AMN - ETHIOPIA: Positive PEAs for three gold projects

East Africa Metals has received positive results from preliminary economic assessments (PEA) for its three gold projects in the Federal Democratic Republic of Ethiopia. These are the Mato Bula Gold-Copper Project and Da Tambuk Gold Project, both 100%-owned, and the 70%-owned Terakimti Gold Heap Leach Project.

Each of the projects demonstrates robust economics utilising industry standard mining and processing technology. The PEAs were prepared by Tetra Tech Canada Inc's mining and process engineering team in Vancouver.

East Africa's CEO Andrew Lee Smith said: “These PEA studies indicate very positive results that demonstrate the significant commercial development potential of East Africa’s Ethiopian projects, and provides sound basis for ongoing development engineering, with the ultimate objective of establishing commercial production.

“Collectively, under the development scenario described in the PEAs, these three projects present the opportunity to develop mining operations and revenue over the next 18 to 24 months and position the company to continue the expansion of the scope of development and the current resource.”

All three projects are within 10km of existing paved highways and the national power grid, and about 35km from the town of Shire, which has an airport and extensive services. 

The Mato Bula and Da Tambuk projects are 5km apart and offer the opportunity to share access road and power line construction costs. The Terakimti project is about 15km from Mato Bula and Da Tambuk. They are in the Tigray Regional National State of northern Ethiopia.

Independent Environmental and Social Impact Assessment studies (ESIA) have been completed for the project areas by Beles Engineering Pvt Ltd Co of Ethiopia. The ESIAs were previously submitted to the Ministry of Mines, Petroleum and Natural Gas in support of the successful Terakimti Mining Licence application and the pending mining licence applications for Mato Bula and Da Tambuk. 

The studies have concluded that no endangered, endemic, or rare species are present in the project areas and that no cultural heritage sites, archaeologically sensitive, or socially sensitive areas exist within the mining areas.

Importantly, the ESIAs found that the majority of residents in the local community have stated that they are in favour of implementation of the projects.

Finally, the ESIAs concluded that the adverse impacts identified in the study can be mitigated through implementation of proposed management and monitoring plans.

East Africa, through its Ethiopian subsidiary company Harvest Mining PLC, has received a mining licence for the Terakimti project which provides authorisation for the company to construct and operate a heap leaching operation.

In addition, the company through its Ethiopian subsidiary company Tigray Resources Incorporated PLC, submitted mining licence applications for the Mato Bula and Da Tambuk projects which are in the formal review process by the Ethiopian Ministry of Mines, Petroleum and Natural Gas.

www.eastafricametals.com