East Africa Metals defines Adyabo in Ethiopia

Pleased with results from recent drilling at its Adyabo gold-copper project in Ethiopia, Canaco Resources spinoff East Africa Metals (TSXV: EAM; US-OTC: EFRMF) is starting a 6,000-metre diamond-drilling program to define several mineralized zones.

The drill campaign will test the Mato Bula, Mato Bula North and Da Tambuk prospects along the northeast-trending Mato Bula corridor at Adyabo, as well as the VTEM09 prospect on the nearby Harvest volcanogenic massive sulphide (VMS) project.

East Africa has released assays from four holes drilled at Da Tambuk, which is characterized by a 1.5 km long gold-in-soil anomaly. Highlights include 13.6 metres grading 4.65 grams gold per tonne from 123.6 metres deep in hole 7; and 16.7 metres of 3.29 grams gold and 0.2% copper from 99.2 metres deep in hole 6.

Hole 7 was drilled 80 vertical metres downdip of hole 2, which cut a 12-metre intercept of 17.34 grams gold and 0.3% copper from 52 metres deep in March. Hole 6 was drilled 80 metres below surface and 40 metres north of 2.

In September East Africa reported assays from the Mato Bula prospect at Adyabo, located 4 km south–southwest along strike from Da Tambuk.

At Mato Bula, the company has defined a series of steeply plunging high-grade shoots to a depth of over 220 vertical metres. The prospect is a 2.1 km long gold-and-base metal soil anomaly that has been worked by artisanal miners.

Results from nine holes released in September were highlighted by 34 metres grading 5.65 grams gold per tonne and 0.3% copper — including 17.5 metres of 9.5 grams gold — starting from 171 metres deep in hole 19. The hole intercepted a high-grade shoot that the company has traced from surface to more than a 220-metre depth, including with a 28.2-metre interval of 8.5 grams gold and 0.24% copper in hole 7.

Both the Adyabo and Harvest projects are located on the gold-enriched polymetallic Asmara VMS belt in Northern Ethiopia’s Arabian Nubian Shield, 150 km south of Nevsun Resources’ (TSX: NSU; NYSE-MKT: NSU) Bisha copper mine.

Drilling at Da Tambuk and Mato Bula has confirmed a high-sulphidation gold-rich VMS-submarine porphyry-related mineralized system, with high-grade gold, copper and zinc.

At the Harvest project, the company is planning a 4,500-metre reverse-circulation drill program to expand the oxide resource at the Terakimti prospect (most of the current resource is in sulphides) in the year’s final quarter.

East Africa also owns the Handeni project in Tanzania, which contains a 2012 indicated resource of 15.2 million tonnes grading 1.48 grams gold per tonne for 721,300 oz., at a cut-off grade of 0.5 gram gold per tonne. Inferred resources add 6.7 million tonnes grading 1.36 grams gold for 292,400 oz. gold.

East Africa Metals acquired the Adyabo and Harvest projects in Ethiopia when it merged with cash-poor Tigray Resources in May.

Both companies had been part of Canaco Resources.

East Africa Metals was spun out of Canaco Resources when it  merged with private company Shark Minerals (supported by the same team as Red Back Mining) in 2013, and became Orca Gold (TSXV: ORG; US-OTC: CANWF). Tigray Minerals was spun out of Canaco Resources in 2011.

At the end of June, East Africa had a $15.2-million working capital — enough to continue exploration and other activities for at least a year.

The company’s shares recently traded at 9.5¢, in a 52-week trading range of 9¢ to 17.5¢. It has 101.7 million shares outstanding, with Chinese exploration company Sinotech holding 33.7% of the stock.