East Africa Metals Provides Update on Magambazi Mine Plan Development
East Africa Metals Provides Update on
Magambazi Mine Plan Development
VANCOUVER, BC
,
Dec. 17, 2021
/CNW/ -
East Africa Metals Inc.
(TSXV: EAM) ("East Africa" or
the "Company") is pleased to provide an update on the progress of the engineering and mine
development work at the Magambazi mine in the Handeni region of the Federal Republic of
Tanzania
.
With the successful completion of the tailings processing in the third quarter of 2021, the technical
team for PMM Mining Company Limited ("PMM") are focused on the development of hard-rock
mining operations.
Phase I of the mining operations will be initiated on surface from two open pit resources, the "North
and "South" pits. These pits will be established on areas of the deposit representing approximately
15 percent of the recently upgraded one-million ounce Measured and Indicated resource (see
October 19, 2021
, press release).
Phase II of the mining operations will be conducted from underground where the resource within the
Magambazi ridge will be accessed from the valley floor,
200m
below the surface operations, to take
full advantage of gravity in the mining process.
Engineering work is progressing and detailed plans for mining operations and surface equipment
installations are expected to be complete early
January 2022
Infrastructure required to initiate and support surface mining operations continues to be upgraded
and expanded to increase milling capacity sufficient for surface open-pit operations. Development of
the access road to the South Pit site is underway.
3D perspective view of the Magambazi ridge and resource (looking northeast) (CNW Group/East
Africa Metals Inc.)
The processing flow-sheet continues to be refined and expanded to support the hard-rock mining
operations. The plans for the expansion of the crushing and grinding circuit continue to be developed.
Staged upgrades to the flow-sheet and processing plant will initially expand the capacity of the
existing circuit to 1,000 tonnes per day and ultimately to a capacity capable of supporting a 40,000
ounce production rate per year within forty-eight months of commissioning of the hard-rock mining
operations.
East Africa Metals has completed the formation of its Tanzanian gold trading company, "EMG
Royalty Plc.", in order to facilitate the acquisition of the Company's share of gold production from
the Magambazi mine. Under the terms of the sale purchase agreement with PMM, EAM holds the
rights to acquire 30% of the gold produced from the mining operations for a payment equal to the
per ounce cash costs of mining and processing plus 15%.
According to Q2 2021 processing reconciliations provided to EAM by PMM the tailings operations
produced a total of 645 ounces of gold. EAM's share of the Q2 2021production is 169 ounces with a
current value of
US$275,000
. The final transfer of the Magambazi mining licenses to PMM and
reconciliation of Q3 2021 processing are expected to be completed in early
January 2022
.
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 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
*
1,800
* Resource calculated based on 0.40 gAu/t cut-off – see October 19, 2021 press release for details)
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 17-DEC-21