East Africa Metals Provides Ethiopian Update
East Africa Metals Provides Ethiopian Update
VANCOUVER, BC
,
Nov. 30, 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").
Mining Licences
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 Mining Agreements for the Mato Bula and Da Tambuk
deposits have been approved and licences issued (news release dated
May 29, 2019
).
All the mining licenses are currently under project development agreements.
Mato Bula and Da Tambuk transaction are under a project development agreement with Tibet Huayu
Mining Co., Ltd. that purchased a 70% interest in the Company's Mato Bula and Da Tambuk Mining
Licenses by making a cash payment of
US$1.2M
and financing 100% of the
US$88M
capital costs
and operating the mines. Under the agreement EAM will retain the exploration rights to all
prospective mineralization on its concession areas outside of the current resource (news release
dated
August 23, 2019
).
EAM's interest in the Harvest Project is the subject of a non-binding Letter of Intent with Zijin Mining
Group Company Ltd. ("Zijin") to acquire a majority ownership interest in project by making a cash
payment of US$900,000, developing and funding 100% of EAM's obligations related to the
development and operation of the Harvest Project. Under the agreement EAM will retain the
exploration rights to all prospective mineralization on its concession areas outside of the current
resource
Exploration and Drilling
East Africa
is prepared to initiate a fully funded
$2,700,000
exploration program announced in early
2021 (see new release
February 1, 2021
), once commercial activity in the Tigray region normalizes
and 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
exploration
program (news release dated
January 28, 2020
) that will include diamond drilling, geophysical
surveys, environmental, metallurgical studies and resource assessments. The initiation of the
exploration 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 to continued participation in what has become an active and
emerging exploration sector.
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.
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.
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 deposit – Infill and extension drilling required (deposit currently open to depth and
south).
Terakimti sulphide extension to depth.
Exploration Extension Rights
EAM management has been advised by the Ministry certain exploration rights in
Ethiopia
granted to
EAM subsidiaries in
January 2020
have reportedly been granted to a third-party. This action by the
Ministry has occurred despite these exploration rights being legally held by EAM and protected by
declarations of Force Majeure.
EAM has been able to confirm through Ministry records that this reported action by the Ministry does
not impact any of the existing Mining Licenses nor does it affect exploration rights to any priority
exploration targets in which EAM has an interest.
The license EL00057, purportedly granted to a third-party, includes property interests that are the
subject of a valid Exploration License Period Extension Agreements (the "
Exploration Rights
")
granted by the Ministry to Ethiopian subsidiaries of East Africa Metals Inc. ("
EAM
") on
January 28,
2020
. On
May 27, 2021
, the Ministry wrongly purported to terminate the License in breach of EAM's
legal rights. EAM strongly disputes the validity of the Ministry's purported termination of the
Exploration Rights and subsequent grant to a third-party.
The Company has formally filed Legal Notice in compliance with the Company's rights under the
Ethiopian Mining Laws and will continue to demand the Ministry cancel any exploration license(s)
granted to third-parties in the areas previously granted to EAM subsidiaries and affected by force
majeure events and reinstate them to EAM.
Andrew Lee Smith
, CEO of
East Africa
commented, "East Africa Metals' management and Board of
Directors are surprised and disappointed by the Ministry's actions taken against the interest of EAM
shareholders and all stakeholders in the Company's Ethiopian exploration projects.
The Company intends to continue to prepare a legal position and take legal action against the
Ethiopian Ministry of Mines and any companies or individuals who have benefited from this decision
at a time the Company considers appropriate.
After twelve-years of investments totaling
$30M
and exploration success by EAM and
$15M
in
funding provided to the Ethiopia Ministry of Mines and Petroleum by Global Affairs Canada to
address issues of accountability, tenure security and transparency EAM's management and Board of
Directors fail to see how this unwarranted and regressive action by the Ministry of Mines benefits
stakeholders or encourages investment in
Ethiopia's
resource sector."
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 are expected to be initiated immediately
once commercial activity in the Tigray region normalizes and it recovers from the impacts of the
COVID pandemic and the political unrest.
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 the Tigray region is declared secure for commercial activity
by the Ministry.
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
.
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
, CEO,
P.Geo
., ICD.D
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 Licenses; 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.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2021/30/c5126.html
%SEDAR: 00034410E
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 30-NOV-21