East Africa Metals Inc.
TSX VENTURE : EAM

East Africa Metals Inc.

March 11, 2015 06:00 ET

East Africa Metals Exploration Update, Harvest and Adyabo Projects, Northern Ethiopia

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 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. The Company continues to test high priority gold targets at the Adyabo and Harvest projects.

TERAKIMTI OXIDE RESOURCE DRILLING - HARVEST PROJECT

Reverse circulation (RC) drilling is currently being conducted at the Terakimti VHMS deposit to define a gold oxide resource on a 20 x 20 metre spaced drill pattern. Results have been received for the first 18 RC drill holes, confirming continuity of oxide mineralization below cover and corroborating strong gold grades, as indicated in trench sampling and broad spaced diamond drilling. The RC drilling is focused primarily on the zoned weathering profile, which includes, from top to bottom; gold-rich oxide (gossan), gold-silver rich oxide (gossan), gold-silver rich transition material (pyrite sand) and supergene-enriched massive sulphide.

Drill results for TRC001 to 018 are presented in Table 1. Highlights from the drilling results received to date include:

Gold Rich Oxide

  • TRC001 - 10 metres at 6.54 grams per tonne gold (section 53840N);
  • TRC002 - 19 metres at 6.87 grams per tonne gold (section 53860N);
  • TRC004 - 14 metres at 7.63 grams per tonne gold (section 54020N);
  • TRC013 - 15 metres at 12.36 grams per tonne gold (section 54080N); and
  • TRC016 - 13 metres at 4.65 grams per tonne gold (section 54100N).

Gold-Silver Rich Oxide

  • TRC0017 - 4 metres at 9.64 grams per tonne gold and 1,151.9 grams per tonne silver.

Supergene Enriched Massive Sulphide

  • TRC0017 - 13 metres at 1.56 grams per tonne gold, 2.57% copper and 292.6 grams per tonne silver.

The 4000+ metre RC program is approximately 70% complete, with over 70 holes drilled to date, mainly in the northern half of the 800m long Terakimti VHMS deposit. Drilling is being conducted to confirm, upgrade and expand upon the oxide gold resource that includes 24,000 ounces gold (indicated) and 61,000 ounces gold (inferred)(see Tigray's news release dated Jan 27th, 2014). The oxide comprises 290,000 tonnes at 2.55 grams per tonne gold and 10 grams per tonne silver (Indicated) and 398,000 tonnes at 4.77 grams per tonne gold and 7.2 grams per tonne silver (Inferred). The oxide component of the deposit drilled to date is up to 50m wide, 18m true width, and extends to a depth of up to 30m below surface.

Once RC drilling is complete at Terakimti, exploration RC drilling will commence on several of the regional gold targets in the district.

Table 1 - RC drilling results TRC001 to TRC018.
Hole ID From
(m)
To
(m)
Interval
(m)
1
Gold
g/t
2,3
Copper
%
Silver
g/t
Local
Azimuth
Dip Resource
Type
TRC001 12.00 22.00 10.00 6.54 0.07 20.5 272 -61 Oxide
TRC002 16.00 35.00 19.00 6.87 0.03 11.3 272 -65 Oxide
TRC003 2.00 4.00 2.00 0.86 0.03 0.0 269 -66 Oxide
TRC004 0.00 14.00 14.00 7.63 0.15 4.8 272 -67 Oxide
TRC005 5.00 13.00 8.00 3.23 0.19 4.0 272 -66 Oxide
TRC006 0.00 8.00 8.00 8.66 0.20 4.1 277 -66 Oxide
TRC007 12.00 18.00 6.00 11.21 0.23 8.5 270 -63 Oxide
TRC008 16.00 29.00 13.00 1.71 0.07 4.4 270 -67 Oxide
TRC009 13.00 23.00 10.00 4.94 0.11 54.0 274 -67 Oxide
TRC010 13.00 28.00 15.00 4.12 0.15 5.3 272 -66 Oxide
TRC011 No Significant Results 272 -60 Oxide
TRC012 11.00 16.00 5.00 0.61 0.12 2.8 272 -63 Oxide
30.00 34.00 4.00 2.70 0.01 4.3
TRC013 0.00 2.00 2.00 3.19 0.08 0.7 272 -64 Oxide
28.00 43.00 15.00 12.36 0.03 38.2
TRC014 30.00 38.00 8.00 4.07 0.04 28.7 270 -62 Oxide
TRC015 15.00 17.00 2.00 5.86 0.05 4.3 273 -68 Oxide
TRC016 13.00 26.00 13.00 4.65 0.06 5.6 274 -67 Oxide
35.00 45.00 10.00 1.30 0.99 2.5 Supergene
TRC017 29.00 33.00 4.00 9.64 0.18 1151.9 275 -65 Oxide
33.00 46.00 13.00 1.56 2.57 292.6 Supergene
TRC018 42.00 75.00 33.00 4.45 1.42 6.3 268 -65 Supergene
1True thicknesses are interpreted as 70-100% of stated intervals.
2Intervals use a 0.3 gram per tonne gold cutoff value.
3No top cut has been used on assay values.

To view maps and type sections of the Terakimti oxide RC drill program, illustrating the interpretation of mineralization at surface and at depth, visit the following link: http://media3.marketwire.com/docs/Maps_and_Sections.pdf

Adyabo Project

The recent phase of exploration diamond drilling continues on the Adyabo Project, with current drilling focused on the northern extension to mineralization at Da Tambuk. Recent results for 6 diamond drill holes have been received for Mato Bula and Da Tambuk (WMD033-35, ADT009-011).

Three 80m spaced diamond drill holes at Da Tambuk were completed to test: 1) the southern extension to mineralization near surface; and 2) the potential down plunge position of the strong-grade shoot previously reported (13.55 metres at 4.65 grams per tonne gold from 123.55 metres (ADD007 - see news release dated October 3rd, 2014)). None of the holes drilled intersected similar strong grade mineralization, however ADD010 intersected 27.00 metres at 0.79 grams per tonne gold, including 2.00 metres at 3.50 grams per tonne gold. The drill results are interpreted to provide more definitive plunge information on the system (including the near miss in ADD010), with plunge now interpreted to be 30 degrees to grid north and shallower than previously inferred. Drilling has commenced to test the new interpreted plunge position on the northern extension of Da Tambuk.

At Mato Bula, three holes were drilled to test: 1) near surface mineralization on the southern extension of Jasper Hill (WMD035 intersected 0.90 metres at 14.50 grams per tonne gold and 0.10 percent copper); and 2) the down plunge position of the main shoot at Silica Hill. WMD034 intersected 20.00 metres at 0.80 grams per tonne gold and 0.05 percent copper from 339.35 metres, and WMD033 intersected 12.60 metres at 0.50 grams per tonne gold from 213.40 metres. This drilling has reduced the potential for the Silica Hill Shoot to extend much below 270m below surface.

Both the kilometre-scale key trends (Mato Bula and Da Tambuk) remain permissive to the discovery of additional mineralized gold lodes through more advanced targeting, following receipt of the complete set of drill results in the coming months. Additional results are anticipated from drilling at Mato Bula South, Mato Bula North, Silica Hill North, VTEM09, and the current drill testing of the potential northward extension at Da Tambuk. No additional diamond drilling is planned at this time.

For full table of intercepts, visit the following link: http://media3.marketwire.com/docs/Drill_Intercepts.pdf

Quality Control

The planning, execution and monitoring of East Africa's quality control programs at the Harvest and Adyabo Projects are under the supervision of Jeff Heidema, P.Geo., East Africa's Vice President Exploration. Mr. Heidema is a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosures of Mineral Projects ("NI 43-101"). Diamond drill core samples RC samples have undergone preliminary preparation at the Acme 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 Acme Laboratories in Vancouver, Canada, with diamond drill analyses utilizing Aqua Regia digestion and ICP-ES for base metal and silver analyses and RC analyses utilizing Aqua Regia digestion and ICP-MS/ICP-ES(AQ270) 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. Blanks and certified reference standards are inserted into the sample stream to monitor laboratory performance. For core, duplicate samples are inserted into the sample stream to both monitor laboratory performance and also characterize potential mineralization.

Qualified Person

Technical information included in this news release was reviewed and approved by Jeff Heidema, P.Geo., the Company's Vice President Exploration. Mr. Heidema is a Qualified Person as defined by NI 43-101.

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. 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 Harvest Project and Magambazi Project; 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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