REG - Kefi Gold and Copper - Discovery and Update on Jibal Qutman Gold Project

KEFI Gold and CopperAnnouncement

30/01/2024 07:00

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RNS Number : 2821B  Kefi Gold and Copper PLC  30 January 2024

30 January 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

New Discovery and Update on Jibal Qutman Gold Project 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 confirmation of a new discovery, as well as an
operational update, in respect of the Jibal Qutman Gold Project ("Jibal Qutman
Gold") in Saudi Arabia in the Company's minority-owned Gold & Minerals Ltd
("GMCO") joint venture.

Highlights

·    Satellite deposit (Asfingia) discovered with excellent grades of up
to 66.6g/t gold

·    Drilling ongoing on identified 35km mineralised strike across three
contiguous licences

·    Selection of preferred production start-up plan expected by mid-2024

Key Points

·    Having completed the 13,000m in-fill drilling programme in Q3-2023,
GMCO switched to resource expansion drilling which quickly led to the
discovery of the Asfingia satellite deposit. Asfingia drilling results
include:

o JQD_232: 13.9m (12.7m estimated true width ("ETW") at 7.9 g/t gold from
53.6m (including 1.2m at 66.6 g/t gold).

o JQD_265: 25.5m (37.5m ETW) at 1.9 g/t gold from 86.0m (including 7.4m at 5.2
g/t gold).

o A 350m strike length has already been established down to a depth of 75m and
the deposit remains open down-dip and along strike.

o  Drilling is ongoing to define the limits of gold mineralisation and
estimate a Maiden Resource at Asfingia to complement the other deposits at
Jibal Qutman.

 

·    Systematic exploration is ongoing across the 270km(2) of the three
contiguous Jibal Qutman Gold Exploration Licences ("EL's") to confirm
structural controls on higher-grade gold mineralisation and identify further
resource potential.

 

·    Previous Exploration primarily focused on an 8km section of the
original Jibal Qutman EL and the full 35km mineralised strike length will now
be tested.

 

·    Sampling and scout drilling programmes are currently underway across
multiple targets including recent shallow alluvial mining areas and are
expected to identify further drill targets.

 

·    In addition to scout and infill drilling, drone surveying, geological
mapping, trenching and geophysical surveying programmes are all underway to
help further define the structural framework of the area and assist in target
delineation.

 

·    Two diamond drill rigs and 10 experienced Saudi based exploration
geologists are focused on Jibal Qutman Gold. Reverse circulation ("RC") drill
rigs will also shortly join the project to further accelerate exploration.

 

·    KEFI's GMCO joint venture partner, ARTAR, has agreed to fund the
ongoing programme at present (without dilution) to ensure swift progress
continues 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.

 

·    The Definitive Feasibility Study ("DFS") on Jibal Qutman Gold is
making excellent progress and release of its conclusions is expected in
mid-2024. Work is currently focused on:

o Incorporating the results of the 13,000m infill drilling program completed
in Q3-2023 into preliminary mine design and scheduling across a range of
production scenarios;

o Finalising metallurgical test work, which has already established potential
recoveries of 80-93% on the oxide ore (depending on grade) and circa 70% on
sulphide fresh ore through CIL processing. Optimisation studies continue for
the sulphide fresh ore;

o GMCO Board approval of the preferred start-up plan; and

o Finalising and publishing the underlying Mineral Resource Estimate ("MRE"),
maiden Ore Reserve and DFS.

 

Harry Anagnostaras-Adams, KEFI's Executive Chairman commented: "Jibal Qutman
Gold is starting to shape up its plans for production. During the remainder of
H1 2024, we expect to report a series of steps as we simultaneously select our
preferred production start-up plan and aggressively test our recent
breakthroughs in the geological understanding of the mineralised system. We
have two diamond rigs running 24/7 and RC rigs will shortly join the project.

 

"At the same time, the foot remains on the accelerator at our much larger
discovery, the Hawiah Copper-Gold Project in the Wadi Bidah Minerals Belt,
where we have recently been joined as explorers by Saudi Arabia's largest
mining company, Ma'aden, which has been granted licences adjacent to us and
quickly launched a large exploration programme in joint venture with Ivanhoe
Electric. A separate update on Hawiah will be provided, as part of the ongoing
recently expanded 65,000m infill and expansion drill programme.

 

"Saudi Arabia is indeed fast-tracking its mining sector and GMCO is at the
forefront. We expect significant progress over the coming weeks and months,
which will reinforce the value being created through GMCO's aggressive
exploration programme, for the past few years running at the rate of over
US$20 million per annum.

 

"We are very pleased to have so far assembled Mineral Resources of
approximately 5 million oz gold equivalent (KEFI beneficially 2 million oz
gold equivalent) in Saudi Arabia and Ethiopia and we expect this to grow as
drilling continues. KEFI has spent a total of approximately US$64 million on
these projects, which represents an excellent establishment cost to date of
only US$32/oz Resource on three advanced development projects.

 

"We will provide further updates of material developments across both of our
advanced Saudi projects, as well as anything notable from work currently being
undertaken across our portfolio of exploration licences as appropriate."

 

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

 

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.

 

Appendix 1 - Jibal Qutman Maps

 

Figure 1 - Jabal Qutman map showing the location of the three JQ licences

 

Figure 2 - Overview map of Jabal Qutman main licence with the new Asfingiah
target and the other main resource areas.

Appendix 2 - Summary of Diamond drilling (DD) and Trench (TR) results to date
from Asfingiah target with estimated true widths ("ETW")

 

 Hole ID  Type    Easting    Northing   Azi  Dip                Depth  Interval                                  Including
          From               To              Downhole Interval         ETW             Au (ppm)          From           To (m)  Interval (m)  Au (g/t)
 JQD232   DD      333879     2254676    255  50                 103.2  29      35      6         5.01    0.89
          37.5               42.23           4.73                      4.43            1.61              39.5           42.23   2.73          2.41
          53.6               67.55           13.95                     9.22            7.92              64.85          66.1    1.25          66.6
 JQD233   DD      333884     2254721    255  50                 112    20.75   25.00   4.25      3.31    0.96
          29.50              34.50           5.00                      4.81            0.58
          37.90              43.00           5.10                      3.95            0.46
 JQD238   DD      333901     2254597    255  50                 143.5  23.00   25.00   2.00      1.75    0.86
          26.94              32.90           5.96                      4.98            0.96
          49.00              51.90           2.90                      2.30            0.54
          64.20              71.00           6.80                      5.91            0.99
          77.60              80.27           2.67                      1.22            1.38
          82.40              91.00           8.60                      4.30            1.85
          110.95             115.00          4.05                      2.83            0.37
 JQD239   DD      333885     2254821    255  50                 120    21.05   31.50   10.45     8.20    0.93    24.8   26.16   1.36          4.71
          93.00              95.15           2.15                      1.36            0.72
 JQD265   DD      333901     2254548    270  50                 137.1  25.50   30.56   5.06      4.67    1.88
          42.00              54.65           12.65                     8.50            0.82              48.35          49.5    1.15          2.88
          57.62              69.00           11.38                     10.84           1.30              60.5           62      1.5           6.12
          86.00              111.50          25.50                     15.51           1.90              90.5           97.87   7.37          5.22
          114.50             122.00          7.50                      5.36            1.78              119            122     3             3.93
          125.00             129.50          4.50                      4.02            1.23
 JQD266   DD      333889     2254772    270  50                 155.5  31.20   34.00   2.80      2.40    0.33
          95.26              114.50          19.24                     9.80            1.37              97.5           104.45  6.95          2.56
 JQD267   DD      333934     2254670    270  50                 165.1  No Significant Intercepts
 JQD268   DD      333933     2254720    270  50                 169.2  91.03   95.51   4.48              1.26
 JQT415   TR      333794     2254746    90   0                  80     45      47      2         1.74    2.27
          51.00              59.00           8.00                      8.86            1.27              53.3           55      1.7           3.79
          71.00              73.00           2.00                      1.72            0.36
 JQT416   TR      333796     2254702    90   0                  80     34      50      16        15.3    2.31    41.75  43      1.25          13.41
          58                 65.5            7.5                       7.09            1.77              58             59      1             7.99
 JQT417   TR      333798     2254596    90   0                  80     24      32      8         7.41    1.19    28     29      1             4.58
          36                 48              12                        11.7            0.64
          56                 74.5            18.5                      17.5            0.32
 JQT418   TR      333821     2254639    52   0                  15.8   7.85    15.8    7.95      6.78    3.77    9      10      1             15.7
 JQT427   TR      333821.55  2254546.2  90   0                  95     20.40   40.05   19.65     19.20   0.44
          43.00              52.00           9.00                      8.19            1.33              51             52      1             8.96
          55.00              58.00           3.00                      2.82            0.31
 JQT428   TR      333824     2254468    90   0                  120    47.20   50.00   2.80      2.70    0.51
          54.00              57.00           3.00                      2.89            0.39

 

Notes: Significant Intercepts ≥ 2m, Intercepts are defined using cut-off
grade is 0.2g/t Au, Intervals are reported with a maximum of 2m of continuous
internal dilution

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