Tibet approves initiation of mine development at Mato Bula and Da Tambuk mines
East Africa Metals Inc. has received confirmation from Tibet Huayu Mining Co., Ltd. about the approval of mine development activities at the Mato Bula and Da Tambuk mines. Tibet Huayu Mining Co., Ltd. will carry out the mine development through its subsidiary Silk Road Investments Co. Limited (“Silk Road”). The decision is based on recent site visits, meetings with government representatives, and information collected in Ethiopia.
Silk Road is actively staffing key management positions, reviewing design parameters, and establishing a base of operations in the town of Shire. Staff in Shire are collaborating with local authorities and regional governments to prepare the sites for construction activity.
Ownership
The Mato Bula and Da Tambuk deposits are high sulphidation gold-rich VMS type deposits in the Tigray region of northern Ethiopia. Mining licenses have been obtained for both the Mato Bula Gold Copper Silver Project and the Da Tambuk Gold Project.
Tibet Huayu Mining Co. Limited (THM) will finance 100% of the construction costs for both mines, resulting in a 70% THM and 30% EAM ownership. Preliminary Economic Assessment (PEA) results from April 2018 indicate strong project economics for both Mato Bula and Da Tambuk.
Tibet Huayu Mining Co. is part of Huayu Mining, a multinational mining group listed on the Shanghai Stock Exchange since 2016. East Africa Metals holds a 30% Net Profits Interest in the Adyabo Property (Mato Bula and Da Tambuk mines) and a 70% project interest in the Harvest polymetallic VMS Exploration Project in Ethiopia. The company also has a 30% Net Streaming Interest in the Magambazi Mine in Tanzania.
Tibet Huayu Mining Co. Ltd. is affiliated with Huayu Mining, a multinational mining group. East Africa Metals Inc. has invested US$66.8M in African exploration since 2005, identifying 2.8 million ounces of gold and gold-equivalent resources.
