VANCOUVER, BC, Jan. 13, 2021 /CNW/ - East Africa Metals
Inc. (TSXV: EAM) (FSE: EA1) ("East Africa" or the "Company") is
pleased to provide an update on the status of development programs
on the Company's Ethiopia
projects.
EAM currently has three approved Mining Agreements with
Ethiopia's Ministry of Mines and
Petroleum (the "Ministry"). The Terakimti Oxide deposit Mining
License has been issued (news release dated December 7, 2017) and the Mining Agreements for
the Mato Bula and Da Tambuk deposits have been approved and
licenses issued (See Press Release dated May
21, 2019). For the additional prospective targets of
interest that are located on ground outside of the existing mining
licenses, the Company has received Extension/Inclusion Agreements
from the Ministry to allow additional time to qualify targets, as
they may complement existing License resources.
Mine Development
The Adyabo Property – the Mato Bula and Da Tambuk
mines
Tibet Huayu Mining Co. Ltd. ("THM"), EAM's operating
partner for the Adyabo
Projects, has been prepared to initiate the
development of the Mato Bula and Da Tambuk mines since
November 2020, when COVID travel restrictions were projected
to be lifted and the mobilization of staff and equipment to site
was expected to commence. This mobilization
effort was further delayed by imposition of a state of
emergency in response to conflict between the Ethiopian Federal
Armed Forces and the Tigrayan People's Liberation Front.
According to statements released by Ethiopian government,
security has been re-established in the Tigray region and current
activities are focused on facilitating a return to normalcy.
THM will resume the mobilization of staff and
equipment to Ethiopia
and initiate the construction as soon as the
Ethiopian government's mandated travel restrictions in
the Tigray region are lifted. Mobilization and future
transportation and import requirements are expected to benefit from
the LAPSSET Corridor Project, Eastern
Africa's largest and most ambitious infrastructure project.
This mega project is planned to integrate the regional
transportation infrastructure of Kenya, Ethiopia and South
Sudan and consists of a number of key infrastructure
projects including: a new 32 berth port at Lamu Kenya;
interregional highways; petroleum pipelines; interregional standard
gauge railway; international airports and High Grand Falls
hydro-electric project.
Construction and production plans remain unchanged,
with the start of construction now anticipated in early
2021 with a one-year construction timeline to complete
the parallel development of both mining operations. EAM has
been further informed that plant commissioning will be
initiated upon the completion of the
mine development and full production capacity expected
within three months thereafter. The
mining operations will lead to the processing of a
combined 300,000 tonnes annually. The first stage of
plant processing operations will be based on a
combination of gravity and flotation recovery with
projected metallurgical recoveries of 70% for gold and
85% for copper.
A C.I.L. (Carbon in Leach)
plant is planned for construction in the third year, and
the processing of the tailings projected to increase the
gold recovery up to 90%.
The detailed design for construction
is now complete, and THM has filed the
revised engineering study with the Ministry
responsible for mining.
"The mine development plans for Mato Bula and Da Tambuk have
been revised to consider the simultaneous development of the two
neighboring projects instead of the original plan to develop the
mining operations one after the other" said Andrew Lee Smith, President and CEO of East
Africa Metals. "This change will allow the operations to take
advantage of the strong gold markets and is an approach that has
the potential to improve project economics over the near
-term".
About East Africa Metals
The Company's principal assets include both the 70% owned
Harvest polymetallic VMS exploration Project and the 100% owned
Magambazi Mine in the Tanga region of Tanzania. In addition, the Company owns 30%
Net Profits Interest in the Adyabo and Da Tambuk mines in the
Tigray region of Ethiopia. The
Mato Bula and Da Tambuk mines are four kilometres apart and will be
developed simultaneously. The development of the mining operations
is scheduled to begin during the first quarter of 2021
East Africa retains exploration
rights on areas of the properties outside the Mato Bula, Da Tambuk
and Terakimti mining licenses in all Ethiopian projects and
anticipates the commencement of exploration drilling to test
priority targets during the first quarter of calendar 2021
EAM has invested USD$66.8M in
African exploration since 2005 and identified a total of 2.8
million ounces of gold and gold-equivalent resources
representing an average discovery cost per ounce of US$24.
The current Global Project Resources discovered by EAM
include:
Project Resources
(Au + Aueqv Metal ounces)
|
Project
|
Category
|
Au +
Aueqv
ounces
|
Adyabo
Project
|
Indicated
|
446,000
|
Inferred
|
551,000
|
Harvest
Project
|
Indicated
|
469,000
|
Inferred
|
426,000
|
Handeni
Project
|
Indicated
|
721,000
|
Inferred
|
292,000
|
*See East Africa
Metals Project Resource Table attached for additional
detail
|
Andrew Lee Smith, P.Geo., C.E.O.,
a Qualified Person under the definitions of National Instrument
43-101, has reviewed and approved the technical contents of this
news release.
More information on the Company can be viewed at the Company's
website: www.eastafricametals.com.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
Cautionary Statement Regarding Forward-Looking
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "anticipate", "believe",
"plan", "expect", "intend", "estimate", "forecast", "project",
"budget", "schedule", "may", "will", "could", "might", "should",
"indicate", "confident" or variations of such words or similar
words or expressions. Forward-looking information is based on
reasonable assumptions that have been made by the Company as at the
date of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: the
negotiation of a definitive agreement reflecting the anticipated
structure and timing outlined herein; delays with respect to
required payments and regulatory approvals; results of the due
diligence review; the ability of Tibet Huayu to develop and operate
the Ethiopia Adyabo Project within the required laws and agreements
recoverability of the Ethiopian and Tanzanian VAT receivable; early
exploration; the ability of East
Africa to identify any other corporate opportunities for the
Company; the possibility that the Company may not be able to
generate sufficient cash to service its planned operations and may
be force to take other options; the risk the Company may not be
able to continue as a going concern; the possibility the Company
will require additional financing to develop the Ethiopian Projects
into a mining operation; the risks associated with obtaining
necessary licenses or permits including and not limited to
Ethiopian Government approval of EAM Mineral Resources extensions
for the Company's Ethiopian Properties and Projects; risks
associated with mineral exploration and development; metal and
mineral prices; the demand for precious and base metals;
availability of capital; accuracy of the Company's Projections and
estimates, including the initial and any updates to the mineral
resource for the Adyabo, Harvest and Handeni Projects; realization
of mineral resource estimates; interest and exchange rates;
competition; stock price fluctuations; the ability to carry on
exploration and development activities; actual results of
exploration activities; availability of drilling equipment and
access; the ability to obtain qualified personnel, equipment and
services in a timely and cost-efficient manner; the regulatory
framework including and not limited to license approvals, social
and environmental matters; the ability to operate in a safe,
efficient and effective manner government regulation; political or
economic developments; foreign taxation risks; environmental risks;
insurance risks; capital expenditures; operating or technical
difficulties in connection with development activities; personnel
relations; the speculative nature of strategic metal exploration
and development including the risks of contests over title to
properties; and changes in project parameters as plans continue to
be refined, as well as those risk factors set out in the Company's
filings with securities regulators. Mineral Resources, which
are not Mineral Reserves, do not have demonstrated economic
viability. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues. The
quantity and grade of reported inferred mineral resources as the
estimation is uncertain in nature and there has been insufficient
exploration to define any inferred mineral resources as an
indicated or measured mineral resource and it is uncertain if
further exploration will result in upgrading inferred mineral
resources to an indicated or measured mineral resource category.
The contained gold, copper and silver figures shown are in situ. No
assurance can be given that the estimated quantities will be
produced. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. The Company does not update or revise forward
looking information even if new information becomes available
unless legislation requires the Company to do so. Accordingly,
readers should not place undue reliance on forward-looking
information contained herein, except in accordance with applicable
securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE East Africa Metals Inc.