TIDMKEFI
RNS Number : 1576B
KEFI Minerals plc
05 October 2015
5 October 2015
KEFI Minerals plc
("KEFI" or the "Company")
PROGRESS AT JIBAL QUTMAN, Saudi Arabia
discovery of additional areas of gold mineralisation
AND PREPARATIONS OF mINING LICENCE APPLICATION
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Kingdom of Saudi Arabia and the
Federal Democratic Republic of Ethiopia, is pleased to provide an
update on progress at the Jibal Qutman Project in Saudi Arabia.
Jibal Qutman is being progressed towards a low-capex development of
a conventional open-pit, heap-leach (HL) oxide gold operation
following the start-up of Tulu Kapi Gold Project in Ethiopia.
Highlights
Jibal Qutman - Preparation of Technical Studies for Mining
Licence Application:
-- Approximately 75% of the infill drilling program (RC and
diamond drilling) totalling 5,415m has been completed. The aim of
the program is to upgrade Inferred Resources to Indicated Resources
for the oxide gold mineralisation in-pit or proximal to preliminary
open-pit designs.
-- Metallurgical testing (column leach) has been completed on
the oxide mineralisation from four potential open cut areas for HL
processing. Gold recoveries range from 70% to 75% with a weighted
average of 73%. These gold recoveries are slightly better than
earlier bottle roll test work with an average estimated recovery of
69%.
-- A mine scoping study on a HL operation was completed by AMC
Consultants. Based on resources defined as at March 2015, the
potential mineable resources in a series of shallow open pits
totalled 6.6Mt at 0.95g/t Au, for 201,600oz.
-- The AMC study supported the internal preliminary assessment
announced by KEFI on 6 May 2015. A HL recovery factor of 70% was
utilised during the optimisation and evaluation process.
-- Ongoing drilling at Jibal Qutman is identifying additional
areas of gold mineralisation, especially at the prospects known as
4K Hill, 3K Hill, Pyrite Hill, Main, West and South Zones.
-- The primary focus of exploration drilling will shortly transfer from Jibal Qutman to Hawiah
Hawiah - large gold and base metal target
-- Drilling at Hawiah will target a 6km-long gold-mineralised
gossan and the underlying copper-gold-zinc massive sulfide target
as identified by recent geophysical surveys.
Jeff Rayner, Exploration Director of KEFI Minerals,
commented:
"We are pleased to report that the oxide heap leach project at
Jibal Qutman continues to deliver positive results and is
progressing towards applying for regulatory permits for a low-capex
development.
Exploration drilling continues to expand and provide new
discoveries whilst technical studies are being assembled for
lodgement of the Mining Licence Application. We look forward to
reporting further progress in due course."
ENQUIRIES
KEFI Minerals plc
Harry Anagnostaras-Adams (Executive
Chairman) +357 99457843
SP Angel Corporate Finance
LLP (Nominated Adviser)
Ewan Leggat, Jeff Keating +44 20 3470 0470
Brandon Hill Capital Ltd (Joint
Broker)
Oliver Stansfield, Alex Walker,
Jonathan Evans +44 20 7936 5200
Beaufort Securities Ltd (Joint
Broker)
Elliot Hance +44 20 7382 8300
Luther Pendragon Ltd (Financial
PR)
Harry Chathli, Claire Norbury,
Oliver Hibberd +44 20 7618 9100
Further information can be viewed on KEFI's website at
www.kefi-minerals.com
COMPETENT PERSONS' STATEMENTS
References in this announcement to exploration results,
resources, interpretations and prospects have been approved for
release by Mr. Jeffrey Rayner. Mr Rayner is a geologist and has
more than 27 years' relevant experience in the field of activity
concerned. He is a Member of the Australasian Institute of Mining
and Metallurgy (AusIMM) and has reviewed and consented to the
inclusion of the material in the form and context in which it
appears.
BACKGROUND
Exploration Progress
Exploration drilling and trenching has continued at Jibal Qutman
during the summer months. RC drilling has focused on extensions to
gold mineralisation at the 4K Hill prospect and at the Red Hill
prospect.
Best results include 43m at 1.50 g/t Au, 14m at 2.51 g/t Au, 11m
at 1.36 g/t Au and 16m at 1.02 g/t Au.
The following table summarizes the best assay results from the
exploration drilling, which comprised 32 inclined RC drill holes
totaling 2,300m.
Table 1 - Exploration Drilling Results
Hole Northing Easting From To Interval Au Zone
m m m g/t
JQRC397 334682.68 2252923.08 47 63 16 @ 1.02 Red Hill
------------
81 92 11 @ 1.36
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC398 336987.89 2249199.47 55 61 6 @ 2.14 Red Hill
------------
77 93 16 @ 1.02
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC400 336164.17 2247482.04 96 106 10 @ 1.02 South
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC403 1 18 17 @ 0.95 4K Hill
------------
93 97 4 @ 1.08
------------
116 120 4 @ 1.15
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC405 335724.15 2253799.72 6 14 8 @ 1.17 Pyrite Hill
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC411 336963.90 2249904.53 9 18 9 @ 1.23 RH North
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC415 336980.49 2249250.25 90 96 6 @ 1.52 Red Hill
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC416 336855.27 2248798.37 90 93 3 @ 1.39 Red Hill
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC428 335417.91 2254330.55 12 16 4 @ 1.43 4K Hill
------------
38 42 4 @ 1.20
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC429 335103.94 2254547.79 25 28 3 @ 1.12 4K Hill
------------
45 48 3 @ 1.07
--------- ----------- ----------- ---- --------- ----- ------------
JQRC431 335818.577 2250095.18 31 34 3 @ 1.09 Main Zone
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC433 336945.61 2249271.06 27 70 43 @ 1.50 Red Hill
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC434 336929.32 2249299.40 31 37 6 @ 1.59 Red Hill
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC435 336951.29 2249297.71 24 28 4 @ 1.11 Red Hill
------------
32 37 5 @ 1.15
------------
56 70 14 @ 1.60
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC440 336847.88 2247931.19 18 32 14 @ 2.51 RH South
------------
35 36 1 @ 2.86
------------
39 41 2 @ 1.24
--------- ----------- ----------- ----- ---- --------- ----- ------------
JQRC442 336840.30 2247886.50 87 89 2 @ 2.27 RH South
--------- ----------- ----------- ----- ---- --------- ----- ------------
All drillholes designed at an azimuth of 270deg, inclined at
-60deg. True width is estimated at 65-70% of downhole width in each
area.
Detailed outcrop mapping and sampling continues over the entire
EL, with encouraging assay results from rock-chip samples. Samples
JQR556 and JQRC588, containing visible gold, returned respectively
grades of 283g/t Au and 89.2g/t Au. These samples were taken from a
30m long outcropping trend of quartz veins and carbonate
alteration. This area is located 3km along strike to the north of
the Red Hill prospect. Further activity, including channel
sampling, is underway with aim to identify the host and extent of
this high-grade mineralisation.
(MORE TO FOLLOW) Dow Jones Newswires
October 05, 2015 02:00 ET (06:00 GMT)
A new area of mineralisation, Jabal Mikhyat, was discovered in
the northwest sector of the licence. The prospect consists of at
least three main target zones, associated with ancient workings.
Gold mineralisation is related with a lamprophyre dyke swarm,
trending northwest-southeast, associated with rare quartz veining,
strong silicification and pyrite impregnation of the host rock. A
preliminary trenching campaign comprising 25 trenches returned the
following assay results:
Table 2 - Trench Sampling Results Jabal Mikhyat
Trench Interval Au
m g/t
--------- ------
JQT345 3 @ 2.25
----------- --------- ------
JQT347 2 @ 4.31
----------- --------- ------
JQT343 18 @ 2.49
including 2 @ 7.17
----------- --------- ------
JQT353 2 @ 1.05
----------- --------- ------
JQT354 4 @ 3.47
----------- --------- ------
JQT355 2 @ 1.94
----------- --------- ------
JQT356 1 @ 28.40
----------- --------- ------
JQT364 5 @ 7.73
including 2 @ 18.46
----------- --------- ------
Following these promising trench results at the Jabal Mikhyat
prospect, a reconnaissance program comprising four RC drill holes
has been completed and results received. All holes intersected the
alteration/mineralisation zones at expected depths. However drill
hole interpretation of the mineralised intervals shows more
complexity than previously thought: more geological investigations
are required to properly plan further drilling.
Infill drilling program underway
A infill program on 25m centres commenced in late June 2015 at
Jibal Qutman. It comprises of 5,415m of RC drilling across 4K Hill,
3K Hill, Main, West and SC zones. The aims of the program are to
upgrade current Inferred Resources to the Indicated category and to
add additional oxide material through the drilling of zones
proximal to the current designed pits.
About 75% of the program has been completed to date with no
delays, and the program is expected to be completed by
mid-October.
The current drilling at 4K Hill, 3K Hill and West Zone has shown
mineralisation and alteration in-line with expectations adding
confidence to the current model. A list of best intervals is
reported below:
Table 3 - Infill RC Drilling Results
Hole Northing Easting From To Interval Au Zone
m m m g/t
JQRC465 335201.19 2254323.64 35 39 4 @ 1.57 4K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC466 335258.82 2254323.53 68 71 3 @ 8.14 4K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC470 335425.26 2254259.86 46 47 1 @ 3.53 4K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC473 335132.85 2254224.55 22 26 4 @ 1.50 4K Hill
----------
31 35 4 @ 1.04
----------
51 53 2 @ 1.29
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC476 335149.07 2254183.89 24 33 9 @ 1.60 4K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC477 335198.62 2254177.73 36 42 6 @ 1.33 4K Hill
JQRC478 335299.301 2254175.11 66 69 3 @ 1.16 4K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC485 334769.32 2252754.46 32 40 8 @ 2.99 3K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC486 334723.45 2252712.70 0 5 5 @ 1.65 3K Hill
12 16 4 @ 1.51 3K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC489 334647.54 2253137.89 27 30 3 @ 2.23 3K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC491 334674.34 2252897.19 0 4 4 @ 1.44 3K Hill
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC495 335453.04 2249784.49 26 28 2 @ 2.91 West Zone
----------
26 33 7 @ 1.05
----------
46 51 5 @ 6.02
77 92 15 @ 1.06
including 79 81 2 @ 4.87
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC496 335574.04 2249758.71 27 32 5 @ 1.12 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC497 335530.30 2249759.71 7 11 4 @ 1.51 West Zone
----------
73 79 6 @ 2.60
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC498 335492.32 2249758.89 40 42 2 @ 1.86 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC499 335416.71 2249683.78 49 52 3 @ 3.17 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC500 335602.92 2249664.20 47 50 3 @ 1.09 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC502 335432.16 2249628.27 32 36 4 @ 2.41 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC503 335446.32 2249575.46 27 31 4 @ 31.12 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC504 335503.44 2249538.42 33 34 2 @ 1.39 West Zone
----------
54 55 3 @ 1.38
----------
66 67 6 @ 3.16
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC505 335581.76 2249503.79 28 29 1 @ 1.15 West Zone
----------
44 45 2 @ 1.08
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC506 335544.54 2249549.04 16 17 4 @ 2.37 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
JQRC507 335576.79 2249603.80 45 46 12 @ 1.12 West Zone
----------- ----------- ----------- ----- --- --------- ------ ----------
All drillholes designed at an azimuth of 270deg, inclined at
-60deg. True width is estimated at 65-70% of downhole width in each
area. Coordinates, UTM, WGS84, 38N.
NOTES TO EDITOR
KEFI Minerals plc
KEFI is the operator of two advanced gold development projects
within the highly prospective Arabian-Nubian Shield, with an
attributable 1.93Moz (100% of Tulu Kapi's 1.72Moz and 40% of Jibal
Qutman's 0.73Moz) gold Mineral Resources (JORC 2012) plus
significant resource growth potential. KEFI targets that production
at these projects generate cash flows for further exploration and
expansion as warranted, recoupment of development costs and, when
appropriate, dividends to shareholders.
Expected milestones for the remainder of 2015 at Tulu Kapi
include:
-- Formalisation of project contracting, senior secured financing and equity funding
-- Full development funding and commencement of construction
In addition, during 2015 KEFI anticipates that through its joint
venture company in Saudi Arabia, Gold & Minerals Ltd
("G&M"), it will commence drilling at new licence Hawiah and
assemble a Mining Licence Application for its discovery at Jibal
Qutman in Saudi Arabia.
KEFI Minerals in Ethiopia
The Tulu Kapi gold project in Western Ethiopia is being rapidly
progressed towards development with the Mining Licence being
granted in April 2015.
KEFI's Definitive Feasibility Study was then completed and the
Company is now refining contractual terms for project construction
and operation. Latest estimates for annual gold production are c.
100,000 oz pa for a 10-year period and for All-in Sustaining Costs
(including operating, sustaining capital and closure) of c.
US$760/oz (excluding initial investment). Tulu Kapi's Ore Reserve
estimate totals 15.4Mt at 2.12g/t gold, containing 1.05 million
ounces.
KEFI Minerals in the Kingdom of Saudi Arabia
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