REG - Kefi Gold and Copper - Two new Saudi Arabian exploration licences granted

KEFI Gold and CopperAnnouncement

12/07/2022 07:00

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RNS Number : 0896S  Kefi Gold and Copper PLC  12 July 2022

12 July 2022

KEFI Gold and Copper plc

("KEFI" or the "Company")

Two new exploration licences granted in Saudi Arabia

Positive progress on Jibal Qutman licence applications

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 award of two additional exploration
licenses through the Company's Gold and Minerals Limited ("G&M") joint
venture in Saudi Arabia.  G&M is owned 30% by KEFI and 70% by its partner
Abdul Rahman Saad Al Rashid and Sons Ltd ("ARTAR").

Highlights

·   Two additional exploration licences Jibal Hillit and Qunnah
(collectively the "Exploration Licences") have been awarded on an initial
five-year term

·    The Exploration Licences have historically yielded grades of up to
15.3g/t at Jabal Hillit and 46 g/t Au at Qunnah, hosted in quartz-veins

·    Positive progress has been made in discussions with the Deputy
Minister for Mineral Resources relating to the Jibal Qutman Project -
anticipated resolution in the current quarter

Jabal Hillit and Qunnah Exploration Licences

The granting of the Exploration Licences represents the start of a new and
exciting phase of exploration and discovery for the Company.  These licences
are situated approximately 30km apart, straddling the Ad Dawadimi and Afif
terranes in the eastern portion of the Arabian Shield (see map in the appendix
accessible via
http://www.rns-pdf.londonstockexchange.com/rns/0896S_1-2022-7-11.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0896S_1-2022-7-11.pdf) .
 Both represent attractive gold exploration targets, and the granting of the
Exploration Licences represents a new frontier for the G&M exploration
team.

·   The Exploration Licences are situated within the eastern area of the
Arabian Shield, located 30km apart and cover a combined area of 184.29 km(2)
of prospective ground

·   23 known gold occurrences have been historically documented, with
significant ancient workings located within the tenements

·   The Exploration Licences have identified gold within shear-hosted
quartz veins, with grades of up to 15.3g/t at Jabal Hillit and 46 g/t Au at
Qunnah as noted by the BRGM and USGS

·   The Exploration Licences present an excellent opportunity to make
discoveries within a highly prospective and under explored area of the Arabian
shield

Mineralisation within the Exploration Licences presents as north-west trending
gold-bearing, structurally controlled quartz veins.  Work conducted during
the Bureau de Recherches Géologiques et Minières ("BRGM") and United States
Geological Survey ("USGS") reconnaissance programmes of the 1970s and 1980s,
remains the only modern exploration to have taken place over the sites, with
basic mapping and rock chip sampling confirming the presence of high-grade
gold mineralisation and outlining the key areas of interest.

Jabal Hillit represents the more advanced licence with 20 mapped gold
occurrences across five main vein packages cutting across the licence.  Veins
have been shown to strike discontinuously for 1,500m with widths of up to
2.5m, hosted within meta-volcanic units.  USGS mapping also rediscovered the
ancient ruins of the Umm Adher gold mine, which now sits inside a fenced
archaeological site within the licence area.  BRGM sampling of dump piles
associated with this ancient mining showed gold grades of up to 15.3 g/t.

Located 30km west of Jabal Hillit, the Qunnah exploration licence area also
presents with gold-bearing, structurally controlled quartz veins within three
main areas.  As with Jabal Hillit, large crush and dump piles can be found
across the tenement with ancient miners clearly targeting the quartz-vein gold
mineralisation.  USGS sampling of vein material from these crush dumps
reached up to 46 g/t of gold.

The G&M regional exploration team are gearing up for a busy summer of
mapping and sampling within these new licences to ground truth historical
data, extend the known limits of mineralisation and define the structural
framework controlling mineralisation, ahead of more advanced exploration works
this year.

Jibal Qutman Project Developments

As previously reported, ARTAR (on behalf of G&M) has been actively engaged
in discussions with the Saudi Arabian Ministry for Industry and Mineral
Resources ("MIM") regarding its mining licence application.  These
discussions have now reached an advanced stage and it is the view of G&M's
management that a positive outcome to these discussions is now imminent.

In line with these discussions, G&M will need to submit an updated
Development Plan and Environmental and Social Impact Assessment to enable the
resubmission of the mining licence application under the new Saudi Arabian
Mining Investment law, ahead of the award of the expected Jibal Qutman Mining
Licence ("ML").

In advance of this, it is anticipated that G&M will be granted three
exploration licences covering the Jibal Qutman area to enable the above
studies to be completed.

As announced on 16 June 2022, G&M has engaged Lycopodium to complete a
Detailed Feasibility Study ("DFS") for Jibal Qutman by December 2022.  In
addition to this, the Company has initiated steps to re-establish its
operational base in the nearby city of Bisha.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented:

"Work in Saudi Arabia is gathering pace on many fronts; our Hawiah Project is
firmly on track for the delivery of the Preliminary Feasibility Study by year
end, we have exciting developments on the Jibal Qutman Gold project and now
the granting of these two additional exploration licenses.  The award of the
exploration licences, which contain known high-grade gold occurrences provides
an exciting opportunity to make further discoveries at a time where the
country is focused on developing its mineral resources.

"This expansion of our regional exploration portfolio highlights our
commitment to organic growth and our desire to discover and develop additional
assets in the highly prospective Arabian shield.  At Jibal Qutman,
developments are particularly encouraging and should allow for a fast-track
development schedule, targeting near term gold production.  This marks the
beginning of an exciting chapter for the G&M joint-venture partnership and
continues to demonstrate our ability to operate as a leading explorer and
developer within Saudi Arabia."

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
 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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