TIDMKEFI
RNS Number : 2678E
KEFI Minerals plc
27 February 2020
27 February 2020
KEFI Minerals plc
("KEFI" or the "Company")
Hawiah Exploration Project Update
Stage 2 Drilling Intersects Massive Sulphide in All Additional
19 Holes
Three Separate Zones Identified for Potential Mining, Further
Targets Remain
Inaugural JORC Resource Targeted mid-2020
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to provide an
update on the ongoing exploration programme at the Company's Hawiah
exploration project in Saudi Arabia. KEFI's operations in Saudi
Arabia are conducted through its 37% owned joint venture company,
Gold and Minerals Co. Limited ("G&M"), where KEFI is the
operating partner.
The Stage 1 Hawiah diamond drilling programme completed 26
drillholes in December 2019 and the initial results were announced
on 23 January 2020. The results confirm the large-scale Volcanic
Massive Sulphide ("VMS") style of mineralisation that underlies the
4km+ long surface gossanous ridgeline and coincident extensive and
exceptionally strong geophysical anomalies. Copper-zinc-gold-silver
sulphide mineralisation has been intercepted in drilling
consistently over more than 4km of strike length, with intercepts
of up to 5% Cu equivalent.
The Stage 2 Hawiah drilling programme has to date added a
further 19 drillholes, all of which have intercepted massive
sulphide and confirms the positive progress towards delineating an
initial Mineral Resource in accordance with the JORC Code by
mid-2020. Forty-five diamond drillholes have now been completed in
total (Stage 1 and Stage 2) and assays have been received for 20
drillholes.
Sufficient drilling has now been completed to identify three
separate zones with the following preliminary parameters for
potentially mineable lodes, with all zones remaining open at
depth:
-- The 'Camp Lode': 1.2km long, with an average width of 6m with
the widest intersection of 19m found at a depth of 90m. The lode
has been drilled to a depth of 300m where 9m of massive sulphide
was intersected;
-- The 'Crossroads Lode': 700m long, with an average width of 4m
with the widest intersection being 8m. This lode has been explored
to a maximum depth of 385m where 5m of massive sulphide was
intersected; and
-- The 'Crossroads Extension Lode': 1,000m long, with average
width of 4m with the widest intersection being 12m at a depth of
112m. This part of the orebody is also open at depth and the
deepest drillhole of 130m intersected 8m of massive sulphide.
At present the assay results from the massive sulphide
intercepts are summarised as follows:
-- Camp Lode which provides a preliminary indication that this
part of the orebody carries the following grades: Copper 1.4%; Zinc
0.6%; Gold 0.74glt and Silver 12g/t over average true width of
6.2m.
-- Assay results from the Crossroads lodes (including the
extension) which so far provide a preliminary indication that this
part of the ore body carries the following grades: Copper 1.5%;
Zinc 1.12%; Gold 0.77g/t and Silver 14.4g/t over average true width
of 4.9m.
The combination of these lodes on the sub-vertical structure
drilled to date is considered likely to exceed 12 million tonnes in
aggregate based on the results to date. For the purposes of
indicating the potential relative importance for KEFI shareholders,
at an assumed 2% copper-equivalent, the in-situ metal content of 12
million tonnes at current metal prices would approximate the
analogous in-situ metal content of the 1 million ounce reserve at
KEFI's Tulu Kapi Gold Project in Ethiopia.
A comprehensive update, including all details of all drillholes
will be provided as soon as the majority of assays are received. In
addition, the Company will also continue to assess the additional
resource potential of Hawiah outside of the current drill
programme, given drilling to date is yet to establish the
extremities of the mineralisation at depth.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR)
Tim Metcalfe, Florence Chandler +44 (0) 20 3934 6630
Competent Person Statement
The information in this announcement that relates to exploration
results is based on information compiled by Mr Jeffrey Rayner. He
is exploration adviser to KEFI, the Company's former Managing
Director and a Member of the Australian Institute of Geoscientists
("AIG"). Mr Rayner is a geologist with sufficient relevant
experience for Group reporting to qualify as a Competent Person as
defined in the JORC Code 2012. Mr Rayner consents to the inclusion
in this report of the matters based on this information in the form
and context in which it appears.
Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project
development project in Ethiopia, along with its pipeline of other
projects within the highly prospective Arabian-Nubian Shield. KEFI
targets that production at Tulu Kapi generates cash flows for
capital repayments, further exploration and expansion as warranted
and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI upon
commencement of development, with a view to adding satellite
deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a 40%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(EL) applications pending the introduction of the new Mining Law.
ELs 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.
The Kingdom of Saudi Arabia has announced 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 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
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