East Africa Metals Provides Update on On-Going Project Advancement
VANCOUVER, BC--(Marketwired - July 13, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company" or "EAM") is pleased to report on an anticipated active Fall 2016 program on the development and exploration fronts, as the Company looks to address corporate objectives including; the completion of mine permitting, closing of project financing, and the initiation of development for the Terakimti Gold Oxide project, the anticipated startup of operations at Magambazi in Tanzania, and continued work to grow the resource base in Ethiopia through exploration and definition drilling.
The Company's current resource base in Ethiopia comprises 926,000 gold equivalent ounces in the indicated category plus 860,000 gold equivalent ounces in the inferred category (see table below and news release dated June 29, 2016) from Terakimti, Mato Bula, and Da Tambuk mineral resources. Exploration targets that EAM plans to test, to continue the growth of the resource base, will include the VTEM09 and Mayshehagne prospects (highlight intersections previously released are listed in the table below), and new targets along the largely underexplored Mato Bula trend.
Options for geophysically assessing the entire Mato Bula trend are presently being investigated, potentially providing the most cost effective forward program to systematically develop additional gold targets at depth for drill testing. Ground geophysical testing has yet to be initiated on the property, and offers significant opportunity for identification of additional prospective zones.
VTEM09 and Mayshehagne Previously Released Highlight Intervals
| *Hole ID | From (m) | To (m) | Interval (m)* | Copper % | Gold g/t | Silver g/t | Zinc % | Local Azimuth | Dip | Prospect | |
| HD002 | 24.00 | 44.70 | 20.70 | 5.00 | 1.03 | 31 | 8.20 | 90 | -61 | Mayshehagne | |
| including | 28.75 | 41.55 | 12.80 | 7.77 | 1.62 | 50 | 12.66 | ||||
| HD006 | 62.00 | 80.00 | 18.00 | 3.23 | 0.95 | 22 | 3.78 | 90 | -45 | Mayshehagne | |
| including | 62.00 | 67.45 | 5.45 | 7.05 | 1.24 | 46 | 6.45 | ||||
| TVD001 | 20.29 | 30.50 | 10.21 | 3.16 | 3.97 | 87 | 3.82 | 271 | -47 | VTEM09 | |
| including | 21.58 | 24.40 | 2.82 | 5.61 | 7.48 | 102 | 0.72 | ||||
| TVD002 | 58.20 | 68.95 | 10.75 | 2.24 | 2.63 | 71 | 3.74 | 263 | -60 | VTEM09 | |
*Original holes and qualifying data released March 12, 2012, August 8, 2012, July 23, 2013, and May 27, 2015. Minor variance may occur due to QAQC interval adjustments.
East Africa's Mineral Resources at Harvest and Adyabo.
| Project | Ownership | Resource Summary | ||
| Adyabo 3(Indicated) | 100% | 446K Ounces AuEquiv | ||
| Adyabo 3(Inferred) | 100% | 434K Ounces AuEquiv | ||
| Terakimti Oxide Update 1 (Indicated) | 70% (Permit Pending) | 132K Ounces AuEquiv | ||
| Terakimti Sulphide 2 (Indicated) | 70% | 348K Ounces AuEquiv | 139M lbs CuEquiv | |
| Terakimti Sulphide 2 (Inferred) | 70% | 426K Ounces AuEquiv | 170M lbs CuEquiv | |
The resources stated above have been previously disclosed in News Releases.
1Terakimti 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 corrected resource information was disclosed via press release on January 11, 2016. Metal prices for gold and silver are $1,300/oz and $17.50/oz, respectively.
2Terakimti 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.
3Adyabo project updated mineral resource estimate disclosed via press release dated June 14, 2016; effective date May 31, 2016. Metal prices for gold, silver, and copper are $1,400/oz, $20.00/oz, and $3.20/lb, respectively. Metallurgical recoveries of 97% for gold, 72% for copper, and 50% for silver were applied at Da Tambuk.
About East Africa
The Company's principal assets and interests include both the 70%-owned Harvest polymetallic VMS exploration Project, which hosts the Terakimti Deposit and which covers approximately 86 square kilometres in the Tigray region of Ethiopia, 600 kilometres north €northwest of the capital city of Addis Ababa, and the Adyabo Project, hosting the Mato Bula trend Adyabo Resource, covering 225 square kilometres immediately west of the Harvest Project. The Company owns 80% of the Adyabo Project, and upon execution of a net smelter return agreement the Company will own 100% of the Adyabo Project, subject to a 2% NSR. East Africa now has mineral resources defined at both projects in Ethiopia and plans to continue to test priority targets. Additionally, the Company owns the 93 square kilometre Handeni Property located in north-eastern Tanzania. Handeni includes the Magambazi Project, a gold deposit discovered in 2009. East Africa has entered into a definitive agreement with an arm's length private exploration and development company to advance the project.
More information on the Company can be viewed at the Company's website: www.eastafricametals.com.
Jeff Heidema, P.Geo., VP Exploration, a Qualified Person under the definitions of National Instrument 43-101, has reviewed and approved the contents of this news release.
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 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: early exploration; the closing of the agreement with the exploration and development company to advance the Magambazi Project or identify 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 Projects; estimated exploration licence extensions, interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current 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 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, 2015, management's discussion and analysis for the three months ended March 31, 2016 and East Africa's listing application dated July 8, 2013 and Tigray Resources Inc. Management Information Circular dated March 28, 2014. 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 statements are based on assumptions management believes to be reasonable, including but not limited to the successful integration of Tigray Resources Inc.'s business with the Company; the price of gold, silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on exploration and development 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; and the regulatory framework regarding environmental matters, the renewal or extension of exploration licences, 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 information even if new information becomes available unless legislation requires the Company do so. 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.
Contact
For further information contact:
Nick Watters
Business Development
Telephone +1 (604) 488-0822
Email investors@eastafricametals.com
Website www.eastafricametals.com