KEFI Gold and Copper Pld (AIM: KEFI) has provided an update regarding the company’s Gold and Minerals SLA (G&M) joint venture projects in Saudi Arabia.
Highlights
- Jibal Qutman Gold Project: Studies underway targeting early recommencement and development due to new regulatory system
- Hawiah Copper-Gold Project: Preliminary Feasibility Study (PFS) and associated exploration programmes ongoing with the following notable progress in the last month
o Good progress on preliminary underground, open-pit, and surface infrastructure designs
o Completed initial geotechnical diamond drilling programme with samples dispatched to the laboratory in the United Kingdom
o Completed hydrology drilling with pump testing to commence after Eidal-Fitr
o Commenced exploration drilling within the Central Zone; resource classification drilling within the Oxide Zone to commence in June 2022
o Received positive assay results for the Hawiah Phase 1 reverse circulation(RC)Oxide drilling (for targeted open pit mining in the first phase of development), with a weighted-average gold grade of 1.7g/t across drill intercepts in-line with expectations
• Al Godeyer Copper-Gold Prospect: Completed initial RC drilling at the Al Godeyer prospect adjacent to the Hawiah deposit, with assays pending
Jibal Qutman Gold Project (JQ) Update
As a result of the new regulatory system at the Saudi Arabian Ministry for Industry and Mineral Resources, development planning studies have recommenced at Jibal Qutman. The current gold price is considerably higher than the US$1,200 used in 2015 when the company lodged its initial mining licence application. Alternative processing options are now viable, which should allow for a greater portion of the ore body to be developed, meaning a greater resource and production profile.
Prior to the commencement of field activities, several consultants have already been engaged to work with the team to evaluate these options and update elements of the mining licence application, including processing, open-pit design and scheduling, metallurgy, and updating the Environmental and Social Impact Assessment (ESIA). These studies are expected to be completed this year.
While there has been no formal notification on the award of a mining licence at Jibal Qutman, given the positive and constructive developments at the Ministry, the decision has been taken to re- establish a base in the nearby city of Bisha. This will be used to coordinate operations ahead of the field camp construction should the mining licence application be approved.
Hawiah Copper Gold Project Update
Programmes supporting the ongoing Hawiah PFS are also progressing well, and the study remains on schedule to be completed by Q4 2022.
Latest works include the completion of a 1,920m diamond drilling programme, across 16 holes, for geotechnical testing. Sample material has been shipped to the United Kingdom and is undergoing a testing programme, which will feed into the open-pit and underground design works.
Hydrology drilling has also been completed with 12 testing wells developed at strategic locations across the project site. These holes will undergo pump testing following Eid Al-Fitr, with results set to guide the mine dewatering and hydrogeological modelling.
Hawiah Oxides for Potential Open Pit Mining
The Phase 1 RC Oxide drilling programme has been completed for 1,772m across 46 holes, bringing drill spacing to 100m, or better, and has allowed for gold-grade and lode thickness to be confirmed across the Hawiah oxide area.
A key area of interest has been identified to the south of the current Crossroads open-pit boundary. This area, which extends for 500m along strike southwards towards the Central Zone has returned gold grades averaging 2.3 g/t with widths consistent to material within the pit-limits further north. This should result in the area being included in an expanded Crossroads open pit as part of the 2022 MRE.
The case for expansions to the existing preliminary open-pit areas within the Central Zone is also set to be strengthened further by the planned upcoming ‘Transition’ and ‘Fresh’ domain drilling, which is being designed to follow up on the Phase 1 Oxide drill results. This programme will include a mix of Diamond and RC drilling.
The Phase 1 Oxide programme has also allowed for a greater level of control over the density of the oxide material through greater sample quantity and distribution across the entire oxide domain. A full programme of density testing is now underway ahead of the MRE. It is expected that this will result in an increase to the global density value currently used for the oxide modelling and resource estimation.
The Phase 2 Oxide drilling programme is scheduled to start in June 2022 and will target material within the defined open-pits and extension areas to further close the drill spacing. This is designed to enable an ‘Indicated’ resource classification during the 2022 MRE.
Al Godeyer Licences (Adjacent to Hawiah)
The first phase of RC drilling at Al Godeyer has been completed with 1,169m drilled across 19 holes. This drill programme was designed to quickly evaluate the gold potential of the oxide/gossan cap and provide an early indication for the enriched copper potential of the transitional zone under the Main Gossan area. A good downhole correlation with the surface mapping and earlier trench programmes has been observed, with the ore horizon intersected in all holes. Assay results are pending for this round of drilling.
A diamond drill rig continues to test both deeper portions of the deposit and selective areas of the Transition zone to add greater geological confidence and extend the limits of known mineralisation.
“It’s great to see the continued stream of results and news coming from Saudi Arabia as the Hawiah Copper-Gold and Jibal Qutman Gold projects push towards development. The team is pleased to be able to deliver rapid progress across all fronts given the very supportive stance taken by the Saudi Government recently,” Harry Anagnostaras-Adams, Executive Chairman of KEFI, said.
“At Hawiah, the team is progressing at great speed on this growing project. We remain on track to complete the PFS and updated MRE in late 2022 and expect regular updates on the exploration work that is underway. These latest results from the gold-rich oxide domain confirm that we have a good handle on the geological model and that the open-pit portion of the development continues to be a robust option to generate early project revenue. It is also encouraging to see promising results coming out of the Central Zone ahead of the drilling programmes that are set to kick-off in the coming months.
“The Jibal Qutman Gold Project also looks like it may emerge quickly as a larger than previously contemplated development proposition, after some years stuck in regulatory clearances.
“Following our capital raise of £8 million in April 2022, KEFI can meet its funding obligations in Saudi Arabia to keep up with this highly active and aggressive growth campaign across the three licence areas within Saudi Arabia and we can also continue the risk-managed step up of early development works in Ethiopia. This paves the way for full construction in Ethiopia from October 2022 at the end of the local wet season, with the initial signing at end June 2022 setting out any residual conditions to be satisfied with Government.”
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