TIDMKEFI
RNS Number : 4608G
Kefi Minerals plc
04 March 2015
4 March 2015
KEFI Minerals plc
("KEFI" or the "Company")
EXPLORATION UPDATE - Saudi Arabia
KEFI Minerals (KEFI), the gold exploration and development
company with projects in the Kingdom of Saudi Arabia and the
Democratic Republic of Ethiopia, is pleased to report the latest
exploration results in Saudi Arabia. KEFI is the operator of the
Company's 40%-owned Gold & Minerals Joint Venture
("G&M").
HIGHLIGHTS OF RECENT RESULTS
Jibal Qutman:
-- Ongoing drill and trench results at the recently discovered
Red Hill prospect continue to expand the zone of mineralisation,
with best results including:
-- 17m at 2.65 g/t Au and 14m at 1.00 g/t Au from drilling
-- 24m at 1.90 g/t Au, 20m at 2.92 g/t Au and 26m at 2.23 g/t Au from trenching; and
-- 34m at 1.41 g/t Au from rock chips along channels.
-- The trenching results extend the Red Hill zone of mineralisation by 600m, to 1,600m long
-- Extension drilling at the 3K Hill prospect returned best
results of 13m at 1.12 g/t Au and 9m at 1.72 g/t Au
-- Trenching at 4K Hill returned best results of 24m at 1.90 g/t
Au (including 4m at 5.12 g/t Au)
-- Mineral resources (non JORC-compliant) at 15 December 2014
stand at 201,237 ounces at 0.93 g/t Au within the oxidised zone,
with an additional 428,711 ounces at 0.90 g/t Au in the deeper
sulphide ore which could potentially be mined at a stage subsequent
to the contemplated heap leach (HL) project
-- Diamond drilling for (HL) metallurgical testwork has been
completed in four of the prospects and the HL simulations are
underway at ALS-Ammtec in Perth, with results expected in Q2
2015
Hawiah:
-- Following the granting of the Hawiah Exploration Licence
("Hawiah EL") in December 2014, a first pass trenching program has
been completed. A total of 53 trenches have been excavated over a
6km long gossanous horizon which is thought to overlie volcanogenic
massive sulphide copper-gold style of mineralization
-- From results received to date, almost all trenches contained
anomalous gold, including 6m at 2.22 g/t Au, 2m at 8.69 g/t Au, 6m
at 1.94 g/t Au, 3m at 5.76 g/t Au, 2m at 7.54 g/t Au and 8m at 3.04
g/t Au
-- A self-potential (SP) geophysical survey has commenced to
identify metals at depth. Initial survey results indicate the
presence of a low resistivity anomaly directly below the gossans
and a parallel anomaly 200m further east. An induced polarization
(IP) survey will test the SP anomalies in preparation for deeper
diamond drill testing
The foregoing results serve the following business plan
objectives:
Jibal Qutman:
-- To assemble sufficient mineral resources (c. 250,000 ounces
Au in oxidised material) at surface to justify the staged
development of a series of shallow open pits and processing by HL
methods
-- To demonstrate economic metallurgical recovery by the HL
process. Surface trench samples demonstrated fast leach kinetics
and +90% gold recovery in 2014 bottle-roll test work. Testing is
now being performed on oxides in drill core down to 40-50m depths
using column leaching
-- To initiate a bankable feasibility study in 2015 to develop a low-cost HL mining operation
-- To permit regional Exploration Licence Applications ("ELAs")
which have high prospectivity for additional resources
-- To develop Jibal Qutman as an opportunity to self-fund:
-- the capex to build a carbon-in-leach processing plant for the deeper sulphide ore; and
-- the Company's program of exploring G&M's large portfolio
of targets as part of the development of a strong Saudi mining
operation for the long term.
Hawiah:
-- To demonstrate the potential for economic gold resources at surface (in the gossan)
-- To apply geophysical techniques to identify large base metal
(copper, gold and zinc) targets at depth
-- To then follow through with targeted drilling programs within
this second of the Company's two mineral provinces in Saudi
Arabia
Jeff Rayner, Exploration Director of KEFI Minerals,
commented:
"We are pleased to report good progress at both licences in
Saudi Arabia. At Jibal Qutman, we keep adding ounces that have real
potential for development in the short term and, at the other Saudi
region where we are active, Hawiah, our initial exploration has
confirmed that the 6km-long gossanous zone is enriched in gold and
the mineralisation has good continuity. This is also an affirmation
of establishing our operating platforms within the highly
prospective Arabian Nubian Shield. Excellent progress in Saudi
Arabia and Ethiopia pave the way for us to judiciously pursue
larger regional targets over the longer term."
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
Brandon Hill Capital Ltd (Broker)
Oliver Stansfield, Alex Walker,
Jonathan Evans +44 207 936 5200
Luther Pendragon (Financial
PR)
Harry Chathli, Claire Norbury,
Oliver Hibberd +44 207 618 9100
Further information can be viewed on KEFI's website at
www.kefi-minerals.com
References in this announcement to exploration results,
resources, 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.
Jibal Qutman: Exploration Drilling and Trenching
Positive results have been returned from the ongoing exploration
drilling (reverse circulation or "RC" drilling) and trenching
campaigns at Jibal Qutman, expanding along strike the known
mineralisation to the north and south of the recently discovered
Red Hill prospect. Gold mineralisation is related to quartz vein
stockwork hosted in carbonate-silica altered serpentinite
("Listwaenites"), exposed along the eastern flank of a 600m long NS
trending ridge. In the discovery zone results from drilling on a 30
by 50m spaced grid confirms the presence of two subparallel and
subvertical continuous mineralised bodies. A total of 8 RC
drillholes were drilled, returning multiple intercepts including
14m at 1.00 g/t Au, 9m at 1.18 g/t Au, 31m at 1.64 g/t Au
(including 17m at 2.65 g/t Au). Three infill rock chip channels,
performed across the top and the eastern flank of the ridge,
returned best results of 34m at 1.41 g/t Au. Further trenching and
RC drilling are in progress in the area.
Trenching results extend the mineralization 600m further north
of the discovery zone (trench JQT315 with a best result of 20m at
2.92 g/t Au), and 1km south of the discovery zone (trench JQT307
with best results of 26m at 2.23 g/t Au and 4m at 14.12 g/t
Au).
At 3K Hill further drilling extends the mineralisation 100m to
the north. Drillhole JQRC387 returned 9m at 1.72 g/t Au and 4m at
3.94 g/t Au; and JQRC388, drilled where the mineralisation is
covered under "Wadi" sand cover, returning best result of 13m at
1.12 g/t Au
Further drilling is now warranted at the 4K Hill prospect, as
new trench results extends the mineralisation to the North-East,
returning best results of 3m at 4.86 g/t Au, 24m at 1.90 g/t Au
(including 4m at 5.12 g/t Au) and 7m at 1.08 g/t Au.
A metallurgical diamond drilling program, for a total 10 holes
and 436m drilled, was completed in January 2015 at Jibal Qutman.
Drillholes targeted the oxidised and transitional mineralisation at
South Zone, Main Zone, West Zone and 3K Hill prospects. Samples
were dispatched to ALS Ammtec Metallurgy lab in Perth, and column
leach testwork is in progress. Initial results of tests are
expected in Q2 2015.
The following tables summarise the best drilling and trenches
not reported previously:
Hole From To Interval Gold Zone
M m m g/t
JQRC387 0 9 9 @ 1.72 3K Hill
--------- ---------
14 18 4 @ 3.94
--------- ----- ---- --------- ----- ---------
JQRC388 2 15 13 @ 1.12 3K Hill
--------- ----- ---- --------- ----- ---------
JQRC391 31 39 8 @ 0.94 3K Hill
--------- ----- ---- --------- ----- ---------
JQRC393 58 72 14 @ 1 Red Hill
--------- ----- ---- --------- ----- ---------
JQRC394 7 16 9 @ 1.18
---------
22 53 31 @ 1.64
incl 35 52 17 @ 2.65
--------- ----- ---- --------- -----
JQRC396 11 16 5 @ 4.88
---------
25 48 23 @ 1.07
---------
62 67 5 @ 1.22
--------- ----- ---- --------- -----
JQRC397 81 92 11 @ 1.36
---------
97 105 8 @ 1.27
--------- ----- ---- --------- ----- ---------
Trench and From To Interval Gold Zone
channels M m M g/t
JQT287 11 21 10 @ 0.73 4K HILL
---------
incl 16 19 3 @ 1.11
------------ ----- ---- --------- ------ ---------
JQT285 90 94 4 @ 1.08
------------ ----- ---- --------- ------
JQT284NE 219 243 24 @ 1.9
including 227 230 3 @ 4.86
------------ ----- ---- --------- ------
JQT306 14 21 7 @ 1.08
------------ ----- ---- --------- ------
JQT307 260 279 19 @ 0.71
------------ ----- ---- --------- ------ ---------
JQT315 0 20 20 @ 2.92 RED HILL
---------
incl 16 19 3 @ 10.02
------------ ----- ---- --------- ------ ---------
JQT322 22 26 4 @ 7.81
38 39 1 @ 3.14
------------ ----- ---- --------- ------
JQT323 9 11 2 @ 1.35
27 34 7 @ 1
------------ ----- ---- --------- ------
JQT234 29 35 6 @ 1.02
44 46 2 @ 0.89
------------ ----- ---- --------- ------
JQT325 33 37 4 @ 1.54
------------ ----- ---- --------- ------
JQT337 13 39 26 @ 2.23
incl 21 35 14 @ 3.61
52 56 4 @ 14.12
------------ ----- ---- --------- ------
JQC008 25 26 3 @ 1.09
------------ ----- ---- --------- ------
JQC009 46 47 34 @ 1.41
------------ ----- ---- --------- ------
JQC009 79 80 2 @ 2.56
------------ ----- ---- --------- ------
JQC009 82 83 1 @ 1.51
------------ ----- ---- --------- ------
JQC009 84 85 1 @ 1.1
------------ ----- ---- --------- ------ ---------
Hawiah: First Pass Exploration Trenching Results
At Hawiah a first pass, wide spaced trenching program was
completed in February 2015. A total of 53 trenches, for a total of
1,620m, were excavated over a 6km almost continuous north-south
exposure of highly silicified and variably gossanous horizon, with
abundant secondary copper showings. This zone was mapped and
trenched by France's Bureau De Recherches Geologiques et Minieres
(BRGM) in the 1980s, which identified its gold-bearing potential.
KEFI's newly performed trenches repeated some of the BRGM's
trenches and also extended the well-known exposure both to the
south and to the north.
Best results from this initial trenching program include 6m at
2.22 g/t Au, 5m at 1.08 g/t Au, 4m at 2.64 g/t Au, 2m at 8.64 g/t
Au, 6m at 1.93 g/t Au, 8m at 1.33 g/t Au, 3m at 5.76 g/t Au, 2m at
2.26 g/t Au, 2m at 7.54 g/t Au, 8m at 3.04 g/t Au. Results of
trenching confirm that gold grades occur with good continuity along
the strike length, and the shallow potential of the Au
mineralisation. Results from multi-element analyses (base metals
and path finder elements) are pending.
A geophysical orientation Self Potential (SP) survey is in
progress in Hawiah: A total of 69 east-west trending 1.7km long
survey lines, covering the whole extension of the 6km mineralised
exposure, has been designed, targeting potentially deep seated
disseminated to sub-massive sulphide (Cu-Au-Zn) bodies associated
with volcanically hosted massive sulphides (VHMS) bodies. Low
resistivity targets generated by the SP survey will be followed-up
with a more detailed geophysical IP survey. The IP survey is
designed to test for electrical conductors (i.e. massive sulphides)
down to vertical depth of 200-250m.The IP anomalies will provide
vertical depths to target and will be tested by diamond
drilling.
The following table summarises the trenching results received to
date (assay results for 4 more trenches are pending):
Trench From To Interval Gold
m m m
g/t
HAT001 4 6 2 @ 1.26
-------- ----- --- --------- -----
HAT004 9 13 4 @ 1.06
-------- ----- --- --------- -----
HAT005 12 18 6 @ 2.22
-------- ----- --- --------- -----
HAT006 12 17 5 @ 1.43
incl 14 16 2 @ 2.87
-------- ----- --- --------- -----
HAT007 11 16 5 @ 1.08
-------- ----- --- --------- -----
HAT008 14 18 4 @ 2.64
-------- ----- --- --------- -----
HAT010 16 19 3 @ 1.98
-------- ----- --- --------- -----
HAT012 11 13 2 @ 1.16
-------- ----- --- --------- -----
HAT012 23 25 2 @ 1.78
-------- ----- --- --------- -----
HAT013 24 26 2 @ 8.69
-------- ----- --- --------- -----
HAT015 18 21 3 @ 1.01
-------- ----- --- --------- -----
HAT016 10 16 6 @ 1.93
-------- ----- --- --------- -----
HAT017 9 11 2 @ 3.22
-------- ----- --- --------- -----
HAT017 19 20 1 @ 2.23
-------- ----- --- --------- -----
HAT019 7 9 2 @ 1.03
-------- ----- --- --------- -----
HAT022 8 16 8 @ 1.33
-------- ----- --- --------- -----
HAT023 10 13 3 @ 1.59
-------- ----- --- --------- -----
HAT025 7 9 2 @ 1.60
-------- ----- --- --------- -----
HAT027 9 10 1 @ 1.41
-------- ----- --- --------- -----
HAT028 8 9 1 @ 1.67
-------- ----- --- --------- -----
HAT029 9 12 3 @ 5.76
-------- ----- --- --------- -----
HAT030 7 9 2 @ 1.01
-------- ----- --- --------- -----
HAT033 5 7 2 @ 2.26
-------- ----- --- --------- -----
HAT034 18 20 2 @ 7.54
-------- ----- --- --------- -----
HAT036 15 23 8 @ 3.04
-------- ----- --- --------- -----
HAT042 10 15 5 @ 1.00
-------- ----- --- --------- -----
HAT043 12 13 1 @ 1.77
-------- ----- --- --------- -----
HAT045 4 5 1 @ 1.92
-------- ----- --- --------- -----
HAT049 14 15 1 @ 2.67
-------- ----- --- --------- -----
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 2.1M ounces (100% of Tulu Kapi's 1.9M ounces and 40%
of Jibal Qutman's 0.6M ounces) 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.
Expected milestones for the remainder of 2015 at Tulu Kapi
include:
-- Mining Licence for Tulu Kapi, comprising all major permits for construction and operation
-- Independently refined and verified mine plan
-- Independently verified capex, opex & closure costs
-- Independently verified Ore Reserves
-- Independently updated Definitive Feasibility Study for banking purposes
-- Formalisation of bank syndicate, agreement of final terms for project finance
-- Full development funding and commencement of construction
In addition, during 2015 KEFI anticipates submitting a Mining
Licence Application for Jibal Qutman in Saudi Arabia through its
joint venture company, Gold & Minerals Ltd ("G&M").
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 ounces 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 Mining Licence Application and issue approvals in
early 2015.
KEFI in the Kingdom of Saudi Arabia
KEFI Minerals has a 40% interest in the G&M joint Venture
(G&M) and is the operating partner. G&M holds, other than
Hawiah and Jibal Qutman, 23 ELAs that cover an area of
approximately 1,484km(2) . EL's are renewable for up to five 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.
At Jibal Qutman Exploration Licence, G&M's flagship project,
the total inferred category Mineral Resources, not yet JORC
compliant, are estimated at 22.0Mt at 0.90 g/t Au for
633,461contained gold ounces compared with a JORC resource of 16.7
Mt at 0.92g/t Au for 495,194 contained gold ounces previously
estimated in March 2014, both at a cut-off grade of 0.2g/t Au.
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
DRLJJMTTMBJMTFA
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From Apr 2024 to May 2024
Kefi Gold And Copper (LSE:KEFI)
Historical Stock Chart
From May 2023 to May 2024