REG - Bezant Resources PLC - Mankayan Project MPSA renewal

Bezant ResourcesAnnouncement

18/03/2022 07:00

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RNS Number : 2074F  Bezant Resources PLC  18 March 2022

18 March 2022

Bezant Resources Plc

("Bezant" or the "Company")

Mankayan Project MPSA renewal

 

Bezant (AIM: BZT), the copper-gold exploration and development company,
 further to its announcements dated 13 September 2021 and 21 October 2021 and
22 November 2021, confirms that the Mines and Geosciences Bureau of the
Department of Environment and Natural Resources of the Philippines government
("MGB") has renewed Crescent Mining Development Corporation's ("Crescent")
Mineral Production Sharing Agreement No. 057-96-CAR (the "MPSA") for a second
25 year term with effect from 12 November 2021 (the "MPSA Renewal").

 

Highlights

 

Mankayan project

·    The MPSA Renewal for 25 years is seen by the Company as a catalyst
for the development of the Mankayan Project which is a potentially world class
copper-gold porphyry project at a time when the Philippines is looking to
further develop its mining industry.

 

·    Since the acquisition by IDM Mankayan Pty Ltd ("IDM") from Mining and
Minerals Industries Holding Pte Ltd. (MMIH) of MMIH's interest in the project
including project reports commissioned by MMIH there has been an extensive
review of the work undertaken in relation to the project during 2019 to 2021
which is referred to under the project's background information summary below.

 

Bezant's Interest in the Mankayan project

·    Bezant's interest in the Mankayan Project is via its 27.5%
shareholding in IDM, a company incorporated in Australia, established to
support Crescent in developing the Mankayan Project in the Philippines, with
the remaining 72.5% owned by established investors in the mining sector. IDM
owns 100% of Asean Copper Investments Limited, further details of IDM and its
interest in the Mankayan Project were announced on 13 September 2021.

 

Project work underway and planned

·    Crescent has commenced the feasibility study process and has engaged
internationally recognised firms with in-country presence and Philippine firms
to complete the scoping phase of the project and to plan a drill campaign to
assist with geotechnical studies.

 

ASX Listing

·    As previously announced on 13 September 2021 it is proposed that IDM
will be acquired by IDM International Limited (ACN 108029198) with the view
that IDM International Limited in the future may apply for a listing on the
Australian Stock Exchange ("ASX").

 

 

Colin Bird, Executive Chairman of Bezant, commented: We are very pleased with
the renewal of the MPSA for 25 years which will be a catalyst for the
development of this world class copper gold porphyry project. We are very
confident that management in the Philippines supported by IDM have the
experience and expertise to take the project forward through the next stages
of evaluation and development which will significantly enhance the value of
the project. We are also  aware of the renewed focus of the Philippines since
the lifting in August 2021 of the moratorium on new mining projects and the
nationwide ban on open-pit mining method, in ensuring that the Philippines
considerable mining resources are developed and play a significant role in the
development of the Philippine economy in the post COVID era."

 

Mankayan Copper-Gold Porphyry Deposit Background information

The Guinaoang (Mankayan) copper-gold deposit forms part of the major Lepanto
mineralisation system located approximately 240km north of Manila on Luzon
Island, Philippines. The district hosts a number of large copper and gold
deposits, including the Far Southeast porphyry deposit, the Lepanto lodes, and
the Suyoc epithermal gold-silver veins.

 

The copper mineralisation encountered in the Guinaoang deposit is typical of
porphyry copper-gold style deposits. The Pliocene intrusive stock complex is
composed largely of quartz diorite porphyry rocks, with two distinct phases of
igneous intrusion, both of which are host to copper and gold mineralisation.
In plan view the intrusives occupy an area which is approximately 400m wide
and 900m long and it has been drilled to more than 900m depth.

 

By way of background information the following information is provided as it
is in the public domain:

 

·    Several phases of drilling defined a copper-gold resource estimate
by Snowden Mining Industry Pty Limited ("Snowden") in 2009 under JORC (2004)
which defined an initial mineral resource as per the table below. The Snowden
report was prepared for the Company and was JORC compliant when issued in 2009
but is not compliant with JORC (2012).

 

 Mankayan Resource Summary, JORC (2004) to a 0.4% Cu cut-off

 prepared by Snowden in 2009
 Resource Category  Tonnes (Mt)  Cu %  Au g/t  Cu metal (Mt)  Au metal (Moz)
 Indicated          221.6        0.49  0.52    1.1            3.7
 Inferred           36.2         0.44  0.48    0.2            0.6

 

 

·    In November 2020 MMIH announced an updated Mineral Resource was
prepared by Derisk Geomining Consultants Pty Ltd ("Derisk") for MMIH under
JORC (2012) and stated that "Mankayan is now estimated to have combined
Mineral Resources of 793 million tonnes containing 2.8 million tonnes of
copper, 9.6million ounces of gold and 20 million ounces of silver. It has
indicated Mineral Resource of 638 million tonnes @ 0.37% Cu, 0.40 g/t Au and
0.90 g/t Ag, and inferred Mineral Resource of 155 million tonnes @ 0.29% Cu,
0. 30g/t Au and 0.5 g/t Ag." This information is provided as MMIH have made it
publicly available but it is not an updated JORC resource statement in
accordance with AIM Rules and should therefore not be relied upon until it has
been independently verified or updated by the Company.  As referred to above
Crescent are undertaking further technical studies and the Company will make
further announcements as soon as practical once these studies are completed.

 

 

A 2019 study by Mining Plus Pty Limited announced by Bezant on 12 February
2019 and based on the 2009 resource identified and assessed a number of
high-level alternative mining options for the Mankayan project as well as
substantially improving the underlying economics of the proposed operations.
In total, eleven options were investigated, with the two main options being
block cave development routes at different scales. The highest mining rate
examined was 24Mtpa.

 

Further potential remains to extend the resource through additional drilling,
as well as delineating higher grade copper-gold zones within the deposit as a
potential focus for mining start-up.

 

Bezant interest in the Mankayan project:  The Company announced on  13
September 2021 i) the Company's agreement with IDM under which it was agreed
that IDM would take the Mankayan Project forward and the Company would own
27.5% of IDM with anti-dilution rights to enable the Company to maintain its
shareholding; and ii) IDM's agreement with  Mining and Minerals Industries
Holding Pte Ltd. ("MMIH") under which it acquired MMIH's interest in Asean
Copper Investments Ltd and MMIH's Project information ( the "IDM Agreements").

 

Proposed ASX listing: As previously announced It is proposed that IDM will be
acquired by IDM International Limited (ACN 108029198) with the view that IDM
International in the future may apply for a listing on the Australian Stock
Exchange ("ASX").

 

 

 

 For further information, please contact:

 Bezant Resources Plc

+44 (0) 20 3416 3695
 Colin Bird, Executive Chairman
 Beaumont Cornish (Nominated Adviser)

Roland Cornish

                                       +44 (0) 20 7628 3396

 Novum Securities Limited (Broker)

 Jon Belliss                             +44 (0) 20 7399 9400

Beaumont Cornish (Nominated Adviser)

Roland Cornish

 

 

+44 (0) 20 7628 3396

Novum Securities Limited (Broker)

Jon Belliss

 

 

+44 (0) 20 7399 9400

 

or visit http://www.bezantresources.com (http://www.bezantresources.com)

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market
Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 

 

Technical Sign-Off: Technical information in this announcement has been
reviewed by Edward (Ed) Slowey, BSc, PGeo, Technical Director of Bezant. Mr
Slowey is a geologist with more than 40 years' relevant experience in mineral
exploration and mining, a founder member of the Institute of Geologists of
Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed
and approved this announcement.

 

Technical Glossary

 

 "Au"                          Gold

 "Cu"                          Copper

 "Cu eq"                       Copper equivalent: Copper equivalent grades are based on a copper price
                               of US$2.80/lb and a gold price of US$1,800/oz Au.

 "g/t"                         grammes per tonne

 "Indicated Mineral Resource"  That part of a Mineral Resource for which quantity, grade (or quality),
                               densities, shape and physical characteristics are estimated with sufficient
                               confidence to allow the application of Modifying Factors in sufficient detail
                               to support mine planning and evaluation of the economic viability of the
                               deposit. Geological evidence is derived from adequately detailed and reliable
                               exploration, sampling and testing gathered through appropriate techniques from
                               locations such as outcrops, trenches, pits, workings and drill holes, and is
                               sufficient to assume geological and grade (or quality) continuity between
                               points of observation where data and samples are gathered (JORC 2012)

 "Inferred Mineral Resource"   An 'Inferred Mineral Resource' is that part of a Mineral Resource for which
                               quantity and grade (or quality) are estimated on the basis of limited
                               geological evidence and sampling. Geological evidence is sufficient to imply
                               but not verify geological and grade (or quality) continuity. It is based on
                               exploration, sampling and testing information gathered through appropriate
                               techniques from locations such as outcrops, trenches, pits, workings and drill
                               holes.

 "kt"                          thousand tonnes

 "Mineral Resource"            A 'Mineral Resource' is a concentration or occurrence of solid material of
                               economic interest in or on the Earth's crust in such form, grade (or quality),
                               and quantity that there are reasonable prospects for eventual economic
                               extraction. The location, quantity, grade (or quality), continuity and other
                               geological characteristics of a Mineral Resource are known, estimated or
                               interpreted from specific geological evidence and knowledge, including
                               sampling. Mineral Resources are sub-divided, in order of increasing geological
                               confidence, into Inferred, Indicated and Measured categories.

 "Moz"                         million ounces

 "Mt"                          million tonnes

 "Mtpa"                        million tonnes per annum

 

 

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