East Africa Metals takes stock of the development of the Magambazi mining plan

VANCOUVER, BC, December 17, 2021 / CNW / – East African Metals Inc. (TSXV: EAM) (“East Africa” or the “Company”) is pleased to provide an update on the progress of engineering and mine development work at the Magambazi mine in the Handeni region of the Federal Republic of Tanzania.

With the successful completion of tailings processing in the third quarter of 2021, the technical team of PMM Mining Company Limited (“PMM”) is focusing on the development of hard rock mining operations.

Phase I of mining operations will begin on the surface from two open pit resources, the “North and” South “pits. Indicated resource (see October 19, 2021, Press release).

Phase II of mining operations will be carried out from the subsoil where the resource in the Magambazi ridge will be accessible from the bottom of the valley, 200m under surface operations, to take full advantage of gravity in the extraction process.

Engineering work is progressing and detailed plans for mining operations and surface equipment installations are expected to be completed early January 2022

The infrastructure required to initiate and support surface mining operations continues to be improved and expanded to increase sufficient crushing capacity for surface surface mining operations. The development of the access road to the southern mine site is in progress.

The processing scheme continues to be refined and expanded to support hard rock mining operations. Plans to extend the crushing and grinding circuit continue to be developed. Gradual upgrades to the flowchart and processing plant will initially increase the capacity of the existing circuit to 1,000 tonnes per day and eventually to a capacity capable of supporting a production rate of 40,000 ounces per year. within forty-eight months of commissioning the hard drive. rock mining.

East Africa Metals has completed the formation of its gold trading company in Tanzania, “EMG Royalty Plc.”, To facilitate the acquisition of the company’s share in gold production from the Magambazi mine. Under the terms of the sale and purchase agreement with PMM, EAM owns the rights to acquire 30% of the gold produced from mining operations for payment equal to cash costs per ounce of extraction and processing plus by 15%.

According to Q2 2021 processing reconciliations provided to EAM by PMM, tailings operations produced a total of 645 ounces of gold. EAM’s share of Q2 2021 production is 169 ounces with a current value of US $ 275,000. Final transfer of mining licenses from Magambazi to PMM and third quarter 2021 processing reconciliation expected to be completed in early January 2022.

Andrew Lee Smith, P.Geo., CEO, a Qualified Person as defined in National Instrument 43-101, has reviewed and approved the technical content of this press release

About East Africa Metals

The principal assets of the Company include a 30% interest in net earnings in the Mato Bula and Da Tambuk mines (collectively the “Adyabo Property”) and a 70% interest in the VMS polymetallic Harvest exploration project in the Tigray region to Ethiopia. In addition, the Company owns a 30% net interest in the Magambazi mine in the Tanga region of Tanzania.

The Mato Bula and Da Tambuk mines are four kilometers apart and will be developed simultaneously. The development of mining operations is expected to begin in the second half of 2021.

East Africa retains exploration rights to areas of properties outside of Mato Bula, Da Tambuk and Terakimti mining licenses in all Ethiopian projects and plans to start exploration drilling to test priority targets in the second half of 2021.

EAM has invested US $ 66.8 million in exploration in Africa 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.

Current global project resources discovered by EAM include:

Project resources (Au + Auequiv. ounces of metal)

Project

Category

At + Atequiv.ounces

Adyabo project, Ethiopia
(EAM 30% interest on net profit)

Indicated

446,000

Inferred

551,000

Harvest Project, Ethiopia

(EAM = 70% interest of the project)

Indicated

469,000

Inferred

426,000

Handeni project, Tanzania

(EAM = 30% streaming royalty interest)

Measured and Indicated*

1,006,000

Inferred*

1,800

* Resource calculated on the basis of a cutoff of 0.40 gAu / t – see the press release of October 19, 2021 for more details)

Further information about the Company can be found on the Company’s website: www.eastafricametals.com.

On behalf of the Board of Directors:

Andrew Lee Smith, geo., CEO

Caution regarding forward-looking information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Generally, forward-looking information can be identified by the use of forward-looking terms such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, ” plan ”,“ plan ”,“ budget ”,“ schedule ”,“ may ”,“ will ”,“ could ”,“ could ”,“ should ”,“ indicate ”,“ confident ”or variations of these words or of similar words or phrases. Forward-looking information is based on reasonable assumptions that have been made by the Company on the date of this information and is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of the Company is materially different from those expressed or implied by such forward-looking information, including, but not limited to: statements regarding the current and future plans and objectives of the Company, PMM’s ability to meet minimum annual production, PMM’s ability to make payment if minimum annual production is not met, PMM’s ability to conduct hard rock mining operations, expected cash flows of the Company from royalties, the negotiation of a definitive agreement with Zijin reflecting the planned structure and schedule described herein; negotiation of a definitive agreement reflecting the planned structure and schedule described herein; delays in required payments and regulatory approvals; the results of due diligence; the capacity of Tibet Huayu to develop and operate the Ethiopia Adyabo project within the framework of the required laws and agreements; PMM’s ability to develop and operate the Tanzanian Magambazi project within the framework of the required laws and agreements; collectability of the Ethiopian and Tanzanian VAT debt; early exploration; the ability to East Africa identify any other business opportunity for the Company; the possibility that the Company will not be able to generate sufficient liquidity to meet its planned operations and may be forced to take other options; the risk that the Company will not be able to continue operating; the possibility that the Company will need additional financing to develop the Ethiopian projects into a mining operation; risks associated with obtaining any necessary licenses or permits, including, without limitation, approval by the Ethiopian government of EAM mineral resource extensions for the Company’s Ethiopian properties and projects; risks associated with mining exploration and development; prices of metals and minerals; demand for precious and base metals; availability of capital; the accuracy of the company’s projections and estimates, including the initial update and any mineral resource updates for the Adyabo, Harvest and Handeni projects; carrying out mineral resource estimates; interest and exchange rates; competetion; fluctuations in share prices; the ability to conduct 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 effective manner; the regulatory framework, including, without limitation, license approvals, social and environmental issues; the ability to operate government regulation safely, efficiently and effectively; political or economic developments; foreign tax risks; environmental risks; insurance risks; capital expenditure; operational or technical difficulties related to development activities; staff relations; the speculative nature of strategic exploration and development for metals, including the risks of title challenges; and changes in project parameters as plans continue to be refined, as well as risk factors set out in documents filed by the company with securities regulatory authorities. Mineral resources, which are not mineral reserves, have not demonstrated their economic viability. The estimate of mineral resources can be materially affected by environmental, licensing, legal, title, fiscal, socio-political, marketing or other issues. The quantity and grade of Inferred Mineral Resources declared, as the estimate is uncertain in nature and exploration has not been sufficient to define Inferred Mineral Resource as an Indicated or Measured Mineral Resource and it is uncertain whether ‘Further exploration will upgrade Inferred Mineral Resources to a category of Indicated or Measured Mineral Resource. The gold, copper and silver figures contained are in situ. No assurance can be given that the estimated quantities will be produced. Although the Company has attempted to identify important factors which could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results not to be as anticipated, estimated or planned. 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 required by law to do so. Therefore, readers should not place undue reliance on forward-looking information contained in this document, except in accordance with applicable securities laws.

Neither the 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 link

About William J. Harris

Check Also

Diamond Mining Market Size and Forecast

New Jersey, United States – Comprehensive analyzes of the fastest growing companies diamond mining market …