East Africa Metals Inc.
TSX VENTURE : EAM

East Africa Metals Inc.

May 27, 2015 06:00 ET

East Africa Metals' Drilling Results, Harvest and Adyabo Projects, Northern Ethiopia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2015) - East Africa Metals Inc. (TSX VENTURE:EAM) ("East Africa" or the "Company") is pleased to announce recent drill results from exploration conducted in Ethiopia on the Adyabo and Harvest projects. Results include reverse circulation (RC) drilling at the Terakimti VHMS deposit and additional diamond drill holes from Da Tambuk, VTEM09, and Mugnae Andi. Highlights from drilling include:

  • Da Tambuk - 19.44 metres grading 3.85 grams per tonne gold, including 9.7 metres4 @ 6.89 grams per tonne gold (ADD012), where the main high-grade gold shoot now extends northward and remains open along a shallow plunge;
  • VTEM09 - 10.75 metres4 grading 2.24 percent copper, 2.63 grams per tonne gold, 71 grams per tonne silver and 3.74 percent zinc (TVD002);
  • Mugnae Andi - drilling of two shallow holes at the new Mugnae Andi prospect at Adyabo gave a peak intercept of 8.0 metres4 grading 2.48 grams per tonne gold in AMD002, including 2.0 metres grading 5.9 grams per tonne gold4; and
  • Results for 41 reverse circulation (RC) drill holes at the Terakimti gold oxide deposit, with peak results of 33.0 metres grading 7.20 grams per tonne gold1 in TRC058 from 5.0 metres depth.

Harvest Project

Terakimti

At the Harvest Project, the 20x20 reverse circulation (RC) oxide drill program is nearing completion at the Terakimti VHMS deposit, with 105 holes completed for 5,067 metres. Analyses for an additional 41 holes totaling 2,041 metres of drilling have been received, profiling both the northern extent of the oxide deposit, and the southern central section (Figure 1 - Terakimti plan map: http://media3.marketwire.com/docs/05272015_EAM_Figure1.pdf). Highlight intersections include;

Terakimti deposit selected RC Infill holes (from TRC043-TRC083 incl.)
Hole ID From
(m)
To
(m)
Interval
(m)
1,2
Gold3
g/t
Copper
%
Silver
g/t
Zinc
%
Local
Azimuth
Dip Prospect
TRC045 0.00 25.00 25.00 1.70 0.05 30.4 0.05 270 -73 Terakimti Oxide
TRC056 39.00 51.00 12.00 4.43 3.30 19.5 1.26 270 -62 Terakimti Transition
TRC058 5.00 38.00 33.00 7.20 0.09 1.3 0.08 270 -67 Terakimti Oxide
TRC060 1.00 5.00 4.00 6.68 0.15 6.8 0.10 272 -83 Terakimti Oxide
14.00 21.00 7.00 11.67 0.14 38.1 0.10
25.00 29.00 4.00 4.71 0.14 4.7 0.14
32.00 38.00 6.00 2.98 0.06 14.3 0.02
TRC069 7.00 17.00 10.00 5.37 0.07 2.8 0.08 274 -65 Terakimti Oxide
28.00 35.00 7.00 0.66 0.02 3.1 0.02
TRC070 22.00 32.00 10.00 7.69 0.03 11.0 0.03 273 -65 Terakimti Oxide
37.00 47.00 10.00 1.44 0.01 7.5 0.01
TRC073 31.00 38.00 7.00 8.00 0.00 15.5 0.00 270 -73 Terakimti Oxide
TRC080 23.00 44.00 21.00 6.00 0.06 30.2 0.03 270 -65 Terakimti Oxide
TRC081 5.00 18.00 13.00 5.36 0.11 8.2 0.05 272 -60 Terakimti Oxide
TRC082 46.00 63.00 17.00 8.87 0.02 29.6 0.00 270 -62 Terakimti Oxide

1 True thicknesses are interpreted as 60-100% of stated intervals.

2 Intervals use a 0.3 gram per tonne gold cutoff value, for gold only intervals.

3 No top cut has been used on assay values.

4 True thicknesses are interpreted as 40-70% of stated intervals.

VTEM09

Additionally, 4 diamond drill holes were completed at the VTEM09 VMS prospect to follow-up on drill hole TVD001 which intersected 10.21 metres grading 3.16 percent copper, 3.97 grams per tonne gold, 3.82 percent zinc, and 87 grams per tonne silver from 20.29 metres5 (see news release dated July 23, 2013). Drill hole TVD002 intersected 10.75 metres grading 2.24 percent copper, 2.63 grams per tonne gold, 3.74 percent zinc, and 71 grams per tonne silver, from 58.2 metres4. The intersection confirms that good grade precious metal rich VMS mineralization, comparable in tenor to that at Terakimti, continues to depth at this target. Three additional holes targeted at VTEM09 (from TVD001 - 40 metre stepouts north and south, and 110 metres down plunge), indicate that this is a short strike length VMS zone that likely plunges more steeply than initially interpreted.

4 True thicknesses are interpreted as 40-70% of stated intervals.

5 Updated interval

A table of full Harvest intercept results, and related maps, is located here (Figure 2: http://media3.marketwire.com/docs/05272015_EAM_Figure2.pdf).

Adyabo Project

Da Tambuk

One drill hole was completed at the Da Tambuk deposit to test the interpretation of a 30 degree northeast plunge to the high grade gold shoot, derived from the last round of drill testing. Drill hole ADD012 intersected:

  • 19.40 metres4 at 3.85 grams per tonne gold from 141.3 metres, including 9.7 metres4 at 6.89 grams per tonne gold.

Drill Hole ADD012 extended the known mineralization over 60 metres down plunge of ADD006 (16.65 metres at 3.29 grams per tonne gold - see news release dated October 3, 2014), and extends mineralization northeastward beyond surface workings and opening up additional prospectivity. The high-grade gold shoot remains open along strike, down plunge and up dip (refer to Figure 3: http://media3.marketwire.com/docs/05272015_EAM_Figure3.pdf).

Mugnae Andi

Mugnae Andi is located in the north central portion of the West Shire Licence on the Adyabo project. Orogenic gold mineralization is present as gold-bearing quartz veins over 900 metres in a narrow (up to 100 metres wide) syenite body intruded into a shear zone within a pyroxenite intrusion. Artisanal bedrock pits and shafts extend over the 900 metre strike length with intense workings over a 400 metre strike in the west. Two first pass diamond drill holes were completed on 80 metre sections to test the central portion of the main 400 metre long artisanal workings. Results include:

  • 8.0 metres4 at 2.48 grams per tonne gold in AMD002 from 36.9 metres, including 2.0 metres4 at 5.9 grams per tonne gold.
  • 3.3 metres4 at 2.82 grams per tonne gold in AMD001 from 23.9 metres and 3.0 metres4 at 1.57 grams per tonne gold from 47.75 metres.

4 True thickness is estimated at 40-70% of stated interval.

A table of full Adyabo intercepts, and related maps, is located here (Figure 4: http://media3.marketwire.com/docs/05272015_EAM_Figure4.pdf).

Path Forward

East Africa will continue to advance the Adyabo and Harvest projects, with emphasis on more detailed test work on the existing mineral resources identified to date.

Quality Control

The planning, execution, and monitoring of East Africa's drilling and quality control programs at the Harvest and Adyabo Projects has been conducted under the supervision of Jeff Heidema, P.Geo., East Africa's Vice President Exploration. Mr. Heidema is a "Qualified Person" as defined by NI 43-101. Diamond and RC drilling was coordinated by East Africa contract geologists who also managed the preparation, logging, and sampling of core and rock samples, in addition to carrying out bulk density measurements. During sampling, quality control standards and blanks were introduced at pre-determined intervals to monitor laboratory performance. A system of field, reject, and pulp sample duplicates was also incorporated, as were specific programs of re-assaying and umpire lab assaying to both monitor laboratory performance and also characterize potential mineralization; all consistent with industry best practice.

Drill core, RC and rock samples have undergone preliminary preparation at the Bureau Veritas Mineral Laboratories facility in Ankara, Turkey, and are crushed to 80% passing 10 mesh, and pulverized to 85% passing 200 mesh (PRP70-1KG package). Analyses are conducted at Bureau Veritas Mineral Laboratories in Vancouver, Canada, with diamond drill core analyses utilizing Aqua Regia digestion and ICP-ES for base metal and silver analyses (AQ370 package), and RC samples utilizing Aqua Regia digestion and ICP-MS/ICP-ES (AQ270 package) for base metal and silver analyses. Gold analyses are conducted via Fire Assay Fusion with AA finish, and gravimetric analyses are completed for over-limit samples (FA430, FA530-Au packages).

Information recorded from diamond drill core and RC logging and assaying was integrated using industry standard data management software (Maxwell Datashed).

About East Africa Metals

The Company's principal assets and interests include both the 70%-owned Harvest polymetallic VMS exploration Project, which covers approximately 116 square kilometres in the Tigray region of Ethiopia, 600 kilometres north‐northwest of the capital city of Addis Ababa, and the Adyabo Project, covering 264 square kilometres immediately west of the Harvest Project. The Company has entered into an agreement to acquire up to 80% of the Adyabo Project. East Africa now has Resources defined at both projects in Ethiopia and continues 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.

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 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; risks associated with the integration of Tigray Resources Inc.'s business with the Company's; the ability of East Africa to find a development partner for 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; 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 listing application dated July 8, 2013 and Tigray Resources Inc. Management Information Circular dated March 28, 2014. 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, 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.

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