TIDMKEFI
RNS Number : 6863U
Kefi Gold and Copper PLC
03 August 2022
3 August 2022
KEFI Gold and Copper plc
("KEFI" or the "Company")
Rapid Progress in Saudi Arabia
Formal Notification of Jibal Qutman Land Use Permitted for
Mining
Two further exploration licences granted
KEFI (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 positive licencing progress on the Jibal Qutman project,
plus the award of two further exploration licences through the
Company's Gold and Minerals Limited ("G&M") joint venture in
Saudi Arabia. G&M is owned 30% by KEFI and 70% by its partner
Abdul Rahman Saad Al Rashid and Sons Ltd ("ARTAR").
Highlights
Jibal Qutman
-- G&M has received the anticipated formal notification from
the Saudi Arabian Ministry of Industry and Mineral Resources
("MIM") that land access issues which halted the mine development
application in 2016 are now resolved, clearing the way for the
re-issuance of exploration licences ("ELs") as a precursor to the
granting of the Jibal Qutman mining licence.
-- Exploration programmes and environmental baseline studies, as
well as geotechnical and metallurgical drilling for the final
development planning ("DFS") will commence once the ELs are
issued.
-- Given the considerably stronger gold price outlook now
prevailing, as compared with that in 2015 when preliminary
development studies were completed, the Jibal Qutman DFS is being
adjusted to focus on recovering over 500,000 oz of gold rather than
the originally envisaged 200,000 oz of gold.
-- The DFS remains on-track for completion at the end of Q4
2022, with environmental permits targeted for Q1 2023, leading to a
Mining Licence Application ("MLA") resubmission in early 2023.
Project financing for Jibal Qutman is expected to be sourced and
implemented within Saudi Arabia, which has well-developed
international capital markets with a mandate to invest in the
country's mineral resources. Therefore, development commitments are
expected to proceed in an expedited fashion upon the granting of
the mining licence.
Additional Licences
-- As anticipated, G&M's exploration areas are being
expanded in Saudi Arabia where the newly overhauled regulatory
regime is speeding up progress. Two further exploration licences
have now been awarded to G&M on an initial five-year term,
bringing the total number of exploration licence issued to seven
covering a total area of 462km(2) .
-- The two new licences are Abu Salal South and Jadib Al Qahtanah:
- The Abu Salal South EL hosts Volcanic Massive Sulphide ("VMS")
mineralisation and is located 50km south of the Company's discovery
at Hawiah, within the same geological belt, the Wadi Bidah
Metallogenic Belt ("WBMB"). G&M geologists have already
identified gossan outcropping discontinuously for 2km with grades
of up to 4.0 g/t gold.
- The Jadib Al Qahtanah EL is situated approximately 45km east
of the Mahad Ad Dahab mine, the principal historic Saudi gold and
silver mine, in the Central Arabian Shield. Mineralisation presents
as quartz vein hosted gold within a diorite body, with gold grades
from crush dumps of up to 52 g/t.
Harry Anagnostaras-Adams, Executive Chairman of KEFI,
commented:
"We are extremely excited to announce the positive conclusion of
the land access issue which has delayed the development of the
Jibal Qutman project since 2016. The Company is very grateful for
the support of the Ministry of Industry and Mineral Resources in
these matters, who have gone to great lengths to secure this ground
on behalf of the Company.
"This news, coupled with the KEFI Saudi Arabia team's early
recommencement of studies in Q1 this year, paves the way for the
fast-tracking of the project. With modern finance regulations
already in place in-country along with strong Saudi capital
markets, we can now realistically target bringing the mine into
production in H2-2024, around the same time we expect to start
production at Tulu Kapi in Ethiopia.
"We are also pleased with the granting of the new exploration
licences. The Abu Salal South EL reinforces our position near our
Hawiah discovery in the Wadi Bidah Metallogenic Belt which we
believe will host multiple copper-zinc-gold mines. And the Jadib Al
Qahtanah EL expands our portfolio across the Kingdom into another
area that has already demonstrated great potential for gold mining,
hosting Saudi Arabia's principal historic gold and silver mine.
"We are delighted that the Company is now positioned as a major
explorer and developer in the Saudi Arabian shield."
Background
Jibal Qutman Project Developments
The Company is pleased to report that discussions with the MIM
regarding land access have successfully concluded. The current
landowners have agreed to allow the MIM to start the process of
issuing licences and the Company is in receipt of official
notification setting out the process for recommencement of work on
the Jibal Qutman Project.
Stipulations around licencing remain the same as previously
announced and G&M will need to submit an updated Development
Plan and Environmental and Social Impact Assessment to enable the
resubmission of the mining licence application under the new Saudi
Arabian Mining Investment law.
G&M currently has five exploration licence applications
within the Jibal Qutman area and work is now underway to finalise
the issuance of an initial three exploration licences which will
enable the above studies and planned exploration works to
commence.
A base of operations has already been established in the nearby
city of Bisha and the exploration team, project team and drilling
contractors are lined up to re-enter the area and commence work. An
initial 5,000m diamond drilling programme has been designed by the
G&M team, with input from supporting consultancy groups, to
enable geotechnical and metallurgical testing and facilitate
resource expansion.
Abu Salal South and Jadib al Qahtanah Exploration Licences
Building on the award of the Jabal Hillit and Qunnah Exploration
licences, announced on 12 July 2022, G&M have been granted two
further exploration licences: 'Abu Salal South' and 'Jadib Al
Qahtanah'. This increases the number of G&M's active
exploration licences across the Arabian Shield to seven, covering a
total area of 462km(2) . The G&M exploration team are already
active on these new sites with mapping and sampling to expand the
footprints of known mineralisation.
Abu Salal South
The Abu Salal South exploration licence is situated
approximately 50km south of the Hawiah deposit, hosted within the
same Wadi Bidah Metallogenic Belt ("WBMB") (see Figure 1 in the
attached appendix, accessible here
http://www.rns-pdf.londonstockexchange.com/rns/6863U_1-2022-8-2.pdf.
Exploration works are focused on a previously poorly understood
gossan horizon that was subject to limited work by the French
Bureau de Recherches Géologiques et Minières ("BRGM") in the late
1980's. The G&M team have subsequently identified this gossan
as akin to the Hawiah style of VMS deposit, with similar textural
and alteration facies noted at both deposits.
Initial mapping and sampling conducted under the reconnaissance
licence has established several gossan areas that outcrop along a
currently discontinuous strike horizon of 2km.
Gold mineralisation has been confirmed along the strike with
grades of up to 4.0 g/t in the gossan. Copper carbonate minerals
have also been noted on the flanks of the horizon, indicating
copper mineralisation at depth.
The widest gossan exposure, located at the southern end of the
horizon has returned an interval of 38m at 0.75g/t gold from
channel sampling. The team are now focused on mapping out the
extents of this horizon with a mix of mapping, sampling and
self-potential (SP) surveying, which has proved to be highly
effective at the analogous Hawiah and Al Godeyer sites also within
the WBMB. These works will help focus the planned trenching and
scout drilling phases.
Jadib al Qahtanah
The Jadib al Qahtanah exploration licence presents as a
grassroots gold target approximately 45km from the Mahd Ad Dahab
mine, Saudi Arabia's principal gold and silver mine, in the central
portion of the Arabian Shield (see Figure 2 in the attached
appendix).
Gold mineralisation within this licence appears to be
structurally related, presenting as quartz veins within a diorite
host. Rockchip samples from ancient crush dumps taken during early
G&M reconnaissance visits returned grades of up to 52g/t
gold.
Large flood basalts related to Red Sea rifting, cover a
substantial portion of the exploration licence, and appear to be
masking the main area of mineralisation. These flood basalts, which
can be found across the Shield are known in Arabic as 'Harats'. In
the Jadib al Qahtanah licence area these basalts are relatively
thin, ranging from 2m to 20m.
Exploration efforts will start by establishing the structural
framework of the area and strike extents of the mineralised system,
focusing on the structure as it disappears under the Harat,
allowing for a targeted geophysics and drilling programme.
The task of exploring these four new licences in tandem to the
Company's Hawiah and Jibal Qutman projects, has required the
establishment of a dedicated regional exploration team. As well as
working the early-stage projects, this team will continue to assess
additional targets across the country and seek to grow the G&M
project portfolio.
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 (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Lead Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
WH Ireland Limited (Joint Broker) +44 (0) 20 7220 1666
Katy Mitchell, Andrew de Andrade
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 geology,
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
non-financial matters based on this information in the form and
context in which it appears.
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