East Africa says its local partner commences tailings operations in Tanzania
The company said that the gold tailings contain an estimated 32,000 tonnes at undetermined grade and metallurgical recoveries. The processing flow-sheet will see the tailings re-milled to further expose remaining free gold, followed by treatment through a gravity circuit and finally through a CIP Plant.
The Magambazi mine is located in the emerging Handeni gold district in eastern Tanzania. Magambazi is estimated to contain an indicated mineral resource of 15.2 million tonnes grading 1.48 grams per tonne gold and containing 721,300 ounces, as well as an inferred mineral resource estimate of 6.7 million tonnes grading 1.36 grams per tonne gold and containing 292,400 ounces.
According to the agreement, PMM will sell 30% of the gold produced to EAM at the price of production cost plus 15% of production cost, pursuant to a gold purchase agreement.
President & CEO Andrew Lee Smith commented, "The start-up of the tailings project at Magambazi is an important milestone for East Africa Metals and marks the commencement of a process that can generate revenue for the company for the first time in 2021."