East Africa Metals Inc V.EAM

Alternate Symbol(s): EFRMF

Metals & Mining Gold

East Africa Metals Inc. is a Canada-based mineral exploration company. The Company is focused on the identification, acquisition, exploration, development and/or sale of base and precious mineral resource properties in the Federal Democratic Republic of Ethiopia (Ethiopia) and the United Republic of Tanzania (Tanzania). The Company’s mineral property interest consists of one project in Ethiopia, the Harvest Property. Additionally, the Company holds a 30% equity interest in Tigray Resources Incorporated PLC, which has one project in Ethiopia, the Adyabo Property. The Harvest Project is 600 kilometers north of Ethiopia’s capital of Addis Ababa. The property is located in the Asmara Mineral Belt in the southern part of the Arabian Nubian Shield (ANS). The Adyabo Project covers 195.5 square kilometers (km2) west of East Africa Metals’ Harvest Project and is located in an under explored part of the Arabian-Nubian Shield in Northern Ethiopia.

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East Africa Metals Inc

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Post by Franklin66on Dec 07, 2017 4:27am

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Post# 27106797

East Africa Metals Receives Mine Permit

VANCOUVER, British Columbia, Dec. 07, 2017 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX-V:EAM) (“East Africa” or the “Company”) is pleased to announce the Company has received government approval of East Africa’s Mining Licence Agreement for the Terakimti Oxide Gold Project (the “Terakimti Project”) at the Company’s 70% owned Harvest Project located in the Tigray National Regional State of the Federal Democratic Republic of Ethiopia (“Ethiopia”).

The Mining Licence Agreement has been formally approved by the Ministry of Mines, Petroleum, and Natural Gas (the “Ministry of Mines”), the Prime Minister and the Council of Ministers. The Company will now focus on finalizing its previously announced Project Financing (refer to the Company’s news release dated November 10, 2017) and proceed with engineering and development of the Terakimti Project.

Andrew Lee Smith, East Africa’s C.E.O. stated, “This is an extremely important achievement for East Africa, and we appreciate the efforts of the Government and Ministry of Mines in the development of the Mining Licence Agreement for Terakimti. We plan to move forward as soon as possible with engineering and development of the project”. The Terakimti Project will provide East Africa the opportunity to benefit from establishing the first commercial heap leach operation in the country, and provide the basis for additional exploration and development to grow the Company’s mineral resources in Ethiopia.

Terakimti Oxide Gold Project Profile:

Mineral Resource: Indicated Resource of 1,110,000 tonnes grading 3.20 grams gold and 23.6 grams silver per tonne containing 114,000 ounces of gold and 841,000 ounces of silver;
Heap Leach Recoveries from Column Testwork¹: up to 74.8 % gold and 39.4% silver;
Proposed Mining Method: Conventional open pit;
Proposed Processing Technology: Heap leaching to produce gold–silver dore.

⁽¹⁾ see East Africa Metals News Release dated January 23, 2017 for summary of metallurgical test work results.

Proposed Mining Operation:
The Terakimti Project is proposed as an open pit mining operation followed by heap leaching and on site processing to produce gold-silver dore. The combination of near surface oxide gold and silver mineralization, hosted in soft rock when compared to other deposits, high and rapid extraction of gold at coarse crush sizes in metallurgical testwork, along with satisfactory percolation rates all support this strategy for the development of the Terakimti Project.

Project Infrastructure:
The Terakimti Project is located approximately 600 kilometres north of the Addis Ababa, the capital of Ethiopia. The region has daily, commercial air service from Addis Ababa. The existing transportation and power infrastructure is located close to the project site and enhances the development potential of the proposed operation. The proposed mining operation would utilize grid power for the project, for which the nearest high tension power line is approximately 7 kilometres away. Primary road access to the site is by paved highway from the town of Shire, 40 kilometres south of the project. Shire has a population of approximately 60,000 people and sufficient services to serve as a base for off-site project activities.

Environmental Impact and Socio-Economic Assessment:
An independent Environmental Impact and Socio-Economic Assessment (“EISA”) study has been completed by Beles Engineering Pvt. Ltd. Co. of Ethiopia, and forms an integral part of the Mining Licence Agreement. This EISA examined the beneficial and adverse aspects of the proposed mining operation and concluded that the local population is in favor of the project, and the anticipated benefits would be positive and very important to the local community and to the local and regional governments. The EISA further concluded that the adverse impacts identified can be mitigated through implementation of the proposed management and monitoring plans, and therefore recommended project implementation.

Mineral Resources:

Terakimti Updated Oxide Mineral Resources²


Mineralization Class	Mineralization Type	NSR Cut-Off ($/t)	Tonnes ('000s)	Grade			Contained Metals
Mineralization Class	Mineralization Type	NSR Cut-Off ($/t)	Tonnes ('000s)	Au g/t	Ag g/t	Cu %	Au ('000 oz)	Ag ('000 oz)	Cu ('000 lb)
Indicated	Oxide	15.74	1,110	3.20	23.6	0.08	114	841	-
Inferred	Oxide	15.74	15	1.94	13.5	0.04	1	7	-

²Terakimti Oxide Resource update disclosed October 27, 2015; effective date October 18, 2015. Full mineral resource estimate disclosure can be found in the company’s press release dated October 27, 2015, available at www.eastafricametals.com or at www.sedar.com. Subsequent to the release of the Oxide Resource update, a review by the resource QP identified an error in the tabulation of mineral resources. The error was not material and the corrected resource information was disclosed via East Africa Metals press release on January 11, 2016. Metal prices for gold and silver are $1,300/oz and $17.50/oz, respectively.

Terakimti Sulphide Mineral Resources

Additional gold copper resources underlie the Terakimti oxide resource and the Company plans to continue its assessment of these resources for future development.

Terakimti Mineral Resources³


Mineralization Class	Mineralization Type	NSR Cut-Off ($/t)	Tonnes ('000s)	Grade					Contained Metals
Mineralization Class	Mineralization Type	NSR Cut-Off ($/t)	Tonnes ('000s)	Au g/t	Ag g/t	Cu %	Zn %	CuEq %	Au ('000 oz)	Ag ('000 oz)	Cu ('000 lb)	Zn ('000 lb)	CuEq (‘000 lb)
Indicated	Sulphide	23.9	1,841	1.1	17.5	2.20	1.65	3.98	63	1,033	89,477	66,871	146,645
Inferred	Sulphide	23.9	2,583	1.0	20.6	1.09	1.42	2.60	80	1,712	62,187	77,101	134,337

	Primary	63.9	939	0.8	15.2	0.69	2.92	2.66	25	459	14,198	60,358	49,862
	Sub-Total Inferred		3,522	0.9	19.2	0.98	1.82	2.61	105	2,171	76,385	137,459	184,199

³Terakimti Initial Resource Estimate as disclosed in the 43-101 Technical Report dated February 14, 2014; effective date January 17, 2014. Full mineral resource estimate disclosure can be found on the company’s website or at www.sedar.com. Metal prices for gold, silver, copper, and zinc are $1,400/oz, $25.00/oz, $3.50/lb, and $0.90/lb, respectively.