9 May 2024
KEFI Gold and Copper
plc
("KEFI"
or the "Company")
Substantial Drilling
Programmes Confirm Potential of Hawiah Copper-Gold
Project
Hawiah remains on track to
become a major base metal mine in Saudi Arabia
KEFI Gold
and Copper Plc (AIM: KEFI), the gold and
copper exploration and development company which has focused on the
Arabian-Nubian Shield since 2008, is pleased to provide an
operational update for the Hawiah Copper-Gold Project ("Hawiah") in
the Company's minority-owned Gold &
Minerals Ltd ("GMCO") joint venture.
Highlights
·
At Hawiah, over 50,000m of the 65,000m infill
drilling programme is complete in preparation for updating the
existing 29.0Mt Mineral Resource Estimate ("MRE") (see announcement
on 9 January 2023), with results in-line with expectations as
modelled.
·
Recent drilling highlights include:
o HWD_222
intersecting 8.6m (7.5m ETW) of massive sulphide averaging 0.8%
copper, 0.4% zinc, 0.5 g/t gold and 8.1g/t silver from 970.2m;
and
o HWD_246
intersecting 9.3m (8.4m ETW) of massive sulphide averaging 0.7%
copper, 1.0% zinc, 0.6 g/t gold and 10.2 g/t silver from
872.7m.
·
These intercepts have extended the vertical depth
of known mineralisation at Hawiah to 740m and increased the
down-plunge extent of the Crossroads Extension Lode by a further
270m.
·
At the satellite Al Godeyer deposit, a second
phase of drilling comprising 4,500m has recently commenced to
infill and expand its maiden MRE reported in 2023 (see announcement
dated 3 April 2023).
·
These two drilling programmes are on track to
upgrade at least 90% of the >30 million tonne combined MRE to
the Indicated Resource category, forming the basis for Ore
Reserves.
·
Earlier-stage exploration is also ongoing at other
potential Hawiah satellite deposits, including at the recently
announced Abu Salal discovery.
·
Hawiah's status as the third largest base-metal
development project in the now burgeoning Saudi Arabian minerals
sector has been reaffirmed by this highly successful exploration
programme.
Harry Anagnostaras-Adams, KEFI's Executive Chairman
commented:
"Exploration near our Hawiah copper-gold-zinc-silver deposit
has quickly yielded validating results and unveiled two additional
discoveries. The 65,000m Hawiah infill and expansion drilling
programme is now more than 75% complete, with excellent
confirmatory results. GMCO is also focused on upgrading and
expanding the Al Godeyer resource (12km west of Hawiah) through
diamond drilling.
"The enlarged MRE of +30Mt copper-gold-zinc is scheduled to be
issued in late 2024 based on the current infill and extensional
drilling programme.
"Exploration also addresses additional targets within the Wadi
Bidah Minerals District. Whilst GMCO discovered the Hawiah VMS
deposit in 2019 and the nearby Al Godeyer VMS deposit in 2022,
recent drilling based on geological modelling and interpretation
has now discovered a similar VMS copper-gold-zinc-silver system at
Abu Salal located around 50km south of Hawiah.
"The recent Abu Salal discovery has confirmed that the large
Hawiah deposit itself is only the first in a cluster of deposits as
often occurs with this style of mineralisation and has confirmed
proof of concept in our understanding of regional geology and
genesis of this style of VMS deposits.
"Similar VMS signatures can be witnessed elsewhere on our
portfolio of assets, where we would accordingly expect further
discoveries to be made. GMCO has a portfolio of 15 exploration
licences in Saudi Arabia.
"Saudi Arabia is indeed fast-tracking its exploration and
mining sector with GMCO at the forefront. We expect significant
progress over the coming weeks and months, which will reinforce the
value being created through GMCO's aggressive and technically
leading-edge exploration programme."
Drilling Continues to Extend
GMCO's First Discovery at Hawiah
Since initial grant of the Hawiah
Exploration Licence ("EL"), GMCO has completed more than 105,000m
of drilling. The ongoing 65,000m infill and expansion drilling
programme continues with three diamond rigs onsite and c.52,000m of
this programme completed to the end of March 2024.
The first stage of this programme
was designed to further test the depth limits of the Crossroads
Extension area of the Hawiah orebody. This has been highly
successful with notable intercepts including:
- HWD_222
intersecting 8.6m (7.5m ETW) of massive sulphide averaging 0.8%
copper, 0.4% zinc, 0.5 g/t gold and 8.1g/t silver from 970.2m;
and
- HWD_246
intersecting 9.3m (8.4m ETW) of massive sulphide averaging 0.7%
copper, 1.0% zinc, 0.6 g/t gold and 10.2 g/t silver from
872.7m.
The above intercepts have extended
the vertical depth of known mineralisation at Hawiah to 740m and
increased the down-plunge extent of the Crossroads Extension Lode
by a further 270m (see Figure 5 in the appendix).
Overall, the Hawiah infill drilling
has been returning results in line with expectations and confirmed
the 2022 MRE result. This has provided further confidence in the
geological model ahead of the next MRE update which is scheduled
for Q4 2024.
Highlights from the infill drilling
at Camp lode include:
- HWD_268
intersecting 33.09m (18.87m ETW) of massive sulphide averaging 1.3%
copper, 0.1% zinc, 0.4g/t gold and 4.8g/t silver from 353.41m;
and
- HWD_340
intersecting 22.35m (13.36m ETW) of massive sulphide averaging 1.0%
copper, 1.5% zinc, 0.6g/t gold and 49.6g/t silver from
572.4m.
A key aim of this infill drilling
programmes is to convert the majority of the 30 million tonne
Hawiah (including its satellite deposit Al Godeyer) to the
Indicated Resource category as well as to expand the MRE in several
areas. In conjunction with the various development studies being
undertaken, this is expected to enable the estimation of
substantial Ore Reserves.
Upgrading Al Godeyer Maiden
Mineral Resource Estimate
Located only 12km west of the
proposed Hawiah processing plant site (see Figures 1 and 2 in
Appendix), Al Godeyer is a satellite deposit to the main Hawiah
orebody. GMCO exploration activities began in 2022 with the maiden
MRE announced in April 2023 of 1.35 million tonnes ("Mt") at 1.4g/t
gold, 0.6% copper, 0.54% zinc, and 6.6g/t silver.
Al Godeyer offers an excellent
opportunity to provide additional near-surface ore to the proposed
regional processing centre at Hawiah. Recent exploration focus has
been aimed at increasing the current 1.35Mt Inferred Resource to a
c.2Mt Indicated Resource, which would allow the Al Godeyer deposit
to be incorporated into mine designs and Ore Reserves, as part of
the planned Hawiah Definitive Feasibility Study ("DFS").
The first phase of the Al Godeyer
infill drilling programme was completed in August 2023. This short
eight-hole programme was designed to confirm mineralisation in
unclassified portions of the potential open-pit environment ahead
of the main infill drilling programme. The first programme was a
success with all holes intercepting the mineralised zone in-line
with modelling (see Figures 3 and 4 in Appendix). Highlights from
the first phase include:
- AGD_024:
7.0m (6.1m estimated true width ("ETW") at 1.8g/t gold, 1.0%
copper, 0.1% zinc and 4.1g/t silver from 123.0m; and
- AGD_018:
3.1m (2.3m ETW) at 1.1g/t gold, 0.6% copper, 3.3% zinc and 15.5g/t
silver from 114m.
The next 4,500m of infill drilling,
designed to close the drill spacing to the anticipated Indicated
Resource classification requirement, is now underway and expected
to complete in mid-June 2024.
Exploration elsewhere within the Al
Godeyer and Al Godeyer East ELs is still at an early stage and a
focus during 2024 is to explore southeast of the main Al Godeyer
gossan where it continues at surface as narrow, discontinuous
gossanous outcrops. The first stage of this will be a deeper
penetrating geophysical survey to help delineate sub-surface
targets, which will cover major portions of the two
licences.
Advancing Hawiah Towards Development
Hawiah already ranks as the third
largest base-metal project in the emerging Saudi Arabian minerals
sector.
Triggering of the Hawiah DFS is
scheduled to occur following the availability of the updated MRE in
late 2024.
Hawiah is a larger development
project than the Jibal Qutman discovery and entails underground and
open-pit mining, coupled with technically more advanced processes
to treat the polymetallic orebody comprising copper, gold, zinc and
silver. Additional metallurgical testwork studies are ongoing to
assess and optimise various processing and mining
options.
Hawiah's status has recently been
further highlighted by the granting of EL's, contiguous to GMCO's
within the Wadi Bidah, to the Saudi Government-controlled company
("Ma'aden") and its local exploration joint venture with Ivanhoe
Electric, which has announced that the Wadi Bidah is one of the top
4 priority targets for their proprietary deep-probing geophysical
survey technology (the 'Typhoon' electromagnetic 'EM'
method).
KEFI's GMCO joint venture partner
ARTAR has agreed to fund the ongoing programme at present to ensure
swift progress continues in Saudi Arabia whilst KEFI triggers
project launch in Ethiopia at the high-grade Tulu Kapi Gold
Project. This much-appreciated support from ARTAR reflects the
strong partnership relationship and the combined priority given to
production start-up in both countries.
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.
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.
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 Financial Limited (Lead Broker)
|
+44 (0) 20 7100 5100
|
Oliver Stansfield, Jonathan
Evans
|
|
|
|
IFC
Advisory Ltd (Financial PR and IR)
|
+44 (0) 20 3934 6630
|
Tim Metcalfe, Florence
Chandler
|
|
|
|
3PPB LLC International (Institutional IR)
|
|
Patrick Chidley
|
+1 (917) 991 7701
|
Paul Durham
|
+1 (203)
940 2538
|
Appendix 1 - Diagrams
Figure 1 - Location map of GMCO ELs
near Hawiah.
Figure 2 - Plan showing Al-Godeyer and
Hawiah gossans in relation to ELs.
Figure 3 - Map of Al Godeyer geology
and the collar locations of the Phase 1 infill
drilling.
Figure 4 - Long section of the Al Godeyer VMS horizon showing
the open pit shell and the Mineral Resource classifications based
on the 2023 MRE.
Figure 5 - Long section showing the Hawiah deposit
coloured by the 2022 Mineral Resource Classifications.
All drilling to date shown with orebody pierce points shown
in red. Several recent highlight holes are presented for
illustrative purposes.