Bezant Resources PLC Update re Plant Commissioning, Choco Project (0825J)
26 June 2017 - 4:00PM
UK Regulatory
TIDMBZT
RNS Number : 0825J
Bezant Resources PLC
26 June 2017
26 June 2017
Bezant Resources Plc
("Bezant" or the "Company")
Update re Commissioning of Initial Platinum & Gold Recovery
Plant, Choco Project, Colombia
Bezant (AIM: BZT), the AIM quoted mineral exploration and
development company, is pleased to announce that its first gold
platinum recovery plant (the "Plant") acquired on 31 May 2017 has
arrived on site at the FKJ-083 licence area in Colombia and is
currently in the final stages of commissioning with initial test
production scheduled to occur by 30 June 2017.
Figures One is a recent photograph of the Plant assembly in situ
in Colombia.
http://www.rns-pdf.londonstockexchange.com/rns/0825J_-2017-6-25.pdf
In preparation for regular production commencing in July 2017,
extensive earthworks and civil engineering works have already been
completed at the FKJ-083 site in order to prepare for plant
assembly and operational commissioning. Three tailings ponds have
been constructed, which will enable the plant to operate using a
closed water circuit which seeks to maximise the recycling and
reuse of water. The three tailings ponds have a combined capacity
of over 1million cubic metres. . The initial operational mining pit
has also been developed in preparation for test production.
Figure 2 shows and overhead photo of the mining area and
tailings ponds
http://www.rns-pdf.londonstockexchange.com/rns/0825J_1-2017-6-25.pdf
The Plant will process near-surface gravels from the regional
alluvial deposit, using a proven mercury-free gravity fed system,
to recover free gold and platinum which requires no further
treatment or processing prior to sale.
Earlier this year, the Company commissioned an independent
scoping study from INGEX Grupo Minero SAS to assess economic
sensitivities. The results of this study were announced in March
2017 with the following production estimates:
-- Financial modelling based on stage 1 production using a
single plant operation with a plant processing rate of 1,800m(3)
/day ("Stage 1 Production")
-- Comprehensive cost analysis and financial model derived the
following key estimated parameters for Stage 1 Production over a
12-month operational period:
- US$768 per ounce total cost of production for platinum and
gold recoveries;
- US$6.01/m(3) (US$4.29/tonne) total average mining and
processing cost; and
- 0.17 grams per tonne (238mg/m(3) ) break-even grade for
combined Pt and Au.
-- Principal underlying assumptions applied in the financial model included:
- combined Pt and Au grade of 300mg/m(3) for processed material
based on an assessment of historic third-party mining operations
and drilling data;
- metals prices of US$965 per ounce of platinum and US$1,176 per
ounce of gold; and
- a discount rate of 10 per cent.
Bezant's strategy remains to develop a low-cost platinum-gold
production portfolio in the Choco region of Colombia and to this
end, it has, via Ulloa Recursos Naturales SAS, its wholly owned
Colombian subsidiary, achieved the following key milestone to
date:
-- Exercised certain options to acquire mining licences covering
a total area of approximately 2,659 ha (with a further unexercised
option held and under evaluation in respect of licence HGE-082
covering approximately an additional 91 ha)
-- Entered into a mining services agreement with Exumax S.A.S. a
highly experienced Colombian based company with:
- over six years' experience of operating alluvial mining
projects in Colombia;
- a senior management team comprising both Australian and
Colombian mining professionals; and
- an emphasis on community relations and best practice
environmental management.
-- Acquired its first processing plant together will all the
engineering, technical drawings and data that will allow subsequent
additional plants for the project to be manufactured locally in
Colombia.
Once the Plant is in full operation, Bezant will seek to
construct further recovery plants in-country in order to expand its
operations in the Choco Region.
Bernard Olivier, CEO of Bezant, commented:
"This is the final stage in our production development strategy
in Colombia and we look forward to establishing regular platinum
and gold production during Q3 2017. Our objective is to rapidly
build high-margin cashflow from near-surface recovery operations in
Colombia. With the independent scoping study estimating all in OPEX
costs of under US$800/oz for a 12 month pilot operation, we believe
that Bezant can create a robust production portfolio to take
advantage of potential global supply fluctuations in platinum and
gold."
For further information, please contact:
Bezant Resources Plc
Bernard Olivier Tel: +61 40
Chief Executive Officer 894 8182
Laurence Read
Executive Director / Communications Tel: +44 (0)20
Officer 3289 9923
Strand Hanson Limited (Nomad)
James Harris / Matthew Chandler / Tel: +44 (0)20
James Dance 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 Regulations (EU) No. 596/2014.
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
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