KEFI Gold and Copper awarded two additional exploration licences in Saudi Arabia

KEFI Gold and Copper plc (LON:KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has announced the issuance of the Al Godeyer and Al Godeyer East Exploration Licences, to the KEFI-operated Saudi Arabian joint-venture Gold and Minerals Limited. The licences are situated 12km south-west of the Company’s Hawiah discovery, which is expected to shortly upgrade the 2020 Mineral Resource Estimate (“MRE”) of 19.3Mt at 1.9% copper equivalent.

Highlights

·      Al Godeyer and Al Godeyer East licences granted on an initial 5-year term

·      Exploration work suggests a strike length of more than 2km for the identified gossan horizon

·      Accelerated Exploration programs targeting a Maiden resource within 2022

·      Situated adjacent to the Company’s significant Hawiah discovery

Background

The Company’s Hawiah Copper-Gold VMS project (“Hawiah’) is now advancing through the Preliminary Feasibility Study (“PFS”) for potential development, having completed 42,000m of drilling across the project during the 2019-2021 initial exploration phase.  An update to the MRE, in conjunction with SRK Consulting (UK) Ltd, is nearing completion and is expected to be announced later in December 2021. This will form the basis for much of the PFS works including mine and process design.  

The granting of the AG Licences is a significant step in G&M’s plans for the development of the wider Hawiah Project area, representing the first of the satellite targets to be explored. The proximity and shared mineralisation style should present an excellent opportunity to enhance the Hawiah project with additional grade and tonnage.

Al Godeyer VMS mineralisation

The Al Godeyer area, covered by the AG Licences, was first mapped and trenched by the French Government Geological Department (“BRGM”) in the 1980’s, with mineralisation occurring as outcropping, NW-SE striking gossans over 800m in length and widths of up to 6m. The gossans are hosted within a felsic-intermediate volcanic package, consistent with a back-arc paleo-environmental setting.

Whilst more structurally complex than the nearby Hawiah gossans, mineralisation presents in a very similar style with strike-continuous and consistent gold values noted within the core of the gossan and copper mineralisation as malachite on the flanks. As with Hawiah, the malachite on the flanks of the gossan is considered likely related to re-mobilisation/ground water interactions with the copper-rich portions of the underlying ore body.

In anticipation of the granting of these Exploration Licences, G&M geologists have already been actively mapping and grab sampling the ground using the G&M Reconnaissance Licence and have now extended the strike of the gossanous horizon by approximately 1.2 kilometres to the southeast (see Figure 2 in the attached appendix).

Early sampling has been very positive with results confirming the work performed by the BRGM with grades of up to 7.2 g/t Au recorded in the gossans. Grab samples have consistently returned gold grades akin to the main Hawiah gossans, and with high copper values related to the secondary malachite. Highlights of these grab samples are listed below:

Exploration strategy

Due to the proximity to Hawiah, G&M will proceed with an aggressive exploration strategy and if drilling is successful, aim to complete a maiden MRE by Q4 2022. This would allow any delineated material on the AG Licences to be incorporated into planning for the wider Hawiah project development.

The exploration approach and approximate anticipated timeline is outlined below:

–       Complete first pass mapping and sampling of SE extension area (Q4 2021)

–       Trenching to confirm surface continuity of main gossans and SE extension areas. (Q1 2022)

–       Self-potential geophysics to define the sub-surface continuity of the SE extension (Q1 2022)

–     Scout Drilling – 1,500m of diamond drill hole (DDH) drilling to confirm mineralisation style and grades – Q1/Q2 2022

–       Infill drilling for Resource definition – Q2/Q3 2022

–       Mineral Resource Estimation – Q4 2022

Harry Anagnostaras-Adams, Executive Chairman of KEFI Gold and Copper, commented:

“The Hawiah project already appears to be a robust standalone development proposition. However, it has always been our opinion that Hawiah is greater than just one deposit, instead we believe it will prove to be a district of VMS deposits. G&M have already identified multiple VMS targets in the surrounding Hawiah area, and today’s announcement marks the first step in expanding a single project at Hawiah into a mining district of complementary deposits. Shared infrastructure between the projects will leverage the value of each one and reinforce the overall development strategy.

“These new licences, plus the imminent December Hawiah MRE, reinforce the established position of KEFI in Saudi Arabia as a leading explorer and developer. 2022 is set to be a very positive and busy year for the joint-venture with the expected delivery of the PFS and further resource growth at Hawiah, as well as the start of additional regional projects. Furthermore, based on discussions with the regulatory authorities in the current quarter, we also now anticipate progress of the Jibal Qutman Gold mining licence, our first discovery in Saudi Arabia with an existing resource in excess of 700,000 ounces of gold.

“I look forward to providing further updates on both our operations in Saudi Arabia and also Ethiopia, where the political situation continues to improve and good progress is being made with respect to finalising the funding for the launch of the Tulu Kapi project development.”