REG - Kefi Gold and Copper - Renewal of Jibal Qutman Exploration Licence K/144

KEFI Gold and CopperAnnouncement

17/10/2022 07:00

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RNS Number : 0175D  Kefi Gold and Copper PLC  17 October 2022

17 October 2022

KEFI Gold and Copper plc

("KEFI" or the "Company")

 

Renewal of the Jibal Qutman Exploration Licence K/144

KEFI (AIM: KEFI), the gold and copper exploration and development company with
projects in the Federal Democratic Republic of Ethiopia and the Kingdom of
Saudi Arabia is pleased to announce the renewal of the Jibal Qutman
Exploration Licence (K/144) in Saudi Arabia. This licence includes the
previously announced mineral resource of 733,000 oz which forms the basis of
the ongoing Definitive Feasibility Study ("DFS") and development plan through
Company's Gold and Minerals Limited ("G&M") joint venture in Saudi Arabia.
This renewal opens the way for the commencement of field programmes and
environmental studies, necessary for the award of the Jibal Qutman Mining
Licence.  G&M is owned 30% by KEFI and 70% by its partner Abdul Rahman
Saad Al Rashid and Sons Ltd ("ARTAR").

Highlights

·    'Jibal Qutman' Exploration Licence (EL K/144) has been renewed on a
5-year term covering 99.68Km(2).

·    Field programmes including the construction of the pioneer's camp,
environmental baseline studies and geotechnical and metallurgical diamond
drilling, will now commence.

·    The 2Mtpa CIL (Carbon-In-Leach) DFS remains on target for completion
at the end of Q4 2022/early Q1 2023, with environmental permits targeted for
Q1 2023.

·    This licence gives the company access to a 270Km(2) 'Jibal Qutman
Exploration Area' which also consists of the recently issued 'Jibal Qutman
North' and 'Jibal Qutman Southeast' exploration licences, covering a
significant portion of the highly prospective 'Nabitah-Tathlith' gold belt
(see Figure 1 in the appendix, accessible here:
http://www.rns-pdf.londonstockexchange.com/rns/0175D_1-2022-10-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0175D_1-2022-10-16.pdf) ).

·    G&M has at the same time, initiated discussions with the Saudi
Investment Development Fund (SIDF) surrounding project funding to be finalised
once the mining licence has been awarded.

 

Executive Chairman, Mr Harry Anagnostaras-Adams, commented:

"The re-issuance of the Jibal Qutman exploration licence is a critical
milestone on the Jibal Qutman road to gold production. As previously
announced, this licence, which covers the main Jibal Qutman resource area,
will allow the exploration and project teams to re-enter the site and complete
the field work and testing required to close out the DFS by the start of next
year which will then be used to support the mining licence application.

"The exploration teams are also excited to get back into the field and start
the process of expanding the existing resource at Jibal Qutman and making new
discoveries in this highly prospective 270Km(2) land package that has been
created for KEFI's Gold and Minerals joint venture."

 

Jibal Qutman Project Background

Geology and Exploration

As announced on 3 August 2022, the land access issues which have delayed the
start of the 733,045 oz Jibal Qutman Gold Project have been resolved. As part
of this process, it has been agreed that an area of over 270Km(2) is to be
granted, covering the original Jibal Qutman Exploration Licence, plus a
significant land package along strike to the north and south (see Figure 1 in
the appendix)

The maximum exploration licence ("EL") size permitted under the 2020 updated
Saudi mining law are typically 100Km(2), as such, three licences are required
to cover the complete exploration area. All three of these licences have now
been issued.

The Jibal Qutman North and Jibal Qutman Southeast ELs cover the north and
south strike extension of the main Jibal Qutman gold system, which forms part
of the highly prospective Nabitah-Tathlith Fault Zone that runs north-south
across much of the Arabian Shield.

Ancient and more modern artisanal mining excavations are known to exist within
the licence areas and the G&M exploration team is confident of its ability
to significantly expand the existing Jibal Qutman resource base. Thirteen grab
samples of mine dumps in the Jibal Qutman Southeast EL taken by G&M in
2014, returned grades of up to 66.5 g/t gold, averaging 10.5 g/t gold across
all 13 samples. Ancient mining appears to have targeted quartz veins with dump
material presenting as quartz with strongly banded sulphides- these veins have
not yet been identified in outcrop, as the area is predominantly covered by
alluvial/aeonian sands and gravels. However, the quantity of dump material and
the extent of more recent artisanal mining are encouraging signs of
significant, sub-cropping continuation of the Jibal Qutman gold system. Grab
samples within the Jibal Qutman North EL area have returned gold grades of up
to 4.1 g/t gold, also associated with quartz veining.

G&M exploration within the Jibal Qutman EL prior to 2016 focused on the
'Main Zone' trend, which presents as quartz veins hosted within deformed
volcanics and sediments. Shortly before the end of this exploration phase, a
second mineralised structure was identified hosted within ultramafics on the
eastern part of the Jibal Qutman EL. This structure known as the 'Red Hill'
trend is yet to be fully explored and is open both along strike and at depth
within the Jibal Qutman resource area. Regional mapping has also identified
this structure within the adjoining Jibal Qutman North and Southeast ELs,
although at this stage it is untested.

Jibal Qutman DFS

Progress on the DFS continues, with Front End Engineering and Design (FEED),
plant layout and reserve definition nearing completion. Metallurgical testing
continues and preliminary geotechnical design parameters have been agreed.

Whilst much of the DFS is being completed remotely, access to the field is
required to establish the baseline as part of the Environmental and Social
Impact Assessment (ESIA) and to complete the final geotechnical evaluation of
the proposed reserve pits as well as metallurgical and comminution testworks.
The issuance of the Jibal Qutman licence will now enable these studies and
drilling programmes to be completed and at this stage, G&M believes the
project is still on track to proceed with financing and mining licence
submission in early 2023.

 

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 (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 Securities Limited (Lead Broker)             +44 (0) 20 7100 5100
 Oliver Stansfield, Jonathan Evans
 WH Ireland Limited (Joint Broker)                   +44 (0) 20 7220 1666
 Katy Mitchell, Andrew de Andrade
 IFC Advisory Ltd (Financial PR and IR)              +44 (0) 20 3934 6630
 Tim Metcalfe, Florence Chandler

 

Competent Person Statement

The information in this announcement that relates to geology, 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.

 

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