KEFI Gold and Copper PLC's (AIM:KEFI, OTC:KFFLF) joint venture in Saudi Arabia, GMCO, has been awarded the Umm Hijlan exploration licence located directly south of its Hawiah prospect.
GMCO has long identified this EL as a key target, KEFI added, given its proven extension of the southern strike continuation of the main Hawiah volcanic massive sulphide or VMS system.
The licence (EL) was secured following a competitive bidding process that assessed the quality and merits of each tenderer's proposed exploration programme.
Umm Hijlan consolidates a 210 square kilometres strategic licence area for GMCO, KEFI added and offers the prospect of adding significant additional oxide and sulphide resources to the advanced Hawiah Copper-Gold-Zinc-Silver Project.
Hawiah and the Al Godeyer VMS deposits already contain Mineral Resources equivalent to 2.5 million gold-equivalent ounces.
Harry Adams, KEFI executive chairman, said: "The Umm Hijlan EL provides the opportunity to quickly add nearby Mineral Resources to the Hawiah Copper-Gold-Zinc-Silver Project which is at the Definitive Feasibility Study stage.
"The EL potentially increases the strike length of the already- "JORC'd" mineralised structure from c. 5kms to 9kms. Being a continuation of the same VMS system, these potential resources are likely to turbocharge the economics of the Hawiah Project.
"Umm Al Hijlan also presents the opportunity to explore large nearby mineralised intrusions, which feature a distinct style of later-stage, gold-rich mineralisation.
"The expanded Hawiah Project is now a very strategic holding in the tightly held Wadi Bidah Mineral District, with recent extensive pegging by the Ivanhoe Electric/Maaden Joint Venture.
Hawiah already ranks in the largest 10% of VMS deposits globally and the extension into Umm Al Hijlan is expected to further elevate its rank.
"KEFI is continuing to progress the strategic review of its GMCO holding, which we are targeting to be resolved in tandem with the launch of Tulu Kapi. KEFI has made it clear that the priority for its capital is to now optimise shareholder value via majority-owned projects."