REG - Kefi Gold and Copper - Exploration Licence Awarded in Ethiopia

KEFI Gold and CopperAnnouncement

04/12/2024 07:00

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RNS Number : 6602O  Kefi Gold and Copper PLC  04 December 2024

4 December 2024

KEFI Gold and Copper plc

("KEFI" or the "Company")

Exploration Licence Awarded to KEFI in Ethiopia for Critical Metals

 

KEFI (AIM: KEFI) the gold and copper exploration and development company
focused on the Arabian-Nubian Shield since 2008, is pleased to report that the
Company's wholly-owned Ethiopian holding company KEFI Minerals (Ethiopia)
Limited ("KME") has been awarded the Konso Critical Metals Area ("Konso
Project") exploration licence by the Ethiopian Ministry of Mines.

Highlights

·    Awarded 100% of the Konso Critical Metals Area exploration licence in
Ethiopia, one of KEFI's pipeline of growth opportunities

·    Previously explored by Ethiopian Geological Survey, and by global
major Vale, prior to its country exit in 2012

·    Historic programmes identified large zones of copper (plus nickel /
cobalt / platinum group metals) and tantalum (plus lithium) now warranting
follow-up exploration, focusing initially on copper and tantalum based on
their long term economic outlook

The Konso Project was first explored by the Ethiopian Geologcal Survey and
then by global major Vale in 2012.  Prior to Vale's broader withdrawal from
Ethiopia, that company did not focus on the tantalum / lithium-bearing
pegmatities and, instead, confirmed large areas of copper / nickel / cobalt /
platinum group metals mineralisation.

KEFI's prominent position within Ethiopia, coupled with the pro-mining
movement within the country, has enabled the Company to secure this attractive
exploration licence, at a time when long-term price dynamics for KEFI's
prioritised critical metals, copper and tantalum, has much improved since
Vale's involvement.  The Konso Project appears to have geological analogies
to certain projects in East Africa currently being actively explored by global
mining groups and others being funded by Middle Eastern investment houses
focused on the global electrification transition, and with whom KEFI have
ongoing dialogues.

The Konso Project

The Konso Project is approximately 635 kilometres ("kms") south west of Addis
Ababa and near the city of Arba Minch.  The exploration licence ("EL")
awarded to KME covers an area of 22 square kms and covers those areas of
interest highlighted by Vale's field results.

The Konso EL has a renewable term of three years with the right to follow
through further if demonstrable progress is achieved.  Following procedural
registrations at regional and local government levels, KME will mobilise its
existing regional exploration team to site ahead of executing an initial work
programme.  The focus will be on copper (with its co-products) and tantalum
(and its co-products), areas in which the KEFI team has experience within
Ethiopia.

Vale's early-stage reconnaissance was focused on a combination of remote
sensing and classical field geology and ground truthing, including airborne
geophysics, ground geochemistry, surface mapping and rock chip sampling.
 Vale's work included the establishment of 2500 geological stations for data
collection and database assembly, 3000 line kms EM (Electromagnetic airborne
survey), 4000 soil samples and 120 rock chip samples.

KME will start with an initial programme which will include mapping, trenching
and geophysics initially prioritising what Vale at the time had no interest
in, tantalum/lithium.  Konso's granitic pegmatites have analogies with those
of the internationally well known Kenticha Project in Ethiopia.  Kenticha is
an LCT (lithium, ceasium, tantalum) pegmatite occurrence geologically
comparable with Greenbushes, Australia and Altia No. 3, Peoples Republic of
China.  The Kenticha Project has historically produced tantalum/lithium with
internationally marketable specific product characteristics and which has
significant remaining resources, but whose continued development progress has
been stalled due to ongoing negotiations over development and exploration
rights.

Pegmatites related with the central granitic body are reported at the central
and north-east parts, and several mafic-ultramafic bodies are mapped at the
west, north west and central parts.  Vale confirmed large surface anomalies
over two kms wide.

KEFI Executive Chairman, Harry Anagnostaras-Adams, commented: "We report today
the first of a number of opportunities we plan to pursue via our Ethiopian
holding company KEFI Minerals Ethiopia Limited, KME.  We intend to progress
exploration and, in due course, to establish focused regional alliances to
pursue the cherry-picked critical metals opportunities wherever warranted.

"The regional exploration team has been busy quietly building our pipeline
over the past few years under Dr Kebede Belete, who was instrumental in the
discovery and progression of the high-grade Tulu Kapi Gold Project - KEFI's
flagship project.

"Our portfolio of assets in Ethiopia is now expected to grow and we look
forward to providing further updates on this and our expected Ethiopian Stock
Exchange listing of KME securities, which is designed to unlock additional
subsidiary funding sources from qualified investors in Ethiopia who KEFI
continues to develop relationships with.  These funding strategies, as with
those already being successfully applied for our flagship Tulu Kapi Gold
Project, are designed to enable KEFI to maximise local alliancing whilst
minimisng financial reliance on the plc level."

Enquiries

 

 KEFI Gold and Copper plc
 Harry Anagnostaras-Adams (Executive Chairman)       +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 (Institutional IR)
 Patrick Chidley                                     +1 (917) 991 7701
 Paul Durham                                         +1-203-940-2538

 

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