Development was planned for November when the travel restrictions of COVID-19 were supposed to be lifted, but the state of emergency caused by the confrontation between the Ethiopian Federal Armed Forces and the Tigrayan People’s Liberation Front was further postponed.
Fellow TSX Venture Exchange-listed Sun Peak Metals had proclaimed force majeure on its flagship Shire project in the Tigray region at the end of November, which the firm said would remain in effect until the state of emergency had been revoked and the area considered secure.
East Africa said, according to comments by the Government of Ethiopia, stability has been restored in the region and current efforts have been focused on promoting a return to normalcy.
Also said that Adyabo’s Mine Construction Plans have been updated to include building Mato Bula and Da Tambuk’s neighboring projects simultaneously, rather than one after the other.
“This move would encourage operations to take advantage of robust gold markets and is an approach that has the potential to boost project economics over the near term,” said Andrew Lee Smith, President and CEO.
Mato Bula was forecast to yield an estimated annual production of 34,750 ounces of gold, 1,67 million pounds of copper and 4,780 ounces of silver over eight years, according to a provisional economic assessment.
The annual production of PEA for Da Tambuk is estimated to be 24,000oz of gold and 6,000oz of silver over four years.
East Africa said that there was a one-year construction timetable to complete concurrent mining developments, to be followed by plant commissioning, and then full production capability was supposed to be completed within three months.
The company also has a 70% stake in the Copper-Gold Harvest project in Ethiopia and said it was in talks with prospective mining partners.
A transaction was concluded in December with PMM Mining to establish its Magambazi gold mine in Tanzania.
