REG - Kefi Gold and Copper - Material Upgrade to Jibal Qutman Mineral Resources
26/02/2025 07:00
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RNS Number : 4198Y Kefi Gold and Copper PLC 26 February 2025
26 February 2025
KEFI Gold and Copper plc
("KEFI" or the "Company")
Material Upgrade to Jibal Qutman Gold Project Mineral Resources
· Jibal Qutman Mineral Resources increased to 902,000 oz gold
· Indicated Resources are up 69% and now represent 83% of upgraded Resources
allowing for Ore Reserve development
· Mine Development will now target a multi-stage open-pit operation.
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 Jibal Qutman Gold Project
("Project"), part of the Saudi Arabian joint-venture Gold and Minerals Company
Limited ("GMCO").
KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:
"The updated Jibal Qutman resource follows the completion and interpretation
of additional RC and Diamond drilling, which now totals in excess of 95,000m.
Updated Jibal Qutman Mineral Resources provide the basis for a long-life mine
as substantial Ore Reserves are likely to flow from the 83% (30.5Mt) of the
Mineral Resource now in the Indicated category.
With the gold price approaching US$3,000/ounce and with low-cost local
development capital, fast tracking an (initially) oxides-focused open-pit, CIL
operation at Jibal Qutman is becoming very attractive.
This and other current developments in Saudi Arabia well serve KEFI's
strategic review of its GMCO shareholding. We are also very pleased with the
ongoing progress in Ethiopia."
Highlights
· Jibal Qutman MRE now totals 37.0 million tonnes ("Mt") at 0.76g/t gold,
containing 902,000 ounces of gold
· Key changes since the previous MRE are that:
o Oxide gold mineralisation has increased from 287,000 ounces to 318,000 ounces
o Indicated Resources have increased from 18.0Mt to 30.5Mt (representing 83% of
the total MRE)
o Total tonnage has increased by 8.6Mt to 37.0Mt (+30%)
o Total ounces have increased by 169,000 ounces to 902,000 ounces (+23%)
· All of these Jibal Qutman resources are targeted for mining via open-pit
methods
Metallurgical and other studies have provided the basis for Stage 1
development of Jibal Qutman to commence during 2025 focused on the oxide ore
and utilising Carbon-In-Leach ("CIL") processing.
These studies have been conducted over the past two years and refined since
GMCO's development leadership was installed in mid-2024 to (a) optimise Stage
1 development plans and (b) consider longer-term potential after the results
of exploration along more of the mineralised strike length and once the
metallurgical flow-sheet for the sulphides is optimised. Stage 1 development
plans will be announced once finalised and reviewed with the relevant
Government authorities.
The three Jibal Qutman EL's cover an area of over 270km(2), over a strike
length of 35km in the prospective Nabitah-Tathlith Fault Zone.
Exploration has primarily focused on the 8km long section of the original
Jibal Qutman EL. Systemic exploration of the full 35km mineralised strike
length has barely commenced but has already yielded a discovery at the
Asfingia prospect where initial drilling intercepted near-surface gold over a
350m strike length with intercepts including:
· JQD_232: 13.9m (9.22m estimated true width ("ETW") at 7.9 g/t gold
from 53.6m (including 1.2m at 66.6 g/t gold)
· JQD_265: 25.5m (15.51 ETW) at 1.9 g/t gold from 86.0m (including 7.4m
at 5.2 g/t gold)
Geochemical surface programmes are now underway to highlight additional blind
targets masked by alluvial cover. This will be coupled with the recently
completed licence wide drone magnetic survey, which has been used to assist in
the structural framework delineation, to create a powerful vectoring dataset
to guide more advanced exploration works and further resource expansion.
Updated Jibal Qutman MRE
GMCO appointed The MSA Group (Pty) Ltd ("MSA") as the Independent Consultants
and Competent Person to prepare an updated MRE for Jibal Qutman in accordance
with the Australasian Code for the Reporting of Exploration Results, Mineral
Resources and Ore Reserves ("JORC Code 2012"). The MRE was recently signed
off by MSA and then reviewed by GMCO and KEFI.
The updated Jibal Qutman MRE is detailed in Table 1 below and now totals
37.0Mt at 0.76g/t gold, containing 902,000 ounces of gold.
Key points to note in the updated MRE:
· Indicated Resources total 30.5Mt containing 748,000 ounces (83% of
total MRE)
· Oxide Resources total 13.2Mt at 0.75g/t gold, containing 318,000
ounces
· The three zones providing the most ounces are Main and West (292,000
ounces), South Combined (243,000 ounces) and Red Hill (183,000 ounces).
Table 1 - Jibal Qutman Mineral Resource as at 30 November 2024
Zone Oxide State Cut-off grade Classification Tonnes Au Grade Au
(g/t)
(Mt)
(g/t)
(koz)
3K Oxide 0.24 Indicated 1.6 1.03 53
Inferred 0.1 0.62 3
Subtotal 1.8 0.99 56
Sulphide 0.29 Indicated 1.2 1.18 44
Inferred 0.7 0.87 20
Subtotal 1.9 1.06 64
Oxide and Sulphide Total 3.6 1.03 1
2
0
4K Oxide 0.22 Indicated 1.4 0.53 24
Inferred 0.4 0.41 5
Subtotal 1.7 0.51 28
Sulphide 0.29 Indicated 1.7 0.53 29
Inferred 0.3 0.45 5
Subtotal 2.0 0.52 34
Oxide and Sulphide Total 3.8 0.51 6
2
SC Oxide 0.22 Indicated 3.4 0.64 69
Inferred 0.1 0.50 2
Subtotal 3.5 0.63 70
Sulphide 0.29 Indicated 6.3 0.66 133
Inferred 1.8 0.66 39
Subtotal 8.1 0.66 172
Oxide and Sulphide Total 11.6 0.65 2
4
3
RH Oxide 0.22 Indicated 1.7 0.81 45
Inferred 0.0 - 0
Subtotal 1.7 0.81 45
Sulphide 0.29 Indicated 4.6 0.77 113
Inferred 1.1 0.72 26
Subtotal 5.7 0.76 138
Oxide and Sulphide Total 7.4 0.77 1
8
3
Main & West Oxide 0.22 Indicated 4.3 0.82 112
Inferred 0.2 0.62 4
Subtotal 4.5 0.81 116
Sulphide 0.29 Indicated 4.5 0.88 128
Inferred 1.5 1.00 48
Subtotal 6.0 0.91 176
Oxide and Sulphide Total 10.5 0.87 2
9
2
PH Oxide 0.20 Indicated 0 - 0
Inferred 0.1 0.56 2
Subtotal 0.1 0.56 2
Sulphide 0.20 Indicated 0 - 0
Inferred 0 - 0
Subtotal 0 - 0
Oxide and Sulphide Total 0.1 0.56 2
Total Oxide Indicated 12.3 0.76 301
Inferred 1.0 0.52 16
Subtotal 13.3 0.75 318
Sulphide Indicated 18.2 0.76 4
4
6
Inferred 5.5 0.78 138
Subtotal 23.7 0.77 585
Oxide and Sulphide Indicated 30.5 0.76 7
4
8
Inferred 6.5 0.74 154
Total 37.0 0.76 902
Notes:
1. koz = one thousand ounces (31.10348 grammes to Troy ounce
conversion), Mt = one million metric tonnes.
2. All tabulated data have been rounded and as a result minor
computational errors may occur.
3. 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").
4. Assumed open pit mining with 2 million tonne per annum CIL
plant.
5. An optimised pit shell was used to report open-pit Mineral
Resources. The pit-shells and cut-off grades were derived using the following
assumed technical parameters:
i. Pit slope angle:
· Oxide: All zones = 49°
· Sulphide: 3K & 4K = 64°, RH & SZ = 62°, Main & West =
58°
ii. Dilution 10%, Mining Losses 5%
iii. Carbon in Leach Recovery for Residue Grade (g/t)
in Oxide:
· 3K: y=0.0513*ln[head grade (g/t)]+0.1392
· All other zones: y=0.0596*ln[head grade (g/t)]+0.0921
iv. Carbon in Leach Recovery for Solution Grade in
Oxide: For all zones excl. 3K: 91.7%, 3K only: 87.7%
v. Carbon in Leach Recovery for Solution Grade in
Sulphide for all zones: 69.43%
vi. Metallurgical factors based on initial
metallurgical test-work.
6. Cost and revenue assumptions:
i. Gold Price: USD 2 300/oz, 99.5% payability for nett of USD 2 254.17/oz
after royalty payment
ii. Total mining cost: 2.1 USD/t, Cost adjustment for open-pit depth USD 0.03
per 10 vertical m.
iii. Total Processing cost: 9.94 USD/t
iv. Refining and Transport Cost: USD 0.56/oz
v. G&A: 2.87 USD/t ore.
vi. State Royalty 1.5%
Jibal Qutman MRE Comparison
In May 2015, KEFI released an MRE of 28.4 million tonnes at 0.80g/t gold,
containing 733,045 ounces for Jibal Qutman.
Key changes in the updated Jibal Qutman MRE are that:
· Oxide Resources have increased from 287,000 ounces to 318,000 ounces
· Indicated Resources have increased from 18.0Mt to 30.5Mt (to 83% of
total MRE)
· Total tonnage has increased 8.6Mt to 37.0Mt (+30%)
· Total ounces have increased 169,000 ounces to 902,000 ounces (+23%)
The upgrading of and increase in the MRE is largely driven by additional
drilling extending mineralisation at Red Hill and better defining the
resources in key high grade areas, which when coupled with the higher gold
price has allowed whittle derived pit shells to access deeper mineralisation
and expand along strike.
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 Staton
3PPB LLC (Institutional IR)
Patrick Chidley +1 (917) 991 7701
Paul Durham +1-203-940-2538
Competent Person Statement
The Jibal Qutman 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.
The information in this announcement that relates to Exploration Results and
geological interpretation is based on information compiled by Mr Tomos Bryan
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.
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
AAS Atomic Absorption Spectroscopy
AIC All-in Costs
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
CIL Carbon-in-Leach
DD drilling Diamond drilling
g/t Grams per tonne
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
RC drilling Reverse circulation drilling
APPENDIX B
Additional Background information on Jibal Qutman Gold Project and MRE
The Jibal Qutman Gold Project is located in the central southern region of the
Arabian Shield approximately 110 km east-northeast from Bisha City in Asir
Province, Kingdom of Saudi Arabia.
KEFI completed a Pre-Feasibility Study ("PFS") on the Jibal Qutman Project in
2014. The PFS demonstrated a profitable open pit, carbon-in-leach ("CIL")
operation.
Following the resolution of regulatory and ground access issues, encouragement
from the Saudi authorities facilitated GMCO's recommencement exploration and
feasibility studies in 2022.
Gold mineralisation extends for approximately 7km along strike, concentrated
in seven discrete zones which outcrop at surface. Near-surface mineralisation
occurs intermittently over 500m at the widest zone, comprising a closely
stacked series of discrete mineralised zones varying in width from metre-scale
to 15m and extending to a depth of approximately 150m below surface.
Drilling has identified gold resources seven zones - 4K Hill, Pyrite Hill, 3K
Hill, Main and West, Red Hill and South Combined.
The MRE was based on a total of 1,154 drillholes amounting to 95,096m of RC
and diamond drilling, in addition to trench and channel sampling, which were
all completed by GMCO since 2012.
Drillhole spacing is on grids of approximately 50m by 50m to approximately 25m
by 25m, through the central part of the deposits, and approximately 100m by
50m to 100m by 100m at the peripheries.
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
JQ is located in the Asir Terrane, forming part of the Arabian Shield, and the
project area is predominantly composed of volcanic, sedimentary and intrusive
rocks of Neoproterozoic age. Orogenic events during the convergence of East
and West Gondwana amalgamated the terranes, forming fault-bounded
micro-plates. The Asir terrane is cut by the major north-south trending
Nabitah-Tathlith fault zone. The mineralisation at Jibal Qutman is one of many
quartz-vein-hosted gold occurrences in the fault zone.
Several zones of mineralisation occur on the property, seven of which have
been sufficiently explored to define Mineral Resources at Jibal Qutman. These
are listed as follows (from north to south):
· 4K Hill Zone: 4 km from Main-West Zone
· PH Zone: Pyrite Hill Zone
· 3K Hill Zone: 3 km from Main-West Zone
· Main and West Zone: Combined Main Zone and West Zone
· RH Zone: Red Hill Zone
· SC Zone: South Combined Zone (South Zone)
All zones dip moderately to steeply (~35° to 80°) towards the east, except
the PH Zone which dips to the west.
Mineral Resource Data
The Mineral Resource estimate was based on a total of 1,154 drillholes
amounting to 95,096m of reverse circulation (RC) drilling and diamond
drilling, in addition to trench and channel sampling, which were all completed
by G&M since 2012. Drillhole spacing is on grids of approximately 50m by
50m to approximately 25m by 25m, through the central part of the deposits, and
approximately 100m by 50m to 100m by 100m at the peripheries.
Samples were assayed at ALS Arabia Laboratory, and Al Amri Laboratories was
used as the independent check laboratory. Duplicates, blanks and standard
reference material (CRM) were used as part of the sampling protocol. The QAQC
analysis is adequate for reporting JORC (2012) compliant Mineral Resources and
no major concerns were noted.
Diamond drilling was used to twin drill a selection of the RC drillholes which
confirmed the RC results within acceptable limits. Drilling immediately below
the trench channel samples confirmed local grade trends and the magnitude of
the mineralisation.
Density determinations of 2,822 fresh, oxide and transition samples were made,
which were used to estimate density into the block models.
Mineral Resource Estimation
Multiple mineralised lodes were modelled within each zone based on a 0.18g/t
Au threshold. The mineralisation contacts in the quartz vein dominated zones
are sharp but are more diffuse in deposits such as Red Hill where mineralised
fracture systems are dominant.
Two oxidation domains were modelled; oxide and sulphide. The irregular narrow
transitional zone was included with the sulphide domain as the more
conservative option.
The wireframe model volumes were filled with unrotated block model parent
cells with dimensions of 10 mX by 10 mY by 1 mZ.
Drillhole samples were composited to 1m and top-caps were applied to each lode
within the Main, West, SC, 3K, 4K and RH Zones.
Semi-variograms of all zones except Pyrite Hill were modelled. Single and
double structures were modelled with ranges between 24 m and 75 m in the major
direction, 20 m to 42 m in the semi-major direction and between 4 m and 10 m
in the minor direction. The nugget effect is generally moderate and accounts
for between 22 % and 52 % of the total semi-variance. The variogram ranges are
fairly typical of this style of gold mineralisation.
The dry oxide and fresh density values in the block model were determined
using inverse distance weighting, from measurements on cores applied to
similar rock types in the logging data.
Ordinary kriging with the Datamine process of "Dynamic Anisotropy", in order
to align search directions with local trends, was used to estimate gold grades
into the block model for all zones except Pyrite Hill, for which inverse
distance squared was used.
The block model was validated visually, by using swath plots and by comparing
the block estimate means with the sample means.
Classification Criteria
The deposits, or portions of, were classified as Inferred or Indicated, based
on underlying data quality and quantity and confidence in the geological and
grade continuity. The portions of the deposit towards the peripheries tended
to be classified as Inferred and the lodes towards the centre, where drilling
is more closely spaced, were classified as Indicated.
Mineral Resource Statement Parameters and Cut-off Grade
A variable cut-off grade was applied in the oxide domains which were based on
recovery and gold grade. A cut-off grade of 0.22g/t gold was applied in the
oxide domain of 4K, RH, SC, and Main and West zone, and a 0.24g/t gold cut-off
was applied to 3K's oxide domain. The sulphide fresh domain had a fixed
cut-off grade of 0.29g/t for all zones except PH in the Mineral Resource. A
cut-off grade of 0.20g/t gold was applied to PH.
Mining and Metallurgical Methods and Parameters
Mining is assumed to be by open-pit methods and processing is assumed to be
through a 2 million tonne per annum carbon-in-leach (CIL) plant. A series of
NPV Scheduler pit shells were created based on the following cost and revenue
assumptions:
· Mining Cost: USD 2.10/t at pit rim, escalated USD 0.03 per 10 m depth
· Processing Cost (CIL): USD 9.94/t processed
· Royalty: 1.5%
· Refining and Transport Cost: USD 0.56/oz
· General and Administrative: USD 2.87/t ROM (run-of-mine)
· Final Slope Angle: 49° in oxide and 58° to 64° in fresh
· Mining Recovery: 95%
· Mining Dilution: 10%
· Processing Recovery:
o Carbon in Leach Recovery for Residue Grade (g/t) in Oxide:
§ 3K: y=0.0513*ln[head grade (g/t)]+0.1392
§ All other zones: y=0.0596*ln[head grade (g/t)]+0.0921
o Carbon in Leach Recovery for Solution Grade in Oxide: For all zones excl. 3K:
91.7%, 3K only: 87.7%
o Carbon in Leach Recovery for Solution Grade in Fresh for all zones: 69.43%.
· Gold Price: USD 2,300/oz, 99.5% payability for net gold price of USD 2254/oz
after royalty payment.
Appendix C - Diagrams for Jibal Qutman MRE
Figure 1 - Plan map of the Jabal Qutman Exploration area showing licences
and the Primary Resource locations.
Figure 2 - Cross section of the 4K Hill deposit showing the Resource
Blockmodel coloured by Resource Classification and the outline of the Whittle
open-pit shell
Figure 3 - Plan map of the 4K Hill deposit showing the Resource blockmodel
coloured by Resource Classification, drill/trench collars and traces and the
outline of the Whittle open-it shell
Figure 4 - Plan map of the 3K Hill deposit showing the Resource blockmodel
coloured by Resource Classification, drill/trench collars and traces and the
outline of the Whittle open-it shell
Figure 5 - Cross section of the 3K Hill deposit showing the Resource
Blockmodel coloured by Resource Classification and the outline of the Whittle
open-pit shell
Figure 6 - Plan map of the Main and West deposit showing the Resource
blockmodel coloured by Resource Classification, drill/trench collars and
traces and the outline of the Whittle open-it shell
Figure 7 - Cross section of the Main and West zone deposit showing the
Resource Blockmodel coloured by Resource Classification and the outline of the
Whittle open-pit shell
Figure 8 - Plan map of the Red Hill deposit showing the Resource blockmodel
coloured by Resource Classification, drill/trench collars and traces and the
outline of the Whittle open-it shell
Figure 9 - Cross section of the Red Hill deposit showing the Resource
Blockmodel coloured by Resource Classification and the outline of the Whittle
open-pit shell
Figure 10 - Plan map of the South Zone deposit showing the Resource blockmodel
coloured by Resource Classification, drill/trench collars and traces and the
outline of the Whittle open-it shell
Figure 11 - Cross section of the South Zone deposit showing the Resource
Blockmodel coloured by Resource Classification and the outline of the Whittle
open-pit shell
Appendix D - JORC Table 1 for Jibal Qutman MRE
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