VANCOUVER, BC, May 20, 2021
/CNW/ - East Africa Metals Inc. (TSXV: EAM) ("East
Africa", "EAM" or the "Company") would like to provide an update on
the ongoing exploration of its gold and gold/copper/zinc projects
in the Federal Democratic Republic
of Ethiopia ("Ethiopia").
After productive meetings with government officials in
Addis Ababa last week, the Company
is looking to building on the success achieved over the past ten
years through the Company's investment of approximately
$30,000,000 in exploration with the
support of the Ministry of Mines and Petroleum ("MoMP").
East Africa is preparing to
initiate a fully funded $2,700,000
exploration program announced in early 2021 (see new release
February 1, 2021). The six-month
state of emergency declared in the Tigray region was lifted on
May 4th, 2021. It is
anticipated that commercial activity in the Tigray region will
normalize in the near future, as it recovers from the impacts of
the COVID pandemic and the political unrest.
EAM has completed the planning and received government approval
for the $2,700,000 Phase 1
exploration program that will include 8,000 meters of diamond
drilling, 115 line kilometers of geophysical surveys,
environmental, metallurgical studies and resource
calculations/updates. The initiation of the Phase 1 diamond
drilling program is expected to begin immediately after the
Government declares the region ready for field operations.
EAM's management has confidence in the potential of the
Company's exploration assets in the Tigray region and looks forward
continued participation in what has become an active and emerging
exploration sector.
The Company has equal confidence in progressive policy
initiatives of the Ethiopian government under the administration of
the recently appointed Minister of Mines, His Excellency Takale
Uma. Ethiopia's MoMP has
undertaken a program of major reforms to improve the Ethiopian
Mining Proclamation designed to align government policy with
the needs of international and domestic resource investors.
These policy revisions should result in significant growth in
Ethiopia's mining sector,
promoting the interests of both artisanal miners and exploration
and mining companies by improving the ease of access to licenses
and finance for Small to Medium Enterprises (SME) and large-scale
miners.
Based on the sale of the 70% interest of EAM's Ethiopian
subsidiary, Tigray Resources Inc. ("TRI") to Tibet Huayu Mining Co.
Ltd (news release dated February 8,
2019), EAM retains the mineral rights and all exploration
obligations for the prospective targets not incorporated in the
current resources defined within the Terakimti, Mato Bula and Da
Tambuk mining licenses ("EAM Mineral Resources"). EAM will advance
the exploration agenda with the objective to expand and upgrade the
current resource base and drill untested, high priority exploration
prospects.
Listed below are the exploration targets that host potential to
improve current resources and potentially increase the total
resource base (news release dated May 7,
2018). Highest priority exploration targets that have
potential to increase the resource base will be the focus of Phase
1 drilling.
The Mato Bula Trend Exploration Targets
- Halima Hill I.P. – Represents a
compelling target as a large, open (to depth and southward) I.P.
chargeability anomaly extending laterally 500 metres south beyond
the established Mato Bula mineralization. The currently defined
copper/gold mineralization increases in silver and zinc content
locally in the south region of the resource. Being an open I.P.
target, the feature requires drill qualification and has potential,
with mineralization identification, to represent a significant
spatial increase to the known mineralized footprint. A key
intersection in this area includes 24.50 metres grading 0.61 grams
per tonne gold, 1.67% copper, 8.0 grams per tonne silver, and 0.96%
zinc, from 204.30 metres (WMD027- news release dated January 15, 2015). Halima
Hill is considered a high priority target.
- Mato Bula Central – Results from the 2017 infill drilling
program identified areas of potential high grade mineralization for
step out drilling to depth in the central area of Mato Bula.
- Silica Hill – Resource mineralization remains open to
depth.
- Silica Hill North – Interpretation of geology and
mineralization has been revised and additional drill targets have
been identified with the objective to build upon an initial
intersection of 22.91 metres at 14.34 grams per tonne gold
including 8.50 metres at 36.92 grams per tonne gold, from 101.09
metres drill depth (WMD032- news release dated January 15, 2015).
- Mato Bula North- A separate
copper enriched area of the existing resource remains open
laterally and to depth and requires further delineation
drilling.
- Da Tambuk Silica Ridge – Two target areas of artisanal
workings, silica alteration and anomalous multi-element soil
geochemistry remains to be trenched and drill tested.
- Da Tambuk deposit – Infill and extension drilling required
(deposit currently open to depth and south).
The Terakimti, VEM09 and Mayshehagne Exploration
Targets
- The Company has identified a corridor of anomalous surface
geochemistry between the Terakimti deposit and the VTEM09 prospect
(a six kilometre separation). The VTEM09 prospect has yielded a
number of precious metal-rich VMS related intersections, including
24.06 metres grading 1.88% copper, 3.08 grams per tonne gold, 66.4
grams per tonne silver, and 2.54% zinc, from 35.84 metres drill
depth (diamond drill hole TVD009 - news release dated March
27, 2017). Additional drill work warranted in the Terakimti area
includes;
- Supergene - High grade copper mineralization delineation
drilling.
- Primary - VMS mineralization delineation drilling.
- VTEM09 – Following qualifying metallurgical work and potential
resource work, additional diamond drilling would be warranted.
- Mayshehagne VMS trend - A separate VMS trend centres on the
Mayshehagne prospect, located three kilometres south of Terakimti.
Precious metal enriched copper-zinc mineralization has been
identified at this prospect, including 21.19 metres grading 4.32%
copper, 1.04 grams per tonne gold, 35.9 grams per tonne silver, and
6.98% zinc, from 36.58 metres drill depth (diamond drill hole HD011
– news release dated March 27,
2017).
- Mayshehagne – Following qualifying metallurgical work and
potential resource work, additional diamond drilling would be
warranted.
Furthermore, additional target generation is recommended through
deep and downhole EM programs over prospective terrains at Harvest
and I.P surveying along the untested Mato Bula
Trend terrain at Adyabo.
Management Discussion
The Company believes the work
and advancement on the projects completed to date indicate both the
commercial production potential of the defined deposits and the
significant exploration potential of this area within the Arabian
Nubian Shield. Management continues to believe there is
excellent potential for resource expansion within the Harvest and
Adyabo properties, as described in the EAM's news release
dated May 17, 2018.
Government approval for the extension of exploration licenses
and the proposed 2020 drill program has been received. The
initiation of the Phase 1 diamond drilling program is expected to
begin immediately after the Government declares the region ready
for field operations.
EAM currently has three approved Mining Agreements
with Ethiopia's Ministry of MoMP; the Terakimti Oxide
deposit Mining license has been issued (news release
dated December 7, 2017) and Mining Agreements for the Mato
Bula and Da Tambuk deposits have been approved and licences issued.
For the additional prospective targets of interest that are located
on ground outside of existing mining licences, the Company has
received Extension/Inclusion agreements from the MoMP to allow
additional time to qualify targets as they may complement existing
Licence resources.
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" or variations of such words or similar words or
expressions. Forward-looking information is based on reasonable
assumptions that have been made by East
Africa 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 East Africa to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: timing
of receipt of mining permit; timing of mining development;
projected heap leach recoveries ; early exploration; the closing of
the agreement with the exploration and development company to
advance the Magambazi Project or identify any other corporate
opportunities for the Company; mineral exploration and
development; metal and mineral prices; availability of capital;
accuracy of East Africa's
projections and estimates, including the initial mineral resource
for the Adyabo, Harvest and Magambazi Properties; interest
and exchange rates; competition; stock price fluctuations;
availability of drilling equipment and access; actual results of
current exploration activities; 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 diminishing quantities of
grades of reserves; 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 in East Africa's management's discussion and
analysis for the three months and nine months ended September 30, 2018 and for the year ended
December 31, 2017, and East Africa's listing application dated
July 8, 2013 Mineral Resources which
are not Mineral Reserves do not have demonstrated economic
viability. The contained gold, copper and silver figures shown are
in situ. No assurance can be given that the estimated quantities
will be produced. Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to the timely closing of the financing; the timely closing
of the Handeni Property definitive agreement; the price of gold,
silver, copper and zinc; the demand for gold, silver, copper and
zinc; the ability to carry on exploration and development
activities; the timely receipt of any required approvals; the
ability to obtain qualified personnel, equipment and services in a
timely and cost-efficient manner; the ability to operate in a safe,
efficient and effective manner; the renewal or extension of
exploration Licences; the regulatory framework regarding
environmental matters, and such other assumptions and factors as
set out herein. Although East
Africa 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 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.