VANCOUVER, Feb. 3, 2020 /CNW/ - East Africa Metals Inc. (TSX
Venture: EAM) ("East Africa", "EAM" or the "Company") would like to
provide an update on the ongoing exploration/development of its
gold and gold/copper/zinc projects in the Federal Democratic
Republic of Ethiopia ("Ethiopia").
The Company previously signed a diamond drilling contract for up to
10,000 metres. The Phase 1 drilling program has been initiated and
equipment has begun being deployed to support the campaign.
Based on the recently completed sale of the 70% interest of
EAM's Ethiopian subsidiary, Tigray Resources Inc. ("TRI") to Tibet
Huayu Mining Co. Ltd (news release dated February 8, 2019), EAM retains the mineral
rights and all exploration obligations for the prospective targets
not incorporated in the current resources defined within the
Terakimti, Mato Bula and Da Tambuk mining licenses ("EAM Mineral
Resources"). EAM will advance the exploration agenda through
diamond drilling and geophysical programs with the objective to
expand and upgrade the current resource base and drill untested,
high priority exploration prospects.
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;
Adyabo Property
- 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.
- Silica Hill – Resource mineralization remains open to
depth.
- Silica Hill North – Interpretation of geology and
mineralization has been revised and additional drill targets have
been identified with the objective to build upon an initial
intersection of 22.91 metres at 14.34 grams per tonne gold
including 8.50 metres at 36.92 grams per tonne gold, from 101.09
metres drill depth (WMD032- news release dated January 15, 2015).
- 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 Silica Ridge – Two target areas of artisanal
workings, silica alteration and anomalous multi-element soil
geochemistry remains to be trenched and drill tested.
- Da Tambuk deposit – Infill and extension drilling
required (deposit currently open to depth and south).
Harvest Property
Terakimti
The Company has identified a corridor of
anomalous surface geochemistry between the Terakimti deposit and
the VTEM09 prospect (a six kilometre separation). The VTEM09
prospect has yielded a number of precious metal-rich VMS related
intersections, including 24.06 metres grading 1.88% copper, 3.08
grams per tonne gold, 66.4 grams per tonne silver, and 2.54% zinc,
from 35.84 metres drill depth (diamond drill hole TVD009 - news
release dated March 27, 2017). Additional drill work warranted
in the Terakimti area includes;
- Supergene - High grade copper mineralization delineation
drilling.
- Primary - VMS mineralization delineation drilling.
- VTEM09 – Following qualifying metallurgical work and
potential resource work, additional diamond drilling would be
warranted.
- Mayshehagne VMS trend - A separate VMS trend
centres on the Mayshehagne prospect, located three kilometres south
of Terakimti. Precious metal enriched copper-zinc mineralization
has been identified at this prospect, including 21.19 metres
grading 4.32% copper, 1.04 grams per tonne gold, 35.9 grams per
tonne silver, and 6.98% zinc, from 36.58 metres drill depth
(diamond drill hole HD011 – news release dated March 27, 2017).
- Mayshehagne – Following qualifying metallurgical work
and potential resource work, additional diamond drilling would be
warranted.
Furthermore, additional target generation is recommended through
deep and downhole EM programs over prospective terrains at Harvest
and I.P surveying along the untested Mato
Bula Trend terrain at Adyabo.
Management Discussion
The Company believes the work and advancement on the projects
completed to date indicate both the commercial production potential
of the defined deposits and the significant exploration potential
of this area within the Arabian Nubian Shield. Management
continues to believe there is excellent potential for resource
expansion within the Harvest and Adyabo properties, as described in
the EAM's news release dated May 17,
2018.
Government approval for the extension of exploration licenses
and the proposed 2020 drill program has been received. The
initiation of the Phase 1 diamond drilling program is expected in
the first quarter of 2020.
EAM currently has three approved Mining Agreements with
Ethiopia's Ministry of Mines and
Petroleum; 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. For the additional
prospective targets of interest that are located on ground outside
of existing mining licences, the Company has received
Extension/Inclusion agreements from the Ministry to allow
additional time to qualify targets as they may complement existing
Licence resources.
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.
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" 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: risks associated with
mineral exploration and development; metal and mineral prices;
availability of capital; accuracy of the Company's projections and
estimates; ability to obtain financing for the Ethiopian projects;
interest and exchange rates; competition; stock price fluctuations;
availability of drilling equipment and access; available financing
to fund 10,000m drill program;
successfully complete the RAP; timing of the draft mining model
agreement; actual results of current exploration activities;
government regulation; political or economic developments;
environmental risks; insurance risks; capital expenditures;
operating or technical difficulties in connection with development
activities; successful completion of the arbitration process; the
ability for the Company to obtain a fair and reasonable result to
the arbitration process; the ability of the Company to identify a
new development partner or the sale of the Tanzanian Assets to
advance the Magambazi Project or identify any other corporate
opportunities for the Company; successfully manage the
environmental and social impacts; 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
East Africa's management's
discussion and analysis for the year end December 31, 2017 and for the nine months ended
September 30, 2018, and East Africa's listing application dated
July 8, 2013. Forward-looking
statements are based on assumptions management believes to be
reasonable, including but not limited to the price of gold, copper,
and silver; the demand for gold, copper and silver; the ability to
carry on exploration and development activities; availability of
financing to fund working capital, development and legal
matters; the timely receipt of any required approvals;
expediting the mine licence application process; support of the
local community of the Terakimti HL Project based on the ESIA; 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 expected burn rate; ability to
obtain financing for the Ethiopian projects, the regulatory
framework regarding environmental matters, and such other
assumptions and factors as set out herein. 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. 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.