TIDMKEFI
RNS Number : 0556Z
Kefi Minerals plc
08 December 2014
8 December 2014
KEFI Minerals Plc
("KEFI" or the "Company")
Second major EXPLORATION LICENCE AWARDED IN sAUDI ARABIA
exploration program at hawiah, saudi arabia to commence
immediately
KEFI Minerals (AIM: KEFI), an emerging gold miner with projects
in the Kingdom of Saudi Arabia and Democratic Republic of Ethiopia,
is pleased to announce a significant step in Saudi Arabia with the
award of its second major licence in the country. On 5 December
2014, KEFI received confirmation that the 95km(2) Hawiah
Exploration Licence ("Hawiah EL") had been granted to KEFI's
partner, Abdul Rahman Saad Al-Rashid & Sons Company Limited
("ARTAR"), on behalf of the KEFI-operated Gold and Minerals Joint
Venture Company ("G&M").
Exploration work has now commenced and initial focus will be on
a large Volcanogenic Hosted Massive Sulphide ("VHMS") target. VHMS
deposits are closely associated with submarine volcanic rocks and
are major sources of Gold, Copper, Zinc, Lead and Silver. Testing
will begin on a 4km-long gold mineralised gossan (surface-exposed
iron-rich oxidized portion of the VHMS mineralisation).
HIGHLIGHTS
-- The Hawiah EL was one of the higher priority Exploration
Licence Applications ("ELAs") being processed for ARTAR on behalf
of G&M. KEFI is operator and 40% owner, with ARTAR owning the
remaining 60%;
-- The unusually large structure exposed at surface at Hawiah is
considered by KEFI as analogous to large copper-gold-zinc VHMS
deposits in the Arabian-Nubian Shield ("ANS"), which also have
well-preserved, mature oxidised zones enriched in gold at surface.
Other examples of large VHMS deposits in the ANS includes Bisha
(Nevsun) and Asmara (Sunridge) in Eritrea, Hassaiin NE Sudan
(Ariab), and in Saudi Arabia at Jabal Sayid (Barrick and Ma'aden)
and Al Masane (Arabian American);
-- G&M's exploration program is included within the budget
for 2015 and commences with arranging geophysical surveys and
trenching, to facilitate planning of the drilling program; and
-- Rock chip and channel sampling, undertaken during field
reconnaissance, returned results of up to 22.45g/t gold and 38.7g/t
silver from outcropping silicified gossanous bodies located within
the Hawiah EL.
KEFI Minerals' Exploration Director, Jeff Rayner, commented:
"We are pleased that our joint venture in Saudi Arabia has been
awarded a second licence and thank our partner, ARTAR, for their
efforts. The Arabian-Nubian Shield is largely under explored and we
are pleased that we have been awarded this high priority second
licence to go along with the one we have already at Jibal Qutman.
The potential at Hawiah is huge as it is considered to be
comparable to some large copper and copper-zinc deposits in the
Arabian-Nubian Shield, with ancient gold workings in the oxidized
zones at surface. This program is a great complement to the Tulu
Kapi development project within the ANS in Ethiopia. We look
forward to reporting progress on all our projects shortly."
BACKGROUND ON HAWIAH
The newly granted Hawiah EL is located in the southern part of
the Arabian-Nubian Shield and lies on the prospective Wadi Bidah
Mineral District ("WBMD"), a 120km-long north-south trending belt.
Ancient workings and mineral occurrences for base metals and gold
have been found in over 20 places in the WBMD.
The Hawiah Prospect was initially explored by the French Bureau
de Recherches Géologiques et Minières ("BRGM") in 1986.
Reconnaissance rock-chip sampling and channel sampling along the
4km-long strike of silica gossan outcrops showed strong gold
enrichment at surface. Gold grades occur with good continuity along
strike. The following table summarizes BRGM's results of the
reconnaissance channel sampling campaign:
Channel From To Interval g/t
m m m
---------- ----- ----- --------- ------
HWTR-001 11.2 14.2 3.0 @ 2.42
---------- ----- ----- --------- ------
HWTR-003 4.0 7.0 3.0 @ 3.77
---------- ----- ----- --------- ------
HWTR-005 7.0 9.0 2.0 @ 1.05
---------- ----- ----- --------- ------
HWTR-006 7.0 8.0 1.0 @ 5.63
---------- ----- ----- --------- ------
HWTR-008 0.0 5.5 5.5 @ 2.47
---------- ----- ----- --------- ------
HWTR-009 2.0 3.0 1.0 @ 4.83
---------- ----- ----- --------- ------
HWTR-011 1.0 2.3 1.3 @ 3.19
---------- ----- ----- --------- ------
HWTR-012 0.0 1.8 1.8 @ 2.07
---------- ----- ----- --------- ------
HWTR-014 0.0 2.1 2.1 @ 2.27
---------- ----- ----- --------- ------
HWTR-015 0.0 2.4 2.4 @ 13.23
---------- ----- ----- --------- ------
HWTR-016 0.0 1.0 1.0 @ 1.38
---------- ----- ----- --------- ------
HWTR-017 1.0 4.0 3.0 @ 1.23
---------- ----- ----- --------- ------
A geophysical survey ("SP and IP") identified strong low
resistivity and high conductivity anomalies, potentially related to
a massive sulphide body. This was also identified by BRGM,
extending the prospective zone at depth below the mineralisation
exposed at surface, however, the SP and IP anomalies were never
drill tested.
The BRGM explored the WBMD in the 1980's and identified
gold-gossan resources at numerous prospects with gold grades
averaging up to 7g/t. Gold gossans were the focus of the BRGM's
programmes and only limited deeper diamond drilling was performed
on some of these VHMS deposits in the WBMD. Diamond drilling
results confirmed the potential with Cu grades averaging up to 2.6%
and Zn grades averaging up to 5.5% being identified at depth.
EXPLORATION AND CORPORATE STRATEGY
In Saudi Arabia, KEFI has, from the outset, worked in
partnership with its local partner ARTAR, which obtained the Hawiah
EL on behalf of G&M, along with granted Exploration Licences
other than Hawiah and 23 ELAs. As stated previously, the Saudi
authorities are reviewing their regulatory policy with regards to
mineral exploration. The Directors of KEFI are increasingly
confident that, given the Company's approach of strong local
ownership from the outset, it is well-positioned to avoid any
potentially negative impact resulting from a change in policy.
Further information can be viewed on KEFI's website at
www.kefi-minerals.com
KEFI Minerals Plc
Harry Anagnostaras-Adams (Executive
Chairman) +357 99457843
Jeffrey Rayner (Exploration Director) +90 533 928 1913
SP Angel Corporate Finance LLP (Nominated
Adviser)
Ewan Leggat, Katy Birkin +44 20 3470 0470
Fox-Davies Capital Ltd (Joint Broker)
Oliver Stansfield, Alex Walker +44 207 936 5200
finnCap Ltd (Joint Broker)
Joanna Weaving, Christopher Raggett +44 207 220 0500
Luther Pendragon (Financial PR)
Harry Chathli, Claire Norbury, Ivana
Petkova +44 207 618 9100
References in this announcement to exploration results,
interpretations and prospects have been approved for release by Mr.
Jeffrey Rayner. Mr Rayner is a geologist and has more than 25
years' relevant experience in the field of activity concerned. He
is a Member of the Australasian Institute of Mining and Metallurgy
(AusIMM) and has reviewed and consented to the inclusion of the
material in the form and context in which it appears.
NOTES TO EDITOR
KEFI Minerals Plc
KEFI is the operator of two advanced gold development projects
within the highly prospective Arabian-Nubian Shield, with an
attributable 2.0Moz (100% of Tulu Kapi's 1.9Moz and 40% of Jibal
Qutman's 0.5Moz) Au Mineral Resources (JORC 2012) plus significant
resource growth potential. KEFI targets that production at these
projects generate cash flows for further exploration and expansion
as warranted, recoupment of development costs and, when
appropriate, dividends to shareholders.
KEFI in Ethiopia
The Tulu Kapi gold project in Western Ethiopia is being rapidly
progressed towards development. In October 2014, KEFI Minerals
reactivated the Mining Licence Application and assembled indicative
project finance terms.
A Definitive Feasibility Study is evaluating construction of a
1.2Mtpa processing plant with estimated annual gold production
86,000 oz at total operating costs of $626/ounce. The planning
parameters for the DFS have already been independently confirmed.
The Company's milestones for 2015 include licencing, resettlement
of affected households, arranging project finance in mid-2015 for
major works to commence in the final quarter of 2015 and production
commissioning at the end of 2016.
The Company has received strong support from the Ethiopian
authorities, who have confirmed their intention to expedite the
processing of the MLA and issue approvals in early 2015.
KEFI Minerals in the Kingdom of Saudi Arabia
KEFI Minerals has a 40% interest in the G&M and is the
operating partner. G&M holds two Exploration Licences ("ELs")
other than Hawiah and 23 ELAs that cover an area of approximately
1,484km(2) . EL's are renewable for up to three years and bestow
the exclusive right to explore and to obtain a 30-year exploitation
(mining) lease within the area.
In 2009, KEFI formed G&M, with Saudi partner ARTAR, to
explore for gold and associated metals in the Arabian Shield. To
date, G&M has conducted preliminary regional reconnaissance and
had five EL's granted. Three have been relinquished after initial
testing.
The Kingdom of Saudi Arabia has instituted policies to encourage
minerals 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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