KEFI Minerals (LON:KEFI), the gold specialist putting the finishing touches to financing of its flagship project in Ethiopia, revealed progress on second asset, in Saudi Arabia.
The Jibal Qutman property will be developed as a low-capex conventional open-pit operation once its main mine, Tulu Kapi, is in operation.
Currently, the company is preparing technical studies for a mining licence application for Jibal Qutman.
Around three-quarters of an infill drill programme has been completed that will upgrade the inferred resource to the higher confidence indicated category.
Metallurgical testing has finished on the oxide ore from four potential areas using the straightforward and reasonably cheap heap-leaching process.
Gold recoveries were 70-75% using this method with a weighted average of 73%.
The recoveries were slightly better than earlier test work that averaged 69%.
A mine scoping study on a heap-leach operation was completed by AMC Consultants, which identified the potential to mine 201,600 ounces from a series of shallow pits.
Jibal Qutman’s mineral resources are estimated to total 733,045 ounces.
KEFI’s director of exploration Jeff Rayner said: "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."
Sticking with Saudi, the company will also start to tap the potential of its most recently acquired licence, called Hawiah.
Drilling will target a six kilometre gold mineralised gossan – this is intensely weathered and oxidised rock.
As well as gold, there may be copper and zinc underlying the structure.