REG - Kefi Gold and Copper - Increases to Mineral Resource Estimates at Hawiah
18/02/2025 07:15
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RNS Number : 4158X Kefi Gold and Copper PLC 18 February 2025
18 February 2025
KEFI Gold and Copper plc
("KEFI" or the "Company")
Substantial Increases to Mineral Resource Estimates at Hawiah Project
Total Combined Hawiah Project Mineral Resources increased by 26% to 38.2Mt,
including 14.7Mt in Open-Pit Scenarios
Indicated Resources increased by 161%,
representing 85% of total Combined Hawiah Project Resources
KEFI (AIM: KEFI), the gold and copper exploration and development company
focused on the Arabian-Nubian Shield, is pleased to announce an upgrade to the
Mineral Resource Estimates ("MRE") at the Hawiah Copper-Gold Project
("Project"), part of the Saudi Arabian joint-venture Gold and Minerals Company
Limited ("GMCO").
Highlights
· Substantial increases and upgrading of the Mineral Resource Estimates for both
the main Hawiah deposit and the nearby Al Godeyer deposit.
· Hawiah Mineral Resource Estimate has increased by 25% or 7.3 million tonnes
("Mt") to 36.2 Mt at 0.82% copper, 0.85% zinc, 0.64g/t gold and 10.0g/t
silver, representing a tonnage increase of 25%. Total contained metal is now:
o 297,000 tonnes of copper (up 16% from 258,000 tonnes);
o 310,000 tonnes of zinc (up 14% from 272,000 tonnes);
o 745,000 ounces of gold (up 20% from 620,000 ounces); and
o 11.6 million ounces of silver (up 23% from 9.4 million ounces).
· Hawiah Indicated Resource increased to 30.5Mt (up 146% from 12.4Mt) and
upgraded to 85% of the total Hawiah Resource.
· Hawiah Resources reporting to the Open-Pit Scenario have increased to 12.7Mt
(up 14% from 11.1Mt) and all in the Indicated Category, reaffirming the
potential for an initial open-pit mining operation and a lower start-up
capital requirement.
· Al Godeyer Mineral Resource Estimate has increased by 0.65Mt to 2.0Mt at 0.93%
copper, 0.53% zinc, 1.21g/t gold and 7.4g/t silver, representing a tonnage
increase of 48% and all in the Indicated Category.
· Resources for the Hawiah Copper-Gold Project now total 38.2Mt, of which 14.7Mt
report to Open-Pit Scenarios.
The recently granted Umm Hijlan Exploration Licence ("EL"), adjoining the
original Hawiah EL which hosts the MRE reported herein, has already been
demonstrated to contain the southern strike continuation of the main Hawiah
volcanic massive sulphide ("VMS") system. The Umm Hijlan EL consolidates a
210km(2) strategic licence area for GMCO and offers the prospect of adding
significant additional oxide and sulphide resources.
Overall, the results of the updated MRE , combined with the prospectivity of
the expanded licence holdings, provide a solid foundation for long-term
development planning for what was already the third largest base metals
development project in Saudi Arabia.
KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:
"The updated Mineral Resource Estimate for the Hawiah Copper-Gold Project has
provided the firm basis for a long-life mine with potential for lower cost
open-pit development during the early years of the Project.
"With 85% (32Mt) of the Project's Mineral Resources now in the Indicated
Resource category, further work is likely to define substantial Ore Reserves
for a robust operation.
"Planned drilling of the recently granted Umm Hijlan EL is targeted to quickly
define further nearby resources along strike of the Hawiah MRE. This is
anticipated to commence in Q2 2025.
"KEFI is continuing to progress the strategic review of its GMCO holding,
which we are targeting to be resolved in tandem with the launch of Tulu Kapi.
KEFI has made it clear that the priority for its capital is to now optimise
shareholder value via majority-owned projects."
Updated Hawiah MRE
GMCO appointed The MSA Group (Pty) Ltd ("MSA") as the Independent Consultants
and Competent Person to prepare updated MREs for Hawiah and Al Godeyer in
accordance with the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves ("JORC Code 2012"). The Hawiah
and Al Godeyer MREs were recently signed off by MSA and then reviewed by GMCO
and KEFI.
The updated MRE for the Hawiah deposit is detailed in Table 1 below and now
totals:
- 36.2 Mt at 0.82% copper, 0.86% zinc, 0.64g/t gold and 10.0g/t
silver.
Resources are classified as:
- Indicated - Open Pit - 12.7Mt at 0.85% copper, 0.83% zinc, 0.81g/t
gold and 10.8g/t silver
- Indicated - Underground - 17.8Mt at 0.85% copper, 0.91% zinc,
0.56g/t gold and 9.9g/t silver
- Inferred - Open Pit - 0.01Mt at 1.18% copper, 1.14% zinc, 0.65g/t
gold and 9.6g/t silver
- Inferred - Underground - 5.7 Mt at 0.69% copper, 0.74% zinc,
0.51g/t gold and 8.4g/t silver
Based on this MRE, the Hawiah deposit is estimated to contain a total of
297,000 tonnes of copper, 310,000 tonnes of zinc, 745,000 gold ounces and 11.6
million silver ounces.
Table 1 - Hawiah Mineral Resource as at 09 January 2025
Class Mining Material Tonnes Grade Metal Content
Type
Type
(Mt)
Cu Zn Au Ag Cu Zn Au Ag
(%)
(%)
(g/t)
(g/t)
(kt)
(kt)
(koz)
(koz)
Indicated Open Pit Oxide 1.2 - - 2.11 8.0 0 0 83 313
Transition 2.9 1.22 0.72 0.72 13.0 36 21 68 1217
Fresh 8.5 0.84 0.99 0.65 10.4 72 84 179 2862
Underground Oxide 0.0 - - - - 0 0 0 0
Transition 0.0 - - - - 0 0 0 0
Fresh 17.8 0.85 0.91 0.56 9.9 151 162 322 5651
Inferred Open Pit Oxide 0.0 - - - - 0 0 0 0
Transition 0.0 - - - - 0 0 0 0
Fresh 0.01 1.18 1.14 0.65 9.6 0.1 0.1 0.2 3.4
Underground Oxide 0.0 - - - - 0 0 0 0
Transition 0.0 - - - - 0 0 0 0
Fresh 5.7 0.69 0.74 0.51 8.4 39 42 93 1543
Total Indicated Open Pit 12.7 0.85 0.83 0.81 10.8 107 105 330 4392
Underground 17.8 0.85 0.91 0.56 9.9 151 162 322 5
6
5
1
All 30.5 0.85 0.88 0.67 10.3 258 267 652 1
0
0
4
3
Total Inferred Open Pit 0.01 1.18 1.14 0.65 9.6 0.1 0.1 0.2 3.4
Underground 5.7 0.69 0.74 0.51 8.4 39 42 93 1
5
4
3
All 5.7 0.69 0.74 0.51 8.4 39 42 93 1
5
4
6
Total Mineral Resource Open Pit 12.7 0.85 0.83 0.81 10.8 107 105 330 4395
Underground 23.5 0.81 0.87 0.55 9.5 190 204 415 7
1
9
4
All 36.2 0.82 0.86 0.64 10.0 297 310 745 1
1
5
8
9
Notes:
1. koz = one thousand ounces, kt = one thousand metric
tonnes, Mt = one million metric tonnes.
2. All tabulated data have been rounded and as a
result minor computational errors may occur.
3. Mineral Resources, which are not Mineral Reserves,
have no demonstrated economic viability.
4. The Gross Mineral Resource for the Project is
reported.
5. The Mineral Resource is reported in accordance with
the guidelines of the 2012 Edition of The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code').
6. A Whittle optimised pit shell was used to report
open-pit Mineral Resources and a mineable shape optimisation (MSO) was
completed for underground Mineral Resources outside the open-pit shell. The
Whittle, MSO and cut-off grades were derived using the following assumed
technical parameters:
No Oxide and Transition mined underground.
Pit slope angle: Fresh 53°, Transition and Oxide: 42°.
Dilution included in regularised block model (5 mX by 5 mY by 2.5 mZ) for open
pit.
A minimum stope width of 2 m, and 0.2m dilution applied for underground.
Concentrator Recovery: Cu & Zn 90% in transitional and fresh; Au 84% in
oxide and 74% in fresh; Ag 15% in oxide and 83% in transitional and fresh. No
recovery of zinc and copper in oxide. Metallurgical factors based on initial
metallurgical test-work.
Cost and revenue assumptions:
Metal Price: Cu 9350 USD/t, Zn 3300 USD/t, Au 2300 USD/oz, Ag 30 USD/oz.
Smelter recovery/payability: Cu concentrate - Cu 96.5%, Au 90%, Ag 90%. Zn
concentrate - Zn 83.5%. Au Dore - Au 99.5%, Ag 99.6%.
Total mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4
USD/t, underground 30.0 USD/t. Cost adjustment for open-pit depth USD 0.004/
vertical m.
Total Processing cost: oxide 13.86 USD/t, transition and fresh 21.4 USD/t.
Rehandling: 0.70 USD/t
G&A: 5.6 USD/t ore.
7. The cut-off grade was applied on a NSR basis:
underground fresh ore 57.7 USD/t, open-pit transitional and fresh ore 27.7
USD/t, open-pit oxide ore 20.16 USD/t. NSR was calculated for each block model
cell using the following formulae:
Oxide = (Cu %*0)+(Zn%*0)+(Au g/t 61.7895 )+(Ag g/t*0.1409)
Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *54.4336)+(Ag
g/t*0.7797).
Hawiah MRE Comparison
The previous (12 December 2022) Hawiah MRE totalled 29.0 Mt at 0.89% copper,
0.94% zinc, 0.67 g/t gold and 10.1 g/t silver.
The updated Hawiah MRE represents a significant increase in tonnage from
29.0Mt to 36.2Mt and small decreases in grades to 0.82% copper to 0.86% zinc,
0.64g/t gold and 10.0 g/t silver. The additional resource tonnage is largely
driven by the expansion of Crossroads Extension Lode at depth.
Hawiah Open Pit Indicated Resources have increased by 3.5Mt to 12.7Mt. This
continues to demonstrate a robust case for a lower cost open-pit development
during the early years of the Project, further strengthening the economic
case.
Updated Al Godeyer MRE
The updated MRE for the Al Godeyer deposit is detailed in Table 2 below and
now totals:
- 2.0 Mt at 0.93% copper, 0.53% zinc, 1.21g/t gold and 7.4g/t
silver,
and 94% of the MRE is now in the Indicated Resource category (previously all
in the Inferred Resource category).
Based on this MRE, the Al Godeyer deposit is estimated to contain a total of
18,500 tonnes of copper, 10,600 tonnes of zinc, 77,900 gold ounces and 0.5
million silver ounces.
Table 2 - Al Godeyer Mineral Resource as at 09 December 2024
Class Mining Type Material Type Tonnes (Mt) Grade Metal Content
Cu Zn Au Ag Cu Zn Au Ag
(%)
(%)
(g/t)
(g/t)
(kt)
(kt)
(koz)
(koz)
Indicated Open Pit Oxide 0.28 - - 1.48 1.38 0.0 0.0 13.4 12.9
Transition 0.22 0.70 0.22 0.91 6.88 1.6 0.5 6.5 49.3
Fresh 1.38 1.12 0.65 1.19 8.28 15.4 8.9 52.7 366.4
Total Indicated All 1.88 0.90 0.50 1.20 7.08 17.0 9.4 72.6 428.2
Inferred Open Pit Oxide 0.00 - - - - 0.0 0.0 0.0 0.0
Transition 0.00 - - - - 0.0 0.0 0.0 0.0
Fresh 0.12 1.36 1.10 1.42 12.17 1.6 1.3 5.3 45.3
Total Inferred All 0.12 1.36 1.10 1.42 12.17 1.6 1.3 5.3 45.3
Total Resource All 2.00 0.93 0.53 1.21 7.37 18.5 10.6 77.9 473.8
Notes:
1. koz = one thousand ounces, kt = one thousand metric
tonnes, Mt = one million metric tonnes.
2. All tabulated data have been rounded and as a
result minor computational errors may occur.
3. Mineral Resources, which are not Mineral Reserves,
have no demonstrated economic viability.
4. The Gross Mineral Resource for the Project is
reported.
5. The Mineral Resource is reported in accordance with
the guidelines of the 2012 Edition of The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves" ('the JORC Code').
6. A Whittle optimised pit shell was used to report
open-pit Mineral Resources. The Whittle optimisation was based on the
following assumed technical parameters:
Pit slope angle: Fresh 56°, Transition 51° and Oxide: 44°.
Dilution of 10% and mining recovery of 95%
Concentrator Recovery: Cu 90%, Zn 90%, Au 85%, Ag 60% No recovery of zinc and
copper in oxide. Metallurgical factors based on initial metallurgical
test-work.
Cost and revenue assumptions:
Metal Price: Cu 9,350 USD/t, Zn 3,300 USD/t, Au 2,300 USD/oz, Ag 30 USD/oz.
Smelter recovery/payability: Cu 96.5%, Zn 83.5%. Au Dore - Au 99.5%, Ag 99.6%.
Mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4
USD/t. Transport to Hawiah plant 1.125 USD/t and rehandling cost of 0.7
USD/t. Cost adjustment for open-pit depth USD 0.004 / vertical m.
Total Processing cost: oxide 13.9 USD/t, transition and fresh 21.4 USD/t.
G&A: 5.6 USD/t ore.
7. The cut-off grade was applied on a net smelter
return (NSR) basis: open-pit transition and fresh ore 31.2 USD/t, open-pit
oxide ore 23.5 USD/t. NSR was calculated for each block model cell using the
following formulae:
Oxide = (Cu %*0)+(Zn%*0)+(Au g/t*62.5251 )+(Ag g/t*0.5637)
Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *62.5251)+(Ag
g/t*0.5637).
Al Godeyer MRE Comparison
The previous (27 March 2023) Al Godeyer MRE totalled 1.35Mt at 0.6% copper,
0.54% zinc, 1.4g/t gold and 6.6g/t silver (all in the Inferred category).
Infill drilling allowed better definition of the high-grade zone in the core
of the deposit and high-grade copper intersections enhanced the fresh zone
copper grade.
The updated Al Godeyer MRE represents a 0.65Mt increase in tonnage from 1.35Mt
to 2.0Mt. The additional resource tonnage is largely driven by further
drilling extending the resource. The average resource grades are similar
except for the copper grade increasing 55% to 0.93% copper, due to the
increased ratio of Fresh Mineral Resources to Oxide Mineral Resources (for
which copper is not reported) and additional drillholes confirming the higher
grade central area.
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.
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
Competent Person Statement
The Hawiah and Al Godeyer Mineral Resource estimates were completed by Mr.
Jeremy Charles Witley (BSc Hons, MSc (Eng.)) who is a geologist with 36 years'
experience in base and precious metals exploration and mining as well as
Mineral Resource evaluation and reporting. He is a Principal Mineral Resource
Consultant for The MSA Group (an independent consulting company). He is
registered with the South African Council for Natural Scientific Professions
("SACNASP"), is a Fellow of the Geological Society of South Africa ("GSSA")
and a Fellow of the Professional Society of Independent Experts of the
Subsurface Resources ("PONEN"), Kazakhstan. Mr. Witley has the appropriate
relevant qualifications and experience to be considered a "Competent Person"
as defined by JORC (2012) for the style and type of mineralisation and
activity being undertaken. Mr Witley consents to the inclusion in this
announcement of the matters based on this information in the form and context
in which it appears.
The information in this announcement that relates to exploration results and
geological interpretaion is based on information compiled by Mr Tomos Bryan
for GMCO. Mr Bryan is a member of the 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 matters based on this information in the form and
context in which it appears.
Notes to Editor
KEFI Gold and Copper plc
KEFI is focused primarily on the development of the Tulu Kapi Gold Project in
Ethiopia and its pipeline of highly prospective exploration projects in
the Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi will
generate cash flows for capital repayments, further exploration and dividends
to shareholders.
Appendix A - Glossary of Technical Terms
Ag Silver
AAS Atomic Absorption Spectroscopy
Arabian-Nubian Shield or ANS The Arabian-Nubian Shield is a large area of Precambrian rocks in various
countries surrounding the Red Sea
ARTAR Abdul Rahman Saad Al Rashid & Sons Company Limited
Au Gold
CRM Certified reference material
Cu Copper
DFS Definitive Feasibility Study
g/t Grams per tonne
Gossan An iron-bearing weathered product overlying a sulphide deposit
ICP-AES Inductively Coupled Plasma-Atomic Emission Spectroscopy
IDW Inverse Distance Weighted
IP Induced polarisation - a ground-based geophysical survey technique measuring
the intensity of an induced electric current, used to identify disseminated
sulphide deposits
JORC Joint Ore Reserves Committee
JORC Code 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves
m Metres
Massive sulphide Rock comprised of more than 40% sulphide minerals
Mt Million tonnes
Mtpa Million tonnes per annum
MRE Mineral Resource Estimate
NSR Net Smelter Return
oz Troy ounce of gold
PEA Preliminary Economic Assessment
PFS Pre-Feasibility Study
PPM Parts per million
Precambrian Era of geological time before the Cambrian, from approximately 4,600 to 542
million years ago
QAQC Quality Assurance and Quality Control
VMS deposits Volcanogenic massive sulphides; refers to massive sulphide deposits formed in
a volcanic environment on or near the sea floor with varying base metals
(copper, lead and zinc) often with significant additional gold and silver
Zn Zinc
APPENDIX B
Additional Background information on the Hawiah VMS deposit and MRE
The Hawiah deposit is located within the Wadi Bidah Mineral Belt ("WBMB") in
the southwest of the Arabian Shield. The WBMD is a 120-kilometre-long belt
which hosts over 20 Volcanic Massive Sulphide ("VMS") known occurrences and
historic workings for copper and gold.
GMCO commenced drilling at Hawiah in September 2019 and quickly confirmed that
large-scale VMS style of mineralisation underlies the gossanous ridgeline at
surface.
A total of 375 diamond drillholes, 114 reverse circulation drillholes and 56
trenches have been used for this Mineral Resource Estimate.
Mineralisation modelled comprises a continuous subvertical tabular layer for
approximately 4.5km along north to south strike at outcrop. Localised minor
pinch outs occur, which are not significant. Two major zones (lodes) of
down-dip extent have been defined (the Camp Lode in the south and the
Crossroads Lode in the north) which plunge approximately 25° to the south for
1.7km (Camp) and 1.8km (Crossroads) to approximately 740m vertical depth below
surface.
The mineralised layer normally has a thickness of between 1m and 15m and thins
towards the edges of the lodes. The central portions of the deposit between
the main lodes extends vertically to between 100m and 200m.
Summary of Resource Estimate Parameters and Reporting Criteria
In accordance with the JORC Code (2012 Edition), a summary of the material
information used to estimate the Mineral Resource is detailed below (for
further information please refer to Table 1 in Appendix D).
Geology and Geological Interpretation
The Hawiah VMS deposit is located on the eastern limb of a regional-scale
antiform in within the locally know, 'Group 2' mafic volcanics of the Wadi
Bidah Mineral Belt.
The Hawiah deposit forms a prominent north-south trending ridgeline, exposed
over a total length of approximately 4,500m with a thickness that varies from
1-15m. The ridge has been interpreted by GMCO as the modern-day expression of
the original VMS palaeohorizon. The rock package comprises a suite of
gossanous ex-massive sulphides, chert breccias, banded ironstones and
intermediate volcanic breccias. The deposit has been subject to varying
degrees of supergene alteration as a result of groundwater interactions.
The deposit comprises of four weathering/alteration domains: oxide,
oxide/transitional, transitional and fresh. The oxide domain typically shows
supergene gold enrichment, while portions of the transitional domain shows
copper enrichment. The fresh mineralised domain appears to be a dominantly
pyritic stratiform massive sulphide body.
The oxide mineralisation transitions from an oxide zone to a tabular massive
sulphide deposit at between 40 m and 80 m below surface with localised areas
of deeper oxidation. The deposit strikes from north to south and generally
dips from vertically to 80° towards the east with local areas that are
steeply dipping towards the west. The massive sulphide dominantly comprises
fine grained pyrite, which has sharp contacts with the greenschist which forms
the hangingwall and footwall.
Sampling Techniques and Hole Spacing
A total of 375 diamond drillholes, 114 reverse circulation drillholes and 56
trenches have been used for the Hawiah Mineral Resource Estimate. Drilling
spans over 5km of strike length.
Drillhole spacing in the Oxide and Transition is typically 50m. Spacing within
the Fresh domain is typically 30-80m (Indicated classification) and
approximately 120m (Inferred classification).
Drillholes were logged for a combination of geological and geotechnical
attributes. The core has been photographed and measured for RQD and core
recovery.
Sampling and Sub-Sampling Techniques
Diamond drilling and surface trenching was used to obtain sample intervals
that typically range from 0.3-3m for drilling, 1-3m for reverse circulation
drilling and trenching.
Whole diamond core was split using a core saw by GMCO personnel and then
submitted for preparation at ALS Arabia (Jeddah), during which material was
crushed to 2mm, pulverised to ~75µm, with 250g split sent for analysis. The
sample preparation procedures used for reverse circulation and trench samples
is consistent with the drillcore samples.
The mineralised interval for all sample types was continuously sampled from
hangingwall to footwall, which included samples a short distance into the
hangingwall and footwall.
Sampling Analysis Method
Samples have undergone analysis at the ALS Laboratory, located in Jeddah.,
Saudi Arabia.
- Gold - Fire assay digest with AAS instrumentation
- Copper, Zinc, Silver: Four acid digest ICP-AES
QAQC
QAQC procedures include:
- Insertion of CRM standards, certified blanks, and field duplicates
at rate of 15%;
- Monthly internal QAQC reporting; and
- Regular communication with the laboratory, including periodical
lab inspections.
Estimation Methodology
In summary, for this MRE, the following approach has been utilised:
• modelling of the mineralised lode and weathering domains in 3D, by the GMCO
geological team and reviewed and accepted by MSA;
• composited the sample data to 2m intervals using length and density (assigned
by rock type) weighting;
• applied high-grade caps per estimation domain from log histograms;
• undertaken geostatistical analyses to determine appropriate interpolation
parameters;
• created a block model with parent block dimensions of 25m (strike) x 2m
(across strike) x 10m (dip), sub-blocked to a minimum of 1m (strike) x 0.5m
(across strike) x 1m (dip);
• interpolated Cu, Zn, Au and Ag grade into the block model using ordinary
kriging;
• assigned average density values by weathering domain; and
• visually and statistically validated the estimated block grades relative to
the original sample results.
Classification Criteria
The Hawiah resource has been classified in the Inferred and Indicated Mineral
Resource classification category, as defined by JORC 2012.
Mineral Resource Statement Parameters and Cut-off Grade
MSA has applied basic economic considerations based on initial metallurgical
testwork results and assumptions provided by the Company, similar deposit
types located within Saudi Arabia and MSA's experience to determine which
portion of the block model has reasonable prospects for eventual economic
extraction by underground and open-pit mining methods.
To achieve this, the Mineral Resource has been subject to an underground
Mineable shape optimisation ("MSO") and open-pit optimisation studies, based
on long-term metal price forecasts (with appropriate uplift to reflect
potential for assessing Mineral Resources) for copper, zinc, gold and silver,
to assist in determining the material with potential for underground and open
pit mining and reporting above a suitable Resource Net Smelter Return ("NSR")
USD/t cut-off value ("Resource NSR").
The Resource NSR cut-off calculation has been determined based on metal price
forecasts, initial metallurgical recovery results and assumptions, mining
costs, processing costs, general and administrative ("G&A") costs, and
other NSR factors. The final Resource NSR value calculation is based on
average assumptions for the deposit and applied to the block model using the
following formulae:
· Resource NSR (USD) value for oxide material = (Cu%*0) + (Zn%*0) + (Au
g/t*61.7895) + (Ag g/t*0.1409)
· Resource NSR (USD) value for transition and fresh material =
(Cu%*76.5870) + (Zn%*20.1118) + (Au g/t*54.4336) + (Ag g/t*0.7797)
The cut-off values determined for reporting the Mineral Resource on a Resource
NSR USD/t basis, are given below and were based on the technical and economic
inputs presented in the table below:
- USD20.2/t for open pit material reported from within the oxide
mineralisation domain;
- USD27.7/t for open pit material reported from within the
transition and fresh mineralisation domains; and
- USD57.7/t for underground material reported from within the fresh
mineralisation domains.
Summary of key assumptions for conceptual underground stope optimisation, open
pit optimisation and cut-off grade calculation for Hawiah MRE.
Parameters Units
Production Rate
Production Rate - Ore (mtpa) 1.8 - 2.2
Geotechnical
Overall Slope Angle (Oxide) (Deg) 42
Overall Slope Angle (Transition) (Deg) 42
Overall Slope Angle (Fresh) (Deg) 53
Open Pit Mining Factors
Dilution (%) Included in regularised Block Model 5x5x2.5 m
Recovery (%)
Underground Mining Factors
Minimum stope dimension (m) 2m width x 25 m height x 20 m length
Dilution (%) 10%
Processing (Oxide: Cyanide Leach)
Recovery - Cu (%) 0%
Recovery - Zn (%) 0%
Recovery - Au (%) 84%
Recovery - Ag (%) 15%
Processing (Transition and Fresh: Flotation and Cyanide Leach)
Recovery - Cu (%) 90%
Recovery - Zn (%) 90%
Recovery - Au (%) 74%
Recovery - Ag (%) 83%
Commodity Prices
Cu (USD/t) 9,350
Zn (USD/t) 3,300
Au (USD/oz) 2,300
Ag (USD/oz) 30
Operating Costs
Open Pit Mining (Oxide) (USD/t rock) 2.2
Open Pit Mining (Transition) (USD/t rock) 2.4
Open Pit Mining (Fresh) (USD/t rock) 2.4
Underground Mining (Transition and Fresh) (USD/t ore) 30
Processing (Oxide: Cyanide Leach) (USD/t ore) 13.9
Processing (Transition and Fresh: Floatation and Cyanide Leach) (USD/t ore) 21.4
G&A (incl. corporate, sales/ marketing) (USD/t ore) 5.6
Mining and Metallurgical Methods and Parameters
In determining Reasonable Prospects for Eventual Economic Extraction (RPEEE)
the following assumptions were made:
· Open pit mining will be used for the near surface portion of the Mineral
Resource. This was prioritised over the optimal changeover to underground to
maximise the open-pit extraction.
· The remainder of the fresh Mineral Resource will be extracted using
underground mining methods such as long-hole open stoping. In the central
areas, and Crossroads Lode, where the block model remaining below the open
pit is of limited vertical extent, it was excluded from the Mineral Resource.
Oxide, oxide-transitional (treated as oxide) and transitional mineralisation
was not considered for underground mining.
· Copper and zinc sulphides are expected to be recovered by flotation to produce
concentrates containing copper, zinc, gold and silver.
· The gold and silver will be recovered from the oxide zone using leaching to
produce Dore. No copper or zinc will be recovered from the oxide zone.
Initial metallurgical test work has been completed for the transitional and
fresh (sulphide) and oxide mineralisation at Hawiah. This test work comprised
flotation and cyanide leach methods. Further test work is ongoing including
Albion amenability and resin in leach testing. Once testwork is completed, if
the metallurgical recovery results change significantly from the current
approximated values, this would impact the parameters used to report the
Mineral Resource, which, in turn, could also impact the tonnages and grades
considered to have 'reasonable prospects for eventual economic extraction' for
reporting in the Mineral Resource Statement.
Appendix C - Diagrams for Hawiah MRE
Figure 2 - Hawiah deposit in Long Section displaying resource classification
and the open pit locations
Figure 3 - Collar locations of diamond and RC drilling across the Hawiah
project.
Appendix D - JORC Table 1 for Hawiah MRE
http://www.rns-pdf.londonstockexchange.com/rns/4158X_1-2025-2-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4158X_1-2025-2-17.pdf)
APPENDIX E
Additional Background information on the Al Godeyer deposit
The Al Godeyer deposit is located within the Wadi Bidah Mineral District
("WBMD") in the southwest of the Arabian Shield. The WBMD is a
120-kilometre-long belt which hosts over 20 Volcanic Massive Sulphide ("VMS")
known occurrences and historic workings for copper and gold.
The Al Godeyer project is located 12km east of the Hawiah deposit which hosts
a mineral resource of 36.2Mt at 0.82% copper, 0.86% zinc, 0.64 g/t gold and
10.0 g/t silver.
GMCO commenced drilling at Al Godeyer in March 2022 and quickly confirmed that
the VMS style of mineralisation underlies the gossanous ridgeline at the
surface.
A total of 16 diamond drillholes, 19 reverse circulation drillholes and 25
trenches have led to the definition of a copper-zinc-gold-silver massive
sulphide lode that remains open at depth and along strike to the southeast.
This area was underwent infill and expansion drilling to increase the Resource
Classification and expand the open-pit amenable resources. This drilling
comprised an additional 60 holes.
The deepest massive sulphide intersection at Al Godeyer is at a vertical depth
of 200m where 3.3m true width of massive sulphide was intersected. The average
true width of Al Godeyer is 4.5m with the widest intersection of 7.5m found at
a depth of 20m.
Drilling spans over 1,250m of strike length at a drill spacing of
approximately 50m or less for Indicated classification and 100m or less for
areas reporting to Inferred classification.
Summary of Resource Estimate Parameters and Reporting Criteria
In accordance with the JORC Code (2012 Edition), a summary of the material
information used to estimate the Mineral Resource is detailed below (for
further information please refer to Table 1 in Appendix F).
Geology and Geological Interpretation
The Al Godeyer VMS deposit is located on the western limb of a regional-scale
antiform within the locally known, 'Group 3' volcanoclastic and epiclastic
units of the Wadi Bidah Mineral Belt.
The Al Godeyer deposit is expressed at surface by a northwest-southeast
trending gossan that forms a slight ridgeline exposed over a length of
approximately 1,250m, with a thickness that typically varies from 2m to 13m.
The gossan outcrop strikes approximately west to east for a further 300m in
the southern area, and a fault has been interpreted to explain the sudden
strike change. Away from this main deposit area, the gossan horizon can be
traced discontinuously along strike for an additional 800m.
The ridge has been interpreted by GMCO as the modern-day expression of the
original VMS palaeohorizon with varying degrees of remobilised sulphides. The
rock package comprises a suite of gossanous ex-massive sulphides, chert
breccias, banded ironstones and sulphide-rich epiclastics. The deposit has
been subject to varying degrees of the supergene alteration as a result of
groundwater interactions.
The deposit comprises three weathering/alteration domains; Oxide,
Transitional, and Fresh, within which different resulting facies are
described. The oxide and transition domains typically show supergene gold
enrichment and copper depletion. The fresh mineralised domain appears to be a
dominantly pyritic stratiform semi-massive to massive sulphide body.
The Oxide domain mineralisation at the Al Godeyer is a combination of gossan,
saccharoidal silica and haematitic cherts derived from leaching of the
semi-massive to massive sulphide deposit. Higher-grade gold mineralisation is
typically associated with saccharoidal silica facies, similar to the Hawiah
deposit.
In the Transition domain, mineralisation is typically characterised by its
dark grey to black colour due to patrial oxidation of the semi-massive to
massive sulphide. The base of the transition zone is predominantly defined by
the observed sulphide state, where dark grey altered sulphides become yellow
un-oxidised massive pyrite at depth. Transition material is analogous to that
of the Hawiah deposit albeit without a noticeable enrichment in copper.
Petrographic studies on drillcore from the Fresh domain have shown that the
majority of the sulphides have undergone a degree of recrystallisation. This
is in contrast to the Hawiah deposit where sulphide textures indicate the
massive sulphide ore body is relatively undisturbed. The remobilisation and
recrystallisation of sulphides at Al Godeyer are interpreted to have occurred
due to regional metamorphism to amphibolite facies followed by retrograde
metamorphism to greenschist and local emplacement of granodiorite intrusions.
This remobilisation and recrystallisation have resulted in a semi-massive to
massive sulphide body with between 10-60% pyrite unlike Hawiah which typically
contains >80% pyrite. Due to the continuity of the mineralisation and no
evidence of a feeder structure it appears the remobilisation likely occurred
locally within the original paleohorizon.
The central portion of the deposit is the thickest and contains mineralisation
elevated in gold, copper, zinc and silver, which extends 300m to 400m along
strike and extends to at least 200m below surface. The northwest and southeast
areas have not been tested below the oxide and transition domains.
Sampling Techniques and Hole Spacing
A total of 85 diamond drillholes (9,465m), 19 reverse circulation drillholes
(1,169m) and 25 trenches (1,0462m) have been used for this Mineral Resource
Estimate. Drillhole spacing for trenching is approximately 50m or less for
Indicated classification and 100m or less for Inferred classification.
Drillholes were logged for a combination of geological and geotechnical
attributes. The core has been photographed and measured for RQD and core
recovery.
Sampling and Sub-Sampling Techniques
Diamond drilling and surface trenching were used to obtain sample intervals
that typically range from 0.3-3m for drilling, and 1-3m for reverse
circulation drilling and trenching.
The whole diamond core was split using a core saw by GMCO personnel and then
submitted for preparation at ALS Jeddah, during which material was crushed to
2mm, pulverised to ~75µm, with 250g split sent for analysis. The sample
preparation procedures used for reverse circulation and trench samples are
consistent with the drillcore samples.
The mineralised interval for all sample types was continuously sampled from
hangingwall to footwall, which included samples a short distance into the
hangingwall and footwall.
Sampling Analysis Method
Samples have undergone analysis at the ALS Laboratory, located in Jeddah.,
Saudi Arabia.
- Gold - Fire assay digest with AAS instrumentation
- Copper, Zinc, Silver: Four acid digest ICP-AES
QAQC
QAQC procedures include:
- Insertion of CRM standards, certified blanks, and field duplicates
at a rate of 15% (5% each) coupled with pulp duplicates.
- Monthly internal QAQC reporting
- Regular communication with the laboratory, including periodical
lab inspections.
Estimation Methodology
In summary, for this Mineral Resource Estimate, the following approach has
been utilised:
• modelling of the mineralised lode and weathering domains in 3D by the GMCO
geological team and reviewed and accepted by MSA;
• composited the sample data to 1m intervals using length and density (assigned
by rock type) weighting;
• applied high-grade caps per estimation domain from outlier analysis;
• undertaken geostatistical analyses to determine appropriate interpolation
parameters;
• created a block model that was rotated 49° into the dominant strike direction
with parent block dimensions of 12.5m (strike) x 2m (across strike) x 5m
(dip), sub-blocked to a fraction of parent cell of ¼ (strike) x ⅛ (across
strike) x ¼ (dip);
• interpolated copper, zinc, gold and silver grades into the block model using
ordinary kriging;
• assigned density values by weathering domain; and
• visually and statistically validated the estimated block grades relative to
the original sample results.
Classification Criteria
The Al Godeyer resource has been classified in the Inferred Mineral Resource
classification category, as defined by JORC 2012.
Mineral Resource Statement Parameters and Cut-off Grade
MSA has applied basic economic considerations based on initial metallurgical
testwork results and assumptions provided by the Company, similar deposit
types located within Saudi Arabia and MSA's experience to determine which
portion of the block model has reasonable prospects for eventual economic
extraction by underground and open-pit mining methods.
To achieve this, the Mineral Resource has been subject to open-pit
optimisation studies, based on long-term metal price forecasts (with
appropriate uplift to reflect the potential for assessing Mineral Resources)
for copper, zinc, gold and silver, to assist in determining the material with
potential for underground and open pit mining and reporting above a suitable
Resource Net Smelter Return ("NSR") USD/t cut-off value ("Resource NSR").
The Resource NSR cut-off calculation has been determined based on metal price
forecasts, initial metallurgical recovery results and assumptions, mining
costs, processing costs, general and administrative (G&A) costs, and other
NSR factors. The final Resource NSR value calculation is based on average
assumptions for the deposit and applied to the block model using the following
formulae:
- Resource NSR (USD) value for oxide material = (Cu %*0)+(Zn%*0)+(Au
g/t*62.5251 )+(Ag g/t*0.5637)
- Resource NSR (USD) value for transition and fresh material = (Cu
%*76.5870)+(Zn%*20.1118)+(Au g/t *62.5251)+(Ag g/t*0.5637)
The cut-off values determined for reporting the Mineral Resource on a Resource
NSR USD/t basis, are given below and were based on the technical and economic
inputs presented in the table below:
- USD23.5/t for open pit material reported from within the oxide
mineralisation domain;
- USD31.2/t for open pit material reported from within the
transition and fresh mineralisation domains.
Summary of key assumptions for conceptual underground stope optimisation, open
pit optimisation and cut-off grade calculation
Parameters Units
Geotechnical
Overall Slope Angle (Oxide) (Deg) 44
Overall Slope Angle (Transition) (Deg) 51
Overall Slope Angle (Fresh) (Deg) 56
Open Pit Mining Factors
Dilution (%) 10%
95%
Recovery (%)
Processing (Oxide: Cyanide Leach)
Recovery - Cu (%) 0%
Recovery - Zn (%) 0%
Recovery - Au (%) 85%
Recovery - Ag (%) 60%
Processing (Transition and Fresh: Albion Circuit and Cyanide Leach)
Recovery - Cu (%) 90%
Recovery - Zn (%) 90%
Recovery - Au (%) 85%
Recovery - Ag (%) 60%
Commodity Prices
Cu (USD/t) 9,350
Zn (USD/t) 3,300
Au (USD/oz) 2,300
Ag (USD/oz) 30
Operating Costs
Open Pit Mining (Oxide Ore) (USD/t rock) 2.2
Open Pit Mining (Oxide Waste) (USD/t rock) 2.2
Open Pit Mining (Transition and Fresh Ore) (USD/t rock) 2.4
Open Pit Mining (Transition and Fresh Waste) (USD/t rock) 2.4
Processing (Oxide: Cyanide Leach) (USD/t ore) 13.9
Processing (Transition and Fresh: Albion Circuit Cyanide Leach) (USD/t ore) 21.4
G&A (incl. corporate, sales/ marketing) (USD/t ore) 5.6
Mining and Metallurgical Methods and Parameters
Initial metallurgical test work has been completed for the Oxide
mineralisation at Al Godeyer. This test work comprised comminution, cyanide
leach, thickening and filtration test work done at the South African
laboratories of Mealgwyn Mineral Services (Johannesburg) and Paterson &
Cooke (Cape town). Further test work which including floatation test work on
Transition and Fresh Ore has commenced and will be followed by Albion
Amenability testwork once the floatation test is complete. Once all testwork
is completed, if the metallurgical recovery results change significantly from
the current approximated values, this would impact the parameters used to
report the Mineral Resource, which, in turn, could also impact the tonnages
and grades considered to have 'reasonable prospects for eventual economic
extraction' for reporting in the Mineral Resource Statement.
Appendix F - Diagrams for Al Godeyer MRE
Figure 4 - Plan showing the Exploration Licences comprising the Hawiah
Copper-Gold Project.
Figure 4 - Long section displaying resource classification and open pit shell
Figure 5 - Location of diamond and RC drillholes at Al Godeyer.
Appendix G - JORC Table 1 for Al Godeyer MRE
http://www.rns-pdf.londonstockexchange.com/rns/4158X_2-2025-2-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4158X_2-2025-2-17.pdf)
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