KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) said it has renewed its Jibal Qutman exploration licence in Saudi Arabia.
This licence includes a resource of 733,000 ounces which forms the basis of an ongoing definitive feasibility study and development plan through the company's 30%-owned Gold and Minerals Limited joint venture in Saudi Arabia.
The renewal opens the way for the commencement of field programmes and environmental studies, necessary for the award of the Jibal Qutman mining licence. The licence covers just under 100 square kilometres and has been renewed on a five-year term.
Field programmes, including the construction of the pioneer's camp, environmental baseline studies and geotechnical and metallurgical diamond drilling, will now commence.
The definitive study is due for completion at the end of this year or early next year.
The licence also gives access to the 270 square kilometre Jibal Qutman Exploration Area which consists of the recently issued 'Jibal Qutman North' and 'Jibal Qutman Southeast' exploration licences, covering a significant portion of the highly prospective 'Nabitah-Tathlith' gold belt.
"The re-issuance of the Jibal Qutman exploration licence is a critical milestone on the Jibal Qutman road to gold production,” said KEFI executive chairman Harry Anagnostaras-Adams in a statement.
“This licence, which covers the main Jibal Qutman resource area, will allow the exploration and project teams to re-enter the site and complete the field work and testing required to close out the DFS by the start of next year which will then be used to support the mining licence application," he added.
The maximum exploration licence size permitted under the 2020 updated Saudi mining law are typically 100 square kilometres. As such, three licences are required to cover the complete exploration area. All three of these licences have now been issued.
The Jibal Qutman North and Jibal Qutman Southeast licences cover the north and south strike extension of the main Jibal Qutman gold system, which forms part of the highly prospective Nabitah-Tathlith fault zone that runs north-south across much of the Arabian Shield.