TIDMKEFI
RNS Number : 8386H
Kefi Gold and Copper PLC
08 December 2020
8 December 2020
KEFI Gold and Copper plc
("KEFI" or the "Company")
Hawiah Project Update
Highlights
-- Further success with the ongoing 13,000m drilling programme
-- Current programme focused on increasing resource inventory through step-out drilling
-- 6 holes representing circa 3,600m of drilling now complete
-- HWD-073 encounters mineralisation at additional depth of 500m in the Central Zone
-- HWD-074 extends mineralisation down-dip by 260m in the Camp Lode
-- Inspection of intercepts suggest similar chalcopyrite mineralisation to previous drill holes
-- Assay results pending
-- Second rig now on site to accelerate the drill programme
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 provide an update on the
current 13,000 metre drilling programme at the Company's 34%-owned
and operated Hawiah Project in Saudi Arabia ("Hawiah" or the
"Project").
The first six drill holes, representing approximately 3,600
metres have yielded some further highly encouraging results,
intercepting the orebody at greater depths as intended. The current
programme is aiming to significantly increase the maiden Hawiah
Mineral Resource Estimate ("MRE") of 19.3 million tonnes at 0.9%
copper, 0.8% zinc, 0.6g/t gold and 10.3g/t silver. As reported in
the Preliminary Economic Assessment ("PEA") announcement on 22
September 2020, a doubling of the resource would increase the
Project's estimated after-tax NPV from US$96 million to US$362
million.
Current Drill Programme
The first phase of the current drilling programme is focused on
resource expansion at the Camp Lode, due to elevated average copper
grades in this area of the deposit. Drillholes have been stepped
out to significant distances to quickly confirm that the deposit
extends both along strike and at depth.
Exploratory drilling is also taking place within the Central
Zone to follow up on geophysical targets highlighted during the
2019 IP/Rho survey and to expand on the previous shallow scout
drilling results.
The later stages of this programme will focus on infill drilling
as well as on targeted holes to improve definition within the
higher-grade transition zone. As a result of encouraging results to
date, a second drill rig has been introduced to speed up the
drilling programme.
A summary of the latest drillholes is as follows:
Hole ID Area Mineralisation Total From (m) To (m) True width Vertical Distance
style Depth (m) depth to nearest
(m) (m) intersection
(m)
========= =========== =================== ======= ========= ======= =========== ========= ==============
Camp Lode Massive
HWD-070 - S sulphide 583.5 557.4 563.22 4.50 440 180
=========== =================== ======= ========= ======= =========== ========= ==============
HWD-071 Camp Lode No Mineralisation 779.5 - - - -
- N Intercepted
=========== =================== ======= ========= ======= =========== ========= ==============
Camp Lode Massive
HWD-072 - S sulphide 335.5 306.17 315.72 5.70 260 240
=========== =================== ======= ========= ======= =========== ========= ==============
Central Massive
HWD-073 Zone Sulphide 755.6 732.77 733.6 0.83 580 500
=========== =================== ======= ========= ======= =========== ========= ==============
Camp
Lode - Massive
HWD-074 S sulphide 533.5 504.56 514.63 7.30 430 235
=========== =================== ======= ========= ======= =========== ========= ==============
HWD-075 Camp Lode No Mineralisation 598.7 - - - -
- S Intercepted
=========== =================== ======= ========= ======= =========== ========= ==============
These early intersections are highly encouraging, especially
given the wide spacing of the drill locations, designed to provide
a broad overview of the footprint of mineralisation. HWD-074 has
confirmed the Camp Lode continues to the south, with the
intersection (7.3m true-width) representing a 260m down-dip
extension from the MRE. Further holes in the ongoing programme are
aiming to expand the known boundaries of the deposit.
Visual inspection of these massive sulphide intercepts has
identified chalcopyrite mineralisation in a similar style to the
earlier drill holes within the Camp Lode. Assay results are
pending.
The deep drilling at the Central Zone (HWD 073), an area largely
untested during the initial phases of exploration to date, has
demonstrated that mineralisation is present at a vertical depth of
580m, 500m below the previous drillhole at 80m. Whilst the
intercept is relatively narrow, the result suggests that the area
between Camp Lode and the Crossroads Lode (extending laterally over
1700m and to a depth of 600m) now has the potential to add
additional resources and warrants further exploration.
A comprehensive update, including details of all drill holes,
will be provided as soon as practical after the programme is
completed and all assays are received. However, the Company will
also report any further material results during this drilling
programme as they arise.
Additional Exploration licences
KEFI is pleased to note the recent developments of the Saudi
Arabian mining laws and regulations, in-line with the Kingdom's
Vision 2030 strategy. The Company has been actively engaged with
the Ministry of Industry and Mineral Resources ("DMMR") to ensure
that the previous exploration licences are processed once the new
regulations come into effect from 1 January 2021. The issuance of
the new regulations represents the end of a 5-year hiatus on the
granting of exploration licences in the Kingdom, and marks the
launch of an intended high-growth phase for the sector.
To this end, KEFI is also actively pursuing additional ground
within the Kingdom that meets with KEFI's strategy of growing Gold
& Minerals Limited ("G&M"), in which KEFI has a 34%
interest, to capitalise on its position as the leading private
sector exploration and development company in Saudi Arabia. Further
details on licencing will be announced in due course.
Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented
:
"The drilling results to date show that the Hawiah deposit
remains open at depth and to the south. The work programme has
sought to quickly 'stretch' some of the extremities of the deposit
and as such we are greatly encouraged to see returns of significant
intercepts as drilling continues to demonstrate the size and scale
of the Hawiah deposit.
"As previously reported, in addition to the deeper drilling
being undertaken targeting a substantial increase in the maiden
Hawiah resource, this programme will also include infill drilling
with a view of upgrading key areas of the resource to the indicated
category so as to warrant mine planning and the estimation of an
initial Ore Reserve.
"We remain focussed on the studies and survey required for the
completion of a Preliminary Feasibility Study during 2021, together
with further exploration of the surrounding area for a large
stockwork zone or 'feeder zone' to the massive sulphides, which
represents a separate and potentially even larger-scale target.
"We look forward to reporting further progress at Hawiah and
outcomes of this major drilling programme in due course."
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 Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman) +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, Adam Cowl
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Competent Person Statement
The information in this announcement that relates to exploration
results and Mineral Resources is based on information compiled by
Mr Tomos Bryan, Exploration Manager for Gold & Minerals
Limited. Mr Bryan is a member of the Australasian Institute of
Mining and Metallurgy. Mr Bryan is a geologist with sufficient
relevant experience for Company reporting to qualify as a Competent
Person as defined in the JORC Code 2012. Mr Bryan consents to the
inclusion in this announcement of the matters based on this
information in the form and context in which it appears.
The Hawiah Mineral Resource was announced on 19 August 2020.
KEFI confirms that it is not aware of any new information or data
that materially affects the information in the above releases and
that all material assumptions and technical parameters,
underpinning the estimates continue to apply and have not
materially changed. KEFI confirms that the form and context in
which the Competent Person's findings are presented have not been
materially modified from the original market announcements.
Notes to Editor
KEFI Gold and Copper 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 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, together with assembling the full
funding consortium and set the conditional terms for the
development funding package of c.US$221 million.
Estimates include gold production of c.190,000oz pa. 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 PEA 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 in the Kingdom of Saudi Arabia
In 2009, KEFI formed 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 34% interest in G&M and is
the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
applications pending the introduction of the new Mining Law.
Exploration Licences 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
mineral 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.
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