually succumbed to the temptation of making far too much of it.




Examples of fiat currencies include:

1. Chinese bark currency (notes printed on tree bark, as recorded by Marco Polo), 1260 1360. One of the earliest fiat currencies, ended in hyperinflation.

2. Banque Royale Notes in France, the Mississippi system (designed by John Law). Issued in 1716. Collapsed worth nothing by 1720.

3. Continental bills, printed by the US Congress during the American Revolution. Began issue in 1775, shrank to 1/40 of their original value by 1780. Hence the saying not worth a Continental.

4. Assignats in France during the French Revolution. Issued 17901796, collapsed to 1/600 of their original value by 1797.

5. Marks in Weimar Germany, after WWI. Issued from 1919 to 1924, collapsed to three trillionths of their original value. This was the currency that was carried in wheelbarrows towards the end.




The only fiat currencies that have not collapsed are todays fiat currencies (that is, none of the hundreds of previous fiat currencies ceased to be legal tender without first undergoing a massive loss of value). All of those currencies effectively became fiat currencies in 1971, when the United States abandoned its commitment to pay 35 US dollars for an ounce of gold (see reason 1, above). In the decades prior to 1971 there were no fiat currencies, because each currency unit was ultimately defined as a certain weight of gold.




In 1971 a US dollar was worth 1/35 of an ounce of gold. Today it is worth less than a tenth of that, about 1/400 of an ounce of gold (because gold is about US$400 per ounce). From an historical perspective, the only question is how quickly the US dollar loses value, not whether it will continue to lose value.





4. The rate of creation of fiat currency accelerated markedly in 1995, leading to todays worldwide bubble in asset prices. In September 2003 the rate started to slow, suggesting that the bubble might end soon.


The worlds main currency and the currency used for most international transactions is the US dollar. Vast amounts of US dollars are used outside the United States. All countries hold the US dollar as their main reserve currency. The health of the worlds economy depends on the US dollar.




In 1995 the number of US dollars started increasing quite markedly. The evidence is here in these monthly money supply statistics

http://www.economagic.com/em-cgi/data.exe/fedstl/m3ns+1

and graph

http://www.economagic.com/chartg/fedstl/m3ns.gif .


(M3 money supply is about the best measure of the number of US dollars, albeit imperfect. NSA means non-seasonally adjusted. It is the hidden money supply increase, the M3 increase less the CPI, which is most relevant to bubble formationbecause the extra money raises prices of items that are not well represented in the CPI, principally assets such as bonds, stocks, and housing. High M3 growth rates prior to 1990 were matched by similar CPI ratesthey did not lead to bubbles because the rising prices were plainly visible in the CPI and monetary authorities were forced to take appropriate actions.)



In the early 1990s the money supply increased at about the CPI, just a few percent per year at most. But from 1995 to September 2003 the number of US dollars increased at about 8% per year, far faster than the combined rates of increase of goods and services and of the CPI. This extra currency flowed into buying assets, thereby pushing up asset prices. In a bubble, the principle supply-or-demand factor is the oversupply of currency. Similar increases in the amount of currency occurred in most of the worlds fiat currencies, and a worldwide bubble in asset prices developed. As of early 2004, the prices of real estate, stocks, and bonds are all well above historical norms.




Starting in September 2003 the rate of increase in the number of US dollars has slowed to about 4% per year. A bubble requires rising asset prices to be maintained, because once a belief develops that asset prices are not rising then many people sell assets to repay the borrowed currency they used to buy those assets. Historically, bubbles usually end shortly after the flow of currency into the assets stops or reverses. The data thus suggests that the bubble may end in late 2004 or early 2005.





5. In the pain of the post-bubble period, governments will come under pressure to return to backing their currencies with gold.




This requires some understanding of the current fiat currency systems, and how the current bubble came about.

How todays fiat currency systems work

In all the worlds fiat currency systems, all currency is technically created by the act of borrowing. Currency is initially created by the government borrowing currency from its central bank (or reserve bank), which the central bank creates out of thin air (the act of borrowing is inseparable from the act of creating the currency out of thin air, so we say the currency is created by borrowing). All other currency is created by someone borrowing from a bank:

About 90% of deposits made to a bank can be lent out by the bank. This system is called fractional reserve banking, because the bank retains a fraction of deposits as a reserve then lends out the rest.

The depositors effectively still have their currency in the bank, while borrowers also have currency to spend. Hence, borrowing creates new currency.

The borrowed currency generally ends up as a deposit in a bank, where 90% of it can be lent out again. And so on. In this manner, for each dollar that is deposited, $10 of loans are eventually created by the banking system.

The system is safe enough as long as not too many bank depositors withdraw their currency at once.



By the way, printing only creates physical notes or coins to be substituted as required for the currency created by borrowingprinting does not actually create the currency. Most currency exists as numbers in bank accounts.


Thus:

All fiat currency is someones debt. Someone out there is paying interest on every unit of fiat currency.

A fiat currency is essentially a system of IOUs, a system of credit.

Lower interest rates encourage borrowing and thus increase the rate of growth in the amount of currency (which causes some prices to increase).

Higher interest rates discourage borrowing and thus decrease the rate of growth in the amount of currency (which causes some prices to decrease).

The amount of currency owing on loans (the amounts borrowed plus interest) is more than the total amount of the fiat currency in existence (the amounts borrowed). So either the amount of fiat currency must continually increase, or there will be many failures to repay loans. A fiat currency system must expand to survive.




Governments, via their central banks, set short term interest rates, essentially by decree. Due to fractional reserve banking, the amount of money expands or contracts in response. Consequently, we get the business cycle: More borrowing creates more currency, so prices start to rise, so the government increases interest rates, so borrowing decreases, which reduces the rate of growth in the amount of currency, so prices fall, so the government decreases interest rates, so more borrowing occurs, so more currency is created, and so on. This is normal, but todays bubble is not like this.



The current bubble

The current bubble started in 1995 when the government of the United States and then some other countries lowered their interest rates and left them low. The amount of US dollars increased by 8% per year over 19952003, and the amount of the goods and services increased by about 3% each year, implying about a 5% per year increase in prices due to the extra currency. However, US CPI only increased at about 1% per year over this period, because:

1. The CPI only measures a narrow range of goods and services, many of which became cheaper in 19952003 because (a) their manufacture switched, for example, from the US to China, and (b) because the retail chain became more efficient (for example, Walmart).

2. The US government changed the methods used to calculate the CPI in about 1996, so as to reduce CPI increases. The most significant of these is hedonic calculations for computers, which alone reduced the US CPI increases by at least 20% during 19972003. (The justification for hedonic calculations is to correct for qualitative improvements. For example, a 1,000 MHz computer bought in 2001 for $1,000 is considered to be ten times as much computer as a 100 MHz computer bought in 1997 for $1,000, so the CPI component for computers shows prices plummeting by 90% over the period. Of course, to buy a computer to write articles like this with still cost me $1,000, so the computer part of my cost of living stayed the same.) Another significant change is a system of simply lowering the weighting in the CPI of items whose prices are going up the quickest.




So which prices went up? The extra newly created currency was used to bid up asset prices, first stocks and bonds then real estate. Rising asset prices encouraged people to borrow to buy more assets, and that newly created currency further increased asset prices. A bubble developed. However, the central banks, particularly the US Federal Reserve under Alan Greenspan, did not raise interest rates to slow the rate of currency production. On the contrary, in response to various problems such as the Asian Crisis or the stock market fall of 2000, Greenspan acted to increase the number of US dollars.




As of early 2004, we now have the worlds biggest ever bubble. Biggest by amount of assets (measured in any sensible way you like), biggest in scope (worldwide), and one of the most extreme (measured in terms of ratios such as debt to GDP or stock PEs).




The bubble is built on debt: The currency brought into existence to bid up the asset prices is all debt. There are record amounts of debt in every sector of Western societies today; the ratio of debt to GDP in the West is substantially higher than it was in 1929. There is now so much debt that the central banks can no longer raise interest rates substantially without bankrupting much of the population. We are past the point of no return: the central banks can longer stop the bubble, they have to let it run its course. When no one has enough confidence or collateral to borrow any more currency then the bubble has to end, because asset prices cannot rise any further.




When the bubble bursts, asset prices will fall. Many people will find that their assets sell for less currency than they borrowed to buy those assets, and they wont be able to repay their debts. Fire sales of assets will lower asset prices further, making the problem worse and more widespread.



Where we are now

Governments are currently attempting to postpone the bursting of the bubble by creating more fiat currency. To date they have been successful: the bubble did not burst even in 2000 when stock markets fell severely, as evidenced by the growth rate of 9% that year in the number of US dollars (see the US money supply statistics in point 4). As the size and duration of the bubble grows, efforts to keep the bubble growing need to become more extremefor example, worldwide interest rates are at record lows.




The problem for governments is to increase the amount of fiat currency fast enough to stop the bubble from busting, while maintaining peoples confidence in its value. The principal mean of creating more fiat currency is to keep (both short and long term) interest rates low. The principal means of maintaining confidence is to promote the CPI as a measure of fiat currency unit purchasing power, while altering the CPI calculations so as to disguise the loss of purchasing power. Until 1990 or so the CPI measured the growth of money supply, but after that they have increasing divergedthe CPI now greatly underestimates the growth in fiat currency and thus its loss in purchasing power.




If the bubble bursts and the money supply growth rate goes negative then we will get deflation. There wont be enough currency in the economy to repay debts, and asset prices will fall. This is what happened in the Great Depression of the 1930s. The real economy suffered and unemployment was very high.




If government measures to create more fiat currency to keep the bubble going are too successful, or people lose confidence in the continuing value of the fiat currency because the CPI increases significantly, then we will tend to wards hyperinflationas ever-increasing amounts of fiat currency are required. Most fiat currencies in the past have ended in hyperinflation. Hyperinflation destroys savings and jobs.




If governments can create enough but not too much new fiat currency, while maintaining peoples belief in the continuing value of fiat currencies by increasing the CPI only slightly or slowly, then they will successfully have steered between deflation on one side and hyperinflation on the other. They have steered this course for the last few years, but it is becoming increasingly difficult. The bubble damages the real economy by misallocating resources, so unemployment creeps up. The CPI will creep up eventually due to the extra fiat currency and the dynamics of international trade. Simultaneous high unemployment and high CPI rises are a phenomenon known as stagflation, which we saw in the 1970s and which was ultimately cured by raising interest rates to over 15%. However due to todays high debt levels, such high interest rates are politically unacceptable.



Reforms to prevent a disastrous bubble from happening again

The economic pain, like the current bubble, will be huge. Many voters will have more debt than they can handle. This will lead to a huge political urge to do something.




Interest rates could be set by the market, not by bureaucrats. An historical lesson of the old Soviet Union is that its economy failed largely because bureaucrats could not set prices properly. In a market economy, a price is a mechanism that combines all the relevant information about the item into a single number. The price reflects all the factors of supply and demand, and rations the use of items to those willing to pay for them. The Soviet economy did not fail because its bureaucrats were stupid or lazy, but because it was just not humanly possible to know all the relevant information and to combine it properly to come up with a price that results in a good outcome for the economy. Without good pricing, people waste time and effort doing the wrong things. Markets, however, perform this function automatically and well, without bureaucratic interference, and have done for centuries.




The most important price in todays economies is the price of currencythe interest rate. High interest rates are a high price for new currency, and low interest rates mean new currency is cheap. In todays fiat currency systems, even in the western so-called market economies, interest rates are decreed by a bureaucrat or politician. (Actually it is short term interest rates that are set by decree. Although long term interest rates are set by the bond market, they are heavily influenced by the central banks.) For example, in the United States the US Federal Reserve under Alan Greenspan sets interest rates. The current bubble developed because those in charge of setting interest rates set them too low for too long. The political advantages of low interest rates are compelling in the short term: an expanding economy, extra spending power for voters willing to borrow, and rising asset prices.




If we are going to persist with using fiat currencies, the most important and basic reform is to use a market mechanism to set interest rates. However, for various technical reasons (to do with synchronizing the interest rates charged by different banks and homogenizing the currencies issued by different banks into one currency) it is difficult to use a market mechanism to set interest rates in a fiat currency system.




Modern central banks have been around since before 1700, and virtually every type of fiat currency experiment has been tried and rejected before. For example, Andrew Jackson won the US presidential election in 1832 on a platform of eliminating the third central bank of the United States (todays US Federal Reserve, which started in 1913, is the fourth central bank in the USthe previous three failed and were abandoned). There is nothing essentially new about todays system, except its worldwide reach. So, perhaps we should consider a return to the centuries-old practice of backing our currencies with gold.




It will take something of a crisis before we return to gold-backed currencies, because the finance industry and governments will resist it mightily. But the aftermath of the current bubble may provide enough of a crisis.





6. Returning to currencies backed by gold is practical. Even the possibility that it might happen will cause the value of gold to rise considerably.




All the worlds government currencies were backed by gold in the decades to 1971: a unit of government currency theoretically represented a certain weight of gold, and under the right conditions could be exchanged on demand for that amount of gold.




We could return to that system. We would continue to use the current notes and coins, continue to use credit and debit cards, continue to order over the telephone or internet, and continue to use other electronic financial transactions. It is very unlikely we would ever use a gold coin for buying anything, just as we didnt use gold coins for decades before 1971.




The only difference would be that the notes and coins and amounts of currency would represent goldand could, on demand, be exchanged for gold by banks or government. This would have consequences:

All the world would be on one currency, gold. Currencies would no longer float against one another, so foreign currency exchanges, currency risk, currency hedging, and currency speculation would disappear (except perhaps for changing notes and coins at borders). A nations industries would no longer risk losing their export markets because of fluctuations on the foreign exchange markets. The finance industry would lose a large source of easy income, but everyone else would benefit.

Governments would not be able to create new currency at whim. They would have to repay their loans. Everyone else would benefit through lower inflation (inflation is a hidden tax that acts by eroding the value of any currency we have).

The amount of currency could no longer expand faster than about 2% per year (see reason 1), so inflation would be very low, bubbles would be much less likely to occur, and economy-wide bubbles could not occur. Prices throughout the economy would be more stable than under the current system.

Interest rates could be set by market forces, as they were until WWI. The financial history of the decades prior to WWI strongly suggests that interest rates would be more stable than the last few decades.




If the world returned to gold-backed currencies, the value of gold would rise. If the US were to back its current number of dollars (about US$9 trillion) with its current gold reserves (about 8,150 tonnes), the price of gold would be about US$34,000 per ounce! This figure is only a rough indication, because the US government might not fully back each dollar, or the amount of US dollars or US gold might change between now and a return to the gold standard.




Even if the world doesnt return to gold-backed currencies, the possibility that some or all countries might return to the gold standard will send gold prices much higher as the bubble ends. In 1980 the slight prospect of a return to the gold standard (which did not eventuate then) caused the gold price to rise to about US$880 per ounce, which is equivalent to about US$3,400 per ounce in todays dollars.




Dont confuse value with price in US dollars. Today an ounce of gold buys about 150 Big Macs in the US. In the event that the price of gold goes to US$20,000 per ounce (a fifty-fold increase), it may be that an ounce of gold only buys 750 Big Macs (a five-fold increase).





7. Todays fiat currencies are unfair. For example, because the US issues the worlds reserve currency, the rest of the world sends the US real goods and services and just receives bits of paper or electronic bookkeeping entries in returnmany ships travel to the US full of goods, but return half empty.




Most of us have to exchange our labor to get currency, and gold miners have to go to a lot of effort to mine gold. But some people in the economy (namely the government and the central bank) have the privilege to create currency out of thin air, effortlessly, thereby acquiring much power. Is that fair or desirable?




Newly created money buys things at the price levels that exist when the money is created and spent. But that extra money raises the general price level, so the currency saved by others loses valuethings are more expensive when they later go and spend their money. So fiat currencies favor borrowing at the expense of saving. It is no coincidence that every sector of western societies is at record debt levels as of early 2004. How fair or wise is a system that favors debt over saving?




The United States manufactures the worlds reserve currency, the US dollar. Governments of countries all around the world hold vast numbers of US dollars as currency reserves, needed for international trade. To get those US dollars, those countries had to send real goods and services to the United States, and the United States sent them US dollars in the form of electronic bookkeeping entries or bits of paper (notes and bonds). So the United States gets massive amounts of goods and services in return for a few pieces of paper or electronic bookkeeping entriesjust because the US dollar is the world currency. Currently many ships are arriving at the US loaded full of goods, but return from the US half empty or with low-value back-fill loads. Is it a coincidence that the United States is the worlds richest country and can afford the worlds biggest military forces? Is that fair or right?




People or countries that feel these aspects of the fiat currency system are unfair will welcome (indeed, insist upon) a return to the gold standard. Moves in this direction have already been made recently by Malaysia.





8. Governments and central banks have been suppressing the price of gold since 1995 by lending and selling their gold. They wont be able to keep it up forever. Then the price of gold and silver will soar.




Governments and central banks routinely intervene in currency markets. They generally dont acknowledge that they are manipulating the market while they are doing it, because that would dilute the effect of the intervention. However they usually acknowledge their interventions after the factits not a secret, and is considered normal by everyone connected with currency markets. Gold and silver are currencies, albeit private currencies. Governments and central banks have routinely intervened in the gold and silver markets in the past, so it is reasonable to assume they might be doing so now. They dont directly and comprehensively deny it.




Governments benefit from the use of their fiat currencies. All the government currencies are thus in competition with gold and silver. Governments have an interest in promoting fiat currencies against gold and silverthat is, an interest in lowering the prices of gold and silver. The competition between gold and the US dollar is particularly intense, because the United States gains great advantage by the use of the US dollar as the worlds reserve currency (see reason 7 above).




Thus governments, particularly the US Government, have the means, the motivation, and a track record of suppressing the price of gold and silver. It would be standard practice for them to suppress the price of gold and silver but not acknowledge it.




In 1995, governments, through their central banks, owned about 25% of the worlds mined gold, about 32,000 tonnes. There is a lot of evidence to suggest (for example, see http://gata.org/) that the central banks have been lending their gold to bullion banks on long-term leases, who then sold the gold on the open market, which lowered the price of gold. The IMF even changed its rules for reporting central bank gold holdings in about 1997 so that the central banks no longer had to distinguish between how much gold they physically have and how much they have lent outthey just report both categories combined as how much they own. This word game allows the central banks to hide the extent of their gold lending. For example Australia reports that it owns about 79.9 tonnes of gold, but there are only a few bars of gold left in the Australian central bank because nearly all of it has been lent out.




The gold lent out by central banks has been sold at the retail level, largely in India. The bullion banks who owe the gold to the central banks will have to buy the gold on the open market when it comes time to repay the gold. Either this will force the price of gold up or, because they dont want the price of gold to soar, the central banks will allow the lenders to repay in fiat currency rather than in gold. The lent gold will probably not be recovered from the individuals in India etc. who now wear it as jewelry. Thus much of the gold lent out by central banks will probably never be repaid as gold. Official sales of central bank gold nowadays are often just a matter of the bank receiving fiat currency for gold that they previously lent out.




The amount of gold lent out by the central banks since 1995 is hard to estimate without official figures (of which there are few), but is probably about 15,000 tonnes, or about half of the gold that the central banks say they now own. Spread over the nine years 19952004, thats about 1,700 tonnes per year. Annual consumption of gold per year is only about 4,700 tonnes per year (the gold is mainly used in jewelry, but very little of it is actually lost forever from circulation), and the annual production of gold from mining and scrap is about 3,400 tonnes per year. So the surreptitious sale of 1,700 tonnes per year due to central bank lending would have had a large downward effect on the price of gold in that period.




For various reasons nearly all the remaining gold in the central banks simply cannot be lent out. There are indications that the central banks are already scraping the bottom of the barrel. As the central banks run out of physical gold to sell, the market price of gold will rise. The gold price rises of the last year suggests that this has already started.




It appears that the Western governments have effectively being selling their gold reserves at artificially low prices to people in Asia, particularly India, in order to promote their fiat currencies at the expense of gold. If the West is forced by the failure of its fiat currencies to return to gold-backed currencies, it may have to offer a lot to the gold owners in Asia to get that gold back againthat is, the value of gold will rise considerably.





9. The pressures of enormous debts will increasingly tempt the United States to inflate the US dollar so much that it will become almost worthless, in order that the debts can be easily repaid in near-worthless dollars. Gold will gain as the falling US dollar destroys trust in fiat currencies.




Many people and organizations in the United States are deeply in debt.


The net present value of the unfunded liabilities of the US Government is US$44 trillion, which is the value of everything produced in the world for about a year and half, or about four times the yearly GDP of the United States. To pay these liabilities, the US government would have to raise income taxes by 69% indefinitely, or cut all Social Security and Medicare benefits by 56% indefinitely. In addition, the debt of the US Government is about US$7 trillion, increasing by about half a trillion each year. The current account deficit of the US is another half a trillion per year. Or, per person in the United States: US$150,000 of unfunded liabilities, $25,000 of federal debt, and $1,700 of extra federal debt and $1,700 of current account deficit per year. And there are state debts too. In addition, the ratio of private debt to GDP is at a record high, even higher than in 1929.




But the United States has an ace up its sleeve: nearly all that debt is denominated in US dollars. If the meaning of a US dollar were to change to something worth very little, then most of that debt could be painlessly repaid (but not all of the debtmany of the unfunded liabilities of the US government are tied to the cost of living, so they not could be escaped so easily). That is, because much of those debts are in terms of nominal US dollars, if the US dollar became worth very little then much of the debts could be easily repaid. For example, if you borrow US$100,000 in 2003 when you are earning US$40,000 per year, you have a large debt. But if the US dollar inflates 100-fold by 2013 your income might be around US$4,000,000 per year, and repaying that US$100,000 will be easy. (However US$100,000 in 2003 would buy 37,000 Big Macs, but only 370 Big Macs in 2013.)




At the moment, the United States gains greatly by having a US dollar that is worth a lot and is used as the worlds reserve currencybecause the United States exchanges a few bits of paper for massive amounts of real goods and services (reason 8). But the debt being incurred by US voters is huge and growing quickly. Eventually the gain from supplying the worlds reserve currency will be outweighed by the pain of the interest and repayments on the debts. At some point in the future, the only rational course for the United States will be to cause its dollar to be worth as little as possible.




The way for the United States to make its currency unit worth very little is to inflate it dramatically, that is, to increase the number of US dollars enormously. It would start down this path by reducing interest rates towards zero, to encourage as much borrowing and thus currency creation as possible. A next step would be for the government to create new money out of thin air to pay some of its bills. Both of these trends are already underway.




Repayment of those debts would be in name only, a technicality, because the value of the repayment as measured in say gold or Big Macs would be tiny compared to the original value of those debts. The lenders would feel ripped off. Only the United States has this option, because it provides the worlds reserve currency. If the US Government can bring this off, it will be the worlds biggest ever financial scam by several orders of magnitude. The next few years might be, as the Chinese say, interesting.




The effect on commerce of this maneuver would be to scare people off fiat currencies for decades. No one would write a future contract in terms of a fiat currency. Only tangibles would be accepted, preferably gold. The world would return to a full classical gold standard very quickly. The value of gold would rise as dramatically as the value of the US dollar would fall.





10. The finance industry and governments have promoted fiat currencies at the expense of gold in the publics mind for decades. From here, the investing publics attitude to gold can only become more positive.




Gold and silver have been in competition with the fiat currencies (especially the US dollar) since 1971, and to a lesser extent since 1913. There is a great deal of power at stake. They say that alls fair in love and war, but perhaps they should amend that to alls fair in love, war, and high finance.




The finance industry and, to a lesser extent, governments would be the losers in a return to gold-backed currencies. The rest of us would be winners. With some of their power at stake, you might suspect that those in the finance industry and government would exaggerate, obscure, or deceive when it comes to gold and currencies.





Further Reading

1. Bob Landis, The Once and Future Money, http://www.goldensextant.com/LLCPostings4.html - anchor134408


2. Alan Greenspan, Gold and Economic Freedom, http://www.321gold.com/fed/greenspan/1966.html


3. Bob Landis, Gold Is Money - Deal with It!, http://www.goldensextant.com/LandisAMA.html - anchor537636


4. Financial Times editorial, with the financial industry view of gold

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079420385759&p=1012571727126

Email this Article to a Friend



--------------------------------------------------------------------------------

Also by Dr David Evans

--------------------------------------------------------------------------------

For general news

http://www.gold-eagle.com/

another ramp
AFE have a webcast on T1ps.com on monday 21st and are at the 17th minesite forum on 22nd.
Is this finally the take off!!!

NB I have been hyping this share before and have been proven wrong.

up 6% today

If anyone has access to that webcast by T1ps.com on AFE, please post it.

Eagles flying...drilling report reveals positive finds ...this could be the start of what we have beeen waiting for for the past 3 months...watch the blues today

up 5.7% today

African Eagles Managing Director Mark Parker commented Last years drilling at Miyabi drew our attention to the Faida prospect and these latest results confirm that a wide zone of gold mineralisation occurs there. We will be drilling more holes to quantify the resource formally, but based on these results alone, we expect Faida at least to double our gold resources at Miyabi. Our acquisition of Igurubi and the positive results on the three other areas are in line with our strategy of identifying new prospects elsewhere within the prolific Lake Victoria Goldfield.

extract from afe miyabi drill results

just waiting for news from eagle eye confirming world class copper find.

In the times today, similar one in the guardian also
AIM-LISTED African Eagle Resources perked up 1p to 18p on a positive drilling update on its Miyabi gold project in Tanzania. Mark Parker, managing director, said the results confirmed the existence of a wide zone of gold mineralisation. With the companys annual meeting scheduled for tomorrow, dealers hear that further upbeat announcements are imminent.

http://www.timesonline.co.uk-printFriendly-0,,1-38-1154775,00.html

Up another 4% today.
news starting to come now

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=stocksAndSharesNews&storyID=533373&section=finance


also

LONDON (AFX) - African Eagle Resources PLC said it resumed drilling and
other exploration activities at its Eagle Eye copper-gold project in Zambia.
"Four out of a planned 34 drill holes have already been completed since
drilling resumed last week," said Chris Davies, African Eagle's operations
director.
"Some of the drill cuttings contain visible copper mineralization and the
samples are being shipped for laboratory assay. We will await the results keenly
over the coming weeks," he said.
The company also said its latest geological mapping revealed copper
mineralization in the southern limb of the Mweze fold structure
newsdesk@afxnews.com

just waiting for the expected world class drill results

This waiting for the remaining drilling results should provide good momentum for AFE. PLUS.............. see below.

Thursday Closing Market: mining stocks glitter on soaring gold prices
Published: 17:30 Thr 24 June 2004
By Dylan Lobo, Market Reporter

A late spurt lifted the FTSE 100 above the 4,500 mark, with miners shining as gold prices soared to a two-month high of $400 an ounce on the New York Mercantile Exchange.

Rio Tinto, up 45p to 31.25, paced the rally in the sector and was the strongest blue chip after confirming sales contracts to supply an extra 40 million tonnes of iron to Chinese steel mills over the next ten years.

Xstrata, up 17.5p to 713.5p, Anglo American, up 31p to 11.38, and BHP Billiton (BLT), up 12.5p to 472.25p, were also prominent features on the Footsie leaderboard.

Graham Birch, the AAA-rated manager of the Merrill Lynch Gold and General fund, believes that the commodity prices were forced down by the overselling on miners in April and early May. Birch feels that the cycle has run its course and sees a rally in the sector, with the long-term outlook for commodity prices good.

Hold on there AFE.... good things comes to those who wait:

Citizens of Vietnam And China Will Be Rubbing Their Hands With Glee At The Strength In The Gold Price.

At the Minesite Forum earlier this week Joe Baylis, President and CEO of Olympus Pacific with its two gold projects in Vietnam, gave a fascinating insight into the attitude to gold in that country. Housing, he said , is priced in taels of gold which are bars weighing just under an ounce - an interesting thought for Chancellor Brown to ponder as UK property prices continue to soar. The actual purchase may take place in US$s or Vietnamese dongs, but gold is the basis of valuation and there is so much dealing in these tael bars that they tend to be priced at a slight premium to the world gold price. Gold , therefore, plays a vital role in the savings and investments of the Vietnamese people . Further evidence of the respect for gold is demonstrated by the government which cools down the economy by encouraging the import of gold whenever inflation appears to take a hold. In April the import tax was lowered from 3 per cent to 1 per cent on gold bars and from 1 per cent to 0.5 per cent on gold grains.

A day after the Forum it was announced that citizens of Beijing, the capital of Vietnams mighty neighbour China, were now able to buy and sell gold bars through a bank. Remember it was only in October 2002 that the Shanghai Gold Exchange formally opened for business after a gap of 50 years. A month later small sized gold bars were put on sale in Beijing through several department stores and early in 2003 the State Council confirmed further de-regulation of the gold market by altering the rules governing both domestic and international participation in the gold fabrication market within China. The initiative by the China Merchants Bank with repurchasable gold bars provides Chinese citizens with a new investment tool and it will be rolled out through China with Shentzen as the next stop.

China Merchants Bank is a marketing agent for CGS Ltd, a joint venture between China and Hong Kong, which manufactures the 99.99 per cent pure bars in three sizes, 2 ozs, 5 ozs and 10 ozs. The price of the bars is based on the spot price in London and Shanghai and there is additional commission of US$13.13 on a purchase and US$7.47 on a sale. The move was preceded by a test run in Chengdu, which is the capital of Sichuan province, back in November 2003. According to the China Daily the initial demand did not set the world on fire as only 135 ozs of gold in these bars was purchased from 5 branches in the first day. However, as Chairman Mao said, the longest journey starts with a single step.

Clearly the test went well once Chinese investors realised that the gate had been opened even further, but no data is available. Nor has it been disclosed how much gold has been handed over by CGS to CMB to get the new market going. As a guide to its potential it is interesting to note that the Shanghai branch of the Bank of China launched a paper gold business called Gold Treasure last November. Apparently volume growth for this investment instrument has grown by 40 per cent month on month which is rather more than can be said for Gold Bullion Securities which is listed on the London Stock Exchange. And another thought. If China Merchants Bank thinks it can achieve a yield of 5 per cent on a buy-sell transaction on a gold bar once customers catch on, surely UK banks could offer the same service.

Mind you the buying power of the British public is as nothing compare with the potential of China. If 1 in 20 Chinese bought a single 2 oz gold bar over the next five years they would mop up 128.8 million ounces of gold which is equivalent to 4,155 tonnes. This is equivalent to 1.6 times the worlds annual production of the metal. Add to this the growing appetite in Vietnam and other countries in the Far East and it is not hard to see why Germanys announcement that it might sell 17 per cent of its 3,500 tonnes of gold reserves under the Central Banks Gold Agreement, which is being renewed in September, was greeted with a yawn by the market. France is also considering selling 500 tonnes, but again no firm decision has been made. When western politicians see the view taken on gold by China, the industrial power house of the world, opinions may well change. Only the Netherlands has gone firm with a proposed sale of 100 tonnes and that is a drop in the proverbial ocean.

Hello Guys and Gals,

This is what my friend who works for Placerdome the massive canadian gold explorer said about the results on Miyabi.

'The results aren't too bad, however they are a bit on the low side. The thickness of the instersects are good. Whether or not the grade is economic depends on quite a few factors, the most important are the depth, continuity and the metallurgical characteristics (that is how difficult it is to extract the gold from the rock). Sulfide ores are usually more costly to extract the gold and need higher grade, Oxide ores are generally cheaper to extract the gold and can be economically feasible at lower grades. I suppose a general rule of thumb would be a minimum of 1.5 g/t Au for an open pittable (shallow) deposit that has good metallurgy.

These intersects look like they are on the low side - 1.3 - 2.0 g/t. However they have reported higher grade within the intervals of 2.2- 2.7 g/t. over significant intervals. These results are interesting. You should note that they drilled five holes and have only reported the results on three holes. Of the three holes 2 of them are potentially economic. It is difficult to assess the results without a map showing the drill hole locations. If they can establish continuity of the higher grade intersects in holes 8 and 12. It would have a good chance of being economic.'

so it is good news so far.... we need to get more of those drilling results.

just seen the TA and the 20ma day is about to cross upwardly the 60ma.... This is a good indicator that the price is about to break to new highs.........The RSI and the MACD also positive....... it seems that at this levels it has built a floor. So lets hope this is the case and hopefully in the next few days will see the Eagle fly higher.

relevant to AFE

Buy Golden Prospect at 27.75p
Argues bear raider Evil Knievil of t1ps.com

I am famous - or should I say infamous - as a shorter of stocks. That is to say, selling shares that I don't own hoping that they will collapse and then as ordinary investors gnash their teeth and wail, I buy back and collect the lolly. If you are looking for a good short right now, Jarvis is - even at 24.5p - free money all the way down.

But I also dabble with buying shares and though I say so myself I am rather good at it. There are some fools out there who base their investments on following fund mangers - so called shrewdies. I am of the view that there are more shrewdies in the penguin pen at London Zoo than there are in the City and Golden Prospect rather proves my point.

A couple of years ago when this company had net assets of 10p a share (of which half was cash) two "shrewdies" sold their entire holding at 4p or less. Yours truly lapped it up and now has a notifiable interest. Indeed I have kept buying (to a high of 36p) and with the shares at 27.5p I am more than a few lunches ahead.

Run by the wise old coot Malcolm Burne, Golden Prospect invests in an array of small mining companies and its net assets are currently worth - I believe - just under 40p a share. In addition it has direct stakes in a couple of exploration projects which I suspect are worth another 4p per share or so.

But gold and thus gold shares will go higher. The idiots in charge of the west (Bush, The Wicked Witch and her consort Mr Blair, and the fools from Euroland) think that the answer to all our problems is to print more of their paper currencies and are doing so with wild abandon. No more gold is being produced by God. Hence basic economics dictate that gold must appreciate against currencies whose worth is being devalued by the day.

Since gold mines are operationally geared to the price of gold, another $100 on the gold price (which will in time happen) will cause gold shares to soar and with it so will the NAV of Golden Prospect. Before I even start to sell this share I would expect the NAV to hit 80p and the shares to see 60p. It may take a couple of years but I am a patient man.

Legendary bear raider Evil Knievil outlines all his trading positions on EvilCast - a fortnightly webcast available only on website www.t1ps.com. The website also features the tips of Tom Winnifrith who also recommended this share at just 5.25p. For more details click here

The Case For Gold.

(Extracted from the Annual Report of Golden Prospect PLC, A 25% Shareholder In Minesite)

The gold rally over the past two years has largely been an anti-dollar phenomenon but with all the increased geopolitical tension and general financial worries, gold really has assumed the status of an insurance policy against bad times. Its safe haven status has been restored and investor appetite for this dependable alternative asset class is steadily increasing. Although historically a volatile asset to own, gold has proved itself time and again in periods of financial stress and geopolitical turmoil. What we can say about todays climate is that the only certainty is continued uncertainty, i.e. the dollar is still stressed out, inflation is gathering pace, terrorism breeds investor caution and the general unrest will not go away. Interest rates are rising, consumer debt is exploding, house prices are teetering on the edge of a big fall almost everywhere and industrial equities on both sides of the Atlantic are witnessing waning support. Seasoned market investors are holding cash, buying gold and inflation linked bonds.

There are still huge imbalances in the US economy and these will need to be corrected at some point, creatingfurther degrees of financial strain. Some pundits believe that the growing deficits in the US could eventually result in the creditor nations deciding that they no longer want to hold US dollars. If that day comes, the greenback is going to plummet.

Furthermore, to quote from many economic forecasts, it is quite possible that we will soon see a breakdown of the triangular relationship between gold, the dollar and the euro. There have already been indications in recent months that gold may move in an independent direction and if it starts climbing again in all currencies, this will be the most potent bull signal of all. Investment funds would pour in!

Central Bank selling of bullion is also drying up.Whereas previous Central Bank gold sales contributedto a weakening in the gold price and negative sentiment within the investment community, the signing of the new agreement to limit sales over the next five years has provided some additional stability and positive sentiment to the gold market has returned. Even more importantly the European Central Bank confirms that gold will remain an important element of the global monetary reserves.

The supply demand equation is also going golds way.Capital costs of new mining projects are soaring and there is a lack of new mining projects coming on stream. By and large, major discoveries have not been made in the sector for some years, so the upshot is that new big supplies are not being found. Moreover, short term interest rates, although increasing, have not risen high enough to result in more hedging and gold producers are unlikely to hedge gold in a bull market environment. In the past, mining companies have used low gold lease rates to sell gold forward in order to raise money to finance the construction of new gold
mines, but we now believe that the large, global gold producers will continue to unwind their hedge booksat an increasing pace.

Factor in a huge boom in China, India, Russia and Brazil and the ultimate buying power of gold that this will eventually produce, together with the continued erosion of confidence in the dollar, then demand must exceed supply for some many years to come. It may be worth recalling that gold last hit its zenith in the late 1980s when inflation was rising and the world had suffered two major oil price shocks. Just as America inflated away the reckless spending then so it can be expected to do the same again to address todays looming fiscal problems. The FEDs usual way out of this problem in the short run is to print money. These current financial events, the rise in oil price and other deteriorating economic trends are all building a case for significant inflation down the road and thereby the most excellent environment for physical gold and gold equities.


AND Now Copper:


Date : July 7, 2004



Low Stock Levels Are Still The Key.


By Rob Davies


Judging by the price action in the market one could be forgiven in thinking that the steam had completely gone out of the hard commodity market. Over the week aluminium dropped US$10 a tonne; copper lost US$2 and zinc US$9.5/tonne. Nickel was the only base metal to register a substantial move. But its gain of US$257 a tonne needs to be viewed in the context of metal priced at US$15,240 a tonne, not the US$960 a tonne that zinc trades at.

On the face of it there were lots of excuses for traders to move prices around. The first upward move in US interest rates for four years was a significant event. But it hardly came as a shock to the market. Moreover, the increase was only a quarter of a per cent and took the rate to a still very reasonable 1.25 per cent . An increase in the demand for money, as indicated by rising interest rates, should be good for metal prices. But that good news was almost exactly balanced by a much weaker rise in US employment than was expected. An increase of 112,000 was half the forecast number of 250,000 and was sufficient to push money into the safety of US treasuries and drop the yield on the 10 year bond to a 2 month low of 4.44 per cent

In effect the market was saying why should we take risks on equities and commodities when there is so little pressure on employment even after four years of falling short-term interest rates. If employment growth stays weak it implies a less robust spending pattern in the future. While it is true metals did not perform strongly last week, it is equally valid to point out they didnt fall either. The reason for that is the support they continue to enjoy from low inventory levels. On the London Metal Exchange copper stocks are only just over 100,000 tonnes. That isnt much in a world that uses around 10 million tonnes a year and where rumours that a mine in Chile responsible for 3 per cent of world output may go on strike are rife.

Coppers role in the generation and transmission of electricity is its key USP (unique selling point) to use the modern vernacular. China has just completed its massive Three Gorges hydroelectric power scheme, but still suffers from a lack of electricity. To rectify that it is adding the equivalent of the whole generating capacity of the UK to its network every two or three years. That will need a lot of copper, as well as other metals like aluminium.

In the short-term low stock levels will keep the market supported, but there is perhaps more reason to be concerned about long-term prices. Given the scale of consumption now, the already high rate of recycling, and the long lead times of finding and developing new mines the market could stay tight for a very long time. There are few new large mines under development right now and unless some more start being planned soon the current portfolio of mines will be reaching the end of their lives before new ones are developed. But in todays markets few people are prepared to invest on a ten-year view.

I think we also need to have a broader picture of where Gold is heading. Take a look on the outlook coming from Merrill Lynch, one of the best (if not the best) fund managers in the world. Also the FTSE World Gold benchmark supports this. See link below. Thanks

http://www.mlim.co.uk/shared/pdfs/mlf/ut-gold-fs-uk.pdf?silo=individual-investors

Ticking up again. 7.89% so far

NEW YORK, July 16 (Reuters) - COMEX copper futures surged to a three-month peak Friday morning, fueled by fund- and stop-loss buying, as traders said they saw room for more gains due to supply-side concerns in the market and a weaker dollar.
By 9:40 a.m. EDT, active September copper <0#HG:> jumped 1.85 cents, or 1.4 percent, to $1.3060 a lb, the highest for futures since April 19, in a $1.2850-to-$1.31 range. Spot July was up the same at $1.3080, and later months were 1.55 to 1.85 cents higher.
"The market is looking for higher prices because of the labor unrest and the weak dollar, and because warehouse stocks are down considerably," a COMEX floor trader said. He added that first chart resistance, basis September copper, lurked at $1.31 a lb, and then at $1.3150-$ 1.3240. Support was pegged down at around $1.2890.
The dollar fell against the euro after a muted rise in core U.S. inflation for June was reported, signaling the Federal Reserve is likely for now to keep its promise to be "moderate" as it raises interest rates.
June consumer prices rose 0.3 percent, versus expectations for a rise of 0.2 percent. But the "core" number that excludes food and energy rose 0.1 percent, below forecasts for a gain of 0.2 percent.
The greenback extended its retreat after separate data showed U.S. asset inflows fell in May. The euro rose above $1.24 * up about 0.3 percent on the day. A softer dollar boosts immediate demand for dollar-priced metals like copper from traders holding foreign currencies.
Fundamentally in copper, analysts say strong metal consumption mixed with steadily falling refined stocks in exchange warehouses has lent a bullish tone to the market.
On the labor front, No. 3 copper producer Grupo Mexico SA's La Caridad operations are unable to make deliveries this week due to a strike there.
At Grupo's U.S. unit Asarco Inc., workers said Thursday they will resume contract talks with the company in mid-August. Some 750 workers have threatened to go on strike if talks between the company and copper unions are not resolved.
At the London Metal Exchange, three-months copper gained to $2,832 a tonne from its last close at $2,806.
COMEX is a division of the New York Mercantile Exchange.

more on gold.

Gold to hold above $400 this year and next
Mon 19 July, 2004 13:24



LONDON (Reuters) - Gold prices are seen holding an average above $400 an ounce for the foreseeable future as the dollar stays weak and world security worries keep big investors hedging their bets on where money is safe, a Reuters poll shows.

The global survey of 24 analysts pointed to an average gold price of $404.50 a troy ounce in 2004, up 11.2 percent on 2003. Gains were then seen being pared to an average for 2005 of $402.50, up 10.6 percent on the 2003 level of $363.83.

Analysts' predictions for 2004 were down around 3.5 percent compared with a similar survey conducted in January as expectations of broader investment flows had disappointed.

"2004 promised so much and simply failed to deliver," Ross Norman of TheBullionDesk.com said.

Gold's broad uptrend started in 2001, when the metal was near 20-year lows.

The advance gathered momentum as dollar weakness, global security worries and producer buy-backs of reserves in the ground that they had sold on forward markets pushed world prices to a 15-year peak in early January 2004 of $430.50.

Producer buy-backs have since slowed, but the market should remain firm as the spotlight concentrates on the dollar, where weakness makes gold less expensive for holders of other currencies.

"We are dollar bears, despite the fact that the second quarter of 2004 saw the dollar improve...We remain bullish on the gold price -- tempered to be sure," economist Martin Murenbeeld said.

"Issues such as debt -- government and household -- factor into our longer-term thinking and are gold-positive, while terrorism and its potential impact on oil prices are on average also gold-positive," he added.

BROADER INVESTMENT STALLS

Investment funds piled into commodities, including gold, in 2003 against the backdrop of a struggling dollar and heightened geopolitical tension.

But analysts said the market had been only partially successful in its efforts to attract new investors with products such as gold-backed securities traded on stock exchanges.

"The expectation of a sustained rally was based on the assumption that a retail and wholesale investment market would be launched and indeed gather momentum," TheBullionDesk's Norman said.

"The market has failed to inspire the investment community and so the indomitable laws of supply/demand are re-asserting themselves and gold is re-establishing itself in a rather uninspiring trading range."

Average 2004 price forecasts for gold in the poll range from $376.00 to $422.25, but even the low was above the average forecast for 2004 of $350 when a similar poll was conducted in July 2003.

Frederic Panizzutti of MKS Finance said economists' expectations of a slow but almost confirmed world economic growth cycle -- plus moderate, but increasing inflation -- should be positive for commodities prices.

"Geopolitical instability and concerns will be another source of support, in particular for precious metals," he added.

"These few but major factors should enable demand for precious metals to grow over time and generate additional price strength mainly in the last quarter of 2004," he said.

Any news anyone?

i sent an email to mr Parket and could not reveal any news.

Its been a long time now without any posative news/resalts. Xmortal do you think we will here somthing soon?

I really hope so, it is testing my patience this one... I am not very confortable at moment as one would expects some kind of news by now

Just a little good news could make AFE go north right now! other mining shares are doing well.

gone up a bit. Level 2 at 4/4 all MM on the smae b/o now. maybe some good news coming our way. some buys now

I hope so, as GF said AFE has massive potential. Good luck to all. goal.

Evening all, + 3.64% today. well its a start, fingers cross for tomorrow. goal.

Moneyplus, if your out there switch your private message facility on and I have some news for you on this one, you were asking last night.

cheers Gf.

News out next week guys.

cheers Gf.

Thanks Gf.

GF: don't be tight! how do u know there are news next week? how good are they?

Check your PMs xmortal, sent it through this afternoon.

cheers GF.

How do you switch on message facility? Good news on drilling results expected next week-fingers crossed!

moneyplus,

To switch on the message facility on MoneyAM just click on the user settings button towards the top right of this screen and you will be able to do it from there.

Ian

Morning GF.

Delighted to see the big rise in AFE.

How do I find out the news mentioned above? I have just entered my details as described by Ian in the user settings. What do I do next?

Cheers

B2B

Wait and check your mail I guess. Come on AFE!

Thank you Ian how do you view other profiles?

B2B and MP, messages on way.

cheers GF.

thanks GF... got the msg. I need to make a grant on this one!!!

Thanks again GF

Much appreciated and welcome.

Let's hope it continues to move north.

B2B

Nice close today; 16.39% up. Hopefully we get some mention this w/end. See below latest RSN.

Flying higher!!

Company African Eagle Resources PLC
TIDM AFE
Headline Stmnt re Share Price Movement
Released 15:35 03-Sep-04
Number 6087C

DRILLING UNDERWAY IN ZAMBIA AND TANZANIA

The Company has noted the recent press speculation regarding drill results from Zambia and Tanzania and the movement in its share price.

Drilling is currently underway in both countries, at the Eagle Eye copper and Sasare gold projects in Zambia and at the Miyabi gold project in Tanzania.

The turnaround by the independent assay laboratory used for the Zambian drill samples has been slow, but results are now coming in and the Company expects to be able to announce results from all its drilling projects over the coming days and weeks.

Mark Parker
Managing Director, African Eagle Resources plc

Contacts:
John Park (Chairman), African Eagle Tel. 00 61 7 5528 6750 Fax. 00 61 7 5528 6750

Mark Parker (MD), African Eagle Tel. 015 9067 9420 Fax. 020 7691 7745

John Robertson, Nabarro Wells Tel. 020 7710 7400 Fax. 020 7710 7401

Leesa Peters or Laurence Read, Conduit PR Tel. 078 1215 9885 Fax. 020 7936 9100

Matthew Robinson or Martin Potts Durlacher Tel 0207 459 3600

They are not saying anything to dampen enthusiasm--hope the rise keeps up next week!

any news on the paper today?i think T1ps knows something very good and have faith in the results. 'In the coming days' this statement alone will push the prices up. Last results mentioned that Eagle Eye drills identified copper was visible naked eye. Top fund managers with specialised mining researchers like RAB has a good stake in AFE in their fund special situations which has performed over 1000%. We also have JP Morgan and other good fund managers have a nice slice of the cake. There has been not share disposal by the funds even during the lapse on minins stocks - (No RSN stating this)

see this from an ADFNV post.

From 4 Dec 2003 statement
Significant shareholders:.....No of shares...%
RAB Capital managed funds.....19,600,000.....25.90
Orogen Holding (BVI) Ltd......6,903,703......9.12
JPMF Natural Resources fund...5,750,000......7.60
Carmignac managed funds.......4,500,000......5.95
Mr R B Rowan..................3,043,826......4.02
Directors:
John Park.....................3,508,467......4.64
Mark Parker...................2,256,087......2.98
Chris Davies..................266,667........0.35
Euan Worthington..............225,000........0.30
Geoffrey Cooper...............669,300........0.88

I have faith in afe which will delivered more that expected. GF what do u think??

Im withn you XM but please dont get too carried away.

cheers GF.

GF too carried away??? I dont know how to take your comments, even though you started this thread which means you really believe in this company. I am not ramping it, I have some good stake in AFE and am only stating how I see the situation. I am not buying anymore until I see some results. Keep good. XM

LOL

XM,was really meaning keep an eye on POG. It seems to have drifted down lower over the last couple of days even though the dollar as weakned.

cheers GF. PS by the way dunbarton squelched. Posts under the name of CrazyWomen on sharecrazy. Already been barred from this site once before.

Thanks GF. All 4 MMs supporting the price. This is a good sign. 17 - 18.25

Yup all buys by the looks of it but no movement yet.

cheers GF.

what is the buy/sells ratio so far? GF

Was all buys at the time I posted XM.

cheers GF.

Guys...shedloads of sells today and one really strange one 800000 @ 14p... rgds...

The strange trade at 14p was broker to broker.

A tree shake looks to me, should to worry to much about that 800000 broker to broker deal- one sells and the other buys it. Hold on there. The number of trades is only 12, a very miniscule figure. If here was some bad news on the way, then the volume will rise a lot as well as the numnber of trades. xm

GF,
Do you have any views on the RNS this a.m. from AFE ?

Hi Saf,

Yes excelent drill notes, give me a bit more time and I hope to have an analyst note on them. I hope to send it via PM.

cheers Gf.

RNS in full........

African Eagle Resources PLC
14 September 2004


African Eagle Resources plc



NEW DRILL RESULTS CONFIRM ECONOMIC POTENTIAL OF IOCG STYLE MINERALISATION AT
EAGLE EYE


African Eagle (The'Company', LSE, AIM:AFE) today announces the first results
from its 2004 drilling campaign at the Eagle Eye copper and precious metals
project in Zambia. These initial results show wide mineralised zones up to 60
metres across with up to 0.75% copper.

Chris Davies, African Eagle's Operations Director, commented 'These new results
confirm the potential for economic grades and widths within the volcanic host
rocks. We are also conducting an airborne geophysical survey and a soil
geochemical survey over the whole extent of these volcanic rocks. The next
phase of our exploration programme at Eagle Eye will focus on unravelling the
geological factors controlling the mineralisation and on exploring new
potentially mineralised areas within the extensive volcanic sequence. We also
plan to drill at the old Sasare gold mine, which also lies within the licence.'


____________________________________



The Eagle Eye project lies within African Eagle's 100%-owned Sasare licence in
eastern Zambia. Exploration conducted by African Eagle in 2003 revealed an
extensive soil geochemical copper signature associated with widespread zones of
hydrothermal alteration and outcropping copper mineralisation of
iron-oxide-copper-gold style (IOCG). The limited drilling completed in 2003
defined mineralised zones up to 33 metres wide containing higher grade zones
with up to 5% copper.


2004 Drill Campaign

The 2004 drill campaign at Eagle Eye, amounting to 23 percussion holes,
commenced in late June and set out to test known copper, silver and gold
occurrences within a belt of mineralised volcanic rocks approximately 28 by 2
kilometres in extent. The majority of these holes are being drilled at the Mweze
prospect, which is situated near the centre of this belt. Laboratory turnaround
of assay results has been extremely slow but results have now been received from
about half the holes drilled. The remaining results are expected before the end
of the month.



The results, in combination with the drilling undertaken in 2003, demonstrate
the existence of a linear mineralised structure over several hundred metres at
the Mweze prospect.



Significant intersections along this structure include:


Hole From Interval Copper Silver

(m) (m) (%) (g/t)
MZR8 17 67 0.68
incl 24 60 0.75 1.23
and 65 7 2.41 7.3

MZR24 57 74 0.34
incl 57 10 1.08 1.85
87 4 0.81 2.47
95 5 0.86 3.14
120 11 0.48

MZR25 54 23 0.99
incl 54 21 1.06

*MZR11 138 12 3.0
incl 141 6 5.0
and 138 9 14.5

*MZR6 15 33 0.5
incl 18 3 12.5

*MZR9 36 12 1.1
incl 39 9 6.6
and 42 3


* 2003 drilling



The mineralised intersection in drillhole MZR8 equates to a true thickness of
around 56 metres, indicating potentially economic grade and thickness, and lies
beneath an 8m wide mineralised section grading 3.5% copper in a trench dating
from the 1970's. The mineralisation is hosted by intermediate volcanic rocks
with an albite specularite breccia forming the footwall.



Exploration overview



In addition to the drilling, African Eagle has completed soil sampling and
geological mapping over a continuation of the volcanic belt in a large fold
structure south and east of Mweze, which is considered highly prospective. This
work has already revealed a number of new occurrences of copper mineralisation.
The Company is currently flying an airborne geophysical survey over the licence
area, including the whole 28km-long volcanic belt and the old Sasare Gold Mine.



The new drill results, together with the airborne, geochemical and geological
surveys, will help African Eagle's geologists to determine the factors
controlling the mineralisation. Once these controlling factors are understood,
a programme of further drilling, including perhaps deep diamond drilling, will
be implemented to evaluate the mineralisation.



In addition to the Eagle Eye IOCG target, the Sasare licence area contains the
historic Sasare Gold Mine. Sasare was one of the first gold mines in Zambia and
was worked intermittently from 1906 to 1942. Gold was mined from two
gold-bearing structures approximately 2km apart along strike, with reported
widths of 1 to 2m and average grades of 8.0 to 9.6g/t.



Exploration work at the old mine by previous licence holders revealed
geochemical soil gold anomalies over both mineralised structures, with values
over the western veins exceeding 1g/t over a strike length of more than 700m.
Channel sampling in trenches across the mineralised structure returned values up
to 6.2g/t.



African Eagle has now re-compiled the old mine plans and exploration data, and
plans to conduct an exploratory programme of three drill holes to investigate
the western mineralised structure.



14 September 2004



John Park

Chairman, African Eagle Resources plc



cheers Gf.

Gf,
Can you send a copy to my PM as well if possible?
There are many conflicting opinions on the ADVFN board so a sober analyical assessment would be very welcome.Regards.

Why is the price dropping ? it was 18p+ at the opening .

Still waiting for analyst report, will PM it to anyone who wants it. They havent finished it yet.

cheers GF. Bloody strange goings on with the share price today mind thats nothing new with this one.

pls send it me too. back form hols. Ta

GF, can you,please, add me to the list? Thanks!

Many thanks! GF

FYI:

Commodities favoured as hedge funds set out their stalls
Tue 21 September, 2004 08:57

By Steve Hays

MONACO (Reuters) - Commodities-related investments have taken centre-stage at a major hedge fund conference in Monaco, with managers laying out their favoured strategies.

Hedge funds are credited with playing a large part in the rally in commodities markets, particularly in oil, and are also estimated to account for around 30 percent of total trading volume in equities markets.

"After 20 years of underinvestment, commodities are offering huge opportunities and IRRs (internal rates of return) of 45 percent," Philip Richards, chief executive of RAB Capital said on Monday.

He was speaking at the Information Management Network's High-Performance Investing Symposium.

Richards said RAB's funds were generating extremely high returns by focusing on companies with world-class underlying assets, but which were very undervalued by the equities market.

He cited the example of South African Resources, a South African platinum producer which he said had had management problems and required an extensive work programme to extract the value from its 50 million ounces of inferred metal reserves worth $50 billion in-situ.

RAB had bought 25 percent of the company at 2 sterling pence per share and later sold its stake on at 12 pence, he added.

Other companies RAB has large stakes in include Asian energy which is developing a big coal mine in Bangladesh and Falkland Oil and Gas, which has licences to explore for energy resources in a large area of the South Atlantic, Richards said.

Kevin Harrington, director of research at Clarium Capital Management, said his company was focusing on taking out long positions at the long-end in crude oil futures contracts a couple of years out, which avoids the volatility in nearby contracts.

These positions have shown a steady appreciation in the last two years, he added.

Hedge funds are also carefully studying the impact of high oil prices on Russian stocks and William Browder, manager of the Hermitage Fund -- the largest investment fund in Russia with $1.2 billion in assets -- predicted a sharp rally in equities before year-end.

"Russian stocks are up 3 percent and the oil price is up 35 percent, yet oil and gas make up 75 percent of the Russian stock market. The great oil boom hasn't hit because of the Yukos situation."

Browder said he believed Yukos had now been priced into Russian equities, which are very cheap trading at six times earnings, and with large liquidity being held out of the market in low or even negative yielding assets, it is likely this money would return to shares soon.

Renee Haugerud, chief investment officer at the Galtere International Fund, said her company was basing its trading strategy on its outlook for what it called "inverse stagflation" where it saw stable to falling interest rates and equities, and inflation in commodities prices.

She said such a scenario could still be positive for China, where huge demand for raw materials has played a large part in the rallies in commodities markets, if the Chinese revalued the yuan upwards against the dollar.

Such a revaluation would offset the rise in dollar-priced commodities, when prices for China's finished goods exports are stable or falling, Haugerud said.

Should be getting the next results from the Mweze prospect by the end of next week, thoughts anyone? goal.

Should be getting the next results from the Mweze prospect by the end of next week, thoughts anyone? goal.

Any comments on the RNS ? The views on the ADVFN board are generally positive.

Moving up nice & steady.goal.

African Eagle Resources plc: Business description, financial summary, 3yr and interim financials, key statistics/ratios and historical ratio analysis.
Reuters Investment Profile, 11 pages, 06 October 2004, Price: 10.00


Anyone have a copy? Published on 6 Oct 2004

The Harmony / Gold Fields merger could be very interesting for AFE's shareholders

Why ?

http://news.ft.com/cms/s/5c410f94-2078-11d9-af19-00000e2511c8.html

From the FT for pasting if interested.

Still waiting for the results from the Mweze prospect.

AFE Webcast on T1ps today might be revealing

pls post whatever is said on T1ps. thanks

at last there appears to be something happening on this one...WEBCAST Tips says there are shedloads of rumours circulating that 4 mining companys are intereteseted in buying into Eagle Eye...followed by lots of buys this morning...fly fly fly eagle

piston I see you could be right. Buys are going through this morning and up about 10%, could be a blue eagle day and time to top up

where do I go to read this tips. or can someone send this to me pls.

xmortal....have sent to your personal box....sorry it took a few days..rgds

Back down again today. When will they give us some results??

thanks mwoolgar!!

mwoolgar,
can you send to my personal box as well please/ Thanks.

safiande...sorry have now deleted...hopefully xmortal can assist..rgds..

xmortal
Can you send me a copy of the T1ps transcript issued by
mwoolgar unless you have already deleted it.

I have deleted it too. sorry.

Ok. No problem.

http://www.uk-wire.com/cgi-bin/articles/200411090700140016F.html

Well Its been a long time coming but at last we have some good news to send this share back up to where it should be (20+) It'll be interesting to see where this ends up by 4.30!

B2B

You might want to check out this article published today on Citywire re AFE. Here's the link:

http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=70039&MenuKey=News.Home&NewsPage=1

Be careful. This is early stage exploration.

Afe are in better shape than ever before!!!
30% up today and
faida results due soon should see more skywards movement

ok Iturama, we know, don't patronize pls

Thanks xmortal
we should all know that minor co exploration is high risk I have loat loads on afe from the highs of 28p however I accept thats the way it is. High risk possible high gain maybe you should stick to ftse 100 and you have the low gains low risk. sorry this must sound so patronising.

Pleased to see that at the end of the day on Friday some large buys went through. Hopefully this might mean more gains on Monday.
IMHO the share price has drifted lower and lower on the basis of no news rather than bad news. Lets hope the good news continues and lifts the price back to where it should be.

Good luck to all holders


B2B

African Eagle - Drilling Update
Great news today comes from African Eagle* (AFE) with an update on drilling progress in Zambia. At Eagle Eye a second set of survey results show that the copper zones are far more extensive than was previously imagined. The company states boldly in its release that it now believes that the copper mineralisation now extends over nearly 25 kilometres. Included in the release are results of trenching from the northern limb of the structure which show grades of up to 1.07% copper over 6 metres. Can we say that Eagle Eye is a commercial world class deposit yet? No, not definitively. Further drilling will be needed next year to prove that up but we can say that it is looking increasingly likely that Eagle Eye will prove to be a commercial prospect.

The company also said that it is mapping and sampling a series of old trenches at Kampumba in Zambia and that plans are underway to drill the Mkushi prospect in the first quarter of 2005. Not stated in the release is that we should also get results from drilling up the gold prospect at Miyabi in Tanzania shortly.

Shares in African Eagle have raced ahead to 18.75p valuing the company at 13.5 million. This is a company with net cash and one gold field (Miyabi) which is almost certainly commercial if not huge and one copper play (Eagle Eye) which is very possibly both commercial and very large indeed plus a portfolio of other exploration assets of varying degrees of attraction. The stock does not discount the potential of one of the lead assets let alone both and remains a "strong speculative buy." regards goal

loads of exposure following the recent news. In my opinion would expect this to rise considerably next week and also in anticipation of the gold update at miyabi/faida.


(Courtesy of the "adv thread")
http://news.independent.co.uk/business/analysis_and_features/story.jsp?story=584780

http://www.thisislondon.co.uk/news/business/articles/timid84868?source=

http://www.thisismoney.com/20041119/nm84868.html

http://news.ft.com/cms/s/c646abfa-3a0a-11d9-aa4d-00000e2511c8.html

Buy African Eagle at 17.25p

Suggests Tom Winnifrith of t1ps.com

This has not been my greatest resource stock tip. I wish it was up by 500% like Golden Prospect or by 300% like Northern Petroleum. As it happens it is up by about 15% since I first highlighted its attractions but an announcement last week pushed the stock sharply higher and it now has momentum. It is also still, at 17.25p, ludicrously cheap. In fact I like this stock so much that I own it in my SIPP.

African Eagle started life on Ofex as Twigg. It moved to AIM in June 2003 and like most mining juniors it has had to pass the hat around a number of times. But unlike most mining juniors it has assets of real value and with net cash of 1.2 million pounds (plus another 700,000 pounds likely to come in over the next few months from warrants being exercised) the company has plenty of balance sheet headroom. The company has extensive acreage in Tanzania, Zambia and Mozambique but for the purposes of simplicity I shall ignore all bar two of those prospects. While the long tail has a clear economic value too much detail may serve to obscure the bigger picture.

The less exciting of the two lead prospects is the Miyabi gold prospect in Tanzania. This is a country with a supportive fiscal regime for gold explorers and which is now Africa's third-largest producer of the stuff. Miyabi has a proven resource of 140,000 oz and drilling results due shortly should push that number significantly higher. Given the local infrastructure it is almost certainly a commercial prospect. The idea that it could eventually develop into a mine producing 100,000 oz a year over ten years is far from implausible. With gold at nearly $450 oz and cash costs low (well under $200 oz) the DCF value of such a prospect is apparent to all and drilling over the next 18 months should firm up the resource numbers.

The jewel in the crown is a Copper play in Zambia known as Eagle Eye. Drilling results last week indicated that the strike zone may extend for up to 25 kilometres and the copper grades obtained from drilling and grab samples to date have been very encouraging. However it is too early to say that this is a world class commercial find but it may well be. More drilling is needed and that will take place over the coming year. If I was Mark Parker - an able geologist who runs African - I would at this stage be farming out Eagle Eye to a major so that it funds its accelerated progress and I just get a free carry. I suspect that will happen over the next year but meanwhile Parker is hoping to strike a better deal by obtaining more data.

At 17.25p African Eagle is valued at 12.5 million pounds. Miyabi has the potential to be worth double that amount. Eagle Eye has the potential to be worth a multiple of that amount. Of course both prospects could be worth nothing - exploration is inherently risky. But on a risk reward basis this is arguably the most attractive mining junior in town. Buy.

Share price: 16.5 - 18p
Stockmarket: AIM
Symbol: AFE
NMS: 10,000

Regards,goal.

Well its been a long time coming and I'm only just approaching a profit but it is nice to see this one back in the 20+ range. All the news looks good. Lets up there is still a lot of unside in the light of the good news released today.

B2B

I jumped in early today and am pleased with things so far. This news today can only help the company achieve its proper standing

HM

http://www.thisismoney.co.uk/highlow.asp

Riding high by a fair margin this a.m.

http://www.thisismoney.co.uk/highlow.asp

Fantastic news! Patience has paid off for holders--where do you see the share price ending up- long or short term?

moneyplus, not shore about short term, but long term looks fantastic.goal.

I agree goal, I'm afraid if I try to lock in some profit I'll get left behind!!

Minews Story
Date: November 25, 2004

African Eagle Has An Iron Oxide Copper Gold Deposit By The Tail At Eagle Eye And A Possible Gold Mine At Miyabi.

What with an extended rainy season, lack of drills and a queue a mile long at the assay lab it is not surprising that news from AIM listed African Eagle has been a bit sparse over the last few months. The share price suffered as impatient investors tried to make a fortune elsewhere, but they will probably now be wishing that they had stayed put as the company has released very encouraging news from both its Miyabi gold project in Tanzania and the Eagle Eye copper and gold project in Zambia. In the event the company wrong footed one or two commentators as the biggest expectations had been built up for Eagle Eye, but it is Miyabi which now shows every indication of becoming a mine. As a result African Eagle has swiftly made the flight from pure explorer to developer and the share price has been trying to catch up.

Safiende -this is the thread I meant. it seems to attract more comment. I hope the good news keeps on coming!

Some big buys just gone through

taking off again this week

28p seems to be the resistance line, would nice to see the resistance broken today. goal.

32p earlier. Well & truly broken

3 RNS announcements and the share price up from 14p to 28.75p in 7 trading days.

Hope you all stuck with these, just goes to show patience pays in the end.

Caledons another, but patience again will be required.

cheers GF.

Hi GF.. I certainly did stick with these & Caledons.. wish I could top up on the down but if the funds aren't there what can you do? Have a feeling the market is going to be down again today so patience as you say is the watch word.

Chris

http://www.minesite.com/storyFull.php?storySeq=224

Last para in particular

I feel I owe you a big thank you gf as it was you that brought AFE to my attention, I sold @ 29p & looking to buy back at some stage soon.I also hold Cdn.Regards goal.

No need to thank goal were all here to help each other out.

cheers GF.

Guys....I see RAB acquired a a further 5m shares in AFE yesterday which takes their holding to about 27 and a half %....(getting a little close to that 30% figure).
I would guess there will be further blue today

piston broke
In addition RAB have 10 Mio warrants exerciseable at 11p prior to Sep 2005

EXERCISES OF WARRANTS

AND

CHANGES TO SIGNIFICANT SHAREHOLDINGS



African Eagle Resources plc (Ticker: AFE) announces that the holders of 10,142,499 warrants have exercised at a price of 6p per share. These exercises bring the total number of shares in issue to 87,757,837.

Of these, 5,000,000 warrants formerly held by Mr B. Rowan were acquired and exercised by funds managed by RAB Capital, bringing the total number of the Companys shares held by RAB funds to 21,605,312 or 28.04% of the new total of shares in issue.

In addition, 2,765,000 warrants formerly held by Mr Rowan were acquired and exercised by funds managed by Paris-based Carmignac, bringing the total number of the Companys shares held by Carmingac funds to 8,500,000 or 9.69% of the new total of shares in issue.

The Company has made application for the new shares to be admitted to trading on AIM.







John Park
Chairman, African Eagle Resources plc



7 December 2004

SP moving up a little- anyone think there may be more good news coming or will we have to wait until next year?

Maybe people are coming back for the expected mid dec drill results?


http://www.uk-wire.com/cgi-bin/articles/200411290700317357F.html
"In line with the first objective, the Company is pleased to report that it has
begun reverse circulation drilling at its Igurubi gold project. An extensive
shear zone gold system along the granite-greenstone contact at Igurubi has been
worked by artisanal miners for many years and has yielded promising geochemical
results. The first drilling results are expected in mid-December."

nice 13% rice in the last couple of hours trading on no news could this be news on the way? has the jv leaked out?
Anyway Monday looking good.

greedybas
Now lost all of that gain & more.Can buy 100k at 23.25p on line

African Eagle Resources PLC
09 March 2005

African Eagle Resources plc



NEW RESOURCE ESTIMATE OF 400,000 OUNCES GOLD

FOR THE MIYABI GOLD PROJECT, TANZANIA





African Eagle ('the Company', Ticker: AFE) today announces that independent
geological consultants SRK have completed a technical audit of the Company's
drilling and assay work at the Miyabi gold project in Tanzania and calculated a
new independent resource estimate for the project. The total resource outlined
to date is 8.3 million tonnes at an average grade of 1.5 grams per tonne,
containing 400,000 ounces of gold, of which 75% is in the JORC Indicated
category.



Mark Parker, the Company's Managing Director, comments 'This work, carried out
to the widely accepted JORC standard by a respected independent consultant, will
permit future drill results to be incorporated into the data base with a high
level of confidence and will allow the resource estimate to be upgraded
incrementally as drilling progresses. The resource provides a sound footing to
African Eagle's 2005 drilling programme which has now started at Miyabi, and we
expect to add to it substantially over the coming months'.



During early 2004, the Company's geologists carried out a complete re-appraisal
and interpretation of the entire Miyabi exploration database and identified
several promising targets. Drilling on the first of these targets, Faida,
intersected a wide, consistent zone of gold mineralization. By the end of 2004,
African Eagle had demonstrated from geophysical surveys and geochemical mapping
that this zone extended for at least 500m along strike. Although only half of
this interpreted strike length has been drilled to date, drill intersections,
including 58m at 4.03g/t and 60.7 metres at 1.57g/t, demonstrated that the zone
extends to at least 150m down-dip.



The discovery of the Faida zone shifted the Miyabi gold project from exploration
phase to resource evaluation phase. Consequently, the Company commissioned SRK
Consulting of Cardiff, UK to conduct an independent technical audit of the
drilling and assaying procedures used by the Company and to make a formal
resource estimate based on all the results to date. Four other mineralised
zones within the Miyabi project area, Kilimani, Shambani North and South, and
Ngaya, were also included in the SRK audit and estimate.



The drill core from Faida has given the Company's geologists a much better
understanding of the structural controls on the mineralisation at Miyabi. This
knowledge will now be applied to the other three zones, where mainly reverse
circulation drilling has been carried out so far, and to the other, yet
undrilled target zones identified by the data re-appraisal. The Faida core will
also be tested to determine the metallurgical recoverability of the gold in the
zone.



Diamond drilling to add to these resources is now underway and a reverse
circulation rig is expected to mobilise in May. Drilling will continue through
much of the next ten months.



The table below sets out the Mineral Resources in each of the mineralised zones
drilled to date. Mineral Resources are above a cut off grade of 0.5 g/t gold
and are reported using the terminology and guidelines given in the December 2004
JORC Code. Following the table are SRK's notes on each of the zones.



Zone Resource category Tonnage (t) Grade (g/t) Ounces

Faida Indicated 3,175,000 1.6 165,000
Inferred 375,000 1.8 20,000
Kilimani Indicated 1,920,000 1.3 80,000
Inferred 400,000 1.6 20,000
Shambani S Indicated 490,000 2.0 30,000
Inferred 120,000 2.0 10,000
Shambani N Indicated 640,000 1.4 30,000
Inferred 355,000 1.2 15,000
Ngaya Inferred 850,000 1.2 35,000

Total Indicated 6,230,000 1.5 300,000
Inferred 2,110,000 1.4 100,000
Total 8,335,000 1.5 400,000



Note : appropriate rounding has resulted in apparent summation errors



In summary, the Miyabi deposits have been interpreted as several similarly
orientated continuous lenses with within a clearly defined structural corridor.
Each deposit in the resource model has been interpreted as a tabular,
northeast-striking, steep-dipping shear zone. The deposits contain a small
amount of low grade material but otherwise are remarkably continuous in
geometry. Higher grade patches are discernable and these may be more effectively
outlined in the future by infill and extension drilling. The current drilling
programme has been designed, in part, to test the continuity of these higher
grade areas.



Faida has been modelled to 150m down dip over a strike length of 300m. The
deposit is mostly over 25m wide. Although only 10 drillholes intersect the
deposit, their results suggest a consistent width and grade of mineralisation,
most of which can be classed as an Indicated Mineral Resource. The deposit is
open at depth and to the northeast.



The Kilimani resource model has a strike length of 550m and a dip extent of some
130m, defined by 43 drillhole intersections. The thickness varies between 5 and
20m in the main part of the deposit. Drilling is concentrated in the northeast
where an Indicated Mineral Resource has been defined whilst wider spaced
drilling in the southwest supports an Inferred Mineral Resource. The deposit is
open at depth and along strike, particularly at depth to the northeast.



The Shambani North resource model has a strike length of 450m and a dip extent
of some 120m defined by 15 drillhole intersections. The thickness is generally
less than 7m although locally, it swells to 25m. The drilling coverage is
sufficient to support Indicated Mineral Resource status in the southwest. The
deposit is open at depth and to the southwest.



The Shambani South resource model has a strike length of 450m and a dip extent
of 100m. This deposit is situated some 160m to the southeast of Shambani North.
The thickness is a reasonably constant 5-8m thinning towards the edges.
Drilling, consisting of 24 intersections, has concentrated in two broad areas,
which together constitute an Indicated Mineral Resource, whilst wider spaced
intersections support an Inferred Mineral Resource. The deposit is open at depth
and along strike.



The Ngaya resource model extends for 300m along strike and 115m down dip. The
deposit is relatively narrow but reaches a width of 20m in the central part.
Thirteen drillholes intersect the deposit but they are not on a set of regular
sections, making interpretation relatively difficult. However, two lenses of
mineralisation with similar strike and dip orientations to the neighbouring
deposits have been interpreted with enough confidence to support an Inferred
Mineral Resource. The deposit is open at depth and to the northeast and will
benefit from a regular pattern of infill drilling.



John Park

Chairman, African Eagle Resources plc

IC tipped these this week & its up 10% this morning

It's always useful to be tipped - unless you're a ciggie!
;>)

Does anyone have any news on AFE?

How is it doing generally and is it worth a punt?

Just been informed that TW at t1ps has put this share as a strong speculative buy.....any comments?

Late Extra - Share Overhang Lifted, At Last, From African Eagle

Yesterday 17 million shares in African Eagle Resources changed hands at marginally below the market price on the AIM Market. RAB Capital had exercised its warrants with a day to spare and the shares had been placed with a number of institutional investors. RAB Capital helped the company and its broker in this exercise and, as a result, some new funds and interesting funds are on the shareholder list.

This was good for the company, as was the fact that it had raised 1 million by the exercise of the warrants. Happiest of all should be the shareholders as it has been known for a long time that RAB would have to sell 8.5 million shares, if it exercised the warrants, to avoid going over the 30 per cent threshold and having to bid for the company.

With the dark cloud of overhang now lifted, maybe the shares will start to reflect some of the news of recent weeks.

Mineral prospector African Eagle is contemplating hiving off some operations into a new company after encouraging copper results in Zambia.

Chaired by genial Australian entrepreneur John Park, AIM-quoted African Eagle, which lost an increased 224,500 in the six months to June, has 2.5 million in the bank, including 1 million after the recent exercise of warrants by shareholder RAB Capital. The company, which has been working to develop the 400,000-oz Miyabi gold project in Tanzania, claims its string of copper and gold projects in Zambia, Tanzania and Mozambique have a present value of 278 million and combined value of 16.5 billion against a current market value of 23 million.

Park particularly enthuses about the company's Mkushi prospect in Zambia, where 1990s studies estimated a potential resource of 30 million tonnes at 1.25 per cent copper. He says African Eagle has signed confidentiality agreements with 'mid-tier' mining companies on some of its Zambian properties and says large mining groups have been in touch following its acquisition of a 480 sq km in the heart of the Zambian copperbelt.

In Tanzania, African Eagle recently drilled one exceptionally high-grade gold intersection of three metres at 241 grammes a tonne at Msasa, next to gold properties being deve1oped by major mining group American Barrick. African Eagle's strategy is not to develop its projects itself, but to bring in operating partners or sell big chunks, retaining a free carried interest.

According to Park, the company may need to raise some money early next year to fund further investigation of its projects. That might provide the occasion to split off some parts, such as Miyabi for instance, into a separate quoted vehicle.

African Eagle has been a slow mover on AIM, though current developments might rekindle interest. The current share price is 22p

anyone got an idea what is going on today...lots of blues as the Eagle soars

PB

maybe there is some good news in the pipeline as todays hike is the eagles best day for months

Can't believe that there are no posts on here about the recent sp climb and expectation of news.

GB - Nothing factual to add I suppose, unlike across the road where that seems to be a reason for encouragement to post.

IMHO AFE whilst speculative does carry a cogent case for anticipating a bright future. This will ultimately be reflected in the share price. If you want price action this is not the place to invest. This is one for patient investors.

compound
I think this week is going to see a large rise. may be touching 30p. I am very patient and confident on this one.

Project Target Status RNS 20 Jan 2006

Kagulamu Gold Gold geochemical anomaly close to and along strike from Anglo-Ashanti's
eastern Geita operations.
Gloria Gold Gold geochemical anomaly on granite contact adjacent to Gallery Gold's
Buck-Reef / Mawe Meru holdings.
Mabale Hills Gold Strategically located in midst of three of the most promising recent
gold discoveries in Tanzania. First results awaited.
Kiwasi Hills Gold Multiple gold targets identified in this large licence straddling the
major Suguti Shear.
Dutwa Gold, platinum Gold anomalies over 15km strike within 5 licences covering 500 square
km of the productive Kilimafedha gold belt.
Iramba Gold Geochemical anomalies and gold-bearing structures within areas of
historical gold mining. Grab samples up to 10g/t.
Ugambilo Gold Three geochemical anomalies in a licence between Gallery Gold's 480,000
oz gold resource at Kitongo and Tanrange Exploration's flagship Luahala
property
Itweria Gold Promising gold anomalies in eastern part of the Nzega Gold Belt, which
contains Resolute's 2.7Moz Golden Pride Mine.
Kayenzi Gold A gold anomaly over banded iron formation in the Siga Hills Gold Belt.
Mihama Gold, diamonds A promising gold anomaly and kimberlitic diamond targets.
Dodoma Diamonds Advanced farm-out negotiations underway.
Tabora Diamonds Farm-out negotiations underway.

African Eagle Resources PLC
07 April 2006


African Eagle Resources plc

DRILLING UPDATE FROM MKUSHI

African Eagle Resources plc ('the Company' or 'African Eagle', ticker AFE) is
pleased to announce further results from its 2006 drilling programme at the
Mkushi copper project in central Zambia. Mineralised drill intercepts included:

o 57m at 2.0% copper
o 155m at 0.4% copper
o 24m at 1.3% copper

African Eagle's Managing Director, Mark Parker, comments, 'Our drill results
continue to demonstrate that there is a robust copper mineralised system at
Mkushi. As our 'nearest market' project, Mkushi offers excellent potential for
African Eagle to move into production and positive cash-flow.'

African Eagle is undertaking an economic scoping and pre-feasibility study on
Mkushi, scheduled for completion by the 4th quarter of this year. We hope that
this will lead to a full feasibility study and a commercial production decision
by the end of 2007.

The new results are from the Company's continuing drilling programme at Mkushi
aimed at defining the copper resources beneath the old mining operation at
Munshiwemba, in its southwest extension (known as H-Zone) and at the Coloquo
prospect 2.5 km to the northeast.

The results of the latest drilling are tabulated below and a map showing all the
drill results to date along this zone can be seen at
www.africaneagle.co.uk/

projects-mkushi

Drill Hole Hole Type Prospect From (m) Interval (m) Copper %
MH23 diamond H Zone 46.6 4.0 1.0
and 141.0 57.0 2.0
including 164.0 22.0 2.4
and 192.0 6.0 5.0
MH21 diamond H Zone 54.0 155.0 0.4
MH13 diamond H Zone 163.0 24.0 1.3
MH26 percussion H Zone 29.0 30.0 0.5
MC8 percussion Coloquo N 54.0 10.0 1.1

The high grade intersection in hole MH23 occurs 100m along strike from hole MH9
which intersected 84m at 1.8% copper. Together, these two holes confirm the
existence of substantial high grade copper zones within H zone.

Samples of drill core have been shipped for metallurgical testing and the
Company plans to drain the water from the 30m deep open pit at Munshiwemba, to
allow detailed evaluation of the mineralisation beneath the pit floor.

John Park

Chairman
African Eagle Resources plc

7th April 2006


About African Eagle

African Eagle is a mineral resources company with its focus on eastern and
central Africa. It operates in Zambia, Tanzania and Mozambique, countries with
highly prospective geology and low above-ground risks, which have all been
destinations for successful recent major investments in the metals and minerals
industries.

The Company has a highly motivated team, proven management and an experienced
board. Its principal operations are the Miyabi gold project in Tanzania and the
Mkushi and Ndola copper projects in Zambia. It has discovered a large iron oxide
copper gold (IOCG) system at Eagle Eye in Zambia and holds a well-balanced
portfolio of promising early stage projects.

About Mkushi

The Mkushi copper project in Zambia is African Eagle's 'nearest-market' asset.

Mkushi is a historic copper mining camp which was operated in the 1920s and the
1960s. A report commissioned by the Zambian national copper company in 1990
estimated that more than 300,000 tonnes of copper metal remained in the ground
at Mkushi, at a grade of 1.24% copper. African Eagle has been drilling over the
past months to check this estimate, which pre-dates modern resource reporting
standards, and it appears to be well founded.

Moreover, geophysical surveys have indicated that other mineralised zones exist
which were not recognised by previous explorers. The Company believes that these
could bring the total to 500,000 tonnes of contained copper metal.

The local infrastructure around Mkushi is excellent and the past history of
mining should make it reasonably straightforward to obtain government permits
for renewed operations. The mineralisation has a simple chalcopyrite mineralogy,
which should allow the Company to produce a copper sulphide concentrate
efficiently at relatively modest capital cost. This product could be sold
directly to the smelters on the copperbelt, or exported on the nearby railway
for shipment to any smelter in the world.

African Eagle aims to generate income from Mkushi as soon as possible. The
Company has commenced a scoping study which will include metallurgical and
geotechnical test work and preliminary economic modelling based on a modular
approach to project development. It is expected that this formal study will
support the Company's own preliminary calculations which show that Mkushi could
be highly profitable. The Company could be in a position to make a production
decision before the end of 2007.

Fridays AnaIysis on UK-AnaIyst is the monthly markets and stocks review from GE& CR
Date: Sat, 15 Apr 2006 00:14:16 +0100



African Eagle

Key Data
EPIC AFE
Share price 19.5p
Spread 18.75 - 20p
NMS 5,000
Market cap. 23 million pounds
12 month range 16 - 25.25p
Market AIM
Website www.africaneagle.co.uk
Sector Mining
Contact MD Mark Parker
077 7980 1159

We published a major note on African Eagle on 27th March which can be obtained by emailing stephanie@tisl.co.uk and in which we set a target price of 60p - nothing has changed since then to alter our assessment and at 19.5p the shares remain very cheap.

African Eagle is an AIM listed mining exploration company focussed largely on Tanzania - where it is prospecting for gold
and Zambia where its quest is for copper. The company is not part of the recent wave of AIM new issues but has been around for many years, formerly trading on Ofex where it was known as Twigg. In chairman John Park, managing director Mark Parker and exploration manager Chris Davies it has a hugely experienced senior management team. Bolstered by a recent placing at 17p, the company has net cash which is easily sufficient to meet its needs over the coming year.

On April 7th African announced the latest drill results from Mkushi in Zambia, the highlights of which were an 57 metre intersection at 2% copper and a 155 metre intersection at 0.4% copper. African Eagle will be looking to drive Mkushi towards production in 2007 and this could be achieved for as little as $10 million giving the project a three figure NPV. A full feasibility study will be undertaken this year.

The other lead project is the Miyabi gold play in Tanzania and a new estimate of the proven resource was published on 21st March. This showed an increases from 400,000 oz to 520,000 oz and the company stated explicitly that this should be a 1 million oz reserve.

African Eagle is focussing its efforts on realising value and generating cash from Mkushi and Miyabi but it has at least five other projects which have all shown the potential to be of commercial value: Igurubi, Ndola, Lunga, Makombo and Eagle Eye. Our conservative sum-of-the-parts valuation for Eagle Eye is 60p per share and thus at 19.5p our stance remains "speculative buy."

Into the watch list she blows.

KD.

African Eagle Resources PLC
12 June 2006


African Eagle Resources plc ('the Company' or 'African Eagle')

DRILLING UPDATE FROM MKUSHI COPPER MINES

African Eagle Resources plc ('the Company' or 'African Eagle', ticker AFE),
announces further excellent results from its ongoing resource definition
drilling programme at Mkushi Copper Mines in central Zambia. Best mineralised
drill intercepts include:

27m at 2.1% copper
61m at 1.4% copper
52m at 1.3% copper
132m at 0.5% copper
73m at 0.6% copper

African Eagle's Managing Director Mark Parker comments 'Mkushi is giving
consistently good results and it now compares very favourably with other copper
projects being brought into production in southern Africa. The latest results
are from a mineralised body to the southwest of the old open pit. So far, we
have outlined 12 to 14 million tonnes at an average grade between 0.7 and 1.2%
copper in this body, according to our preliminary estimates. Drilling continues
and we expect to announce an independent resource estimate during Q3, with a
development scoping study soon after.

'African Eagle believes that Mkushi will add up to a substantial copper deposit,
which internal economic modelling indicates should be profitable across a wide
range of copper prices. Our recent 3.3M financing will enable us to accelerate
the project towards feasibility and development.'

The new results are from the southwest extension of a copper deposit which was
mined by an open pit in the 1960s and 1970s. African Eagle has now traced this
body, known as 'H-Zone', for at least 800m along strike and down to 160 vertical
metres below surface. The zone is up to 60m wide and should therefore be
suitable for open pit development.

Preliminary geological modelling of H-Zone by African Eagle's geologists, based
on the drill results to date, indicates a potential of at least 12 to 14 million
tonnes with grades of the order of 0.7 to 1.2%, to a depth of 150 vertical
metres below surface. This estimate includes only that part of the main
mineralised body drilled to date and does not take into account a smaller
parallel body. As a priority, African Eagle now intends to complete sufficient
additional drilling to allow an independently audited JORC resource estimate to
be prepared during the third quarter of 2006.

There is also considerable scope to add to the resource at Mkushi by drilling
other mineralised zones. A resource estimate of 30.4 million tonnes grading
1.23% copper, equating to more than 370,000 tonnes of copper metal, was made in
1990, based on the four mineralised zones for which drill reports were then
available. Already the preliminary tonnage estimate for H-Zone alone accounts
for more than one third of this figure and the other known zones and potential
new ones identified by African Eagle's geologists remain to be evaluated.

Past mining from the open pit yielded 2.2 million tonnes of ore at an average
grade of 1% copper, but the pit reached a depth of only 30 metres and archive
reports indicate that considerable resources remain beneath the old workings.
The Company plans to drill this area once the old pit can be pumped dry.

Moreover, there are known mineralised zones which have never been drilled and
African Eagle's induced polarisation geophysical surveys have identified many
other chargeable zones which may be additional copper resources elsewhere within
the prospecting licence.

African Eagle has now completed 48 inclined diamond and percussion drill holes
for a total of 7906m at the Mkushi Copper Mines. The principal results of the
latest drilling are tabulated below. A table of all mineralised drill intercepts
to date and a map showing key drill results from H-Zone can be viewed at

www.africaneagle.co.uk/projects-mkushi2.html


Drill Hole Hole Type From* (m) Interval (m) Copper (Cu) %
MH14 diamond 161 61 1.4
including 175 7 5.8
and 236 5 1.9
MH15 diamond 53 6 2.7
and 95 52 1.3
MH22 percussion 127 27 2.1
MH29 percussion 14 73 0.6
MH30A percussion 6 132 0.5
MH31 percussion 16 53 0.5
MH33 percussion 34 72 0.4
MH37 percussion 12 120 0.5
Including 28 18 1.5
and 85 8 1.2
* Down-hole depth

John Park
Chairman
African Eagle Resources plc
12 June 2006

About African Eagle

African Eagle is a mineral resources company operating in eastern and central
Africa. It holds projects in Zambia, Tanzania and Mozambique, countries with
highly prospective geology and low above-ground risks, which have all been
destinations for successful recent major investments in the metals and minerals
industries.

The Company has a highly motivated team, proven management and an experienced
board. Its principal operation is the Mkushi Copper Mines projects in Zambia. It
also holds the Miyabi gold project in Tanzania, the Ndola copper project in the
Zambian Copperbelt and has discovered a large iron oxide copper gold (IOCG)
system at Eagle Eye in Zambia. There is also a well-balanced portfolio of
promising early stage exploration projects.

About Mkushi Copper Mines

Discovered in 1922, the Mkushi deposits were first mined by underground
workings, then developed as an open pit operation in the late 1960s. The mine
closed around the time of Zambia's nationalisation of the copper industry in the
1970s, but archive reports indicate that there is still abundant ore left in the
ground. African Eagle Resources acquired the Mkushi Copper Mines in 2002 through
a share-based acquisition of an Australian exploration company and is now
drilling to confirm and expand the known copper resource.

The local infrastructure around Mkushi is excellent and the brownfield site
should make it straightforward to obtain permits for renewed operations. The
deposits have simple chalcopyrite mineralogy which should allow a concentrate to
be produced efficiently at relatively modest capital cost. Mkushi is the only
Zambian copper mine in rocks older than the Katangan sequence which hosts the
well known Copperbelt deposits.

African Eagle is also exploring a wide area surrounding the old mines.
Geophysical induced polarisation surveys, which to date cover almost 30 square
kilometres, have revealed additional anomalies in the area, which African Eagle
believes could bring the total resource to 50Mt at 1% or more copper, with
500,000 tonnes of contained metal.

The Company is conducting a full resource drilling programme and economic
evaluation at Mkushi, leading to a full feasibility study during 2007, with a
view to taking the project to commercial production.

Qualified Person

Information in this report relating to the exploration results is based on data
reviewed by Mr Christopher Davies B.Sc, M.Sc, DIC, Operations Director for
African Eagle Resources, who is a Fellow of the Australasian Institute of Mining
and Metallurgy, has in excess of 25 years experience in mineral exploration and
is a Qualified Person under AIM Rules. Mr Davies consents to the inclusion of
the information in the form and context in which it appears.

For further information, see the Company's web site
www.africaneagle.co.uk
or
contact one of the following:

Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899

Chris Davies
Operations Director
+44 20 7248 6059
+44 78 6672 9959

Leesa Peters
Conduit PR
+44 20 7429 6600
+44 78 1215 9885



This information is provided by RNS
The company news service from the London Stock Exchange

according to the Daily Express today, it looks like ' a bullish report on the copper prospecting in Zambia'.
Will the EAGLE be flying again


rgds...pb

African Eagle Resources PLC
21 July 2006


African Eagle Resources plc

New Drilling at African Eagle's High-grade Msasa Gold Project

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 the 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 grammes of gold per tonne over 9 metres.

MDN's programme of reverse circulation drilling will follow up these promising
indications, to determine the extent of the gold mineralisation and to test
further geochemical and geophysical targets.

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'.


John Park
Chairman
African Eagle Resources plc
20 July 2006



About African Eagle

African Eagle is a mineral resources company with its focus on eastern and
central Africa. The Company operates in Zambia, Tanzania and Mozambique, three
countries with highly prospective geology and low above-ground risks, which have
all been recent destinations for successful major investments in the metals and
minerals industries.

The Company has a highly motivated team, proven management and an experienced
board. Its principal operations are the Miyabi gold project in Tanzania and the
Mkushi and Ndola copper projects in Zambia. It has discovered a large iron oxide
copper gold (IOCG) system at Eagle Eye in Zambia and holds a well-balanced
portfolio of promising early stage projects.
Qualified Person
Information in this report relating to the exploration results is based on data
reviewed by Mr Christopher Davies B.Sc, M.Sc, DIC, Operations Director for
African Eagle Resources, who is a Fellow of the Australasian Institute of Mining
and Metallurgy, has in excess of 25 years experience in mineral exploration and
is a Qualified Person under AIM Rules. Mr Davies consents to the inclusion of
the information in the form and context in which it appears.

For further information, see the Company's web site
www.africaneagle.co.uk
or
contact one of the following:

Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899

Chris Davies
Operations Director
+44 20 7248 6059
+44 78 6672 9959

Leesa Peters or Ed Portman
Conduit PR
+44 20 7429 6666




This information is provided by RNS
The company news service from the London Stock Exchange

African Eagle Resources PLC
28 July 2006



African Eagle Resources plc

STRATEGIC DEVELOPMENT PARTNER FOR MKUSHI COPPER MINES


AIM quoted African Eagle Resources plc ('African Eagle' or 'the Company', ticker
AIM: AFE) today announces that it has signed a Heads of Agreement ('Heads') with
Central Asia Gold Limited (CAGL) for the joint venture development of its Mkushi
Copper Mines project in Zambia. Under the Heads, CAGL will conduct and finance a
bankable feasibility study ('BFS') at Mkushi, leading to a decision on mine
development. The deal is a major landmark in AFE's strategy of realising the
value in its asset holdings.


Under the Heads, AFE and CAGL will set up a joint venture vehicle to explore the
licences and develop the Mkushi project, holding 49% and 51% interests
respectively. CAGL will direct and fully fund the completion of the BFS within a
defined part of the licence area. CAGL must spend at least US$1M on the BFS,
which will include a scope of work set out in the Heads. If CAGL withdraws
before the completion of the BFS, or does not meet its obligation to complete a
BFS before 30 June 2008, its 51% interest will revert to AFE. On a decision to
develop a mine, CAGL will use its best endeavours to arrange the project finance
for development of a mine on behalf of the joint venture. AFE will continue to
explore the rest of the licence area outside the defined zone, funded pro rata
by the two parties.

Managing Director Mark Parker comments 'This agreement is a milestone in our
strategy of bringing in partners with the skills and cash to fast track our many
highly prospective projects. It will accelerate our resource drilling,
engineering studies and economic modelling, and should take us to a development
decision significantly faster. It will also free up some of our resources to
make progress on other key projects.

'The managers at CAGL have sound track records of bringing significant mines
into production quickly and cost-effectively not only in Africa but also
worldwide, including Golden Pride in Tanzania, Obotan in Ghana, Boroo in
Mongolia and Bullabulling, Chalice and Marymia in Western Australia. Members of
AFE's Board have worked successfully with the key CAGL people before, on the
joint development by SAMAX and Resolute of Tanzania's first modern gold mine at
Golden Pride.'

The Heads are in line with the Company's objectives of bringing its nearest to
market projects into production as quickly as possible, through development
partnerships where appropriate, while retaining significant future upside by
leveraging its exploration skills.

African Eagle has already drilled almost 10,000m of diamond and percussion drill
holes and has recently engaged Snowden Mining Services to conduct a resource
estimate. The Company is currently completing its final planned holes in the
resource drilling programme at H-Zone and will then switch to exploration
drilling, starting at the promising Munda target, while CAGL takes over the
resource drilling programme.

The Heads of Agreement are conditional on satisfactory completion of due
diligence by both companies before 31 August 2006 and on approval of the joint
venture by the Zambian Ministry of Mines.

The Company also signed a Heads on similar terms over the Mokambo project in the
Zambian Copperbelt, subject to resolution of issues of title.

John Park
Chairman
African Eagle Resources plc

28 July 2006

About African Eagle

African Eagle is a mineral resources company with a focus on eastern and central
Africa. The Company operates in Zambia, Tanzania and Mozambique, all countries
with highly prospective geology and low above-ground risks, which have all been
recent destinations for major successful investments in the metals and minerals
industries.

The Company has a highly motivated team, proven management and an experienced
board. Its principal operations are the Miyabi gold project in Tanzania and the
Mkushi and Ndola copper projects in Zambia. It has discovered a large iron oxide
copper gold (IOCG) system at Eagle Eye in Zambia and holds a well-balanced
portfolio of promising early stage projects.

About Central Asia Gold

The management at CAGL, which is listed on the Australian ASX and Toronto TSE
exchanges, have a track record of successfully acquiring, financing,
constructing and operating world class gold projects in emerging markets. CAGL
is cash-rich from the sale of its interest in the 250,000 ounce per year Boroo
gold mine in Mongolia and other assets. At the end of March 2006, CAGL reported
cash assets of A$61M, and also has access to significant pools of capital for
equity and debt financing of mining projects. The CAGL team has long-standing
relationships with a number of contractors and consultants experienced in
geology, mining and engineering,

About Mkushi Copper Mines
Discovered in 1922, the Mkushi deposits were first mined by underground
workings, then developed as an open pit operation in the late 1960s. The mine
closed around the time of Zambia's nationalisation of the copper industry in the
1970s, but archive reports indicate that there is still abundant ore left in the
ground. African Eagle Resources acquired the Mkushi Copper Mines in 2002 through
a share-based acquisition of an Australian exploration company and is now
drilling to confirm and expand the known copper resource.

The local infrastructure around Mkushi is excellent and the brownfield site
should make it straightforward to obtain permits for renewed operations. The
deposits have simple chalcopyrite mineralogy which should allow a concentrate to
be produced efficiently at relatively modest capital cost. Mkushi is the only
Zambian copper mine in rocks older than the Katangan sequence which hosts the
well known Copperbelt deposits.

African Eagle is also exploring a wide area surrounding the old mines.
Geophysical induced polarisation surveys, which to date cover almost 30 square
kilometres, have already revealed additional mineralised zones in the area.


For further information, see the Company's web site
www.africaneagle.co.uk
or
contact one of the following:


Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899

Chris Davies
Operations Director
+44 20 7248 6059
+44 78 6672 9959

Leesa Peters or Ed Portman
Conduit PR
+44 20 7429 6666



This information is provided by RNS
The company news service from the London Stock Exchange

African Eagle Resources PLC
08 August 2006



African Eagle Resources plc

PHELPS DODGE MINING (ZAMBIA) LIMITED TO PARTNER AFRICAN EAGLE
AND FUND THE NDOLA COPPERBELT PROJECT

AIM quoted African Eagle Resources plc ('African Eagle' or 'the Company', ticker
AIM: AFE) today announces that it has signed an Earn-in Agreement with Phelps
Dodge Mining (Zambia) Limited (PDMZ), a wholly owned subsidiary of the Phelps
Dodge Exploration Corporation, for the exploration and joint venture development
of its Ndola Copperbelt project in Zambia.

Under the Agreement, PDMZ will subscribe for AFE shares to the value of US$2.73
million in two tranches, at a 10% premium to the market price of AFE's shares.
AFE will use 75% of the funds on an agreed exploration programme at Ndola and
the balance on other AFE projects and general working capital. PDMZ will gain an
exclusive right to earn an ownership interest of up to 70% in the Ndola project
by making agreed expenditures on further exploration up to and including
completion of a bankable feasibility study.

This Agreement is in line with AFE's strategy of working with other companies
inthe joint development of its projects and complements the recent announcement
that the Company's Mkushi Copper Mines project, also in Zambia, will be
developed in partnership with Central Asia Gold Limited.

The principal terms of the Agreement are:

PDMZ will subscribe for an initial tranche of AFE shares to a value of
US$1,273,333 (approximately 680,000) and within 12 months will subscribe to
a second tranche of AFE shares to a value of US$1 million (approximately
530,000), both at a 10% premium to the average closing mid-market price of
AFE's shares for the 10 consecutive dealing days immediately preceding the
relevant subscription date. At AFE's current share price of 11.75p, PDMZ
would hold approximately 3.4% of the Company's share capital after the first
subscription and almost 6% after the second tranche.

AFE will undertake an agreed 15-month exploration programme on the Ndola
licence, spending at least 75% of the amount subscribed on that programme.

AFE will grant PDMZ the exclusive right to enter into a joint venture
with AFE on the Ndola project at the end of the 15 month period. Under the
joint venture, PD can earn a 51% interest in the Ndola project by spending a
further US$3m on exploration and then an additional 19% by completing a
bankable feasibility study on the property.

The share subscription will be subject to approval of the contemplated joint
venture by the Zambian Ministry of Mines and to satisfactory completion of due
diligence by PDMZ.

The Ndola licence area is considered highly prospective, being underlain by the
Mine Series and Lower Kundelungu geological sequences which host most of the
world-class copper deposits of Zambia and the DRC. The licence occupies a
little-explored gap between First Quantum Minerals' Frontier and Lonshi mines in
the DRC. Drilling of the Mine Series northeast of Ndola town during the 1950s
and 60s revealed extensive copper mineralisation, with a historical estimate
(not JORC-compliant) of 40 million tonnes at 0.75% copper. African Eagle's top
priority will be to re-evaluate the resource and test for extensions to.

At the same time, the Company will conduct surface surveys over the whole
licence, including soil geochemistry, geological mapping, gravity and airborne
geophysics, which are likely to reveal new drilling targets.

African Eagle's Managing Director Mark Parker comments 'I am delighted that
Phelps Dodge, the world's third largest copper miner, will be exploring this
highly prospective area with us.'

John Park
Chairman
African Eagle Resources plc

08 August 2006

About African Eagle

African Eagle is a mineral resources company with a focus on eastern and central
Africa. The Company operates in Zambia, Tanzania and Mozambique, all countries
with highly prospective geology and low above-ground risks, which have all been
recent destinations for major successful investments in the metals and minerals
industries.

The Company has a highly motivated team, proven management and an experienced
board. Its principal operations are the Miyabi gold project in Tanzania and the
Mkushi and Ndola copper projects in Zambia. It has discovered a large iron oxide
copper gold (IOCG) system at Eagle Eye in Zambia and holds a well-balanced
portfolio of promising early stage projects.

About Phelps Dodge Corporation

Phelps Dodge Mining (Zambia) Limited is a wholly owned subsidiary of Phelps
Dodge Exploration Corporation. The parent, Phelps Dodge Corporation (Ticker
NYSE: PD) is one of the world's leading producers of copper and molybdenum and
is the largest producer of molybdenum-based chemicals and continuous-cast copper
rod. The company employs 14,500 people worldwide.

About Ndola

African Eagle's Ndola licence lies in the southern part of the hugely prolific
Central African Copperbelt, one of the great mining districts of the world. The
Copperbelt hosts two of the world's ten biggest copper deposits and contains a
global resource of almost 200 million tonnes of copper metal, mostly in very
high grade ores.

The Ndola licence surrounds the historic Bwana Mkubwa copper mine and occupies a
little-explored gap between the Frontier and Lonshi Mines operated by First
Quantum Minerals. The Group believes that modern exploration techniques coupled
with current geological thinking on Copperbelt mineralisation could yield
significant discoveries at Ndola.

In late 2005, the Company conducted a thorough review of archive information on
the mineral resources and potential of the Ndola area. The review concluded that
the area is highly prospective for copper deposits, of the Frontier and Lonshi
type as well as the classic Zambian Copperbelt Mine Series hosted type.
Widely spaced drilling in the Mine Series during the 1950s and 60s revealed a
resource of some 40 million tonnes of 0.75% copper northeast of Ndola town, and
a deposit containing 3 million tonnes of 3.5% combined lead and zinc near the
centre of the licence. These deposits were only sketchily explored and have
potential for further development.


For further information, see the Company's web site
www.africaneagle.co.uk
or
contact one of the following:

Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899

Chris Davies
Operations Director
+44 20 7248 6059
+44 78 6672 9959

Leesa Peters or Ed Portman
Conduit PR
+44 20 7429 6666





This information is provided by RNS
The company news service from the London Stock Exchange

rumours of better than expected mkushi results expected next week. in daily express

What do you think to todays RNS?

Up 1.25 today but still no sign of why?

Roly .mon ami -Amities / Yet another tick up today Roly from annual nadir ... Also do yourself a favour will you my good friend ! ? Buy level 2..lf but for no other reason than to secure correct calls on certain trades ,,,,.For example --The last nine trades in AFE are marked as "sells" under "freebie" Money am streaming trades ..YET they are buys below the mid!!......l cant believe how many people trade when they havent got this tool ,,,Nice to see a few traders entering the fray though.....3 times mms have taken it down to 9.25; but each time it finds a barrage of support at this level ........This stock is the most attractive underpriced, OVERSOLD mining stock i have come across in a long time; and unlike so many other miners has over 50% I/S , Directors and senior management all have have a massive shedfull ..,.They have j/vs with Phelps Dodge { now the third biggest miner in the world farming into AFE s eagle eye concession, and financially carrying the project from from airbourne magnetics imaging and seismic 3D right up to a bankable feasibility programme. Central Asia gold another successful miner is another "farming in partner " and what with the Eagle eye programme they have a 520,000 oz resource of JORC compliance which can be extracted by the crude but simle leaching process. Prior to this past year l have avoided AFE due to one bear point ->.The the only bear point was getting the finest copper in Africa physically out of the continest; and now even this problem has dissipated.. or certainly seems to have been addressed ,as you interestingly pointed out, by the Chinese whose investment in Tanzania / Zambia has made possibble a massive road and bridge buiding programme. it would seem AFE eagles last big tangible problem reg transportation and SAFETY of movement of assets { gold, diamonds ect ect has been solved for them by of all people-- the Chinese ...,,,,,,,,,,,,,,,,,,,,,,,,,,,,,A fantastic oppertunity at this s/p ....But as always DYOR ....bien bien aficalment...@+ J.

Also that corridor of land in the N>W of Zambia newly acquired acreage by AFE borders with DRC which due to civil war has been VIRTUALLY UNTOUCHED for years ; AND ESPECIALLY by modern mining technique ......ln 1926 a French geologist using very basic apperatus was reguarly finding in relatively small sample grades of up to 60/70 g/t which is truly staggering......@+ ....{ for the record l have a smallish position of 500.000 bought in a few tranches at a median of 9.9 ..... .

Hi FrenchConnection it is good to have someone else on the site. I just bought some more yesterday at 9.95 so was one of the below the radar. Not quite the 1/2 million mark though.

B/ matins Laurie ! Nice to hear from you . HEY Roly !! yet another tick up today .....Whatever next ? Looks like an abundance of copper, nickel gold and Molys hence interest from Phelps and Central Asia gold and a couple of other hefty mining outfits . However very recently< today > it has come to light that the new kid on the block -URANIUM - has been found in copious amounts by Albidon who are mining geo-physical acreage very similar to AFR in both Tanzania and Zambia , and within spitting distance from certain of AFR s various sites ...What with yet another potential lucrative string to their bow coupled with the recent surge in both Uranium ,copper and gold prices AFE are trading at a massive discount to their peers in smallcap miners lndex .ln fact trading at the bottom of 180 day average.. Little wonder that its decline has been abated what with all the recent indirect good news . ..........and in 3 days it has marked up from 9.25 / 10.00 to 10.25 to 11 .......Personally; As with GFM ,CEY and KMR l expect a consistent and considerable mark up over the next couple of months ...................B/ Chance ...Bien aficalment mes amis .....faire attention ,,,@+ J,,

'J ' KMR are looking for Uranium.

African Eagle

Key Data
EPIC AFE
Share price 10.125p
Spread 9.75p - 10.5p
NMS 15,000
Market cap. 14.8 million pounds
12 month range 9p - 22.25p
Market AIM
Website www.africaneagle.co.uk
Sector Mining
Contact MD Mark Parker
020 7248 6059

African Eagle shares have failed to advance over the last month despite the publication of an upbeat progress report on 31st January 2007. The company continues its strategic emphasis towards taking its most advanced and significant projects into production as quickly as possible. To this end, it has set out to bring suitably qualified partners into joint venture or farm-in deals. Two of African Eagles projects hold mineral resources determined to JORC standard. The company will fast-track these advanced projects towards production, especially the Mkushi Copper Mines in Zambia, to provide a revenue stream to create further upside for shareholders through future exploration.

The ongoing drill programme continues to confirm the substantial width and grade of the deposit and is on track to increase the JORC-compliant copper resource at Mkushi Copper Mines in Zambia. The latest drill results include 82.7m at 1.7% copper and 66.1m at 1.0% copper. Joint venture partner CGA Mining Ltd has completed 3,930m of reverse circulation drilling and 1,954m of diamond drilling since taking over operations in the core area in July 2006. It has submitted 2,716 drill samples for assay, of which about half of the results have been reported and another 25% are expected shortly. CGA has also commissioned an environmental baseline study, currently underway, and metallurgical testing which has confirmed copper recoveries in excess of 95%.

The company has been in discussions with a number of potential joint venture partners with a view to taking the Miyabi project in Tanzania forward rapidly towards feasibility study as quickly as possible. To date African Eagle has drilled only part of the system, but it has been able to define a JORC resource of 520,000 ounces gold.
African Eagle is also keen in bringing in a partner on the Eagle eye project, and negotiations are well underway with several interested parties. Having completed the westward extension of a soil geochemical survey and geological mapping last year, these have identified an area of potassic hydrothermal alteration with associated haematite, which may indicate the potential for copper mineralisation in the granite.

The company is upbeat about the latest results from its Ndola project in Zambia, which lies adjacent to the border with the Demographic Republic of Congo (DRC). It has largely completed its basic surveys over this highly prospective licence and a drill rig is currently being mobilised on the site to commence drilling on a priority target - this work is being funded by Phelps Dodge Mining Zambia Ltd (PDMZ) under an option agreement and the subscription of USD$ 2.27m for African Eagle shares. Regulatory hurdles in Zambia have now been surmounted and it is expected the first $1.27 M subscription tranche to be completed shortly. African Eagle holds several additional early stage project areas in Tanzania, Zambia and Mozambique and is seeking partners to work with towards evaluation and further development of these project areas. Two of these projects, Dutwa the gold and platinum prospect and Lunga the gold and copper prospect in Tanzania and Zambia respectively have recently delivered particularly promising results.

We believe that, at 10.125p, African Eagles current market value fails to discount by a significant margin the potential of either Miyabi or Mkushi, the two prospects with JORC compliant resources let alone other assets within African Eagles portfolio of gold and copper plays. We continue to work on a major report on this company but do not expect that our current 50p valuation will be reduced and expect that a favourable newsflow from drilling on a number of properties will prompt a significant re-rating over the coming months.

Our forecasts and recommendation on this stock are suspended pending the publication of a detailed report shortly.

200,000 at 10.45p lets hope this gets a tic up to make Phelps Dodge have to raise the sp further.

l see J.P. Morgan Chase have increased thier holding in AFE from 10.8 million shares to 14.4 million shares as of the 16th of Feb. ,,,,am rather hoping for more than a few ticks as mms execute this order over the forecoming few days; and in doing so encourage the army of PI s to get in on a well run foccussed stock at bargain basement level price which is almost 60% owned by a bevy of institutions accompanied by heavy board representation and what with a JORC compliant resource measured independantly @ 520 mn/tr/ozs au covering current s/p many times over .. And what with recent news that China is spending billions on Tanzania and Zambias geo-physical infrastructure { as in roads and bridges } my last lingering doubt has has removed reg. this company. lrony being : they will probably try and buy us out wholesale unless Phelps & Dodge, who themselves, have in all but name been recently taken over themselves, make a move. DO NOT forget both Zambia and Tanzania are well known as producers as the finest purest copper in the world. And thats a fact ! ; The only problem was getting the stuff to port and out of Africa ..Furthermore ,and at last , inflationary currency problems are finally abating . ... l am loathe at the best of times to make valuations on stocks in themselves , but am even more loathe to correlate price with timescale . . lts the timescale i abhor in making the right call. But if you have 6 Months to a year to hibernate i think we will see in excess of 36p at bare minimum and as much as 60p based on CURRENT informations available. ..lf Phelps or Central Asia Gold are convinced by our case and stump up the $50 million mentioned in previous RNS or initially even buy in two tranches 5 million quids worth of stock to farm in ( as mentioned in same RNS we could be the proverbial acorn - For from tiny acorns do great oaks grow ...Hope springs eternal huh ? But when you have done as much research into AFE s trading patterns as i have its a question of "when " as opposed to "lf" ,,,,,....................................................................................................... *Nice scholarly summation on AFE , Roly. Your research is not wasted. .As i write the "bid" has at last breached 10.25 p with "offer @ 10.75. Charts suggest a breakout at this level as does the candlestick formation . . .As for KMR i bought these a good while ago @18p based on their African molydenum deposit and other related heavy sands. Also on the back of titanium and rhumite deposits ect ect .....Add a "successful " uranium licence to thier portfolio: and both a re/rating and hefty premium to current s/p will promptly follow. Ditto with AFE . But in the long term this has a lot more upside; as i believe much of KMR enterprises are already factored into s/p. Whereas with AFE i believe we have got in right at the bottom...Bonne chance a vous .....et al .. Off topic; But have a peek @ CEY ,( gold ) SUN and GGG.{ gold and copper }..@+ J ..............................and the crown jewel - LUP , of course which has risen from 15p to 20p this past 2 weeks ....

RNS out .PHELPS/DODGE and AFE j/v approved by ministry for mines,, and more importantly for AFE is they will be in receipts of monies paid by PHELPS taking an initial tranche of $1 mn stg in AFE shares @+ J,,and a furthur $1m in 12 months ,,,Things are happening here ......blue sky day ...@+

Looking good but mm's holding at .25 but may break 11p today.

..massive hike in volume surely merited more than a single tick northwards ,,,But when you scrutinize the spread it has moved from fridays close of 9.5 / 11pps to a 10,50 /11p spread of today ..Sounds better put that way does it not ? ..a'bientot ..J ...

Yes 12p actually looks possible from here but we shall see.

Can anyone confirm that AFE have no mines in South Africa?

Many thanks,

Madison

AFE have no mines at all. Also are loss-making so don't pay tax

Two new names pop up to say we have a loss-making company with no mines, on the day the share price goes up on very good news , is that the best you can do ?

Was merely answering Madison's query

Thanks hushpuppy.

(Hurried and lazy this AM, by mines I meant exploration sites and ex-mines! Now had time to go through the company's website in detail.)

Cheers, Madison

lf they had no exploration sites why would Phelps Dodge enter a j/v with the former ? which could lead to a $50mn injection of capital . To my way of thinking AFE have some of the finest copper/ gold exploration acreage in Africa . But in answering the original question AFE have no mines in South Africa but rather Tanzania and Zambia. ..@+ J

Not a lot of sense here RIFT is on it's way and yet AFE has stalled. I hold both but thought AFE was going to go first.

African Eagle Resources PLC
10 April 2007


AFRICAN EAGLE SHARES NOW TRADED ON PLUS MARKETS AND FURTHER POSITIVE DRILLING
RESULTS FROM THE MKUSHI COPPER MINES PROJECT

African Eagle announces that as of today its shares will be traded on PLUS
Markets, an alternative London trading platform. The Company's principal trading
facility will continue to be AIM.

The Company is also pleased to announce additional results reported by its
development partner CGA Mining Ltd from the resource definition drill programme
being conducted as part of the feasibility study of the Mkushi Copper Mines in
central Zambia. Mineralised intercepts included:

32.9m at 2.10% copper
11m at 2.97% copper
23m at 1.38% copper

African Eagle's Managing Director Mark Parker comments 'These new results
obtained from the core area at Mkushi continue to show the good width and grade
of the deposit. Mineralised intersections in some RC pre-collars indicate a
potential for previously unknown copper mineralisation to the west of the known
H-Zone resource. The resource drilling programme is continuing, with three
diamond drill rigs currently active, and further results can be expected over
the coming weeks'.

The new results relate to drilling completed to establish and define mineable
resources at the central H-Zone and Munshiwemba targets in December 2006 and
January 2007. During the period, 8 diamond drill holes for 1,455m and 12 reverse
circulation (RC) drill holes and pre-collar holes for 1,457m were completed. A
further 23 diamond drill holes for 3,158m and 8 RC pre-collar holes for 840m
were completed between the end of January and the end of March.

Significant thicknesses of high grade copper mineralisation were intersected in
diamond holes drilled to test the H-Zone mineralised body at depth. Significant
results were also reported from the southern end of the Munshiwemba pit,
demonstrating robust mineralisation over a strike length of at least 200m and
adding to our resource expectations for this area.

In addition, mineralisation was intersected in several reverse circulation
pre-collar holes west of H zone. Pre-collars employ the cheaper and faster
reverse circulation method to drill the upper parts of deep holes, before
switching to diamond drilling. The pre-collar part of a drill hole is normally
expected to be more or less barren, but a number of pre-collars at Mkushi,
notably MH47, intersected copper mineralisation. The positive results from these
holes are encouraging as they indicate the potential for additional zones of
mineralisation west of the main H zone ore body.

All intersections from the new results which contain 0.2% copper or more are
tabulated below. No top-cut has been applied to the copper concentrations. All
the drill holes reported here were inclined at 45 to 50 degrees, so the true
depths are about 70% of the down-hole depths.

--------------------------------------------------------------------------------
Hole No Prospect From (m) Width (m) Copper %
--------------------------------------------------------------------------------
Diamond Drill holes
--------------------------------------------------------------------------------
MH020 H Zone 209.24 17.53 0.92
--------------------------------------------------------------------------------
and H Zone 241.5 2.05 2.12
--------------------------------------------------------------------------------
MH044 H Zone 164.35 10.95 2.97
--------------------------------------------------------------------------------
and H Zone 181.11 10.21 2.18
--------------------------------------------------------------------------------
MH046 H Zone 149.48 22.02 1.76
--------------------------------------------------------------------------------
and H Zone 177.5 10.14 2.11
--------------------------------------------------------------------------------
and H Zone 193.3 32.94 2.1
--------------------------------------------------------------------------------
and H Zone 229.08 3.08 2.02
--------------------------------------------------------------------------------
MH048 H Zone 29 4 0.23
--------------------------------------------------------------------------------
and H Zone 47 3 0.28
--------------------------------------------------------------------------------
and H Zone 90 5 0.24
--------------------------------------------------------------------------------
MH053 H Zone 7 3 0.28
--------------------------------------------------------------------------------
MH056 H Zone 18 9 0.3
--------------------------------------------------------------------------------
and H Zone 88 5 0.36
--------------------------------------------------------------------------------
MH059 H Zone 26 4 0.41
--------------------------------------------------------------------------------
MMU07 Munshiwemba 107 10 1.37
--------------------------------------------------------------------------------
and Munshiwemba 122 3 0.92
--------------------------------------------------------------------------------
MMU011 Munshiwemba 127.5 11 1.21
--------------------------------------------------------------------------------
MMU027 Munshiwemba 68.5 22.5 1.11
--------------------------------------------------------------------------------
MMU029 Munshiwemba 53 19 1.45
--------------------------------------------------------------------------------
and Munshiwemba 77 3 1.11
--------------------------------------------------------------------------------
and Munshiwemba 91 14 1.85
--------------------------------------------------------------------------------
RC Pre-collars
--------------------------------------------------------------------------------
MH016 H Zone 67 11 0.44
--------------------------------------------------------------------------------
MH047 H Zone 84 23 1.38
--------------------------------------------------------------------------------
MH049 H Zone 52 10 0.25
--------------------------------------------------------------------------------
and H Zone 93 3 0.7
--------------------------------------------------------------------------------
MH051 H Zone 74 3 1.97
--------------------------------------------------------------------------------
MH055 H Zone 27 3 0.58
--------------------------------------------------------------------------------
MH057 H Zone 19 10 0.7
--------------------------------------------------------------------------------
and H Zone 84 6 0.73
--------------------------------------------------------------------------------
MMU07 Munshiwemba 78 3 0.8
--------------------------------------------------------------------------------

Assays results from some further 3,500m of completed drilling are being
evaluated and results will be announced when received. Three diamond drill rigs
are operating on resource definition at Mkushi and quotes have been obtained to
pump dry the old open pit to allow access for sampling and drilling of the rich
Munshiwemba target zone. More results are expected over the coming months and
can be expected to lead to a revised and increased JORC-compliant copper
resource in due course.

John Park
Chairman
African Eagle Resources plc

10 April 2007



For further information, see the Company's web site
www.africaneagle.co.uk
or
contact one of the following:

Mark Parker
Managing Director
+44 20 7248 6059
+44 77 5640 6899

Nicola Marrin
Seymour Pierce Limited
+44 20 7107 8000

Ed Portman/ Leesa Peters
Conduit PR
+44 20 7429 6607 / +44 (0) 7733 635 01

Qualified Person

Information in this report relating to exploration results is based on data
reviewed by Mr Christopher Davies BSc, MSc, DIC, Operations Director for African
Eagle, who is a Fellow of the Australasian Institute of Mining and Metallurgy,
has more than 25 years relevant experience in mineral exploration and is a
Qualified Person under AIM rules. Mr Davies consents to the inclusion of the
information in the form and context in which it appears.

Technical terms

A glossary of technical terms used by African Eagle in this announcement and
other published material may be found at
www.africaneagle.co.uk/

african-eagle-projects-glossary.html

The following term used in this announcement and its definition will be added to
the glossary:

Pre-collar: Use of the cheaper and faster reverse circulation method to drill
the upper parts of deep holes, before switching to diamond drilling to intersect
an anticipated mineralised zone. The pre-collar part of a drill hole is expected
to be barren of significant mineralisation.

About African Eagle

African Eagle is a mineral exploration and development company operating in
eastern and central Africa. The Company's principal advanced projects are the
Mkushi Copper Mines project in Zambia and the Miyabi gold project in Tanzania,
which are being fast-tracking towards production. The Company also holds a large
well-balanced portfolio of promising earlier stage gold and base metal projects,
including the Ndola copper project and the Eagle Eye iron-oxide copper gold
project.

African Eagle's projects are in Zambia, Tanzania and Mozambique, countries which
all have highly prospective geology, relatively low above-ground risks and track
records of successful major investments in the metals and minerals industries.

African Eagle specialises in project generation and exploration. To take its
discoveries into production, it seeks to sign up industry partners with records
of successful mine development. These joint ventures and, in time, the revenue
from advanced projects, will finance future exploration and new discoveries.

The Company has a highly motivated team, proven management and an experienced
board. African Eagle prides itself on being a low cost operator and on average
80p or more of every 1 is spent 'in the ground'.




This information is provided by RNS
The company news service from the London Stock Exchange

Mes Amities Roly et al ...>Excellent assaying results reg both copper and gold . FIRST class ! Phelps are delighted what with expected revision & increase in this JORC compliant resource i am overweight . About time an RNS was issued . ! A very long term hold for me ; and with the price of copper enjoying yet another price hike methinks AFE is back on the way up beeegtime Support is unpenetrable @8.25 . Dont forget Zambia produces the finest purest copper ever known to be mined . All buys today -No sells ...... OK they shook the trees unfairly but NOw lets play some hardball @+ J

Excellent joint venture partner news, though it will all take time:

African Eagle Resources PLC
03 May 2007


AFRICAN EAGLE AGREE TO JOINT VENTURE WITH RANDGOLD RESOURCES ON THE MIYABI GOLD
PROJECT IN TANZANIA

Option and farm-in agreement signed between African Eagle and Randgold
Resources
Randgold will fund, perform and accomplish a pre-feasibility study to
earn a 50% interest in the Miyabi project
African Eagle can then retain a 49% stake in the Project by co-funding a
full feasibility study, or dilute to 35%
Randgold to arrange development finance on a production decision

African Eagle Resources plc ('African Eagle' or 'the Company', ticker AIM: AFE)
today announces that it has entered into a Joint Venture with a wholly-owned
subsidiary of Randgold Resources ('Randgold') on its +500,000 ounce Miyabi Gold
Project in the Lake Victoria Goldfield of Tanzania.

The Joint Venture has the form of an option and farm-in agreement. Under the
initial option, Randgold will carry out and fund an agreed phase-1 exploration
programme by end of May 2008. This programme will consist principally of a
series of diamond drill hole fence lines to investigate the geology, structure
and controls on mineralisation across the width of the Miyabi corridor. Randgold
will then have the right to earn a 50% interest in the project by conducting and
funding a pre-feasibility study to agreed parameters. Following the
pre-feasibility study, African Eagle can retain a 49% stake in the Project by
co-funding a full feasibility study, or dilute to a 35% stake if Randgold
provides the funding in full. Randgold, as Project Manager will also arrange the
financing for the development of a mine.

Randgold Resources is an Africa-focussed international gold mining and
exploration business with listings on the London and New York Nasdaq exchanges.
Randgold has a strong track-record of exploration and development success
including the 7.5 million ounce Morila deposit in southern Mali, the six-plus
million ounce Yalea deposit at Loulo in western Mali and the three million ounce
Tongon deposit in Cote d'Ivoire. Randgold successfully financed and developed
the Morila mine, which has produced more than four million ounces of gold since
it was brought into production in October 2000. It also financed and developed
the Loulo Mine which was officially opened in November 2005 and is scheduled to
produce 250,000 ounces per year for six years, from an open pit operation.
Development of the Loulo underground operation has commenced and will
significantly enhance the value and extend the life of mine. Randgold recently
completed a pre-feasibility study on the Tongon deposit and holds a portfolio of
exploration projects in Mali, Cote d'Ivoire, Senegal, Burkina Faso, Ghana and
Tanzania.

African Eagle's Managing Director Mark Parker commented 'We are delighted to
have signed one of Africa's most exciting and successful gold companies, as our
partner at Miyabi. Randgold has a strong mining and geological team and African
Eagle will benefit enormously from this additional expertise in evaluating the
Miyabi project and taking it through to production. We look forward to making
swift progress with Randgold on the Miyabi project'.

At last !! Always knew by the calibre of mnt and esp team of geolists this would one day deliver with a j/v on the "gold front" with the status of a big player like Randgold. As opposed to our massive copper deposits ( although i am assured by S.African miners the best copper iin the world comes from Zambia and Zimbawbwe. And to cap it all we have Phelps Dodge financing via funds and purchasing of stock in our copper deposits. ..\Now this ! ..Niceeee ...@+ J........

African Eagle Resources PLC
10 July 2007



African Eagle's East African Uranium Assets


Six uranium projects in Zambia and Tanzania

Applications made for a further two projects in Tanzania and Mozambique

Uranium Division created to progress projects and optimise shareholder value


Commenting today, Mark Parker, Managing Director of African Eagle, said 'These assets are another string to our bow and although we are fully focused on bringing Mkushi and Miyabi into production as quickly as possible, these uranium prospects represent exciting opportunities which could considerably enhance shareholder value.'

http://www.investegate.co.uk/Article.aspx?id=200707100700258832Z

This is very good news. KMR are also looking at uraniam prospects in Mozambiqe.

Media comment, click HERE

African Eagle - Buy at 13.25p with target price 40.5p


Key Data

EPIC
AFE

Share Price
13.25p

Spread
12.75p 13.75p

NMS 25,000
Shares issued
154,034,144 shares
(11.2 million options and warrants outstanding)

Market Cap.
20.41 million
(21.89 million - fully diluted)

12 month range
9p-14p

Market
AIM

Website
www.africaneagle.co.uk

Sector
Mining

Contact
Mark Parker (MD)
020 7248 6059

AIM listed gold and copper explorer African Eagle has made a conscious decision to move away from asset building and towards an accelerated programme of taking its key assets into production via joint venture deals with larger partners. This strategy has led to African Eagle tying in joint venture deals with quality project development partners for most of its principal asset portfolio during 2006 and 2007. We expect other joint ventures to be announced but already this is a company which can use the technical and financial resources of larger companies to accelerate its move from an explorer to a producer. Its partners on its various prospects are committed to spending up to $60 million (with a minimum of $6 million) over the next five years in developing them. The joint venture strategy has considerably de-risked the enterprise but there is still considerable upside. Our, still heavily risk weighted, sum of the parts valuation of African Eagle is 40.5p per share.

African Eagle is certainly not one of AIMs resource newcomers. Having listed on Ofex (as Twigg Minerals) in 2000 on the back of a gold discovery at Miyabi in Tanzania, African Eagle moved to AIM in 2003 having acquired a portfolio of Zambian assets in an all paper deal a year previously.

Its most recent joint venture deal was in May 2007, when it linked up with Randgold to develop the Miyabi gold project in Tanzania. The Miyabi gold project represents one of African Eagles lead properties, the other being Mkushi in the Zambian copper belt. Randgolds expertise and funds to take discoveries into production combined with African Eagles exploration and discovery skills, are expected to take the Miyabi project on an accelerated programme towards medium term production. Under the terms of the agreement, Randgold will fund and perform a pre-feasibility study to earn a 50% interest in the Miyabi project, whilst African Eagle can then retain a 49% stake in the project by co-funding a full feasibility study or dilute to 35%.

African Eagle sits on net cash and will have exploration programmes underway on at least eight properties funded by other, larger, partners who will be committed to spending at least $6 million and up to $60 million on those programmes. The decision to farm out all of African Eagles leading properties has reduced the upside potential for the company. However it has also de-risked the enterprise to an extent not reflected in the share price in that this is a company which has no need to raise additional capital to pursue aggressive exploration programmes on these projects. We do not believe that the progress made on the ground by African Eagle over the past year or in de-risking its corporate strategy is reflected in the share price. We have valued the company on a sum of the parts basis at 62.4 million or 40.5p per share. With the shares now trading at 13.25p there is vast fundamental upside. With one further farm-out deal (Eagle Eye) likely to be announced in due course and with an active exploration programme underway on a number of prospects, the newsflow from the company will be rapid and this will, we believe, trigger a re-rating of the shares. Our stance is buy.




Forecasts Table:

Year to 31st December
Sales
(million pounds)
Pre-Tax Profit*
(million pounds)
Earnings Per Share (p)

2004A
0
(0.49)
(0.6)

2005A
0
(0.18)
(0.2)

2006A
0
(1.37)
(1.0)

2007E
0
(0.90)
(0.6)

July 12, 2007

African Eagle Opens Up A New Production Strategy At Last


By Jack Hammer



It looks as though African Eagle is slowly beginning to wake up to the implications of being in a metals boom in the City of London. A year ago if youd asked chairman John Park whether or not African Eagle was going into production any time soon, youd have received the old veterans Australian version of the Ian Paisley treatment: Never! Never! Never! African Eagle was an exploration company, and not for turning. This was presented back then as something as a badge of honour, although now the official history says lack of funds was to blame. But lack of funds hasnt been an issue for Geoff Walsh at Triple Plate, or any number of other London juniors that got the message over the last year or two that equity fundraisings were no longer the markets preferred method of keeping a companys lights on.

The Ndola licence is surrounded by good infrastructure including this concentrate thickener at First Quantum's Bwana Mkubwa mine.
For some reason African Eagle lagged the pack. And with no production in sight, the companys shares continued to stagnate throughout 2006. Meanwhile the company continued to pick over its exploration ground in Zambia and Tanzania like a love-lorn teenager, periodically making comforting noises to shareholders.

It couldnt last John Parks too much of a canny operator to watch any company of his slide into oblivion. So, as they swung through London for a few meetings recently, John Park and African Eagles managing director Mark Parker, were finally outlining a new vision. The first bullet point on page one of their new presentation says, under the heading Strategy: To find the mineral deposits the world needs. Thats bold enough, but is, after all, what the business is all about. But its the second bullet point under Strategy that really rings the changes: To take our most advanced projects rapidly towards production and revenue generation. What a difference a year makes!

African Eagles projects are all pretty familiar by now: Mkushi, Igurubi, Eagle Eye, Miyabi, Ndola In fact there are 29 projects inside the company in total, and John Park is somewhat defensive in regard to the resultant accusation that African Eagle has lacked focus in the past. Now, he says, the focus is clear: Mkushi is to be the lead project. In partnership with CGA Mining, formerly Central Asia Gold, a TSX and Australian traded junior that lists our very own Malcolm Burne as an independent director, Mkushi will now rapidly be moved towards production.

CGA likes Mkushi enough to fund it up to the end of a bankable feasibility study, and, to be fair, it does shape up reasonably well on the most recent numbers, and on some pretty old ones too. Mkushi holds a JORC inferred resource of 11million tonnes grading 0.74 % copper, but previous owner ZCCM reported 30million tonnes at 1.23 % copper. So its worth going after, and we should know more by the end of the third quarter when a pre-feasibility study is due for completion.

According to John Park and Mark Parker, on a best case scenario, first production from Mkushi could even be as early as 2009. Thats because its not too big to get bogged down waiting for any long lead items, and nor are there likely to be any permitting problems since the whole area used to be mined. Furthermore the Zambian government likes it because its not on the Copperbelt, and gives a bit of diversity to the countrys mining industry. So a production decision is likely some time in 2008. And the hope is that by then Miyabi, in joint venture with Randgold, will be coming along rapidly behind.

Theres a couple of million in African Eagles bank account , and with joint venture partners shouldering much of the financial burden, the equity markets shouldnt be troubled for now, although the company is said to be mulling over a listing on the JSE in a bid to improve liquidity and, perhaps, try for a re-rating. Theres also some uranium in African Eagles back pocket, but as John Park rightly says: we dont want to seem like were jumping on the uranium bandwagon, well leave that for another day. One way or another though, African Eagle looks like it has more options open to it than it did a year ago, when the strategy was non-negotiable.

Media comment, click HERE

Share price as been slipping this week.

all year now

African Eagle announces positive metallurgical results from it's Dutwa nickel and cobalt project today :--

Company African Eagle Resources PLC
TIDM AFE
Headline Dutwa Project Update
Released 07:02 09-Feb-09

AFRICAN EAGLE ANNOUNCES POSITIVE PRELIMINARY BOTTLE ROLL LEACH TEST
RESULTS FROM DUTWA NICKEL PROJECT


* Preliminary results from bottle roll tests still underway
* >90% average nickel recovery from drill samples
* Very low sulphuric acid consumption
* Heap leach extraction likely to be feasible process route
* Scoping study proposals being reviewed


African Eagle Resources plc has received excellent results from acid
leach tests underway at Mintek in South Africa, on drill samples from
its Dutwa nickel laterite project in Tanzania. The results received
to date show nickel recoveries averaging 92%, with very low sulphuric
acid consumption, averaging 210 kilograms per tonne.

Mark Parker, Managing Director of African Eagle Resources plc
comments: 'Whilst the acid leach tests are scheduled to continue for
up to 90 days, these results, after 68 days, are already very
encouraging.

'The metallurgy of nickel laterites is critical to the viability of
these deposits, with two parameters, nickel recovery and acid
consumption per tonne of nickel metal won, being especially
important. The results we have received from Mintek so far are very
encouraging as they show that we may be able to use straightforward,
low cost heap leaching to recover the nickel from the ore.

'Taken together, these metallurgical results and the resource
estimate of some 340,000 tonnes of contained nickel and 11,000 tonnes
of cobalt, (announced in November), indicate that Dutwa is a highly
significant discovery.

'We believe Dutwa has many of the right credentials to make the
project economically viable even at current metals prices: simple and
conventional mining; potential heap leaching with low acid
consumption; and the good infrastructure in the Dutwa area. As the
next step in the process, African Eagle will commission a Scoping
Study to investigate these key operating parameters and to assess the
economic potential of the project. We are currently evaluating
proposals for the study from contractors.'


The table below shows the cumulative acid consumption and nickel
recovery for the ten 500g samples (5 from diamond drill cores and 5
from reverse circulation cuttings), after 68 days 'bottle roll' acid
leaching. Each sample was placed in a plastic bottle with 2 litres of
dilute sulphuric acid and agitated continuously by rolling on
rotating rollers. The recoveries were calculated from the preliminary
solution based extraction curves; the final extractions will be
calculated from the residues when the test is complete.


DH1 DH4 DH6 DH7 DH8 RC25 RC30 RC36 RC55 RC71 Average
Acid kg/t 350 200 230 110 200 160 210 300 190 140 210
Ni % recovery 96 96 97 86 90 88 94 84 94 97 92


Mintek is also conducting extensive mineralogical analysis on the
samples, using X-ray diffraction and scanning electron microscopy.
These tests will help African Eagle to categorise potential ore type
zoning within the greater resource and yield information on the
likely behaviour of the material in processing through the
identification of the mineral phases present.
______________

Makes the project look very good for moving into production with the low cost extraction and good recovery rates.
.

not a very popular thread this

What's the opinion on this share offer. Anyone??

June 09, 2010

African Eagle Helped By Continental Drift At Its Dutwa Nickel-Cobalt Project
By Rob Davies



Leaching technology has transformed the economics of gold and copper mining. Many assumed it was only a matter of time before it was applied to other metals with nickel earmarked as the most promising next candidate. However, it has not proved to be the case. The fossil laterites in Australia offered some promise by using high pressure leaching but as Euan Worthington, chairman of African Eagle, points out, they have not been without their problems. More conventional nickel leaching operations have been plagued by high acid consumption which are a direct result of high iron levels.
Where the Dutwa deposits in Tanzania of African Eagle differ from the rest is in their much lower iron but higher silica content. Typically they contain less than 10% iron rather than the more normal 20% or more in other laterites. To understand exactly how this came about chief executive Mark Parker took a few minutes to give a Minews a short geological history of East Africa.

Nickel laterites are formed in hot wet low lying tropical forests. The Dutwa deposits were no exception and were created about 60 million years ago in the early Cretaceous when the earth was a lot hotter and wetter. About 20 million years ago the East African rift was created and raised the formation 1,500 metres in altitude. This uplift was followed by the Quaternary period and created a much drier environment and with a strong seasonal rainfall. Mark believes it was during this event that the majority of the iron and the manganese were removed from the deposits making them more amenable to leaching.

The most recent results from metallurgical testwork indicates that this leaching could either be the traditional heap leaching or, possibly, tank leaching of a beneficiated product that Mark thinks could give higher recoveries. The end result is that African Eagle is sitting on a JORC resource of 31 million tonnes at a grade of 1.1% nickel that can probably be recovered through a low cost leaching process. By low cost the company is looking at a capital cost of about US$430million. Compare that, Mark says, to the US$4 billion Sherritt is spending on its Ambatovy operation in Madagascar. It is costing ten times as much for something twice the size.

The situation now is that the company is sitting on an asset with a gross in-situ value of US$8 billion derived from the 340,000 tonnes of contained nickel and 11,000 tonnes of cobalt. African Eagle itself is capitalised at 13million and has other assets, such as gold in Tanzania and copper in Zambia. Asa Bridle of Evolution Securities values these non-core assets in total at 31.3million or 21.1p a share. In other words the Dutwa nickel assets are in the valuation for nothing. Mark has three ambitions for these: he wants to keep the upside, he wants a reasonable return and he wants to free up resources.

There are of course significant challenges with developing Dutwa, not least that capital cost of US$430million and the fact that it is 40 kms from the nearest paved road. Moreover, developing a new recovery technology in a fairly remote part of Africa will not be easy. Set against that list is the potential for the discovery of additional resource in and around the area. On the western border of the main Wamangola deposit the company is earning an interest of up to 75 per cent in the Ngasamo property from Czech company Safina. A resource statement for this is due shortly. About 70 km south of Dutwa is the Zanzui property that is also believed to have significant potential. Mark expects to have a bankable feasibility study by the end of the year and that will undoubtedly play a major role in helping it find a dancing partner for this project. It is just too big for a company like this to develop on its own. With an AGM on June 15th African Eagle will have no shortage of topics for discussion.

http://moneyam.uk-wire.com/cgi-bin/index?lm=-1;company=AFE%20

Drilling results .... click on link.

The directors of Petroceltic International (AIM: PCI), South Boulder Mines (ASX: STB), New Dawn Mining (TSX: ND) and African Eagle Resources (AIM: AFE) will be presenting:
Thursday the 25th November 2010,
Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapand wine reception.

http://www.proactiveinvestors.co.uk/register/event_details/96

This event is suitable for the following: Sophisticated & private investors, private client brokers, fund managers, financial institutions, hedge funds, buy & sell side analysts and journalists.

The event is not suitable for people pursuing commercial opportunities.

If you have any problems registering or queries please email events@proactiveinvestors.com.

Andy

AFE has a stake in KIBO 4% i think , what's your view on them ? price as broke out and there are rumour's of Barrick interest [ bid ]

One step beyond.

This is a Shares and MoneyAMs new quarterly publication covering the world of Oil, Gas and Mining companies. The latest edition is out today and can be viewed as a page flip or a pdf download at www.mrqonline.co.uk

Features on:

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African Eagle
Ariana Resources
GGG Resources
Ithaca Energy
Ormonde Mining
San Leon Energy