TIDMKEFI
RNS Number : 4132V
KEFI Minerals plc
03 December 2019
3 December 2019
KEFI Minerals plc
("KEFI" or the "Company")
Hawiah drilling returns grades of 4.2% copper over 6m plus gold,
silver and zinc
KEFI (AIM: KEFI), the gold exploration and development company
with projects in the Federal Democratic Republic of Ethiopia and
the Kingdom of Saudi Arabia, is pleased to report further
encouraging assay results from the drilling programme at the
Company's Hawiah Exploration Licence in Saudi Arabia.
New Assay Results Received
-- Drillhole HWD 002 returned 2.6m at 2.5% copper, 0.1% zinc,
1.9g/t gold, 17.8g/t silver from 37.35m (with estimated true width
("ETW") of 2m).
-- Drillhole HWD 003 returned 8.7m at 4.2% copper, 0.2% Zinc
0.7g/t gold, 15.6g/t silver from 38.65m (ETW of 6m).
Drilling has so far targeted the southern 1.5km section of the
previously reported 5km long outcropping gossanous ridge and
coincident geophysical anomalies. These further encouraging results
confirm that Volcanic Massive Sulphide ("VMS") mineralisation is
the source and that the mineralisation is comprised of copper,
gold, silver and zinc.
The VMS mineralisation is proving to be continuous both along
strike and down dip, consistently intersected along the currently
drill tested 1.5km long southern portion of the Hawiah ridge.
Drillhole HWD 005 has demonstrated that massive sulphide
mineralisation continues to a vertical depth of greater than
250m.
Assay Results Pending
Whilst assays have been received for only the first three of the
nine drillholes completed to date, the following drillholes have
also intersected significant massive sulphide mineralisation:
-- HWD 004 - 1m (ETW 0.65m) massive sulphide from 263.3m and
16.18m (ETW 10.8m) massive sulphide from 267.7m.
-- HWD 005 - 12.5m (ETW 9m) of massive sulphide from 358.5m.
-- HWD 009 - 2.3m (ETW 2m) of massive sulphide from 100.0m and
2.2m (ETW 2m) of massive sulphide from 109.6m.
In all instances, the sulphide mineralisation encountered is
composed dominantly of pyrite with veins and disseminations of
chalcopyrite (a principal ore for copper).
Holes HWD 006 to HWD 008 were drilled to test for the presence
of supergene enriched gold in the upper weathered portion of the
ridgeline (oxidised zones). Interpreted zones of oxidised gossan
were intersected in drillholes:
-- HWD 006 - from 10.2m to 25.5 (15m with ETW 7m).
-- HWD 007 - from 15.0m to 42.3m (27m with ETW 19m).
-- HWD 008 - from 5.5m to 32.5m (27m with ETW 17m).
As is often the case when drilling the oxide portions of a VMS
system, cavities have been encountered in this portion of the
system, which in turn impacts drill core recovery. This is typical
of gossan formation and is associated with the supergene weathering
processes. The depth of weathering varies from 20m to 40m below
surface. Accordingly, as the Company's understanding of the oxide
portion of the deposit improves (as the exploration programme
progresses) the Company expects to address these hurdles with
refined drilling and other sampling techniques.
The footwall and hanging wall rocks surrounding the massive
sulphides present with a weak and narrow alteration halo, this
coupled with the clastic sulphide textures indicate that the
sulphides have been remobilised from a central source by
sedimentary processes. This is a classic presentation of the apron
areas of VMS deposits which surround the central vent source, which
is typically comprised of thicker and higher-grade mineralisation
underlain by stockwork vein feeder zones where one typically
targets the larger lower-grade parts of a deposit.
Remaining Initial Scout Drilling Programme
The remainder of the 2,500 metre scout diamond drilling
programme will continue to test three key target zones:
-- near-surface oxidised zone for supergene enriched gold;
-- massive sulphides at depth for copper-gold-zinc; and
-- stockwork zones for a larger-scale development of copper-gold-zinc.
Executive Chairman of KEFI, Mr Harry Anagnostaras-Adams,
commented: "Our few drill holes so far are consistently hitting
massive sulphide with encouraging base and precious metal content,
including +4% copper. These intersections are over both long
horizontal and vertical distances. This has been an excellent start
to testing what KEFI believes is a large VMS system, which appears
potentially analogous to some world class discoveries in the
Arabian-Nubian Shield."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR)
Tim Metcalfe, Florence Chandler +44 (0) 20 3934 6630
Annexure
The Company will provide a more comprehensive report on this
scout drilling program in due course when it is more advanced and
more meaningful conclusions can be drawn.
Hole ID From (m) To (m) Interval Cu % Zn % Ag g/t Au g/t
(m)
HWD 002 37.35 38.15 0.80 3.78 1.24 38.2 2.10
--------- ------- --------- ----- ----- ------- -------
HWD 002 38.15 39.00 0.85 2.16 1.36 10.8 0.53
--------- ------- --------- ----- ----- ------- -------
HWD 002 39.00 40.00 1.00 1.73 0.82 7.4 0.32
--------- ------- --------- ----- ----- ------- -------
Hole ID From (m) To (m) Interval Cu % Zn % Ag ppm Au ppm
(m)
HWD 003 38.60 39.75 1.1 1.76 0.29 12.3 0.60
--------- ------- --------- ----- ----- ------- -------
HWD 003 39.75 40.50 0.75 2.19 0.29 19.3 0.67
--------- ------- --------- ----- ----- ------- -------
HWD 003 40.50 41.00 0.5 2.35 0.58 12.8 0.61
--------- ------- --------- ----- ----- ------- -------
HWD 003 41.00 42.00 1.0 4.55 0.52 16.5 0.64
--------- ------- --------- ----- ----- ------- -------
HWD 003 42.00 43.00 1.0 8.32 0.22 23.7 0.56
--------- ------- --------- ----- ----- ------- -------
HWD 003 43.00 44.00 1.0 6.61 0.41 21.5 0.61
--------- ------- --------- ----- ----- ------- -------
HWD 003 44.00 45.00 1.0 5.41 2.32 15.3 0.61
--------- ------- --------- ----- ----- ------- -------
HWD 003 45.00 46.00 1.0 4.12 1.67 14.3 0.72
--------- ------- --------- ----- ----- ------- -------
HWD 003 46.00 47.00 1.0 3.01 5.76 7.7 0.72
--------- ------- --------- ----- ----- ------- -------
HWD 003 47.00 47.44 0.44 1.21 3.35 8.4 0.79
--------- ------- --------- ----- ----- ------- -------
Competent Person Statement
The information in this announcement that relates to exploration
results is based on information compiled by Mr Jeffrey Rayner. He
is exploration adviser to KEFI, the Company's former Managing
Director and a Member of the Australian Institute of Geoscientists
("AIG"). Mr Rayner is a geologist with sufficient relevant
experience for Group reporting to qualify as a Competent Person as
defined in the JORC Code 2012. Mr Rayner consents to the inclusion
in this report of the matters based on this information in the form
and context in which it appears.
Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project
development project in Ethiopia, along with its pipeline of other
projects within the highly prospective Arabian-Nubian Shield. KEFI
targets that production at Tulu Kapi generates cash flows for
capital repayments, further exploration and expansion as warranted
and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI upon
commencement of development, with a view to adding satellite
deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a 40%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(EL) applications pending the introduction of the new Mining Law.
ELs are renewable for up to three years and bestow the exclusive
right to explore and to obtain a 30-year exploitation (mining)
lease within the area.
The Kingdom of Saudi Arabia has announced policies to encourage
minerals exploration and development, and KEFI Minerals supports
this priority by serving as the technical partner within G&M.
ARTAR also serves this government policy as the major partner in
G&M, which is one of the early movers in the modern resurgence
of the Kingdom's minerals sector.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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