East Africa Metals Inc. announced it has received confirmation from the Company’s development partner, Tibet Huayu Mining Co., Ltd. that their Board of Directors has approved the initiation of mine development activity at the Mato Bula and Da Tambuk mines through their subsidiary Silk Road Investments Co. Limited.
Tibet Huayu has based their decision to engage the development agenda based on information collected during recent site visits and meetings with regional and federal government representatives in Ethiopia. Silk Road is currently staffing key management positions, reviewing detailed design parameters and has established a base of operations and staff in the nearby town of Shire. The Shire staff are currently working with local authorities and regional governments to prepare the sites for construction activity.
Mato Bula Gold Copper and Da Tambuk Gold Projects
The Adyabo Project Mato Bula and Da Tambuk deposits are high sulphidation gold rich VMS type deposits. This submarine porphyry-related system is located in the southern part of the Arabian-Nubian Shield (ANS) in the Tigray region of northern Ethiopia. Mining licences have previously been received for both deposits at Adyabo, the Mato Bula Gold Copper Silver Project and the Da Tambuk Gold Project.
Tibet Huayu Mining Co. Limited (“THM”) is responsible for 100% financing of both Adyabo’s Mato Bula and Da Tambuk mine construction costs resulting in a 70% THM and 30% EAM ownership.
In April 2018, Preliminary Economic Assessment (PEA) results were released on the Mato Bula Gold Copper and Da Tambuk Gold Projects, indicating very strong project economics. For Mato Bula, the post-tax NPV is US$56.7 million (8% discount rate), and an IRR of 28.4%. For Da Tambuk, the post-tax NPV is US$13.0 million, with an IRR of 28.6% at a gold price of USD1,250.
Source: yahoo finance