KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has reported a major increase in its mineral resource estimates at the Hawiah copper-gold project in Saudi Arabia, strengthening its position as one of the country’s most significant base metals developments.
The total resource at Hawiah has risen by 26% to 38.2 million tonnes, with 14.7 million tonnes now identified as suitable for open-pit mining.
Resources classified as “indicated,” meaning they have a higher level of certainty, have increased by 161% to 30.5 million tonnes and now account for 85% of the total estimate.
The deposit now contains 297,000 tonnes of copper, a 16% rise, alongside 310,000 tonnes of zinc, up 14%, 745,000 ounces of gold, up 20%, and 11.6 million ounces of silver, a 23% increase.
The Hawiah deposit itself has grown by 7.3 million tonnes to 36.2 million tonnes, while the nearby Al Godeyer deposit has expanded by 48% to 2 million tonnes.
Drilling at Al Godeyer has also led to a 55% rise in its reported copper grade, now at 0.93%, due to the improved definition of high-grade zones.
The latest estimates further strengthen the case for an open-pit mine in the early years of the project, which would require less capital investment to develop.
Open-pit resources have increased by 14% to 12.7 million tonnes, and all of these are now classified as indicated.
This provides a stronger foundation for long-term mine planning and future reserve estimates.
The company has also secured the Umm Hijlan exploration licence, which extends the known mineralised strike of the Hawiah deposit and could add further resources to the project.
Drilling at Umm Hijlan is scheduled to begin in the second quarter of 2025 and is expected to confirm both oxide and sulphide mineralisation similar to the main Hawiah deposit.
The company is also reviewing its stake in Gold and Minerals Company, the Saudi joint venture that oversees Hawiah, to determine the best way to maximise value from the asset.
This process is being conducted alongside ongoing preparations for the launch of KEFI’s gold development project at Tulu Kapi in Ethiopia, which is expected to enter production in the near future.
KEFI has said that further drilling and feasibility work will continue at Hawiah to refine the project’s economics and support development plans.
Chairman, Harry Anagnostaras-Adams said: "The updated mineral resource estimate for the Hawiah Copper-Gold Project has provided the firm basis for a long-life mine with potential for lower cost open-pit development during the early years of the Project.
"With 85%...of the project's mineral resources now in the Indicated Resource category, further work is likely to define substantial Ore Reserves for a robust operation.
"Planned drilling of the recently granted Umm Hijlan EL is targeted to quickly define further nearby resources along strike of the Hawiah MRE. This is anticipated to commence in the second quarter [of the year].
"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."