Business
East Africa Metals Acquires 100% of Adyabo Project in Ethiopia
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 1, 2016) - East Africa Metals Inc. (TSX VENTURE:EAM) ("East Africa" or the "Company") is pleased to announce th
About this update from East Africa Metals, Inc.
[{"type":"text","content":" VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 1, 2016) - East Africa Metals Inc. (TSX VENTURE:EAM) (\"East Africa\" or the \"Company\") is pleased to announce that the Company has received confirmation from the holder of a 20% participating interest on the Adyabo property that it wishes to convert its 20% interest to a 2% net smelter return (\"NSR\") royalty. The Company has the option to buy back 1.0% of the NSR for a cash payment of C$5,000,000. Upon execution of an NSR agreement, the Company will hold a 100% undivided interest in the Adyabo property, subject to the 2% NSR. Andrew Lee Smith, the Company's President & C.E.O., stated, \"This is a significant development for the Company as we continue to strengthen our asset base and build the Company in challenging times. The Adyabo Project has performed beyond our expectations and we are excited to continue developing the existing Resource.\" Earlier in 2015, the Company announced the initial Resource for the Adyabo Project (news release of May 5, 2015): Adyabo Resource Inferred Mineral Resources of 9,315,000 tonnes containing 678,000 ounces gold at an average grade of 2.26 g/t gold, 82,100,000 lbs copper at an average grade of 0.40% copper, and 648,000 ounces silver at an average grade of 2.2 g/t silver. The Resource hosts 885,000 gold equivalent ounces1. Adyabo Resource Highlights The Mineral Resource is defined to a depth of 500, 330, and 180 metres for Mato Bula, Da Tambuk, and Mato Bula North respectively, with potential for lateral and depth extension within this large altered system. Copper concentrate grades ranged from 23% to 27% Cu, 170 to 850 g/t Au, and 27 to 240g/t Ag. Total gold recoveries, inclusive of copper floatation and cyanidation tests, ranged from 77% to 97%*. Whole mineralization cyanidation of Da Tambuk and intensive leaching of a Da Tambuk pyrite scavenger concentrate both returned gold recoveries of 97% suggesting that the gold within this composite is not refractory and the flotation-only recovery of 57% could be improved by cyanidation of flotation products. Additional metallurgical optimization is possible through regrind work, collector dosage variation, and comminution testwork. Synergies available as Resources are spatially aligned on a corridor of infrastructure (including the national power grid transmission corridor and paved highway) ...