VANCOUVER, British Columbia, Dec. 13, 2017 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX-V: EAM ) (“East Africa” or the “Company”) is pleased to announce, subsequent to the recently acquired Mining License for the Terakimti Oxide Gold Project (See news release dated December 7, 2017), the Company has submitted two additional Mining Licence applications for the Company’s Da Tambuk and Mato Bula Gold deposits at the Company’s 100% owned Adyabo Project located in the Tigray National Regional State of the Federal Democratic Republic of Ethiopia (“Ethiopia”).
Andrew Lee Smith, East Africa’s C.E.O. stated, “Following the recent approval of the Mining Licence for the nearby Terakimti Oxide Gold Project, East Africa is pleased to have submitted formal Mining Licence Applications for two additional deposits at Da Tambuk and Mato Bula. The opportunity to hold three deposits within a 20 kilometre footprint, in an area of well developed, air, road, and power infrastructure offers exceptional potential for project development.”
Project Profiles:
The Company has defined the following mineral resources at Da Tambuk and Mato Bula 1 :
- Da Tambuk: 775,000 tonnes at 4.51 grams per tonne gold and 2.4 grams per tonne silver, containing 112,000 ounces of gold and 59,000 ounces of silver, to a drilled depth of 200 metres. The mineralized zone is open along strike and to depth.
- Mato Bula: 2,280,000 tonnes grading 3.74 grams per tonne gold, 0.28% copper and 1.1 gram per tonne silver, containing 278,000 ounces of gold, 14 million pounds copper and 70,000 ounces of silver, to a drilled depth of 450 metres. The mineralized zone is open along strike and to depth.
At Da Tambuk, mineralization occurs in two sub-parallel zones with a strike length of 650 metres in a northeast-southwest direction, a vertical extent of 200 metres and horizontal widths up to 50 metres.
At Mato Bula, mineralization occurs in three sub-parallel zones with a strike length of 850 metres in a northeast-southwest direction, a vertical extent of up to 450 metres and a horizontal width of up to 80 metres. The southern part of Mato Bula has a higher copper content relative to gold. The overall Au:Cu ratio is 8.1 to 1.
Project Infrastructure:
The Da Tambuk and Mato Bula deposits are located approximately 600 kilometres north of Addis Ababa, the capital of Ethiopia. The region has daily commercial air service from Addis Ababa. The existing transportation and power infrastructure is located close to the project site and enhances the development potential of the area.
The Da Tambuk and Mato Bula deposits are located approximately 35 kilometres northwest from the regional centre of Shire. Shire has a population of approximately 60,000 people and paved highway access to other regional centres and to Addis Ababa. Shire offers a number of government and commercial services, and a recently completed airport. The Da Tambuk and Mato Bula project sites are located 11 and 7 kilometres west respectively from the paved highway connecting to Shire. A high voltage power line passes approximately 7 kilometres to the east of the Da Tambuk project site. The Da Tambuk deposit is located four kilometres north of the Mato Bula deposit and it is anticipated that certain support infrastructure may be shared for the two projects.
It is envisioned that conventional open pit and /or underground mining methods would be applied.
Metallurgy
Metallurgical test work was conducted by Blue Coast Research Ltd. (BCR), located in BC, Canada, on samples collected from the Da Tambuk and Mato Bula deposits to evaluate gravity concentration, agitated cyanide leaching and flotation technologies for the recovery of gold.
Da Tambuk Metallurgy
The test results demonstrated that agitated cyanidation leaching in bottle rolls of a whole material sample ground to 80 percent passing 75 microns achieved gold extraction of 97% after 48 hours of leaching, indicating that the gold in the composite sample is not refractory and responds well to industry standard agitated cyanide leaching technology.
Based on these results, it is envisioned that conventional crushing and grinding followed by Carbon in Leach (C.I.L.) or Carbon in Pulp (C.I.P.) and carbon adsorption-desorption (ADR) would be appropriate technology for precious metals recovery at Da Tambuk.
Mato Bula Metallurgy
The Mato Bula test work demonstrated that conventional flotation concentration was successful in achieving gold and copper recovery to a copper-gold concentrate with marketable grades. Copper and gold recovery to flotation concentrate was 93% and 83% respectively with concentrate grades of 27% copper and 166 g/t gold. Additional gold recovery was achieved by agitated cyanide leaching of gold bearing flotation products (pyrite concentrate and copper cleaner tailings). With a combination of flotation and leaching, the overall gold recovery was 89% for the Mato Bula sample.
Based on these test results it is envisioned that a process utilizing conventional crushing and grinding followed by flotation to produce a gold rich copper concentrate, combined with agitated leaching of flotation products in a C.I.L or C.I.P. circuit, would be appropriate technology for the recovery of gold and copper at Mato Bula.
Environmental and Social Impact Assessment
An independent Environmental and Socio Impact Assessment (“ESIA”) study has been completed by Beles Engineering Pvt. Ltd. Co. of Ethiopia, and forms an integral part of the Mining Licence applications. This ESIA concluded that the local population is supportive, and the anticipated benefits would be important to the local community and to the local and regional governments. The ESIA further concluded that the adverse impacts identified can be mitigated through implementation of the proposed management and monitoring plans.
Adyabo Mineral Resources:
The Indicated and Inferred Mineral resources for the Adyabo project are presented below.
Adyabo Project Indicated Mineral Resource Estimate, David Thomas, P. Geo. (Effective Date: May 31, 2016) 1
| Pit Constrained | Gold | Copper | Silver | Gold Equivalent | Gold Metal | Copper Metal | Silver Metal | Gold | ||||||||||||
| Equivalent | ||||||||||||||||||||
| Metal | ||||||||||||||||||||
| Area | Cut-Off ($/t) | Tonnes | (Au g/t) | (Cu %) | (Ag g/t) | ( Au g/t) | (Au Ozs) | (Cu Mlbs) | (Ag Ozs) | (Ozs) | ||||||||||
| Da Tambuk | 23.9 | 775,000 | 4.51 | 0.11 | 2.4 | 4.65 | 112,000 | 1.9 | 59,000 | 116,000 | ||||||||||
| Mato Bula | 23.9 | 2,280,000 | 3.74 | 0.28 | 1.1 | 4.18 | 278,000 | 14.0 | 70,000 | 310,000 | ||||||||||
| Sub-Total Pit | 23.9 | 3,055,000 | 3.94 | 0.24 | 1.4 | 4.30 | 390,000 | 15.9 | 128,000 | 426,000 | ||||||||||
| Underground Mineral Resource | Gold | Copper | Silver | Gold Equivalent | Gold Metal | Copper Metal | Silver Metal | Gold | ||||||||||||
| Equivalent | ||||||||||||||||||||
| Metal | ||||||||||||||||||||
| Area | Cut-Off ($/t) | Tonnes | (Au g/t) | (Cu %) | (Ag g/t) | ( Au g/t) | (Au Ozs) | (Cu Mlbs) | (Ag Ozs) | (Ozs) | ||||||||||
| Mato Bula | 63.9 | 160,000 | 3.57 | 0.25 | 1.0 | 3.96 | 18,000 | 0.9 | 3,000 | 20,000 | ||||||||||
| Total PC + UG | N/A | 3,215,000 | 3.92 | 0.24 | 1.4 | 4.29 | 408,000 | 16.8 | 132,000 | 446,000 |
Adyabo Project Inferred Mineral Resource Estimate, David Thomas, P. Geo. (Effective Date: May 31, 2016) 1
| Pit Constrained | Gold | Copper | Silver | Gold Equivalent | Gold Metal | Copper Metal | Silver Metal | Gold | ||||||||||||
| Equivalent | ||||||||||||||||||||
| Metal | ||||||||||||||||||||
| Area | Cut-Off ($/t) | Tonnes | (Au g/t) | (Cu %) | (Ag g/t) | ( Au g/t) | (Au Ozs) | (Cu Mlbs) | (Ag Ozs) | (Ozs) | ||||||||||
| Da Tambuk | 23.9 | 35,000 | 4.30 | 0.08 | 3.0 | 4.42 | 5,000 | 0.1 | 3,000 | 5,000 | ||||||||||
| Mato Bula | 23.9 | 3,010,000 | 2.13 | 0.34 | 2.4 | 2.67 | 207,000 | 22.2 | 237,000 | 259,000 | ||||||||||
| Mato Bula North | 23.9 | 2,470,000 | 0.27 | 0.70 | 3.2 | 1.49 | 22,000 | 38.3 | 252,000 | 119,000 | ||||||||||
| Sub-Total Pit Constrained | 23.9 | 5,515,000 | 1.31 | 0.50 | 2.8 | 2.15 | 233,000 | 60.6 | 493,000 | 383,000 | ||||||||||
| Underground Mineral Resource | Gold | Copper | Silver | Gold Equivalent | Gold Metal | Copper Metal | Silver Metal | Gold | ||||||||||||
| Equivalent | ||||||||||||||||||||
| Metal | ||||||||||||||||||||
| Area | Cut-Off ($/t) | Tonnes | (Au g/t) | (Cu %) | (Ag g/t) | ( Au g/t) | (Au Ozs) | (Cu Mlbs) | (Ag Ozs) | (Ozs) | ||||||||||
| Da Tambuk | 63.9 | 75,000 | 3.92 | 0.05 | 2.9 | 4.00 | 9,000 | 0.1 | 7,000 | 10,000 | ||||||||||
| Mato Bula | 63.9 | 330,000 | 2.77 | 0.65 | 5.4 | 3.82 | 30,000 | 4.7 | 58,000 | 41,000 | ||||||||||
| Mato Bula North | 63.9 | 15,000 | 0.75 | 0.79 | 2.6 | 2.10 | 400 | 0.3 | 1,000 | 1,000 | ||||||||||
| Sub-Total Underground | 63.9 | 420,000 | 2.91 | 0.55 | 4.8 | 3.80 | 39,000 | 5.1 | 66,000 | 51,000 | ||||||||||
| Total PC + UG | N/A | 5,930,000 | 1.43 | 0.50 | 2.9 | 2.27 | 273,000 | 65.7 | 559,000 | 434,000 |
1 The resources above have been publicly disclosed. Please refer to East Africa News Release dated June 14, 2016 for full details on the resource. Metal prices of $1,400/oz, $3.20/lb and $20.0/oz were used for gold, copper and silver respectively. Metallurgical recoveries of 97% for gold, 72% for copper and 50% for silver were applied at Da Tambuk. Metallurgical recoveries of 88.5% for gold, 87.5% for copper and 50% for silver were applied at Mato Bula and Mato Bula North.
The current Adyabo Mineral Resource incorporates data from 15,295.8 metres of drilling in 84 drill holes, and 2,808 metres of trenching.
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
For further information contact Nick Watters, Business Development Telephone +1 (604) 488-0822 Email investors@eastafricametals.com Website www.eastafricametals.com
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 Projects; 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, 2017 and for the year ended December 31, 2016, 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.
