TIDMBZT
RNS Number : 7130W
Bezant Resources PLC
23 April 2019
23 April 2019
Bezant Resources Plc
("Bezant" or the "Company")
Option Agreement for Buffalo Copper / Gold Project, Zambia
Bezant (AIM: BZT), the copper-gold exploration and development
company, is pleased to announce that it has entered into a binding
memorandum of agreement with KPZ International Limited ("KPZ") (the
"MOU" or "Agreement") granting the Company a conditional option to
acquire a 50 per cent. interest in small scale copper mining
licence number15164-HQ-SML in The Republic of Zambia (the
"Licence") which contains the Buffalo exploration project (the
"Buffalo Project").
Under the terms of the Agreement and as consideration for such
50 per cent. interest in the Buffalo Project, Bezant is required to
complete an initial assessment of the Licence area at a cost of up
to US$200,000 by 1 February 2020 (the "Initial Expenditure Phase")
(the "Option"). Throughout the Initial Expenditure Phase, Bezant
will retain the right, at its sole discretion, to cease expenditure
on the initial assessment and withdraw from the Option, whereupon
all other obligations under the Agreement would be terminated.
Highlights
Low cost, 10 All expenditure during the Initial Expenditure
month project Phase to be invested directly in the Buffalo
assessment Project rather than being paid to the project's
sponsors.
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Accessible underexplored The Buffalo Project is located 300km north
iron oxide copper-gold west of Lusaka, accessed via tarred road and
("IOCG") location then 150km of gravel/dirt road from Kasempa
town. The project is situated in the Central
Zambian IOCG belt, which has long been recognised
as being of high potential but which remains
underexplored compared to the more well-established
Zambian Copper Belt.
------------------------- -----------------------------------------------------
Historic work Historic records of exploration and mining
includes drilling at the Buffalo Project exist from 1899, with
and current small a 6 per cent. copper zone reported by Rhodesia
scale activity Congo Border Concession Limited in the 1920's
from pitting in siliceous, brecciated and hematitic
siltstone. Four diamond holes drilled in the
1960s by Chartered Exploration Limited recorded
a best intercept of 28m at 1.07 per cent. Cu,
including 6m at 1.87 per cent. Cu.
Limited small scale mining is taking place
in the project area on obviously visible ore
outcrops. After extraction, the ore is hand
sorted to further upgrade the ore.
------------------------- -----------------------------------------------------
Strong geological Composite grab sample collected from the ore
indicators zone by Bezant assayed 3.17 per cent. Cu and
0.97g/t Au. Steeply dipping mineralised zone
traced over 80m along strike and continuing
into the hillside, 15-20m wide with central
high grade gossan zone 3-5m across.
------------------------- -----------------------------------------------------
Buffalo Project Summary
The Buffalo Project's copper-gold property comprises
approximately 398 hectares within licence number 15164-HQ-SML and
is located approximately 300km north west of Lusaka and accessed by
a 150km gravel/dirt road from Kasempa, which is within the Zambian
IOCG belt. The Licence was issued on 1 March 2013 and is valid for
10 years until 28 February 2023. Application is being made for the
Licence to be extended to cover gold in addition to copper.
Historic third party reports note that the Buffalo copper
prospect was rst identified in 1899, through outcropping
mineralisation on the side of a small hill. During the 1920s,
pitting,
trenching, tunnelling and crosscutting were carried out into the
hillside. This work reportedly discovered a high-grade (6 per
cent.) copper zone at the base of the hill. Further trenching was
undertaken in the 1960s followed by the drilling of four diamond
drillholes. The best drill intersection obtained was 28m at 1.07
per cent. Cu, including 6m at 1.87 per cent. Cu. No gold assays
were recorded.
Limited small scale mining is taking place in the project area
on obviously visible ore outcrops. After extraction, the ore is
hand sorted to further upgrade the ore.
The mineralised zone in the open pit trends northeast-southwest
and is more or less vertical with mining advancing into the
hillside towards the southwest where the zone can be seen to
continue. This continuity was not recognised by previous explorers
due to near-surface leaching of copper mineralisation. The
mineralised zone is 15-20m wide, with a central high grade core
about 3-5m across. A composite grab sample from blasted ore
material was collected recently by Bezant and tested at the
Geochemical Analytical Laboratory at the University of Lusaka
School of Mines. This sample assayed 3.17 per cent. Cu and 0.97g/t
Au, along with minor silver and trace cobalt.
The brecciated mineralised zone comprises soft, highly leached
and weathered gossan, with much malachite, hematite and limonite
throughout. The host rock is a siliceous, grey shale/
siltstone forming a well-marked hill. The mineralised zone has
been exploited over a strike length of approximately 80m and
remains open to the southwest into the hillside and possibly to
depth.
No systematic drill testing has been carried out along strike or
to depth, such that no resource estimate has yet been
established.
Colin Bird, Executive Chairman of Bezant, commented:
"We have decided to pursue our copper mission in Zambia as the
country has excellent copper mining fundamentals and is known to
have transparent mining legislation. The Buffalo Project is a well
established concession, which has the benefit of good historic work
more directed to small scale mining. The Central Zambian IOCG belt
has significant exploration potential, but has always played a
secondary role to the main copper belt in Zambia to the north which
has hosted many large, world-class underground copper mines.
"We will commence our initial assessment on clearly defined
veins, with apparent significant strike and the potential future
opportunity to commence small-scale mining supplying ore to third
party processing plants. I am most pleased to have negotiated this
Agreement and see the potential for achieving shareholder value
enhancement in a stable jurisdiction with a long history of copper
mining."
Laurence Read, CEO of Bezant, commented:
"This Agreement fits well with our global copper mission and we
intend to swiftly assess and analyse all potential copper
development opportunities for the Buffalo Project with a view to
maximising value creation for all of our stakeholders."
Key Terms of the Agreement
Parties: The Agreement was entered into on 20(th) April 2019 by
the Company and KPZ International Limited (the "Parties").
The Option: The Company has agreed to spend up to US$200,000
during the Initial Expenditure Phase in order to assess the
suitability of the Buffalo Project for a resource drilling
programme and has agreed to provide the results of such assessment
to KPZ by 1 February 2020 (the "Initial Assessment"). The Initial
Assessment its and associated expenditure shall be deemed as
consideration for a 50 per cent. interest in the Licence should
Bezant elect to exercise the Option.
Right to withdraw: The Company may at any time during the Option
period withdraw, should it deem the Buffalo Project unsuitable for
further investment and would thereupon i) forfeit any rights in
respect of the Buffalo Project and ii) be required to provide KPZ
with all information and results gathered during the Initial
Expenditure Phase to the point of withdrawal.
Proposed Establishment of SPV: KPZ has agreed to incorporate a
new local Zambian
special purpose vehicle to hold the Licence and all assets and
liabilities associated with the Buffalo Project (the "SPV") by June
2019. KPZ will initially hold 100% (less 5% to be held by a local
Zambian Shareholder) in the SPV. In the event that the Company
completes the Initial Assessment and exercises the Option, Bezant
will obtain a 50% shareholding in the SPV.
Potential scoping study: Assuming the Initial Assessment is
successfully completed and the Option is exercised, the Agreement
stipulates that Bezant will, by no later than 1 May 2020, present a
detailed budget to KPZ to conduct initial test drilling and produce
a scoping study on the Buffalo Project (the "Scoping Study").
Should KPZ wish to fund its 50 per cent. share of the Scoping Study
costs, it will be required to so confirm by 1 June 2020 and each
party will thereafter equally fund the project. If KPZ does not
wish to provide 50 per cent. of the funding required for the
Scoping Study, it will be diluted to a 25 per cent. equity interest
in the SPV, with the Company's interest increasing to 75 per cent.
in return for funding the entire Scoping Study.
For further information, please contact:
Bezant Resources Plc Tel: +44 (0)20 3289
Laurence Read 9923
Chief Executive Officer
Colin Bird
Executive Chairman
Strand Hanson Limited (Nomad) Tel: +44 (0)20 7409
James Harris / Matthew Chandler / James 3494
Dance
Novum Securities Limited (Broker) Tel: +44 (0)20 7399
Jon Belliss 9400
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.
Qualified Person's Statements
Geological information in this announcement relating to the
Licence has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a
consultant to Bezant. Mr Slowey is a graduate geologist with more
than 40 years relevant experience in mineral exploration and
mining, a founder member of the Institute of Geologists of Ireland
and a qualified person under the AIM Rules. Mr Slowey has reviewed
and approved the geological content of this announcement.
In accordance with the AIM Note for Mining and Oil & Gas
Companies, June 2009 (the
"Guidance Note"), Colin Bird, CC.ENG, FIMMM, a South African and
UK Certified Mine
Manager and Executive Chairman of Bezant, with more than 40
years relevant experience mainly in hard rock mining, is the
qualified person who has reviewed and approved the technical
information contained herein.
Notes to Editors:
Bezant's Copper-Gold Project Portfolio
The Mankayan Project, Philippines
The Guinaoang deposit is principally hosted by a 900m long by
400m wide north-south striking intrusive stock complex composed
largely of quartz diorite porphyry. The igneous rocks have intruded
a thick sequence of andesitic volcanics and a basement of biotite
quartz schists and mafic flows. The size, grade and mineralogy of
the deposit are typical of porphyry copper deposits.
From October 2011 to January 2014, the Mankayan Project was held
under option by Gold Fields Netherlands Services BV ("Gold Fields")
for a total exercise price of US$70m (of which US$9.5m was received
by the Company by way of initial non-refundable option payments).
The option ultimately lapsed, as Gold Fields began new operations
in Australia, and all exploration data, including the results of
the high-grade BR 60 drill hole completed by Gold Fields during the
option period, was transferred to Bezant.
Eureka Project, Argentina
The Eureka Project covers in excess of 10 thousand hectares and
is located in the north-west corner of the Jujuy province in
northern Argentina, adjacent to the border with Bolivia and at an
altitude of approximately 3,600 to 4,400 metres (above sea level).
The tenements are situated within the Argentinean portion of the
regionally extensive Bolivian-Argentinean Tertiary Belt
(Puna-Altiplano high-plateau) and there are two major metallogenic
associations present.
The property hosts the historical "Eureka Mine", which had been
exploited by the Jesuits since the 17th century, with an artificial
dam having been constructed for washing the gold extracted. Further
industrial-style gold exploitation commenced in circa 1885
(Novarese 1893), alongside exploitation of the "La Perdida" (now
called "El Torno") and the "San Francisco" mines. The most recent
copper extraction occurred in circa 1949 and continued in sporadic
form to 1975 (Coira et al 2002). The latest exploration activities
in the area (1980-2001), were carried out by Mantos Blancos,
Paramount Ventures and Finances and most recently, by Minera
Penoles and Codelco. The Company is interested in 11 exploration
licences covering the tenements.
Historic exploration resulted in non-compliant resource
estimates from Minera Penoles in the order of 62 million tonnes
grading at approximately 1% for copper (620,000 tonnes of copper)
and from Mantos Blancos, of 600,000 tonnes grading at approximately
2.7 g/t of gold (52,000 ounces of gold).
The Company is currently developing and pursuing potential Joint
Venture options for this project.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRITMRTMBATBFL
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