TIDMKEFI
RNS Number : 0345T
KEFI Minerals plc
12 November 2019
12 November 2019
KEFI Minerals plc
("KEFI" or the "Company")
Encouraging copper and gold grades returned from the first
Hawiah drill hole
Second and third holes also hit the targeted massive
sulphides
KEFI Minerals (AIM: KEFI), the gold exploration and development
company with projects in the Federal Democratic Republic of
Ethiopia and the Kingdom of Saudi Arabia, is pleased to report
encouraging results at the start of the scout drilling programme at
the Company's Hawiah Exploration Licence in Saudi Arabia:
-- assay results for the first drill hole have been received and
HWD_001 intercepted 15.8 metres of massive sulphide from 150.75
depth (true width 8 metres) at 1.2% copper, 0.51% zinc, 0.51g/t
gold and 9.1g/t silver;
-- additional holes, HWD_003 and HWD_004, collared on an
east-west profile line 250 metres south of HWD_001, have
successfully intercepted mineralisation with 8.6 metres width (true
width 6.0 metres) from 38 metre depth and 16.2 metres width (true
width 11.0 metres) from 267.5 metre depth respectively. Assay
results are pending for these holes; and
-- HWD_002 targeted the near-surface gold-bearing oxidised zone.
Assay results are pending for this hole.
These additional drill intercepts push the extent of the known
massive sulphide mineralisation down to a depth of 240 metres below
surface. Visual inspection of the drill core in HWD_003 and HWD_004
indicates that sulphide mineralisation presents in a similar
fashion to HWD_001.
These early encouraging results represent just the start of the
planned 2,500 metre scout drilling programme and confirm that the
Volcanic Massive Sulphide ("VMS") mineralisation is the source of
the previously reported 5.5km long geophysical anomaly, and that
the mineralisation is copper, gold and zinc bearing.
This builds on the previous exploration work that demonstrated
that the Hawiah ridgeline is enriched in gold at surface, with
potential for copper-gold-zinc at depth. Geophysical surveys
identified a strong and continuous anomaly under the ridge that
remains open both along strike and down dip.
In due course, the programme will test three key target
zones:
-- the near-surface oxidised zone for gold;
-- the massive sulphide at depth for copper-gold-zinc; and
-- the potential stockwork zone for a larger-scale development for copper-gold-zinc.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Enquiries
KEFI Minerals plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Soltan Tagiev
Brandon Hill Capital Ltd (Joint Broker) +44 (0) 20 7936 5200
Oliver Stansfield, Jonathan Evans
IFC Advisory Ltd (Financial PR and IR)
Tim Metcalfe, Florence Chandler +44 (0) 20 3934 6630
Competent Person Statement
The information in this announcement that relates to exploration
results, Mineral Resources and Ore Reserves is based on information
compiled by Mr Jeffrey Rayner. He is exploration adviser to KEFI,
the Company's former Managing Director and a Member of the
Australian Institute of Geoscientists ("AIG"). Mr Rayner is a
geologist with sufficient relevant experience for Group reporting
to qualify as a Competent Person as defined in the JORC Code 2012.
Mr Rayner consents to the inclusion in this report of the matters
based on this information in the form and context in which it
appears.
Notes to Editor
Assay Results
Assay results for zinc are still pending as additional methods
of detection are required for material grading higher than
10,000ppm (1%) Zn. The results are presented in Table 1 and a
summary is as follows:
-- The entire massive sulphide zone grades: at 16m at 1.2% Cu, 0.51% Zn, 0.51g/t Au, 9.1g/t Ag
-- The upper zone grades at: 7.7m at 0.4% Cu, 0.75% Zn, 0.76g/t Au, 10.29g/t Ag
-- The lower copper zone grades: at 7.8m at 2.05% Cu, 0.3%Zn, 0.3g/t Au, 8.37g/t Ag
Table 1. Simplified geology and assay from HWD_001
Simplified geology From To Cu ppm Zn ppm Au g/t Ag g/t
------- ------- -------
Greenschist 147 148 58 93 0.01 <0.2
Greenschist 148 149 64 95 0.01 <0.2
Greenschist 149 150 49 81 0.01 <0.2
Greenschist 150 151 818 133 0.17 2.9
Massive sulphide 151 152 1760 2980 0.92 5.9
Massive sulphide 152 153 1990 3000 1.01 6.7
Massive sulphide 153 154 941 >10000 0.96 5.1
Massive sulphide 154 155 2770 >10000 0.47 5.1
Massive sulphide 155 156 12300 >10000 0.55 13.7
Massive sulphide 156 157 0.987 6300 0.8 15.6
Massive sulphide 157 158 4950 8720 0.74 17.2
Massive sulphide 158 158.7 11150 9970 0.53 14.2
Dyke 158.7 159.2 741 647 0.07 2
Massive sulphide 159.2 160 19700 9430 0.41 9
Massive sulphide 160 161 30700 7280 0.41 15.5
Massive sulphide 161 162 21800 3340 0.33 11.5
Massive sulphide 162 163 20500 3890 0.44 9.7
Massive sulphide 163 164 8300 585 0.42 4
Massive sulphide 164 165 21000 192 0.17 6.3
Massive sulphide 165 166 28100 155 0.17 7.8
Massive sulphide 166 167 13600 383 0.04 3.3
-------------------- ------ ------ ------- ------- ------- -------
Greenschist 167 168 126 82 0.01 <0.2
Greenschist 168 169 180 83 0.01 <0.2
Greenschist 169 170 104 66 0.01 <0.2
Greenschist 170 171 37 85 0.01 <0.2
-------------------- ------ ------ ------- ------- ------- -------
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project
development project in Ethiopia, along with its pipeline of other
projects within the highly prospective Arabian-Nubian Shield. KEFI
targets that production at Tulu Kapi generates cash flows for
capital repayments, further exploration and expansion as warranted
and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI upon
commencement of development, with a view to adding satellite
deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a 40%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(EL) applications pending the introduction of the new Mining Law.
ELs are renewable for up to three years and bestow the exclusive
right to explore and to obtain a 30-year exploitation (mining)
lease within the area.
The Kingdom of Saudi Arabia has announced policies to encourage
minerals exploration and development, and KEFI Minerals supports
this priority by serving as the technical partner within G&M.
ARTAR also serves this government policy as the major partner in
G&M, which is one of the early movers in the modern resurgence
of the Kingdom's minerals sector.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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