TIDMKEFI
RNS Number : 2211V
Kefi Gold and Copper PLC
13 April 2021
13 April 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Hawiah Copper-Gold VMS Project Update
Positive Phase 3 drilling results
Preliminary Feasibility Study Commenced, Targeting to Start
Development in 2023
KEFI Gold and Copper (AIM: KEFI), the gold and copper
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 Company's 34%-owned and
operated Hawiah Project in Saudi Arabia ("Hawiah" or the
"Project").
Highlights
-- A Maiden Mineral Resource Estimate ("MRE") was announced 19 August
2020 for the Volcanic Massive Sulphide deposit at Hawiah, of 19.2
million tonnes at 0.9% copper, 0.8% zinc, 0.6 g/t gold and 10.3g/t
silver.
-- The just-completed Phase 3 drilling programme has doubled the strike
and plunge extension of the Camp Lode structure from the 2020 MRE
area, with copper grades increasing down-plunge as anticipated by
the geological model.
-- The deepest massive sulphide intersection at the Camp Lode at a
vertical depth of 590m extends the total plunging strike length
of mineralisation to 1.2km from surface, with mineralisation remaining
open.
-- Drilling at the Crossroads Lode at Hawiah also confirms mineralisation
remains open down-dip and down plunge with the current known limits
of mineralisation at a vertical depth of only 380m.
-- A total of 27 diamond drillholes covering 13,385m was completed
in the Phase 3 drilling programme and 13,500m of diamond drilling
is planned for the Phase 4 programme which has already been commenced.
-- Baseline programmes for the Preliminary Feasibility Study ("PFS")
have commenced with a potential lodgement of a mining licence application
targeted for mid-2022 and the start of development in 2023.
-- An updated MRE is planned to coincide with the completion of the
Phase 4 drilling.
Camp Lode Extension
The Phase 3 programme has successfully demonstrated the
down-plunge continuation of the southward plunging Camp Lode ore
body, with the deepest intersection representing a 670m extension
from the 2020 MRE area. The increase in copper grade as predicted
by the geological model is particularly encouraging.
Highlights from the Phase 3 diamond drilling program include the
following drillhole results:
- HWD-074- 10.4m at 1.6% Cu, 1.4% Zn, 0.5g/t Au and 6.3 g/t Ag
- HWD-079 - 9.7m at 1.5% Cu, 1.3% Zn, 0.5 g/t Au and 8.3 g/t Ag
- HWD-082 - 10.0m at 1.8% Cu, 1.6% Zn, 0.5 g/t Au and 11.8 g/t Ag
- HWD-084 - 8.7m at 1.1% Cu, 1.6% Zn, 0.6 g/t Au and 10.1 g/t Ag
- HWD-086 - 9.3m at 1.8% Cu, 0.6% Zn, 0.4 g/t Au and 6.7 g/t Ag
- HWD-092 - 5.5m at 1.6% Cu, 0.53% Zn, 0.3 g/t Au and 6.9 g/t Ag
A full summary of the Phase 3 drill results of the Camp Lode and
Crossroads Lode as well as detailed assay and collar information
are contained in the appendix to this RNS which may be accessed at:
http://www.rns-pdf.londonstockexchange.com/rns/2211V_1-2021-4-12.pdf
Crossroads Lode Extension
Drilling at the Crossroads Lode has extended the mineralisation
110m deeper than previously explored. This is within the thickest
part of the lode which is now defined to a vertical depth of 380m
and remains open at depth. Received assay results have returned
results in line with the 'up-dip' drillholes in this area. The
outstanding drilling results will be announced in due course.
Phase 4 drilling and PFS Development
The success of the early drilling phases has demonstrated that
the tonnage and grade at Hawiah are robust enough to warrant moving
the Project to the Preliminary Feasibility Study ("PFS") stage.
The already commenced 13,500m 'Phase 4' diamond-drilling
programme, coupled with a post-drilling MRE, is intended to upgrade
strategic portions of the Hawiah deposit to allow for preliminary
mine planning and design as required during a PFS. Drilling will
also close the drill-spacing on the recently delineated down-plunge
Camp Lode area to allow for Inferred Resource classifications in
these zones.
Drilling will also target the high-grade copper 'transition
zone' which lies between the oxide and fresh sulphide domains
across the Hawiah deposit. This zone lies between depths of 20-50m,
with previous drilling returning assay results of more than 5%
copper. This zone has only been subject to limited testing and
additional drilling will allow for greater understanding of grade
distributions within this higher-grade copper zone, which would
likely be targeted during the early stages of any mine
development.
In preparation for the PFS, the first stages of the
environmental monitoring programme and geohydrological studies have
been initiated. These programmes will continue in tandem with the
rest of the Project development to ensure a baseline is established
and all regulatory requirements are met, with the intention being
to complete the PFS by Q2 2022, ahead of a mining licence
application. The opening round of metallurgical testwork is also
progressing well, with initial findings in-line with
expectations.
Additional Exploration Licences
The Project team recently welcomed visitors and inspectors from
both the [define DMMR] (DMMR) and the local government to the
Hawiah site for a successful site overview and Project development
meeting.
After receiving positive reports, KEFI remains cautiously
optimistic for the granting of additional Exploration Licenses in
the up-coming months, as per the Kingdom's Vision 2030 strategy.
This includes the nearby Al Godeyer exploration licence application
located 11km west of the Hawiah camp. Reconnaissance fieldwork by
the geological team has confirmed mineralisation along 700m of
strike length in this area, in a comparable style and
characteristic to the main Hawiah gossans. Initial surface sampling
has confirmed gold mineralisation within the gossans, with abundant
copper showings also noted.
Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented
:
"The drilling results to date show that the Hawiah deposit
remains open at depth and along strike. The recent 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.
"I'm especially encouraged by the most southern hole extending
the Camp Lode, which has intercepted massive sulphide with
estimated true widths of more than 4 metres, which indicates strong
potential for the deposit to continue further to the south.
"As previously reported, in addition to the deeper drilling
being undertaken, targeting a substantial increase in the maiden
Hawiah resource, the Phase 4 programme will also include infill
drilling with a view to 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 have triggered a Preliminary Feasibility Study targeting a
mining licence application in mid-2022 and potential start to
development in 2023, 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 ("AusIMM"). 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 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 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 34%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(ELA) 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
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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END
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