KEFI Minerals plc - Hawiah Exploration Update
("KEFI" or the "Company")
Hawiah Exploration Update
Stage 2 Programme Completed With 69 Drill Holes
Assays Re-Affirm Three Separate Zones for Potential Mining
Further Targets Remain
Inaugural JORC Resource Targeted Mid-2020
G&M has now completed Stage 2 of the Hawiah diamond drilling programme, increasing the number of completed diamond drill holes to 69 since the first drill hole in
Copper-zinc-gold-silver sulphide mineralisation has been intercepted in drilling consistently over more than 4km of strike length, with intercepts within the supergene zone of up to 4.4% Copper over a 6m true width interval, including 5.8% Copper over a 3m true width. The results re-affirm the large-scale Volcanic Massive Sulphide ("VMS") style of mineralisation that underlies the +4km long surface gossanous ridgeline. Assays have been received for 59 of the 69 drill holes and confirm the positive progress towards delineating an initial Mineral Resource in accordance with the JORC Code in mid-2020.
Sufficient drilling has now been completed to identify three zones with the following preliminary parameters for potentially mineable massive sulphide lodes, with all zones remaining open at depth:
· The 'Camp Lode': 1.2km long, with an average width of 7.5m with the widest intersection of 20m found at a depth of 90m. The lode has been drilled to a depth of 300m where 9m true width of massive sulphide was intersected;
· The 'Crossroads Lodes': 800m long, with an average width of 5m with the widest intersection being 8m true width. This lode has been explored to a maximum vertical depth of 350m where 7m of massive sulphide was intersected; and
· The 'Crossroads Extension Lode': 1,000m long, with an average width of 5m with the widest intersection being 12m true width. This lode has been explored to a maximum vertical depth of 270m where 9m of massive sulphide was intersected.
Drilling spans over 4.4km of strike length of the prospect with a current drill spacing on the Camp and Crossroads Lodes of approximately 150 x 150m, with only few short scout holes drilled into the Central Area
Assay results, which were held up until recently due to a COVID-19 induced temporary suspension of operations at the assay laboratory, to date indicate the following approximate average grades within these lodes:
· Crossroads Lode: Copper 1.0%; Zinc 0.8%; Gold 0.8g/t and Silver 12.0g/t over an average true width of 5m, approximately 2.2% copper-equivalent at current spot prices; and
· Crossroads Extension assays are still largely pending.
The combined volume of these lodes in the sub-vertical structure drilled to date is still considered likely to exceed 12 million tonnes in aggregate based on the results to date, as reported on
Exploration potential remains significant at depth below all areas. The downdip continuation of
Drilling has also extended the gold-mineralised oxide zone from surface:
· Surface trenches reported encouraging gold grades in 2015 before the field programme was suspended at that time for since-resolved security and regulatory obstacles; and
· Initial drilling has returned an average grade of 1.7g/t gold across 7 drill holes with an average vertical depth of 35m.
A comprehensive update, including details of all drill holes will be provided as soon as practical after all assays are received.
G&M has appointed an independent Competent Person to assist in the estimation of the planned maiden Mineral Resource and consequential Preliminary Economic Assessment. These studies will facilitate the planning and sequencing of exploration and potential development activities at Hawiah.
The G&M joint venture looks forward to participating in the development and expansion in the Saudi Arabian minerals sector which the Saudi Government has made a national strategic priority. Potential development funding for Hawiah is anticipated to be more straightforward than in
The Company will also continue to assess further resource potential at Hawiah, given that drilling to date has yet to establish the extremities of the mineralisation at depth and along strike.
A new presentation containing further illustrative background material on the Company's Hawiah project is available on the Company's website at: https://www.kefi-minerals.com/news/presentations
"We are very pleased with the results to date of the drilling at our copper-gold-zinc-silver discovery at Hawiah in
"The rapid pace of progress since completing the first drill hole in
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.
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SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker)
+44 (0) 20 3470 0470
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+44 (0) 20 7936 5200
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+44 (0) 20 3934 6630
Competent Person Statement
The information in this announcement that relates to exploration results is based on information compiled by
Notes to Editor
KEFI is focused primarily on the advanced
The Tulu Kapi gold project in western
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.
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.
In 2009, KEFI formed
ARTAR, on behalf of G&M, holds over 16 Exploration Licence (EL) applications pending the introduction of the new
This information is provided by RNS, the news service of the
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