MAGAMBAZI GOLD PROJECT (HANDENI)

 


Phase: Pre-feasibility
Status: Ongoing


The Handeni Property is located in the Tanga Region of Tanzania, 160 km northwest of Dar es Salaam. The property covers an area of approximately 93 km2. It consists of two Prospecting Licenses (PL 4781/2007 and PL 10016/2014) and two Mining Licenses (ML 480/2012 and ML 525/2014) which cover approximately 9.9 km2 over Magambazi Hill.

Access to the site is available from two unpaved public roads, with paved highways reaching within 20 km of the site. Air access is available via chartered fixed flights to a runway at Tanga. The Tanga Region is supplied with water resources and generates hydroelectric power for the national grid system. The field camp encompasses both temporary and semi-permanent structures, which are powered by a diesel generator.

 

Region:   East Africa

Country: Tanzania

Province: Tanzania

City:  Handeni

GPS coordinates: 18°03'28.9" S,  13°50'12.3" E

Date:  22 Jun 2012

Mineral:  Gold

Plant Type:  New

Mining Type: Undefined


Project Commentary:

October

  • In October 2017, East Africa Metals announced the signing of a binding Memorandum of Understanding with Luck Winner Investment Limited (LW) providing for project development financing of up to US$250 million, in addition to an unsecured loan in the amount of C$2 million.
  • The MOU involves the formation of a Joint Venture Company (JVCo), with 70% owned by LW and 30% by East Africa.
  • The investment of US$250 million will contribute towards the development of East Africa's Ethiopian projects. East Africa will contribute a proportionate amount of gold for a total value of US$110 million.
  • The parties are aiming for a speedy finalisation and execution of a Joint Venture Agreement and development of East Africa's Ethiopian projects.

March

  • In March 2016, East Africa Metals and a private Developer completed the execution of the Definitive Agreement and the Gold Purchase Agreement.
  • The Definitive Agreement requires the Developer to pay US$2 million no later than 12 months from March 2016.
  • As of September 2016, East Africa received a total of US$300 000 in deposits, and the Company is in discussions with the Developer on the outstanding instalments.
  • As per the Agreement, East Africa will not be required to contribute to capital or exploration expenditures with respect to the development and construction of any of the Tanzanian Assets.
  • If the Developer terminates the Definitive Agreement before the balance payment is received, the recoverable operating expenses will remain payable by the Developer.
  • East Africa reported the Company will continue to move forward with the Definitive Agreement to advance the Magambazi Project.

July

  • Plans to continue testing priority targets are ongoing and the Company is focussing all their efforts on advancing the Harvest Project located in Ethiopia.
  • It was announced by East Africa Metals Inc that the Company acquired funds through a recent private placement and they will be utilising the funds for working capital and to advance and further develop both their Harvest and Adyabo Projects.
  • The Company also stated that they now own 100% interest in the Adyabo Project. This is a huge milestone for the Company during the challenging times currently experienced across the globe.
  • The Company stated that they participated into a Definitive Agreement with an arm’s length private exploration and development company. This decision was taken to advance their Handeni Project in Tanzania, being an important step forward for the Company with their plans to further their Handeni Project.
  • Certain terms set out in the Agreement are to be met in that East Africa Metals will not be required to contribute towards construction and development capital or exploration funding.
  • The business deal provides East Africa with the full right to purchase 30% of gold produced during mining operations. It further states that the Developer will pay East Africa a cash payment in advance of US$592 000 for every quarter after 48 months from the effective date that 8 000 oz of gold is not produced.
  • East Africa will also hold the right of first offer and a right to re-acquire the properties if commercial production is not achieved in four years from the effective date or in the case of the project being abandoned.
  • East Africa completed the Mineral Resource Estimate in-house.
  • The Company’s proposed planning objectives includes the start-up of operations in Tanzania, continuing work to grow the Resource Base in Ethiopia through definition and exploration drilling.
  • The Company will make future announcements in due course and re-iterated that they are tremendously pleased with the progress for 2016 being initiated at all of their projects.

Subscribe for full commentary.

Subscribe for full commentary.

Subscribe for full commentary.

Subscribe for full commentary.

Subscribe for full commentary.


Mine Owners:

EAST AFRICA METALS INC – 100%

Designation Name Tel. Fax Email
Chairman xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
President and Chief Executive Officer xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Chief Financial Officer xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Project Department xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Geologist xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Director xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Corporate Secretary xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
Business Development Manager xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com

Project Engineers:

AURUM EXPLORATION SERVICES – Technical Report

Designation Name Tel. Fax Email
Consultant xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@aurumexploration.com

EAST AFRICA METALS INC

Designation Name Tel. Fax Email
Vice President – Exploration xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx xxxxxxx@eastafricametals.com
xxxxxxx@eastafricametals.com

RESCAN ENVIRONMENTAL SERVICES – Baseline Study

Designation Name Tel. Fax Email
Engineer xxxxxxxxxx +1 xxx xxx xxxx +1 xxx xxx xxxx  

Project Suppliers:

ACME LABORATORIES Analysis
ALS TANZANIA Sampling
G&T METALLURGICAL SERVICES LTD Metallurgical Testwork
G&T METALLURGICAL SERVICES LTD Metallurgical Testwork
LAYNE DRILLING TANZANIA (PTY) LTD Drilling
NORTHWEST GEOLOGICAL INSTITUTE FOR NON-FERROUS METALS Metallurgical Testwork
GOVERNMENT OF TANZANIA Permits
KLUANE DRILLING TANZANIA LTD Drilling