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East Africa Metals Inc. National Instrument 43-101 Technical Report

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East Africa Metals Inc. National Instrument 43-101 Technical Report Report to: East Africa Metals Inc. National Instrument 43-101 Technical Report and Preliminary Economic Assessment for the Terakimti Oxide Deposit, Harvest Project, Tigray National Regional State, Ethiopia Project No. 704-ENG.VMIN03019-01 Report to: EAST AFRICA METALS INC. NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT AND PRELIMINARY ECONOMIC ASSESSMENT FOR THE TERAKIMTI OXIDE DEPOSIT, HARVEST PROJECT, TIGRAY NATIONAL REGIONAL STATE, ETHIOPIA EFFECTIVE DATE: APRIL 30, 2018 Prepared by Mark Horan, P.Eng Jianhui (John) Huang, Ph.D., P.Eng. Hassan Ghaffari, P.Eng. David G. Thomas. P.Geo. MH/vc Suite 1000 – 10th Floor, 885 Dunsmuir Street, Vancouver, British Columbia, V6C 1N5 Phone: 604.685.0275 Fax: 604.684.6241 www.tetratech.com TABLE OF CONTENTS 1.0 SUMMARY ......................................................................................................... 1-1 1.1 INTRODUCTION ...................................................................................................... 1-1 1.2 PROPERTY DESCRIPTION AND OWNERSHIP ............................................................... 1-1 1.3 GEOLOGY AND MINERALIZATION .............................................................................. 1-3 1.4 DRILLING .............................................................................................................. 1-4 1.5 MINERAL RESOURCE ESTIMATE .............................................................................. 1-5 1.6 METALLURGY AND PROCESS ................................................................................... 1-8 1.7 MINING METHODS ............................................................................................... 1-11 1.8 PROJECT INFRASTRUCTURE ................................................................................... 1-12 1.9 WASTE MANAGEMENT, TAILINGS CONTAINMENT, AND WATER MANAGEMENT ............ 1-13 1.10 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT ............................................... 1-14 1.11 CAPITAL AND OPERATING COST ESTIMATES ............................................................ 1-14 1.11.1 CAPITAL COST ESTIMATE ....................................................................... 1-14 1.11.2 OPERATING COST ESTIMATE .................................................................. 1-14 1.12 ECONOMIC ANALYSIS ........................................................................................... 1-15 1.13 RECOMMENDATIONS ............................................................................................ 1-16 1.13.1 GENERAL ............................................................................................ 1-16 1.13.2 GEOLOGY ............................................................................................ 1-16 1.13.3 MINING............................................................................................... 1-16 1.13.4 PROCESSING ....................................................................................... 1-16 1.13.5 INFRASTRUCTURE ................................................................................. 1-16 1.13.6 COSTS ................................................................................................ 1-16 2.0 INTRODUCTION ................................................................................................. 2-1 2.1 INTRODUCTION ...................................................................................................... 2-1 2.2 QUALIFIED PERSONS .............................................................................................. 2-1 2.3 SOURCES OF INFORMATION .................................................................................... 2-2 2.4 UNITS OF MEASUREMENT AND CURRENCY ............................................................... 2-2 3.0 RELIANCE ON OTHER EXPERTS ........................................................................ 3-1 4.0 PROPERTY DESCRIPTION AND LOCATION ....................................................... 4-1 4.1 PROJECT LOCATION ................................................................................................ 4-1 4.2 MINERAL TENURE .................................................................................................. 4-2 4.2.1 AGREEMENTS ........................................................................................ 4-5 4.2.2 ROYALTIES ............................................................................................ 4-5 4.2.3 PERMITTING .......................................................................................... 4-5 i 704-ENG.VMIN03019-01 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY................................................................................................. 5-1 5.1 ACCESSIBILITY ....................................................................................................... 5-1 5.2 CLIMATE ............................................................................................................... 5-1 5.3 PHYSIOGRAPHY ..................................................................................................... 5-2 5.4 LOCAL RESOURCES AND INFRASTRUCTURE ............................................................... 5-2 6.0 HISTORY ............................................................................................................ 6-1 6.1 PROJECT OWNERSHIP AND EXPLORATION HISTORY ................................................... 6-1 7.0 GEOLOGICAL SETTING AND MINERALIZATION ................................................ 7-1 7.1 GEOLOGICAL SETTING ............................................................................................ 7-1 7.1.1 REGIONAL GEOLOGY .............................................................................. 7-1 7.1.2 STRUCTURAL SETTING ............................................................................ 7-3 7.1.3 LOCAL GEOLOGY .................................................................................... 7-3 7.1.4 TERAKIMTI DEPOSIT GEOLOGY .............................................................. 7-10 7.2 MINERALIZATION ................................................................................................. 7-15 8.0 DEPOSIT TYPES ................................................................................................. 8-1 8.1.1 REGIONAL VHMS DEPOSITS STYLE ......................................................... 8-1 9.0 EXPLORATION ................................................................................................... 9-1 9.1 ROAD MAINTENANCE AND UPGRADES ...................................................................... 9-1 9.2 CAMP ESTABLISHMENT .......................................................................................... 9-2 9.3 REPORT WRITING AND PRESENTATIONS ................................................................... 9-3 9.4 PETROGRAPHIC STUDIES ........................................................................................ 9-3 9.4.1 VANCOUVER PETROGRAPHICS LTD. (2011) .............................................. 9-3 9.4.2 CRAIG LEITCH (2011) ........................................................................... 9-4 10.0 DRILLING ......................................................................................................... 10-1 10.1 DIAMOND DRILLING ............................................................................................. 10-2 10.1.1 DRILL CONTRACTORS ........................................................................... 10-2 10.1.2 DRILL SURVEYING ................................................................................ 10-3 10.1.3 CORE RECOVERY ................................................................................. 10-4 10.1.4 DRILL CORE LOGGING AND SAMPLING PROCEDURES ............................... 10-4 10.1.5 SIGNIFICANT DRILL CORE MINERALIZATION INTERSECTIONS ..................... 10-4 10.2 REVERSE CIRCULATION DRILLING .......................................................................... 10-6 10.2.1 REVERSE CIRCULATION LOGGING AND SAMPLING PROCEDURES ............... 10-7 10.2.2 REVERSE CIRCULATION SAMPLE QUALITY AND SAMPLE RECOVERY .......... 10-17 10.2.3 ASSESSMENT OF DOWN-THE-HOLE SAMPLE CONTAMINATION ................. 10-19 10.2.4 COMPARISONS OF GRADES BY DATA TYPE ............................................ 10-21 10.2.5 CORE AND RC TWIN HOLES ................................................................ 10-22 10.2.6 PAIRED COMPARISONS OF REVERSE CIRCULATION, CORE ....................... 10-22 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ....................................... 11-1 11.1 DRILL CORE AND REVERSE CIRCULATION SAMPLE HANDLING AND SECURITY ............. 11-1 11.2 LABORATORY PROCEDURES .................................................................................. 11-2 ii 704-ENG.VMIN03019-01 11.3 SECURITY ........................................................................................................... 11-5 11.4 QUALITY ASSURANCE/QUALITY CONTROL REVIEW ................................................... 11-5 11.4.1 PHASE 1 QUALITY ASSURANCE/QUALITY CONTROL .................................. 11-6 11.4.2 PHASE 2 QUALITY ASSURANCE/QUALITY CONTROL .................................. 11-7 11.4.3 PHASE 3 QUALITY ASSURANCE/QUALITY CONTROL .................................. 11-9 11.4.4 TERAKIMTI DRILLING QUALITY ASSURANCE/QUALITY CONTROL SUMMARY ........................................................................................
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