Ethiopia's Ministry of Mines, Petroleum and Natural Gas has issued a draft model agreement for TSXV-listed East Africa Metals Terakimti oxide gold project.

Ethiopia – The delivery of the draft model agreement indicates that the ministry has approved the permit application and advanced the permitting process to the next stage.

The agreement sets out the rights and obligations of both parties with respect to the development and operation of the Terakimti project and, once executed, will result in the issuance of a mining licence.

“This is an important milestone for East Africa Metals and the Ethiopian resources sector,” says Andrew Lee Smith, East Africa Metals CEO. “We anticipate the Terakimti oxide gold project will be the first heap leach operation in the country and will be an important basis for the future development of the highly prospective copper-gold VMS systems in the Tigray region.”

The company is currently reviewing the agreement and expects to respond to the ministry in the coming days. In anticipation of the pending development programme, it has engaged SENET of Johannesburg South Africa to initiate the detailed engineering for the project.

East Africa Metals representatives will also be travelling to China in the coming weeks to finalise the terms for a US$10 million line of credit that will secure project financing with Shandong Tyan Home Co. Ltd.

Terakimti project profile

  • Mineral resource: 1 125 000 t grading 3.2 g/t gold and 24 g/t silver, containing 107 000 oz of gold and 812 000 oz of silver;
  • Column leach test recoveries: 73.5 % gold and 39% silver at a crush size of minus 16 mm;
  • Mining method: Conventional open pit;
  • Processing: Heap leaching to produce gold-silver dore.