East Africa Metals signs drilling contract to initiat e the Mato Bula Extension drill program targeting the Halima Hill prospect within Mato Bula Mining license , Tigray, Ethiopia .
777 Dunsmuir Street, 17th Floor
PO Box 48658, Station Bentall Centre
Vancouver, BC, Canada V7X 1A3
Tel: 604.488.0822
Toll Free: 866.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals signs drilling contract to initiat e the Mato Bula Extension
drill program targeting the Halima Hill prospect within Mato Bula Mining
license , Tigray, Ethiopia .
Vancouver, Bri ti sh Columbia – June 14 , 20 24 – East Africa Metals Inc. (TSX - V: EAM) (“East
Africa” or the “Company”) is pleased to announce the C ompany has engaged Kluane Drilling
Ltd. to advance the Mato Bula Extension drill p rogram beginning with testing of the Halima Hill
prospect.
Th e Mato Bula Extension drill program will target prospective geology south of the know n Mato
Bula r esource , as defined by an induced polarization (“IP”) anomaly representing the extension
of the IP anomal y that defines the current know n resource at Mato Bula.
Halima Hill Prospect
In the Preliminary Economic Assessment for the Mato Bula deposit dated April 30, 2018 (which
is available on SEDAR+ ) , Tetra Tech Canada Inc. commented on the potential to extend the Mato
Bula mineralization to the south. Tetra Tech wrote : “The extension potential to known
mineralization, laterally and at depth, should be traced via further geophysical IP surveying, and
extension drilling, in particular concentrating Halima Hill IP chargeability target extending from
the south end of the pr esent known resource . ”
“ The most southerly manifestation of the Mato Bula Trend is the mineralized zone at Halima
Hill, 320 m to the southwest of the Jasper Hill zone. ”
“ The visual interpretation of alteration at Halima Hill indicate the Mato Bula system is
weakening to the south near surface, however the IP survey is suggestive of additional
increasing potential at depth . ”
East Africa’s share purchase agreement (the “Agreement”) whereby Tibet Huayu Mining Co.
Ltd. (“Tibet Huayu”) acquired 70% of Tigray Resources Inc. (“TRI”) was negotiated based on
Adyabo project’s (Mato Bula and Da Tambuk mining licenses) 2017 resource (see news releases
dated February 8, 2019, February 11, 2019, May 31, 2019, July 2, 2019, July 2, 2019, August 14,
2019, and August 23, 2019).
The Agreement also stipulate s East Africa retains the mineral rights to any new resources
discovered through exploration conducted by East Africa, which the Company may sell for
additional compensation. Tibet Huayu has a Right of First Offer (“RFO”) to acquire any new
resources EAM decides to sell.
EAM’s development partner, the Chinese company Tibet Huayu, through its wholly owned
subsidiary Silk Road Investments Co. Ltd., will bear 100% of the costs of mine construction.
Mato Bula and Halima Hill IP 3D Inversion - looking West
Mato Bula and Halima Hill IP 3D Inversion – looking north
Distribution of Gold Shallow Soil Sampling on the Mato Bula Trend
Mato Bula Gold Copper and Da Tambuk Gold Projects
The Adyabo Project Mato Bula and Da Tambuk deposits are high sulphidation gold rich VMS.
This submarine porphyry - related system is located in the southern part of the Arabian - Nubian
Shield (ANS) in the Tigray region of northern Ethiopia. Mining licences ha ve been received that
cover both deposits on Adyabo, Mato Bula Au - Cu - Ag and Da Tambuk Au.
Preliminary Economic Assessment (PEA) reports dated April 30, 2018 on the Mato Bula Gold
Copper and Da Tambuk Gold Projects (which are available on SEDAR+) , indicate strong project
economics. For Mato Bula, the post - tax NPV was estimated at US$56.7 million (8% discount
rate), and an IRR of 28.4%. For Da Tambuk, the post - tax NPV was estimated at US$13.0 million,
with an IRR of 28.6% at a gold price of USD1, 325 /ounce .
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.
EAM has invested US$66.8M in African exploration since 2005 and has 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, P.Geo., CEO
For further information contact:
Nick Watters, Business Development
Telephone +1 (604) 488 - 0822
Email [email protected]
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 using 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 word s or similar words or
express ions. Forward - looking information is based on reasonable assumptions th at 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, lev el 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 recoveri es ; early
exploration; the closin g of the agreemen t 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 c ur rent 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; perso nnel relations; the speculative nature of
strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests ove r 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, 20 23 and for the year ended December 31, 20 23 , 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 de mand for gold,
silver, copper and zinc; the ability to carry on exploration and development activities; the timely receipt of any required a pprovals; the ability to
obtain qualified personnel, equipment and services in a timely and cost - efficient manner; t he 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 informati on even if new
information be comes available unless legislation requires the Company do so. Accordingly, readers should not place undue reliance on forwar d -
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 adequa cy or accuracy of this
release.