TIDMBZT
RNS Number : 8774U
Bezant Resources PLC
24 January 2017
24 January 2017
Bezant Resources Plc
("Bezant" or the "Company")
Operational update re Choco Gold-Platinum Project, Colombia
Bezant (AIM: BZT), the AIM quoted mineral exploration and
development company, announces an operational update in respect of
the Company's Choco gold-platinum project in Western Colombia (the
"Choco Project").
Highlights
-- Gold-platinum recovery analysis programme on schedule:
o Initial surface and shallow pit sampling successfully
completed with 105 individual samples of alluvial material
collected from the FKJ-083 licence area in the Choco Province of
Colombia ("Licence FKJ-083"); and
o Phase 1 of a large trial pit completed, with Phase 2,
extending to deeper levels, having commenced.
-- Grades and trial mining analysis have to date confirmed
reported grades and conditions from historic third party mining
operations.
-- Further to the results returned to date from test pitting
operations, the Company has engaged INGEX Grupo Minero, a mining
consultancy firm based in Colombia with experience of alluvial
mining in Choco, to prepare a financial scoping study. The study
will be principally based on:
o results from the pilot open pits; and
o cost models from comparative alluvial operations in
Colombia.
-- Scoping study currently expected to be completed in Q1 2017.
-- Active and positive engagement with the local community in the FKJ-083 licence area.
Test Pits and Processing Summary
-- Surface phase pits established in order to confirm that
historical workings were restricted to shallow depths (average
7m).
-- Phase 1 of a large trial pit development has been completed
to an average depth of approximately 10m, with approximate
dimensions of 80m by 40m at the surface.
-- Phase 2 underway to an expected maximum depth of 25m as an internal sub-pit.
-- Large trial pit will enable full simulation of mining and processing conditions
-- Total of 25,000m(3) of large trial pit already excavated,
with completion of pit and sampling expected during Q1 2017.
-- Concentrates treated and grades established through the
Company's onsite platinum and gold recovery laboratory:
o Grades of over 300mg/m(3) achieved from virgin platinum and
gold bearing gravels
o Selected tailings grades of over 100mg/m(3) returned but
tailings still considered to be uneconomic pending further mining
costs analysis.
Operational Update
Working closely with its mining contract partner in Colombia,
Exumax SAS ("Exumax"), Bezant has now completed surface and
near-surface exploration activities on the FKJ-083 licence. Licence
FKJ-083 was mined by the current owner/operator between 2007 and
2012 and the Bezant-Exumax work programme is focusing on
correlating test open pit results with historic mining and
geological reports and platinum and gold recoveries.
The primary stage of exploration on Licence FKJ-083 is the
development of a large trial pit over two phases. A total of
25,000m(3) of material has already been excavated to form the first
stage of the pit's development. This Phase 1 activity has been
completed and has resulted in a trial pit with approximate
dimensions of 80m by 40m at surface and a main pit floor at 10m
depth. Phase 2 involves the development of a smaller secondary pit
in the main pit floor, which will then allow sampling of material
down to the bedrock at 25m. Phase 2 has now commenced and is
expected to be completed and samples processed during Q1 2017. In
addition to permitting full profile sampling down to bedrock, the
large trial pit will also allow the simulation and investigation of
mining and processing conditions on the licence area,
including:
o investigation of open pit side wall stability, water seepage and general mining conditions;
o full geological investigation of the various alluvial facies and flow regimes; and
o sampling of various units, including tailings, overburden and
main platinum and gold bearing alluvial gravels and bedrock.
Confirmation of gold-platinum located within heavy particles
Test pitting has confirmed that the Choco Project has an
alluvial deposit where the gold and platinum occur in free form
within the gravels. The metals have typically settled above the
bedrock layer in the region, within other heavy, larger particle
constituents. The bedrock depth varies within an estimated range of
between 18 and 30 metres from surface. Simple minerals processing
methods and equipment can efficiently recover the platinum and gold
metals, therefore whilst each site would have its own particular
costs, it is possible to prepare a general model for alluvial
mining operations from data obtained from alluvial mining
operations in sites similar to Licence FKJ-083.
A total of 105 samples of alluvial material were collected and
processed through the pilot sampling plant during Q4 2016 and the
concentrates from this operation were subsequently treated and
analysed through the Company's onsite, mercury free, platinum and
gold recovery laboratory. Combined platinum and gold grades of over
300mg/m(3) were achieved from shallow virgin platinum and gold
bearing gravels. As part of the investigation work, numerous
samples were also taken from historical tailings dumps. The
majority of the tailing dumps sampled are not located on the test
pit area. Although selected tailings' samples did return grades of
over 100mg/m(3) the average grade for the tailings samples was
30mg/m(3) which therefore confirmed the Company's previous opinion
that treatment of the historical tailings dumps is likely to be
uneconomic unless it forms part of the overburden located on virgin
platinum and gold bearing gravels.
Independent cost analysis and scoping study
The grades and test pitting analysis performed to date has
confirmed the historic third party reported grades and conditions
encountered by historical mining operations and the Company has
therefore proceeded to commission an independent cost analysis and
scoping study on the project. The study is being conducted by
mining consultancy, INGEX Grupo Minero (www.ingexgrupominero.com),
located in Medellin, Colombia, which has previous experience of
alluvial mining in Choco where the Company's operations are based.
The study is currently incorporating the data being compiled from
the development of the large trial pit, including operational
conditions, operating costs, capex requirements and the grades
achieved in order to develop an economic model for alluvial
operations in the Choco Province. The scoping study will also
incorporate cost models from comparative alluvial operations in
Colombia and is currently scheduled for completion during Q1
2017.
As announced previously, Bezant holds options over an
approximate 2,600 hectare land package on the Choco Platinum and
Gold Plateau in Colombia. Whilst the test open pits and scoping
study are focussing on the Licence FKJ-083, the results will also
assist Bezant in making decisions on exercising the options it
holds over various licences and opportunities in the Choco
district.
Photo 1 shows the Phase 1 Open pit at Licence FKJ-083, being
developed. Photo 2 shows sample of platinum and gold recovered from
the sampling process
Photo 1:
http://www.rns-pdf.londonstockexchange.com/rns/8774U_-2017-1-23.pdf
Photo 2:
http://www.rns-pdf.londonstockexchange.com/rns/8774U_1-2017-1-23.pdf
Commenting today, Ed Nealon, Chairman of Bezant, said:
"Further to the test pitting results to date and confirmation of
recoveries in-line with historic mining operations, we have taken
the decision to commission an independent scoping study to assess
operating costs and sensitivities. Our focus is on rapidly
establishing a low cost, at surface, dry mining portfolio of gold
and platinum plants in this major platinum region of Colombia. My
belief is that our model will ultimately unlock a new concept for
producing economic platinum and gold. I look forward to updating
the market further in due course."
Judd van den Brenk of Exumax further commented:
"The Exumax team is training local staff on site and making good
progress. I take much pride in my team's performance and the
excellent relationship that is developing between the project's
personnel and the wonderful community of Condoto. On a personal
level, as an alluvial miner, I am truly excited to be working in
the Choco region where I believe the potential is second to
none."
Dr Evan Kirby has reviewed and approved the technical
information contained within this announcement in his capacity as a
qualified person, as required under the AIM rules. Dr Kirby is a
Non-Executive Director of the Company and a Member of the
Australasian Institute of Mining and Metallurgy.
For further information, please contact:
Bezant Resources plc
Bernard Olivier
Chief Executive Officer Tel: +61 40 894 8182
Laurence Read
Executive Director / Communications Officer Tel: +44 (0)20 3289 9923
Strand Hanson Limited (Nomad)
James Harris / Matthew Chandler / James Dance Tel: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance
Tel: +44 (0)20 7382 8300
or visit http://www.bezantresources.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
Note to Editors:
Exumax (www.exumax.co) is a Colombian based mine operating
Company with over 6 years mine operating experience in Colombia and
has a well-established Colombian based team that can provide
turnkey exploration solutions to Bezant's wholly owned Colombian
subsidiary, Ulloa Recursos Naturales SAS. The principals of Exumax
have over 50 years' of combined operating experience in the mining
and construction industry in South America and in this period have
developed extensive proprietary mining expertise. Exumax own and
have imported special purpose alluvial mining equipment from New
Zealand, where such operations are common, for use in low-cost
alluvial extraction projects focused on precious metals. Exumax
have operated a series of alluvial projects in Colombia and
prioritise community relations and environmental management work as
key components to building successful mining operations
in-country.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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