Ethiopian government approves East Africa Metalsâ€™ mining licences for the Mato Bula Gold Copper and Da Tambuk Gold Deposits in Adyabo Project.
Canadian mineral exploration company East Africa Metals has secured approval for mining licences for the Mato Bula Gold Copper and Da Tambuk Gold Deposits in Ethiopia.
The company focuses on exploration and development projects in Africa.
The gold deposits are part of the companyâ€™s 100% owned Adyabo Project, located in the Tigray National Regional State of the Federal Democratic Republic of Ethiopia.
East Africa Metals said that with the newly received Mato Bula and Da Tambuk mining licences, its assets now include four, fully permitted gold and base metal mining projects in Africa, with indicated resources totalling 2.8m gold and gold-equivalent ounces and exploration upside.
The Ministry of Mines, Petroleum and Natural Gas (MoMPNG), the Prime Ministerâ€™s Office and the Council of Ministers have formally approved the mining licence agreements for Mato Bula and Da Tambuk.
East Africa Metals intends to close the project financing and proceed with the development of projects in Ethiopia
East Africa CEO Andrew Lee Smith said: â€śThe awarding of the Mato Bula and Da Tambuk mining licenses marks an important milestone for East Africa, the Government of Ethiopia and the MoMPNG.
â€śEast Africaâ€™s management will now focus on negotiations with development partners to advance all of the Companyâ€™s assets in Ethiopia and Tanzania and engage further exploration programs to continue the growth the Companyâ€™s mineral resources and shareholder value.â€ť
Mato Bula Gold Copper project is capable of producing an average annual metal production of 34,750 ounces of gold, 1.67m pounds of copper and 4,780 ounces of silver.
The processing facilities at Mato Bula deposit are designed to process a minimum of 500,000t/a, or 1,400t/d, of gold-copper-bearing material from an open pit mining operation, using conventional crush/grind comminution, gravity concentration and flotation to produce a copper-gold concentrate.
In addition, the concentrator is designed to produce a copper concentrate containing a high level of gold and a gold concentrate produced by gravity concentration that can be sold directly.
The Da Tambuk Gold Deposit is capable of producing an average metal production of 24,000 ounces of gold per year and 6,000 ounces of silver per year.
The processing facilities at the deposit are capable of processing 550tonnes per day using crush/grind comminution, gravity concentration and CIL technology.