REG - Kefi Gold and Copper - Another Discovery in Saudi Arabia – Abu Salal

KEFI Gold and CopperAnnouncement

19/02/2024 07:00

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RNS Number : 5206D  Kefi Gold and Copper PLC  19 February 2024

19 February 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Another Discovery in Saudi Arabia - Abu Salal

Abu Salal Becomes the Third Discovery in the Hawiah Copper-Gold District

KEFI Gold and Copper Plc (AIM: KEFI), the gold and copper exploration and
development company with a first-mover advantage in Saudi Arabia, is pleased
to announce the discovery of a third copper-gold-zinc-silver deposit in the
broader Hawiah district by the Company's Gold & Minerals Ltd ("GMCO")
joint venture.

Highlights

·    GMCO has discovered another Volcanogenic Massive Sulphide ("VMS")
deposit, at Abu Salal, which becomes the third discovery in the Hawiah
Copper-Gold district following the original Hawiah discovery when drilling
commenced in 2019, and the subsequent Al Godyer discovery announced in 2022:

o The Abu Salal VMS deposit is located 50km south of GMCO's Hawiah Copper-Gold
project ("Hawiah") in the central portion of the Wadi Bidah Mineral Belt
("Wadi Bidah"), straddling GMCO's Abu Salal North and South exploration
licences

o Drilling has intercepted massive and semi-massive sulphide mineralisation
containing copper, gold, zinc and silver, in multiple horizons, across a
2,600m strike length, with true widths of up to 11m, indicated by the
first-pass 18-hole (2,009m) scout drilling programme

o This north-south trending gossan horizon, remains open at depth, along
strike and down plunge

o Assays of Abu Salal's sulphide mineralisation has returned multiple grade
intervals of comparable to those at GMCO's Hawiah discovery, which already
ranks in the top three of base metals projects in Saudi Arabia

Harry Anagnostaras-Adams, KEFI's Executive Chairman commented: "Ongoing
exploration near our Hawiah copper-gold-zinc-silver deposit has now quickly
yielded two additional discoveries, Al Godeyer and Abu Salal. Discovery of the
latter has further strengthened our view that the Hawiah deposit itself is
only the first in a cluster of deposits, as often occurs with this style of
mineralisation, in a much broader district.

 

"Abu Salal is some 50km south of Hawiah and we have already identified a
number of additional targets showing similar geological characteristics that
are to be drill tested. Interestingly we note that Ivanhoe Electric, through
its JV with the State mining company (Ma'aden), has committed to +US$60M of
exploration in Saudi Arabia and more specifically has picked up licences in
and around Hawiah not held by GMCO, and confirmed this district as amongst
their top four exploration priorities in Saudi Arabia.

 

"As previously reported, Saudi Arabia has opened up its exploration and mining
sector and we are seeing leading global explorers and producers enter into the
Kingdom for the first time. KEFI's first-mover advantage, through GMCO, has
ensured the Company has secured some of the most prospective licences in Saudi
Arabia and we believe we will continue to make significant additional
discoveries, as well as expanding our existing discoveries, through our active
exploration programmes, which have been running at a rate of approximately
US$20M per annum for the past few years.

 

"Later this quarter we will be issuing an update on Hawiah and Al Godeyer
following the positive work programmes that have taken place. The metal
content already reported at Hawiah is the gold equivalent of the Company's
other development assets (Tulu Kapi in Ethiopia and Jibal Qutman in Saudi
Arabia) prior to any further additional expansion. We are therefore highly
encouraged to have made the Abu Salal discovery, which once fully appraised
will no doubt significantly increase our resources in the Hawiah district
still further."

 

VMS Discovery at Abu Salal

The Abu Salal VMS deposit is located 50km south of Hawiah in the central
portion of the Wadi Bidah Mineral Belt, straddling GMCO's Abu Salal North and
South Exploration Licences ("EL's").

 

Scout drilling has intercepted massive and semi-massive sulphide
mineralisation beneath the 2,600m discontinuously-outcropping, north-south
trending gossan horizon, which remains open at depth, along strike and down
plunge.

 

Final assay results have been received from the first-pass 18-hole (2,009m)
programme designed to follow-up positive trenching and geophysical results
completed in 2022. This programme represents the first time that drilling has
ever taken place at Abu Salal.

 

Intersections in the fresh sulphide domain have confirmed
copper-zinc-gold-silver mineralisation with multiple intercepts demonstrating
grade intervals comparable to the Hawiah and Al Godeyer VMS deposits. The
initial interpretation is that the mineralisation represents the fringe
environment of a VMS system, with alteration minerals, typically associated
within the footwall/hangingwall environments of VMS deposits not observed.
Sulphides are typically fine grained, dominantly pyrite with lesser
chalcopyrite and sphalerite. These interpretations are important for guiding
the next stages of exploration.

 

The westerly dipping sulphide mineralisation has a true width of up to 11m and
is hosted in a meta-volcanic to sedimentary back-arc environment rock package
analogous to the geology of the wider Wadi Bidah.

 

Highlights from the scout drilling programme include:

 

-     ASD_004: 11.2m at 0.94% copper, 1.03% zinc, 0.33g/t gold and
14.96g/t silver from 27.9m;

-     ASD_008: 7.0m at 0.91% copper, 0.4% zinc, 4.0g/t silver from 36.0m;
and

-     ASD_009: 7.1m at 0.6% copper, 1.0% zinc, 0.2g/t gold and 10.9g/t
silver from 72.0m.

 

The moderate dip of the deposit indicates that intersected intervals are a
good approximation of the true width of mineralisation.

 

The targeting of this Abu Salal drilling programme was guided by a detailed
understanding of the geological genesis of the region developed over the past
five years. The success of this drilling is a proof of concept for the
exploration of these VMS targets throughout the Wadi Bidah. The scout drilling
at Abu Salal has allowed the team to gain insights into the geometry of the
mineralised horizon as well as the structural controls on mineralisation. At
this stage, drilling has only tested to a maximum vertical depth of 80m and on
limited portions of the full strike.

 

Follow-up exploration activities in 2024 will focus on drill testing deeper
portions of the system to further assess grade and geological continuity,
guided by deeper penetrating geophysics and geological modelling. The upcoming
programme will also look to extend the known mineralisation down plunge and
along strike.

 

As previously reported, KEFI's GMCO joint venture partner, ARTAR, temporarily
funds the ongoing programme at present to ensure swift progress continues
whilst KEFI triggers project launch in Ethiopia at the high-grade Tulu Kapi
Gold Project. This 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. KEFI confirms that the form and context in which the
Competent Person's finding.

 

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

 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 Abu Salal relative to the Hawiah project

Figure 2 - Geological map of the Abu Salal Project showing diamond drill hole
collars and trench lines to date

Figure 3 - Long section of the Abu Salal deposit displaying mineralised
intercepts downhole and on trenches (red cylinders) with highlight assay
results

 

Appendix 2 - Relevant Collar and Assay information for Abu Salal

Table 1- Trench and Drill collar information for Abu Salal

 Hole_ID   Type     UTM Zone  UTM Easting  UTM Northing  Elevation  Azimuth  Dip  Depth
 ASD_001   Diamond  37N       754603       2288346       1403       133      55   250.50
 ASD_002   Diamond  37N       754889       2289279       1398       113      55   150.50
 ASD_003   Diamond  37N       754914       2289365       1398       112      55   125.50
 ASD_004   Diamond  37N       754959       2289803       1388       100      45   100.60
 ASD_005   Diamond  37N       754949       2289904       1385       095      45   100.90
 ASD_006   Diamond  37N       754975       2290535       1386       090      55   100.70
 ASD_007   Diamond  37N       754612       2288306       1402       125      45   119.50
 ASD_008   Diamond  37N       754870       2289208       1406       101      55   91.60
 ASD_009   Diamond  37N       754584       2288266       1400       120      45   101.80
 ASD_010   Diamond  37N       754967       2289990       1385       096      45   80.50
 ASD_011   Diamond  37N       754979       2289712       1394       093      45   70.60
 ASD_012   Diamond  37N       754697       2288380       1408       135      45   150.50
 ASD_013b  Diamond  37N       754908       2289808       1388       100      50   140.50
 ASD_014   Diamond  37N       754862       2289385       1402       111      55   134.50
 ASD_015   Diamond  37N       754885       2289161       1406       106      45   70.50
 ASD_016   Diamond  37N       754838       2289177       1401       106      55   100.60
 ASD_017   Diamond  37N       755096       2290779       1392       095      45   60.50
 ASD_018b  Diamond  37N       755040       2290777       1390       095      45   59.50
 AST_001   Trench   37N       754631       2288325       1402       131      0    114.00
 AST_002   Trench   37N       754702       2288370       1406       136      0    130.00
 AST_003   Trench   37N       754800       2288476       1408       131      0    61.00
 AST_004   Trench   37N       754912       2288712       1412       102      0    39.00
 AST_005   Trench   37N       754912       2289270       1399       114      0    55.00
 AST_006   Trench   37N       754938       2289357       1400       115      0    55.00
 AST_007   Trench   37N       754753       2288420       1404       135      0    71.00
 AST_008   Trench   37N       754672       2288365       1405       085      0    22.00
 AST_009   Trench   37N       754663       2288398       1409       093      0    22.00
 AST_010   Trench   37N       754990       2289916       1388       096      0    42.66
 AST_011   Trench   37N       755019       2290527       1387       093      0    40.84
 AST_012a  Trench   37N       755056       2290777       1390       096      0    43.13
 AST_012b  Trench   37N       755111       2290771       1390       097      0    32.00
 AST_013   Trench   37N       754992       2289989       1383       096      0    38.49
 AST_014   Trench   37N       755009       2290066       1382       098      0    30.37
 AST_015   Trench   37N       754997       2289805       1388       100      0    38.46
 AST_016   Trench   37N       754916       2289203       1403       100      0    35.20
 AST_017   Trench   37N       754593       2288277       1401       109      0    96.00
 AST_018   Trench   37N       754985       2289421       1406       107      0    32.13
 AST_019   Trench   37N       755016       2290140       1382       099      0    30.70
 AST_020   Trench   37N       755004       2289493       1403       098      0    30.00
 AST_021   Trench   37N       755028       2290238       1383       097      0    31.26
 AST_022   Trench   37N       755012       2289576       1400       093      0    20.02
 AST_023   Trench   37N       755037       2290310       1383       099      0    28.23
 AST_024   Trench   37N       755015       2289647       1396       098      0    26.54
 AST_025   Trench   37N       755042       2290421       1386       094      0    29.92
 AST_026   Trench   37N       755008       2289716       1394       100      0    27.00
 AST_027   Trench   37N       755018       2290628       1384       097      0    28.51
 AST_028   Trench   37N       754988       2289863       1389       096      0    50.00
 AST_029   Trench   37N       754985       2290322       1383       112      0    21.00
 AST_030   Trench   37N       754930       2289721       1394       103      0    12.00
 AST_031   Trench   37N       754570       2288199       1399       095      0    68.00
 AST_032   Trench   37N       755326       2287047       1431       138      0    68.00
 AST_033   Trench   37N       755289       2287828       1418       094      0    68.00
 AST_034   Trench   37N       754920       2289191       1405       105      0    21.00
 AST_035   Trench   37N       754918       2289178       1405       106      0    17.00
 AST_036   Trench   37N       754916       2289172       1405       111      0    19.00
 AST_037   Trench   37N       754915       2289121       1405       101      0    20.00

Table 2 - Mineralised intervals for the Scout Drilling programme at Abu Salal
- Copper Equivalency calculated on a price of copper US$8,500t, zinc $2,350t,
gold US$1900oz, silver US$23.5oz

 

 Hole      From (m)  To (m)  Interval (m)  Cu%   Zn%   Au ppm  Ag ppm  CuEq %  ETW    Comment
 ASD_001   54.4      54.7    0.3           0.08  0.80  0.04    1.70    0.35    0.30
           63.2      63.6    0.4           0.44  0.49  0.00    1.90    0.61    0.35
           69.05     69.65   0.6           2.44  0.99  0.25    12.60   3.00    0.45
 ASD_002   61        62      1             0.83  1.46  0.27    10.55   1.52    1.00
 ASD_003   27.15     31.3    4.15          0.51  0.28  0.01    1.37    0.94    4.15
           56.92     60.35   3.43          0.39  1.30  0.44    15.48   1.20    3.10
           66.62     68.3    1.68          0.22  0.46  0.15    6.71    0.52    1.55
 ASD_004   27.9      39.2    11.3          0.94  1.03  0.33    14.96   1.59    11.20
           27.9      28.88   0.98          2.07  1.61  0.31    18.40   2.90    0.95   Including
           31.42     32.59   1.17          1.38  2.00  0.67    28.70   2.67    1.05
           36.4      39.2    2.8           2.28  1.65  0.80    38.52   3.65    2.80
           44.21     46.33   2.12          0.45  0.54  0.15    7.02    0.77    2.12
 ASD_005   37.2      39.02   1.82          0.43  1.04  0.10    5.82    0.85    1.63
           54.16     55.5    1.34          0.31  0.98  0.20    7.22    0.79    1.28
           50.68     51.64   0.96          0.45  1.64  0.45    14.50   1.35    0.90
 ASD_006   30.9      32      1.1           0.43  0.52  0.12    5.38    0.71    1.10
 ASD_007   10        11      1             1.46  0.68  0.04    1.65    1.69    1.00
           71.13     71.58   0.45          0.70  2.09  0.39    13.40   1.68    0.40
           14.15     15.9    1.75          0.09  0.07  2.27    7.71    1.81    1.42
           58.89     60.81   1.92          0.29  0.70  0.30    8.04    0.77    1.90
 ASD_008   36        43      7             0.91  0.40  0.09    4.20    1.12    7.00
           36        38.38   2.38          1.65  0.78  0.26    13.14   2.17    2.38   Including
           67.27     68.55   1.28          1.07  2.39  0.61    21.25   2.35    1.28
 ASD_009   14.19     14.85   0.66          1.43  0.08  0.07    4.08    1.54    0.66
           22.85     25.4    2.55          0.81  0.59  0.13    6.02    1.12    2.55
           68.3      69.87   1.57          0.91  1.40  0.39    20.77   1.76    1.33
           72        84.15   12.15         0.46  0.77  0.19    8.30    0.88    10.45
           72        79.07   7.07          0.63  0.98  0.24    10.90   1.16    7.07   Including
 ASD_010   32.1      33.05   0.95          0.75  1.34  0.20    11.71   1.37    0.90
           41.9      44.03   2.13          0.20  0.72  0.18    6.60    0.59    1.50
 ASD_011   34.2      36.1    1.9           3.18  0.70  0.32    14.01   3.72    1.90
 ASD_012   24        29      5             2.31  0.16  0.02    0.54    2.37    5.00
           41.3      42.63   1.33          0.01  0.70  0.01    0.50    0.21    1.33
 ASD_013   50.4      51.5    1.1           0.48  1.53  0.14    6.28    1.06    1.10
 ASD_014   74.14     74.65   0.51          0.39  1.35  0.11    6.40    0.89    0.51
           99.5      102.85  3.35          0.48  2.26  0.42    16.33   1.55    3.35
           104       104.3   0.3           0.48  0.62  0.23    5.20    0.87    0.30
 ASD_015   21        22.6    1.6           0.11  0.46  0.97    4.20    0.95    1.60
           22.6      25      2.4           0.08  0.11  1.23    4.97    1.04    2.40
           38.5      39.35   0.85          1.39  0.03  0.25    22.60   1.78    0.85
           47.5      49.5    2             2.17  1.70  0.41    20.10   3.11    2.00
 ASD_016   47.7      49.65   1.95          0.71  1.61  0.26    11.90   1.45    1.80

           85.07     86.75   1.68          0.51  1.76  0.35    14.52   1.38    1.50
 ASD_018b  16.5      22.2    5.7           0.08  0.18  0.25    3.96    0.34    5.00

 

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