UPDATE 1-African Eagle extracts high nickel at Tanzania project
* Confirms good nickel recovery at Dutwa project
* Says high nickel extraction and low acid consumption
* To commission scoping study to assess project viability
* Shares rise as much as 19 pct (Adds details)
March 24 (Reuters) - African Eagle Resources Plc (AFE.L), a mineral exploration and development company, said on Tuesday leach test results at its Dutwa project in Tanzania confirmed good nickel recovery, sending its shares up as much as 19 percent in early trade.
"We will now commission a scoping study to assess the viability of the project and indicate the best way to proceed," Managing Director Mark Parker said in a statement. High nickel extractions averaging 83 percent, and very low sulphuric acid consumption averaging 210 kilograms per tonne bodes well for the commercial development of the project, the company said.
Low acid consumption would reduce capital and operating costs, favouring low cost heap or tank leach processing technology, it added.
African Eagle also said it expected to start a second phase of metallurgical test work to evaluate the heap and tank leaching nickel-cobalt extraction technology options in greater detail.
African Eagle shares were up 0.25 pence at 2.875 pence at 0905 GMT. It hit a high of 3.13 pence earlier in the session. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Himani Sarkar)
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