East Africa partner Tibet Huayu initiates the procurement process for mining equipment at the Mato Bula and Da Tambuk mine development projects, Tigray Regional State , 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 partner Tibet Huayu initiates the procurement process for mining
equipment at the Mato Bula and Da Tambuk mine development projects,
Tigray Regional State , Ethiopia.
Vancouver, British Columbia – Ju ly 2 , 2024 East Africa Metals (TSX - V: EAM, "East Africa Metals "
or the "Company") is pleased to announce that the C ompany’s development partner Tibet
Huayu Mining Co Lt d . (“Tibet Huayu”) has initiated the procurement process for heavy
equipment required for the construction of the Adyabo Project’s Mato Bula and Da Tambuk
mines, located in the Tigray Regional State of Ethiopia.
Equipment required for the mine construction and mining operations include drill rigs,
excavators, trucks, loaders, bulldozers graders crushers, mills, conveyance systems and other
heavy equipment (see press release, April 30 , 2018 ).
This significant milestone marks the next phase in advancing the Adyabo Project towards
construction readiness. The procurement is undertaken by Tigray Resources Inc. (“TRI”) , which
is owned by Tibet Huayu and East Africa Metals, 70% and 30% respectively, including soliciting
quotes from suppliers in both the Chinese and European markets. The objective is to finalize
the comprehensive schedule of capital costs, complete purchase orders and coordinate the
logistics for equipment imports.
Andrew Lee Smith, President and CEO of East Africa Metals, highlighted the importance of this
latest development: "The initiation of the procurement process by Tibet Huayu is a crucial step
forward for the Adyabo Project. This underscores our commitment to executing a well - planned
strategy that ensures the timely acquisition of essential reso urces for mine construction and
operational readiness."
The procurement process is designed to secure high - quality equipment that meets
international standards, reflecting our development partner ’ s dedication to operational
excellence and environmental responsibility. It aligns with East Africa Metals' broader vision of
sustainable resource development in Ethiopia, contributing to local employment and economic
growth.
Mato Bula Gold Copper and Da Tambuk Gold Projects
The Adyabo Project ’s 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 have been received t hat
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
expressions. 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, 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 recoveri es ; early
exploration; the closin g of the agreement with the exploration and development company to advance the Magambazi Project or id entify 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 urre nt 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 specula tive 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 an d analysis for the three months and nine months ended September 30, 2023 and for the year ended December 31, 2023 , 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 stat ements 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 developme nt 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 informati on even if new
information becomes available unless legislation requires the Company do so. Accordingly, readers should not place u ndue 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) acc epts responsibility for the adequacy or accuracy of this
release.