Ethiopia

Mato Bula Project

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Overview

Mine TypeOpen Pit
StagePermitting
Commodities
  • Gold
  • Silver
  • Copper
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
ShapshotThe Adyabo Project includes the Mato Bula and Da Tambuk deposits.

EAM’s partners in the development of the Mato Bula and Da Tambuk mines, Tibet Huayu Mining, have confirmed EMPC studies are complete and preparations to initiate mine development at Mato Bula and Da Tambuk remain in place.
Related AssetDa Tambuk Project

Owners

SourceSource
CompanyInterestOwnership
East Africa Metals Inc. 30 % Indirect
Tibet Huayu Mining Co., Ltd. 70 % Indirect
Tibet Huayu Mining Co. Limited (“THM”) is be responsible for 100% financing of both Adyabo’s Mato Bula and Da Tambuk mine construction costs resulting in a 70% THM and 30% East Africa Metals Inc. ownership.

Contractors

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Deposit type

  • VMS
  • Orogenic
  • Vein / narrow vein

Summary:

The Mato Bula gold-rich VMS deposit is the main deposit discovered to date within the Adyabo Project, and covers the Mato Bula North, Silica Hill North, Silica Hill, Mato Bula, Jasper Hill and Halima Hill mineralized zones.

Two mineralized structures are present at Mato Bula Hill; the Main lode and the Upper lode.

The Main lode at Mato Bula is located south of the crest of the Mato Bula Hill, and is a narrow high-grade gold shoot extending over a strike length of 120 m at surface. Numerous active artisanal gold bedrock workings are present at Mato Bula exploiting this gold lode, and an upper lode, reportedly to a depth of 46 m.

The shoot has steep dip, vertical plunge, and maximum true width of 3 m. At depth the maximum strike of the shoot is reduced to 80 m, but the structure remains open at depths greater 220 m below surface.

Silica-pyrite alteration is extensive laterally (750 m strike) and in thickness (159 m wide), and zones of silica-pyrite are present in the hanging wall and along strike, in a zone up to 150 m wide and 750 m long.

Mineralization is hosted within a shear zone that contains abundant quartz veining, silicification, sericitization and carbonate alteration. Gold is associated with chalcopyrite-rich veins in intense silica alteration, and also the presence of possibly V-rich mica (roscoelite). The Main lode averages 5.5 g/t gold and 0.61% copper, and has a high gold:silver ratio of 10.2. Lead and zinc concentrations are negligible.

The Jasper Hill zone (sometimes known as Mato Bula South) contains structurally controlled gold lodes (vein/wall rock porphyry hosted), and extend from the Mato Bula zone in the north towards Halima Hill in the south. The upper and main lodes within this zone exhibit more complex geometry due to possible faulting (or slumping) and wall rock interaction. Mineralization is lithologically controlled with the gold-bearing zones within a jasperoid alteration zone. Gold concentration decreases, with increasing zinc concentration, moving away from the jasperoid unit. Gold-bearing veins have also been identified perpendicular to the long core axis.

The Main lode at Jasper Hill is located 40 m southeast of the Upper lode, southwestwards along strike from the Mato Bula zone, and outcrops along strike for 80 m. The structure has a maximum true thickness of 9 m, and an average gold grade of 4.53 g/t and copper grade of 0.85%. It has the highest gold:silver ratio in the Mato Bula prospect of 5.3:1, and a low gold:copper (x10) ratio of 0.56:1. The average silver concentration is low, 0.85 g/t, and only trace amounts of lead and zinc are present. The lode plunges at approximately 60 to 70° to the southwest, and remains open down plunge below depths of 200 m from surface.

The most southerly manifestation of the Mato Bula Trend is the mineralized zone at Halima Hill, 320 m to the southwest of the Jasper Hill zone. Halima Hill was targeted due to the presence of artisanal trenching, with lower order gold-copper geochemistry present within an alteration zone. Apart from a zone of subcrop at Halima Hill, much of the southern part of the trend is covered in thick (50 cm to 2 m) transported colluvium, thus reducing the geochemical signature at Halima Hill relative to the hilltop workings of Mato Bula North, Silica Hill and Mato Bula.

Mineralization was present as pyrite- chalcopyrite bearing quartzveins within altered tuffs. The assay results and visual interpretation of alteration at Halima Hill indicate the Mato Bula system is weakening to the south near surface, however the IP survey is suggestive of additional increasing potential at depth.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Gold Metal in concentrate koz 102
Gold Metal in doré koz 176
Gold Payable metal koz 8.8
Silver Metal in concentrate koz 19
Silver Metal in doré koz 19
Copper Concentrate kt 25
Copper Payable metal M lbs 13
Copper Metal in concentrate M lbs 1.714
Gold Equivalent oz 305,000
Gold Metal in conc./ doré koz 35
Silver Metal in conc./ doré koz 4.8

Operational metrics

Metrics
Daily processing capacity 1,400 t *
Annual mining rate 4 Mt *
Annual processing capacity 500,000 t *
Stripping / waste ratio 9.1 *
Waste tonnes, LOM 30,315 kt *
Ore tonnes mined, LOM 3,335 kt *
Total tonnes mined, LOM 33,650 kt *
Tonnes processed, LOM 3,335 kt *
* According to 2018 study.

Production Costs

CommodityUnitsAverage
All-in sustaining costs (AISC) Gold USD 620 / oz * **  
C1 cash costs Gold USD 412 / oz *  
Assumed price Copper USD 3 / lb *  
Assumed price Silver USD 17 / oz *  
Assumed price Gold USD 1,325 / oz *  
* According to 2018 study / presentation.
** Net of By-Product.

Operating Costs

Currency2018
OP mining costs ($/t milled) USD 25.6 *  
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2018 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 32.3
G&A costs $M USD 19.9
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jun 11, 2018
....................... Subscription required ....................... Subscription required Subscription required Jun 11, 2018
....................... Subscription required ....................... Subscription required Subscription required Feb 15, 2024

Aerial view:

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