East Africa Metals - Update on Magambazi Development
East Africa Metals - Update on Magambazi
Development
VANCOUVER, BC
,
March 9, 2022
/CNW/ -
East Africa Metals Inc.
(TSXV: EAM) ("East Africa" or
the "Company") is pleased to provide an update on the progress of the Magambazi Mine
development. EAM, having recently toured the site and met with Canaco Tanzania Limited's ("CTL")
management along with management from EMG Pamoja Royalties Tanzania, Ltd., "EMG", EAM's
gold trading subsidiary. Management believes that the Magambazi Mine development is ahead of
schedule and commissioning of hard-rock mining operations will commence at the North Pit in Q2 of
2022.
Engineering Update
As previously announced (Press Release –
September 27, 2021
), PMM Mining Company Limited
("PMM") has commenced engineering work to develop detailed plans for hard rock mining
operations and surface equipment installations. The revised resource (Press Release dated
October
19, 2021
) and the recently completed pit optimization study by the PMM technical team will provide
the framework for site development and the production schedule. The decision to begin operations
on the South Pit will provide the engineering team the time required resolve the geotechnical issues
in the North Pit that are the result of illegal mining operations between 2009 and 2015. The initial
phase of mining is planned to commence at a rate of mining 200 tonnes per day, expanding the
processing plant over a 48-month period to 1,000 tonnes per day as the South Pit and underground
operations come online. First-year production is targeted to be 10,000 ounces of gold, scaling up to
40,000-ounces annually over a period of 48 months.
Construction Update
Having toured the site via helicopter on
Thursday, March 3, 2022
, management was pleased with
the progress of previously reported construction items, namely the access road to the North Pit
which is now complete.
Tailings Reprocessing Production Update
The Company has been informed the reprocessing of the tailings has been completed. (Press
Release dated
September 13, 2021
) EAM's management is awaiting production reconciliations from
PMM for Q3 and Q4 of 2021, which have been delayed in order for PMM to settle taxation issues.
EAM is confident that the issues will be resolved and expect production numbers shortly from PMM.
CSR Initiatives
It is worth noting that Company's representatives toured the Nyasa Village school that EAM built for
the local village and are pleased to report that attendance is at maximum capacity. EAM recognises
the importance of developing community relationships with local residents in areas where exploration
and mining activities are impacting daily life and remains committed to investing in local communities,
as part of the normal business practice.
"EAM's management is pleased to see the accelerated development of the Magambazi Mine" said
Andrew Lee Smith
, CEO of
East Africa
. "This pathway toward cash flow in this strong gold market is
one step closer and should be realized in the near future."
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 press release
About East Africa Metals
The Company's principal assets include a 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 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 second
half 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 second half of 2021.
EAM has invested
US$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 + Au
eqv
Metal ounces)
Project
Category
Au + Au
eqv
ounces
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)
Measured
&
Indicated
1,006,000
Inferred
800
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: statements regarding present and future plans and
objectives of the Company, the ability of PMM to meet minimum annual production, the ability of
PMM to make the payment if the minimum annual production is not met, the ability of PMM to
carry out hard rock mining operations, the Company's expected cash flows from royalties, the
negotiation of a definitive agreement with Zijin reflecting the anticipated structure and timing
outlined herein; 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; the ability of PMM to develop and operate the
Tanzanian Magambazi 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.
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For further information:
Nick Watters, Business Development, Telephone +1 (604) 488-0822,
Email [email protected], Website www.eastafricametals.com
CO: East Africa Metals Inc.
CNW 16:05e 09-MAR-22