MAGAMBAZI GOLD PROJECT (HANDENI)

 

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Phase: Execution
Status: On-Hold

The Handeni Property is situated in northeastern Tanzania in the Tanga Region about 160km northwest of Dar es Salaam and 110km west-southwest of the Tanga Port City. The property stretches over an area of about 93km². It includes two Prospecting Licences (PL4781/2007 and PL10016/2014) covering 83.5km² and two Mining Licences (ML480/2012 and ML525/2014) covering 9.9km² over the Magambazi Hill and surrounding area. The property consists of two contiguous properties namely the Kilindi Prospecting Licence and the Magambazi Primary Mining Licences. Artisanal alluvial deposits at the Handeni Property includes Magambazi, Magambazi North, Kwadijava, Kwadijava South and Majiri. An Initial Mineral Resource Estimate of 15.2Mt grading 1.48g/t gold containing 721,300oz in Indicated Resource and 6.7Mt grading 1.36g/t gold containing 292,400 oz in Inferred Resource was declared at the Magambazi Deposit. The property is easily accessible by two unpaved public roads with paved highways within 20km of the site. Air access is also available by scheduled or charted fixed wings flights to the paved runway at Tanga. The Pangani Falls and Hale Hydroelectric Power Stations supply a total of 97MW of hydroelectrical power. The field camp encompasses both temporary and semi-permanent structures. Power to the camp is supplied via a diesel generator.

 

Region:   East Africa

Country: Tanzania

Province: Tanzania

City:  Handeni

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

Last Update:  24 October 2023

Mineral:  Gold

Plant Type:  New

Mining Type: Surface

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Method:

Surface Mining. Phase 1 of the mining operations will use the Open-Pit Mining Method which is a surface mining methos that starts from the earth's surface and maintaining exposure to the surface throughout by extracting rock or minerals from the earth by their removal from an open hole/pit or borrow. The excavation is comprised of stepped sides to safeguard the miners and a wide ramp where equipment can travel, allowing the product to be removed resourcefully from the site. The sequence of events for the open-pit mining cycle are drill, blast, load, haul and then dump. Once Phase 1 is complete Phase 2 will commence with underground mining.

Process:

Firstly the tailing will go through the Re-Processing Plant. The gold tailings will then be re-milled in order to release any remaining free gold. Thereafter it will undergo gravity circuit treatment and finally the tailings will go through a Carbon-in-Pulp (CIP) Plant.

Project Commentary:

2023

October

  • Due to the non-performance of East Africa Metals operational partner, the mining activities at Magambazi are currently on hold, and the Magambazi and Handeni Mining Licences (ML) are pending renewal.
  • East Africa Metals' primary goal is to resolve issues of non-performance by the Magambazi Operator, reinstate pending Mining Licences, and locate a new Operating Partner capable of advancing the Mining Operation in accordance with Tanzanian laws and regulations

June

  • As confirmed by East Africa Metals Inc the legal dispute has not been resolved as yet, and there has been no new developments.

January

  • East Africa Metals Inc has accumulated its annual payments for its Mining Licence and Prospecting Licences. The present default notice for the Magambazi Project has been suspended until the legal dispute is settled.
  • There is no guarantee that the Company will maintain compliance with the requirements of the Mining Licences or Prospecting Licences, or that the dispute resolution procedure will result in a favourable decision for East Africa.

2022

September

  • A default notice has been suspended for the 2 Magambazi Gold Project Licences until the legal dispute resolution is reached.
  • East Africa Metals Inc has accrued the payments for the Mining Licence (ML) and Prospecting Licence (PL) as there is no guarantee of the outcome and whether the dispute resolution will be in their favour.
  • Engineering work is underway, and full plans for mining operations and the installation of surface equipment are anticipated to be finished soon.

May

  • The Magambazi Mining Licence is in the process of being transferred to PPM
  • An unknown local geological consulting firm with in-depth experience in preparing resource estimations for Tanzanian gold projects are assessing the current resource considering tailings processing, grade, and recovery data.

2020

October

  • In the Handeni Gold Area, East Africa Metals have developments consisting of two Mining Licences covering 9,9km² (Magambazi) and adjacent mineral tenures containing roughly 83,5km², including Prospecting Licences (PL) and Primary Mining Licences (PML), which are included in the properties of Handeni.
  • Denwill Mining Services Ltd (Denwill), an East Africa-owned established business, holds one Mining Licence and the Company has an incentive agreement to purchase a US$40,000; 100 percent interest upon payment.

2018

October

  • East Africa Metals received a Default Notice from the Tanzanian Government advising of development and operational actions which are non-compliant with the Tanzanian Mining Act.
  • The Company is currently developing a plan for the submission of the Default Notice as evidence in the ongoing arbitration with Tanzanian Goldfields Company Limited over the Magambazi Project Agreement. Should the arbitration decide in favour of East Africa, the Company will re-initiate management and restore compliance to the project.
  • Under the agreement, East Africa currently holds 30% of the Magambazi Project's production stream.

2017

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.

2016

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.

2015

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2014

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2013

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2012

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2011

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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:

ALS GROUP (G&T METALLURGICAL SERVICES LTD) Analysis
ALS TANZANIA Sampling
BAKER TILLY WM LLP Auditor
BUREAU VERITAS (ACME LABORATORIES) Analysis
GEOFIELDS TANZANIA LIMITED Mineral Resource Estimate
GOVERNMENT OF TANZANIA Licences
KLUANE DRILLING LTD Drilling
NEW RESOLUTION GEOPHYSICS (NRG) OF SOUTH AFRICA Survey