KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) has reported progress at its two projects in Saudi Arabia.
It said it is on track to post its mineral resource estimate and preliminary feasibility study for the Hawiah copper-gold asset after confirming the exploration licence had been renewed for five years.
Currently, there are five drill rigs turning on Hawiah and next-door Al Godeyer.
In the update it said it also expects to see progress with its mining licence for the Jibal Qutman (JQ) gold project this year.
This follows what KEFI described as ‘positive developments’ at the Saudi Arabian Ministry for Industry and Mineral Resources.
As a result, KEFI has begun work that will ‘rapidly advance’ the putative JQ mine towards production.
It plans to complete a detailed feasibility study for a 2mln tonnes a year carbon-in-leach operation.
And it will also carry out an independent audit of the mineral resource, which currently stands at 700,000.
“The preferred development approach for Jibal Qutman is now likely to be a straight-forward CIL gold processing plant, at a larger scale than previously envisaged, as the economics for mining and processing the whole resource now are much more robust at the higher current gold prices,” said KEFI chief executive Harry Anagnostaras-Adams.
“Another important consideration is that project financing in Saudi Arabia will not require foreign banks and that Jibal Qutman will not require the resettlement of communities.”
The Saudi assets are held by Gold & Minerals, a company 30% owned by KEFI and 70% by Abdul Rahman Saad Al Rashid and Sons.