East Africa Provides Exploration Update
TSX VENTURE: EAM
VANCOUVER, British Columbia, March 01, 2019 (GLOBE NEWSWIRE) -- 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 Federal Democratic Republic of Ethiopia (“Ethiopia”). Now that the previously announced Private placement has closed its initial tranche (see news release dated February 28, 2019), the Company has signed a diamond drilling contract for up to 10,000m to commence the first phase of drilling during Q2 2019.
Based on the Letter of Intent between EAM and Tibet Huayu Mining Co. Ltd (See news release dated February 8, 2019), EAM will retain the mineral rights, and all exploration obligations for the prospective targets not incorporated in the current resources defined at 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.
Below are listed exploration targets that host potential to improve current resources, and potentially increase the total resource base (see news release: May 7, 2018). Highest priority exploration targets that have potential to increase the resource base will be the focus of Phase 1 drilling;
- 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 known 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 trench and drill tested.
- Da Tambuk deposit – Infill and extension drilling required (deposit currently open to depth and south.
The company has identified a corridor of anomalous surface geochemistry between the Terakimti deposit and the VTEM09 prospect (a six kilometer 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 drillhole 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.
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 East Africa’s May 17, 2018, news release.
The initiation of the exploration drilling program is pending government approval of the work program submitted for review. The initiation of the Phase 1 diamond drilling program is expected in Q2, 2019.
EAM currently has three approved Mining Agreements with Ethiopia’s Ministry of Mines and Petroleum; the Terakimti Oxide deposit Mining license has been issued (see news release dated December 7, 2017), and Mining Agreements for the Mato Bula and Da Tambuk deposits have been approved, and issuance of these licenses is pending final approval by the Council of Ministers (see news release dated September 4, 2018). For the additional prospective targets of interest that are located on ground outside of existing and applied mining licences, the Company has submitted Extension/Inclusion Applications to allow additional time to qualify targets as they may complement existing Licence resources.
Jeff Heidema, P.Geo., VP Exploration, 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
For further information contact:
|Nick Watters, Business Development|
|Telephone||+1 (604) 488-0822|
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.