KEFI (AIM: KEFI) has welcomed the renewal of the Jibal Qutman Exploration Licence (K/144) in Saudi Arabia.
This licence includes the previously announced mineral resource of 733,000 oz which forms the basis of the ongoing Definitive Feasibility Study (DFS) and development plan through the company’s Gold and Minerals Limited (G&M) joint venture in Saudi Arabia.
This renewal opens the way for the commencement of field programmes and environmental studies, necessary for the award of the Jibal Qutman Mining Licence. G&M is owned 30% by KEFI and 70% by its partner Abdul Rahman Saad Al Rashid and Sons Ltd (ARTAR).
Highlights
• ‘Jibal Qutman’ Exploration Licence (EL K/144) has been renewed on a five-year term covering 99.68 sq. km.
• Field programmes including the construction of the pioneer’s camp, environmental baseline studies and geotechnical and metallurgical diamond drilling, will now commence.
• The two Mtpa CIL (Carbon-In-Leach) DFS remains on target for completion at the end of Q4 2022/early Q1 2023, with environmental permits targeted for Q1 2023.
• This licence gives the company access to a 270 sq. km ‘Jibal Qutman Exploration Area’ which also 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.
• G&M has at the same time, initiated discussions with the Saudi Investment Development Fund (SIDF) surrounding project funding to be finalised once the mining licence has been awarded.
“The re-issuance of the Jibal Qutman exploration licence is a critical milestone on the Jibal Qutman road to gold production,” Executive Chairman, Harry Anagnostaras-Adams, said.
“As previously announced, 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.
“The exploration teams are also excited to get back into the field and start the process of expanding the existing resource at Jibal Qutman and making new discoveries in this highly prospective 270 sq. km land package that has been created for KEFI’s Gold and Minerals joint venture.”
Jibal Qutman Project Background
Geology and Exploration
The land access issues which have delayed the start of the 733,045 oz Jibal Qutman Gold Project have been resolved. As part of this process, it has been agreed that an area of over 270 sq. km is to be granted, covering the original Jibal Qutman Exploration Licence, plus a significant land package along strike to the north and south.
The maximum exploration licence (EL) size permitted under the 2020 updated Saudi mining law are typically 100 sq. km, 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 ELs 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.
Jibal Qutman DFS
Progress on the DFS continues, with Front End Engineering and Design (FEED), plant layout and reserve definition nearing completion. Metallurgical testing continues and preliminary geotechnical design parameters have been agreed.
Whilst much of the DFS is being completed remotely, access to the field is required to establish the baseline as part of the Environmental and Social Impact Assessment (ESIA) and to complete the final geotechnical evaluation of the proposed reserve pits as well as metallurgical and comminution testworks. The issuance of the Jibal Qutman licence will now enable these studies and drilling programmes to be completed and at this stage, G&M believes the project is still on track to proceed with financing and mining licence submission in early 2023.
For further information please visit: https://www.kefi-goldandcopper.com/
