VANCOUVER, BC, Feb. 1, 2021 /CNW/ - East Africa Metals Inc.
(TSX Venture: EAM Frankfurt: EA1) ("East Africa", "EAM" or the
"Company") would like to provide an update on the ongoing
exploration/development of its gold and gold/copper/zinc projects
in the Federal Democratic Republic of Ethiopia ("Ethiopia").
EAM has completed planning and received government approval for
C$2.7M, Phase 1 exploration program
that will include 8,000m of diamond
drilling, 115 line kilometers of geophysical surveys,
environmental, metallurgical studies and resource
calculations/updates. The exploration program is set to commence as
soon as travel restrictions for the Tigray region are lifted.
Based on the recently completed 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;
Adyabo Property
The undrilled Halima Hill I.P.
anomaly that is an extension of the geophysical signature of the
Mato Bula resource, and the exploration of the Mato Bula Trend, the
continuation of prospective geology between the Mato Bula and
Da Tambuk mining licenses, represent first priority exploration
targets on the Adyabo property.
- 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).
![Figure 1 (CNW Group/East Africa Metals Inc.) Figure 1 (CNW Group/East Africa Metals Inc.)](https://mma.prnewswire.com/media/1430697/East_Africa_Metals_Inc__East_Africa_prepares_C_2_7M_exploration.jpg)
Harvest Property
Terakimti
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 in
the first quarter of 2021.
EAM currently has three approved Mining Agreements with
Ethiopia's Ministry of Mines and
Petroleum; 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 Ministry 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.
About East Africa:
The Company's principal assets include 30% Net Profits Interest
in the Mato Bula and Da Tambuk mines (collectively "Adyabo
Property") and a 70% project interest in the Harvest
polymetallic VMS exploration Project in the Tigray region of
Ethiopia. In addition, the Company
has a 30% Net Streaming Interest ("SRI") in the Magambazi Mine in
the Tanga region of Tanzania.
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
+Aueqvounces
|
Adyabo Project,
Ethiopia
(EAM 30% Net
Profit Interest)
|
Indicated
|
446,000
|
Inferred
|
551,000
|
Harvest Project,
Ethiopia
(EAM = 70% Project
Interest)
|
Indicated
|
469,000
|
Inferred
|
426,000
|
Handeni Project,
Tanzania
(EAM = 30%
Streaming Royalty Interest)
|
Indicated
|
721,000
|
Inferred
|
292,000
|
*See East Africa
Metals Project Resource Table attached for additional
detail
|
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.
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SOURCE East Africa Metals Inc.