TIDMKEFI
RNS Number : 9432C
Kefi Gold and Copper PLC
28 February 2022
28 February 2022
KEFI Gold and Copper plc
("KEFI" or the "Company")
Rapid Progress Continues in Saudi Arabia
KEFI (AIM: KEFI), the gold and copper exploration and
development company with projects in the Federal Democratic
Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to
announce that exploration and development studies at the
KEFI-operated Gold & Minerals Limited ("G&M") Hawiah
Copper-Gold Project ("Hawiah") and the contiguous Al Godeyer
Exploration Licences ("Al Godeyer") in Saudi Arabia continue to
make rapid progress. The development in due course of G&M's
rapidly growing projects is intended to be funded as to c.25% by
the G&M shareholders (KEFI 30% and ARTAR 70%) and c.75% by
project debt-funding. G&M's projects look likely to be
developed following construction of the Company's Tulu Kapi Gold
Project in Ethiopia, the full launch of which is targeted by
mid-2022.
Hawiah
Exploration drilling and trenching at Hawiah has continued
following the substantial diamond drilling programmes completed
during 2021 and the upgraded Hawiah Mineral Resource Estimate
("MRE") announced on 6 January 2022. Current work streams are
focussed on providing data for the Hawiah Preliminary Feasibility
Study ("PFS") and include:
-- A 3,700m reverse-circulation ("RC") drilling programme which
commenced in late January 2022 aimed at upgrading and expanding the
oxide portion of the Hawiah MRE to an Indicated Resource category
for open pit mine planning;
-- A now completed, targeted trenching programme across the Camp
and Crossroad Lodes, which enabled the collection of bulk samples
of the oxide material which have been dispatched for analysis;
-- Further metallurgical test work on the sulphide
mineralisation to determine the preferred flowsheets to recover the
copper concentrates and zinc concentrates, as well as the gold and
silver;
-- A recently commenced 1,800m geotechnical diamond drilling ("DD") programme; and
-- A 1,350m hydrogeological drilling and pump testing programme
which is scheduled to start in early March.
Al Godeyer
The two Al Godeyer Exploration Licences ("EL") granted in
December 2021 are located immediately west of the Hawiah EL and
contains historically recognised and newly identified gossans that
crop-out over a 2km strike (see the appended Figure 1 accessible
via
http://www.rns-pdf.londonstockexchange.com/rns/9432C_1-2022-2-27.pdf).
These are considered to be the weathered surface expression of a
Volcanic Massive Sulphide ("VMS") deposit, a direct geological
analogue of the Hawiah deposit. Initial exploration has focussed on
establishing continuity of the main gossans and work in the first
two months includes:
-- Mapping and rock chip sampling; which has returned gold
grades of up to 7.2g/t and copper up to 1.8% within the gossan;
-- Completion of the field data collection for the Self-Potential ("SP") geophysical survey;
-- Systematic trenching across the mapped gossans with 13 of the
planned 28 trenches completed and dispatched for analysis; and
-- Planning for the Q2 2022 scout diamond drilling programme.
Harry Anagnostaras-Adams, Executive Chairman of KEFI,
commented:
"Our 2022 projects in Saudi Arabia took off two months ago, with
the reporting of a significantly expanded and upgraded Mineral
Resource Estimate at Hawiah, the granting of the Al Godeyer
Exploration Licences and the informal indications from the Saudi
Arabian Ministry of Mineral Resources that our Jibal Qutman Gold
Project will have its mining licence application processed this
year.
"Our field teams have immediately responded and are focussed on
achieving our key 2022 objectives in Saudi Arabia of completing the
Hawiah Copper-Gold Project PFS, updating Jibal Qutman's development
plans and rapidly hitting the ground at Al Godeyer, where early
results indicate significant VMS potential, similar to the
copper-gold deposits at Hawiah. Success at Al Godeyer would
potentially add substantial value to the development of the Hawiah
project.
"VMS deposits typically form in clusters and Al Godeyer is only
one of the many VMS prospects in the G&M pipeline of
exploration targets."
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Lead Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
WH Ireland Limited (Joint Broker) +44 (0) 20 7220 1666
Katy Mitchell, Andrew de Andrade
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 non-financial
matters based on this information in the form and context in which
it appears.
The upgraded Hawiah Mineral Resource was announced on 6 January
2022. 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 development of the Tulu Kapi
Gold Project in Ethiopia and its pipeline of highly prospective
exploration projects in the Arabian-Nubian Shield. KEFI targets
that production at Tulu Kapi will generate cash flows for capital
repayments, further exploration and dividends to shareholders.
The following tabular summary presents KEFI's updated estimated
share of the project NPV's :
Pence
Tulu Kapi Hawiah Jibal Qutman Total Issued Per
NPV NPV NPV NPV Shares Share
Net Present Value
for KEFI
30/06/2020 GBP114m 0 0 GBP114m 1,867m 6
31/12/2020 GBP164m GBP80m 0 GBP244m 2,137m 11
30/06/2021 GBP205m GBP74m 0 GBP279m 2,153m 13
31/12/2021 GBP191m GBP128m GBP29m GBP348m 2,939m 12
Footnotes:
Assumed exchange rate was rate
US$1.35:GBP1.00
31 December 2021 Metal Prices:
Gold Price is US$1,830/oz
Copper Price is:
US$9,750/t
Zinc Price is US$3,590/t
Silver Price is
US$23/oz
Explanatory Notes:
* NPV is derived by KEFI using independently created financial
models of net cash flows after tax
and debt service, using a discount rate of 8%;
* Tulu Kapi open pit model is based on the Definitive Feasibility
Study ("DFS") as updated for any
refinements during project contracting and in-country experience;
* Tulu Kapi underground mine model is based on the internal Preliminary
Economic Assessment ("PEA");
* Hawiah assumes preliminary mine modelling for open pit and
underground because the MRE has only recently been updated. Also
includes preliminary debt leverage;
* Jibal Qutman model is based on the internal PEA, preliminary
debt-leverage applied.
KEFI Gold and Copper 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's wholly-owned
Ethiopian subsidiaries upon commencement of development by TKGM,
with a view to adding satellite deposits to development and
production plans.
KEFI Gold and Copper 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 30%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, and G&M directly hold over 16
Exploration Licence (EL) applications pending the introduction of
the new Mining Law. These new regulations have recently been
proclaimed and G&M now holds 3 EL's. ELs are renewable for up
to three years and bestow the exclusive right to explore and to
obtain a 30-year exploitation (mining) licence within the area.
In addition, G&M has a Mining Licence Application over the
Jibal Qutman Gold Project which recent informal indications by the
authorities provide some confidence that the licence will be
granted in 2022.
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