TIDMKEFI
RNS Number : 9003D
Kefi Gold and Copper PLC
02 November 2020
2 November 2020
KEFI Gold and Copper plc
("KEFI" or the "Company")
Hawiah Project Update
Commencement of Q4 Drilling Campaign
First Drill Hole Extends Camp Lode from 300 metres to 440 metres
vertical depth
KEFI (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 confirm the
recommencement of drilling at the Company's Hawiah Project in Saudi
Arabia ("Hawiah" or the "Project"), as anticipated following the
recent positive Preliminary Economic Assessment ("PEA").
The drilling programme of 13,000 metres is aiming to expand and
upgrade the maiden Hawiah Mineral Resource Estimate ("MRE") from
the current 19.3 million tonnes at 0.9% copper, 0.8% zinc, 0.6g/t
gold and 10.3g/t silver.
Based on the results of the initial Hawiah PEA and assuming
similar characteristics to the current MRE, additional resources
further improve the economic case for the Project. For further
background, see the Company's announcement of 22 September 2020
titled "Preliminary Economic Assessment Confirms Hawiah as a High
Priority Project" which reported, inter alia, that a doubling of
the resource would increase the Project's estimated after-tax NPV
from US$96 million to US$362 million.
The first hole drilled in Q4 2020 targeted the down-dip
extension of the Camp Lode. KEFI is pleased to report hole HWD-070
intercepted 4.2 metres (estimated true width) of Volcanic Massive
Sulphide ("VMS") style of mineralisation at a downhole depth of 557
metres (vertical depth 440 metres). The previous deepest hole into
the Camp Lode intercepted copper-zinc- gold-silver mineralisation
at vertical depth of 300 metres. Visual inspection of the drill
core identified chalcopyrite mineralisation presenting with pyrite
in a sheared and massive form, in a similar style to earlier drill
hole HWD-059 which intercepted 8.7 metres (estimated true width) at
1.55% copper, 1.0% zinc, 0.4g/t gold and 11.8g/t silver). Assays
have not yet been received for hole HWD-070.
The first phase of the current drilling programme is focused on
step-out resource expansion. The later stages of the programme will
focus on infill drilling and targeted holes to improve definition
within the higher-grade transition zone.
A comprehensive update, including details of all drill holes,
will be provided as soon as practical after the programme is
completed and all assays are received, however, the Company will
also report any further material results during this drilling
programme.
KEFI's operations in Saudi Arabia are conducted through its 34%
owned joint-venture company, G&M, where KEFI is the operating
partner.
Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented
:
" I am pleased to report that the next stage of the Hawiah
exploration programme has commenced as planned.
"The Hawiah deposit remains open at depth and beyond the
existing 4km strike. Increasing copper grades intersected in the
previous deepest drill hole at the Camp Lode indicate an excellent
opportunity to add additional high-grade copper-gold resources
during this phase of drilling. It is very encouraging that the
first hole drilled since the maiden resource estimate has
intercepted four metres of sulphide mineralisation c.140 metres
below the previous deepest drill hole of 300 metres into the Camp
Lode.
"In addition to the deeper drilling being undertaken with the
goal of substantially increasing the maiden Hawiah resource, this
programme will also include infill drilling with a view of
upgrading the key areas of the resource to the indicated category
so as to warrant mine planning and the estimation of an initial Ore
Reserve.
"We are also focussed on the studies and survey required for the
completion of a Preliminary Feasibility Study during 2021, and
further exploration of the surrounding area for a large stockwork
zone or "feeder zone" to the massive sulphides, which represents a
separate and potentially even larger-scale target.
"We look forward to reporting further progress at Hawiah and
outcomes of this major drilling programme in due course."
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 Gold and Copper 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, Adam Cowl
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe, Florence Chandler
Competent Person Statement
The information in this announcement that relates to exploration
results and Mineral Resources is based on information compiled by
Mr Tomos Bryan, Exploration Manager for Gold & Minerals
Limited. Mr Bryan is a member of the Australasian Institute of
Mining and Metallurgy ("AusIMM"). Mr Bryan is a geologist with
sufficient relevant experience for Company reporting to qualify as
a Competent Person as defined in the JORC Code 2012. Mr Bryan
consents to the inclusion in this announcement of the matters based
on this information in the form and context in which it
appears.
The Hawiah Mineral Resource was announced on 19 August 2020.
KEFI confirms that it is not aware of any new information or data
that materially affects the information in the above releases and
that all material assumptions and technical parameters,
underpinning the estimates continue to apply and have not
materially changed. KEFI confirms that the form and context in
which the Competent Person's findings are presented have not been
materially modified from the original market announcements.
Notes to Editor
KEFI Gold and Copper 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, together with assembling the full
funding consortium and set the conditional terms for the
development funding package of c.US$221 million.
Estimates include gold production of c.190,000oz pa. 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 34%
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.
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