TIDMKEFI
RNS Number : 3583V
Kefi Gold and Copper PLC
13 December 2021
13 December 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Award of Two Additional Exploration Licences in Saudi Arabia
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 announce the issuance of the Al Godeyer and Al Godeyer
East Exploration Licences (the "AG Licences"), to the KEFI-operated
Saudi Arabian joint-venture Gold and Minerals Limited ("G&M").
The licences are situated 12km south-west of the Company's Hawiah
discovery (see Figure 1 in the attached appendix), which is
expected to shortly upgrade the 2020 Mineral Resource Estimate
("MRE") of 19.3Mt at 1.9% copper equivalent.
Highlights
-- Al Godeyer and Al Godeyer East licences granted on an initial 5-year term
-- Exploration work suggests a strike length of more than 2km
for the identified gossan horizon
-- Accelerated Exploration programs targeting a Maiden resource within 2022
-- Situated adjacent to the Company's significant Hawiah discovery
Background
The Company's Hawiah Copper-Gold VMS project ("Hawiah') is now
advancing through the Preliminary Feasibility Study ("PFS") for
potential development, having completed 42,000m of drilling across
the project during the 2019-2021 initial exploration phase. An
update to the MRE, in conjunction with SRK Consulting (UK) Ltd, is
nearing completion and is expected to be announced later in
December 2021. This will form the basis for much of the PFS works
including mine and process design.
The granting of the AG Licences is a significant step in
G&M's plans for the development of the wider Hawiah Project
area, representing the first of the satellite targets to be
explored. The proximity and shared mineralisation style should
present an excellent opportunity to enhance the Hawiah project with
additional grade and tonnage.
Al Godeyer VMS mineralisation
The Al Godeyer area, covered by the AG Licences, was first
mapped and trenched by the French Government Geological Department
("BRGM") in the 1980's, with mineralisation occurring as
outcropping, NW-SE striking gossans over 800m in length and widths
of up to 6m. The gossans are hosted within a felsic-intermediate
volcanic package, consistent with a back-arc paleo-environmental
setting.
Whilst more structurally complex than the nearby Hawiah gossans,
mineralisation presents in a very similar style with
strike-continuous and consistent gold values noted within the core
of the gossan and copper mineralisation as malachite on the flanks.
As with Hawiah, the malachite on the flanks of the gossan is
considered likely related to re-mobilisation/ground water
interactions with the copper-rich portions of the underlying ore
body.
In anticipation of the granting of these Exploration Licences,
G&M geologists have already been actively mapping and grab
sampling the ground using the G&M Reconnaissance Licence and
have now extended the strike of the gossanous horizon by
approximately 1.2 kilometres to the southeast (see Figure 2 in the
attached appendix).
Early sampling has been very positive with results confirming
the work performed by the BRGM with grades of up to 7.2 g/t Au
recorded in the gossans. Grab samples have consistently returned
gold grades akin to the main Hawiah gossans, and with high copper
values related to the secondary malachite. Highlights of these grab
samples are listed below:
Sample ID Site Rock Type Au g/t Ag g/t Cu % Zn %
GSR1021 Al Godeyer Foliated gossan 7.2 0.8 0.1 0.1
============ ============================= ======= ======= ===== =====
GSR1001 Al Godeyer Massive gossan 3.6 0.7 0.7 0.2
============ ============================= ======= ======= ===== =====
GSR1070 Al Godeyer Massive gossan 3.2 2.7 0.5 0.0
============ ============================= ======= ======= ===== =====
GSR1015 Al Godeyer Brecciated gossan 2.5 0.4 0.4 0.0
============ ============================= ======= ======= ===== =====
GSR999 Al Godeyer Massive gossan 2.2 0.5 1.8 0.4
============ ============================= ======= ======= ===== =====
GSR259 Al Godeyer Massive gossan 2.1 0.1 0.1 0.0
============ ============================= ======= ======= ===== =====
GSR1055 Al Godeyer Massive gossan 2.0 0.3 0.1 0.0
============ ============================= ======= ======= ===== =====
GSR1054 Al Godeyer Massive gossan 2.0 0.3 0.1 0.1
============ ============================= ======= ======= ===== =====
GSR1000 Al Godeyer Massive gossan 2.0 0.0 0.7 0.3
============ ============================= ======= ======= ===== =====
GSR1056 Al Godeyer Massive and Foliated gossan 1.9 3.3 0.6 0.1
============ ============================= ======= ======= ===== =====
GSR1019 Al Godeyer Massive gossan 1.9 1.1 0.3 0.0
============ ============================= ======= ======= ===== =====
GSR257 Al Godeyer Massive gossan 1.8 0.9 0.1 0.0
============ ============================= ======= ======= ===== =====
GSR1052 Al Godeyer Massive gossan 1.8 1.8 0.2 0.0
============ ============================= ======= ======= ===== =====
GSR1072 Al Godeyer Massive gossan 1.8 0.8 0.2 0.0
============ ============================= ======= ======= ===== =====
GSR1074 Al Godeyer Massive gossan 1.7 1.5 0.1 0.0
============ ============================= ======= ======= ===== =====
Exploration strategy
Due to the proximity to Hawiah, G&M will proceed with an
aggressive exploration strategy and if drilling is successful, aim
to complete a maiden MRE by Q4 2022. This would allow any
delineated material on the AG Licences to be incorporated into
planning for the wider Hawiah project development.
The exploration approach and approximate anticipated timeline is
outlined below:
- Complete first pass mapping and sampling of SE extension area (Q4 2021)
- Trenching to confirm surface continuity of main gossans and SE extension areas. (Q1 2022)
- Self-potential geophysics to define the sub-surface continuity
of the SE extension (Q1 2022)
- Scout Drilling - 1,500m of diamond drill hole (DDH) drilling
to confirm mineralisation style and grades - Q1/Q2 2022
- Infill drilling for Resource definition - Q2/Q3 2022
- Mineral Resource Estimation - Q4 2022
Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented
:
"The Hawiah project already appears to be a robust standalone
development proposition. However, it has always been our opinion
that Hawiah is greater than just one deposit, instead we believe it
will prove to be a district of VMS deposits. G&M have already
identified multiple VMS targets in the surrounding Hawiah area, and
today's announcement marks the first step in expanding a single
project at Hawiah into a mining district of complementary deposits.
Shared infrastructure between the projects will leverage the value
of each one and reinforce the overall development strategy.
"These new licences, plus the imminent December Hawiah MRE,
reinforce the established position of KEFI in Saudi Arabia as a
leading explorer and developer. 2022 is set to be a very positive
and busy year for the joint-venture with the expected delivery of
the PFS and further resource growth at Hawiah, as well as the start
of additional regional projects. Furthermore, based on discussions
with the regulatory authorities in the current quarter, we also now
anticipate progress of the Jibal Qutman Gold mining licence, our
first discovery in Saudi Arabia with an existing resource in excess
of 700,000 ounces of gold.
"I look forward to providing further updates on both our
operations in Saudi Arabia and also Ethiopia, where the political
situation continues to improve and good progress is being made with
respect to finalising the funding for the launch of the Tulu Kapi
project development."
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 and
G&M is in the process of updating the resource statement for
2021. 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$356 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 US$800-900/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 c.
31% interest in G&M.
ARTAR, on behalf of G&M, holds over 21 Exploration Licence
("EL") applications currently subject to approval from the various
ministries as required under the new Mining Law. Els are renewable
for up to fifteen 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.
Appendix 1: Glossary of Technical Terms
Ag Silver
Arabian-Nubian The Arabian-Nubian Shield is a large area of
Shield or ANS Precambrian rocks in various countries surrounding
the Red Sea
------------------------------------------------------
Au Gold
------------------------------------------------------
Cu Copper
------------------------------------------------------
g/t Grams per tonne
------------------------------------------------------
Gossan Gossan is intensely oxidised, weathered or decomposed
rock, usually the upper and exposed part of an
ore deposit or mineral vein
------------------------------------------------------
JORC Joint Ore Reserves Committee
------------------------------------------------------
JORC Code 2012 Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves
------------------------------------------------------
M Metre
------------------------------------------------------
Massive sulphide Rock comprised of more than 40% sulphide minerals
------------------------------------------------------
Mt Million tonnes
------------------------------------------------------
MRE Mineral Resource Estimate
------------------------------------------------------
oz Troy ounce of gold
------------------------------------------------------
PEA Preliminary Economic Assessment
----------------- ------------------------------------------------------
PFS Preliminary Feasibility Study
------------------------------------------------------
VMS Volcanogenic Massive Sulphide
------------------------------------------------------
Zn Zinc
------------------------------------------------------
Appendix 2: Illustrative Diagrams
Appendix 2 is contained in the appended pdf document which can
be accessed via
http://www.rns-pdf.londonstockexchange.com/rns/3583V_1-2021-12-12.pdf
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