KEFI Gold and Copper PLC confirms a new discovery and operational update at the Jibal Qutman Gold Project in Saudi Arabia, as part of its minority-owned Gold and Minerals Ltd joint venture.
A satellite deposit with high gold grades, Asfingia, has been discovered, with drilling underway on a 35km mineralised strike across three licenses, with a preferred production start-up plan expected by mid-2024.
The discovery comes on the heels of an intensive 13,000m in-fill drilling program in Q3-2023, where KEFI’s joint venture, Gold and Minerals, shifted its focus to resource expansion.
The Asfingia drilling results are nothing short of remarkable, with notable intercepts including 13.9m (12.7m estimated true width) at 7.9 g/t gold and 25.5m (37.5m estimated true width) at 1.9 g/t gold.
Harry Anagnostaras-Adams, KEFI’s Executive Chairman, commented:
“Jibal Qutman Gold is starting to shape up its plans for production. During the remainder of H1 2024, we expect to report a series of steps as we simultaneously select our preferred production start-up plan and aggressively test our recent breakthroughs in the geological understanding of the mineralised system. We have two diamond rigs running 24/7, and RC rigs will shortly join the project.
“At the same time, the foot remains on the accelerator at our much larger discovery, the Hawiah Copper-Gold Project in the Wadi Bidah Minerals Belt, where we have recently been joined as explorers by Saudi Arabia’s largest mining company, Ma’aden, which has been granted licences adjacent to us and quickly launched a large exploration programme in joint venture with Ivanhoe Electric. A separate update on Hawiah will be provided as part of the ongoing, recently expanded 65,000m infill and expansion drill programme, he said.
“Saudi Arabia is indeed fast-tracking its mining sector, and GMCO is at the forefront. We expect significant progress over the coming weeks and months, which will reinforce the value being created through GMCO’s aggressive exploration programme, for the past few years, running at the rate of over US$20 million per annum.
“We are very pleased to have so far assembled Mineral Resources of approximately 5 million oz gold equivalent (KEFI beneficially 2 million oz gold equivalent) in Saudi Arabia and Ethiopia, and we expect this to grow as drilling continues. KEFI has spent a total of approximately US$64 million on these projects, which represents an excellent establishment cost to date of only US$32/oz Resource on three advanced development projects.
ALSO READ:
KEFI progresses Tulu Kapi with significant finance package
“We will provide further updates of material developments across both of our advanced Saudi projects, as well as anything notable from work currently being undertaken across our portfolio of exploration licences as appropriate.”
- JQD_265, a 25.5m gold deposit, has been established with a 350m strike length down to 75m depth. Drilling is ongoing to determine gold mineralization limits and estimate a maiden resource at Asfingia, complementing other deposits at Jibal Qutman.
- Systematic exploration is ongoing across the 270km2 of the three contiguous Jibal Qutman Gold Exploration Licences (“EL’s”) to confirm structural controls on higher-grade gold mineralisation and identify further resource potential.
- Previous exploration primarily focused on an 8km section of the original Jibal Qutman EL, and the full 35km mineralised strike length will now be tested.
- Sampling and scout drilling programmes are currently underway across multiple targets, including recent shallow alluvial mining areas, and are expected to identify further drill targets.
- In addition to scout and infill drilling, drone surveying, geological mapping, trenching, and geophysical surveying programmes are all underway to help further define the structural framework of the area and assist in target delineation.
- Two diamond drill rigs and 10 experienced Saudi-based exploration geologists are focused on Jibal Qutman Gold. Reverse circulation (“RC”) drill rigs will also shortly join the project to further accelerate exploration.
- KEFI’s GMCO joint venture partner, ARTAR, has agreed to fund the ongoing programme at present (without dilution) to ensure swift progress continues while KEFI triggers project launch in Ethiopia at the high-grade Tulu Kapi Gold Project. This much-appreciated support from ARTAR reflects the strong partnership relationship and the combined priority given to production start-ups in both countries.
- The Definitive Feasibility Study (“DFS”) on Jibal Qutman Gold is making excellent progress, and the release of its conclusions is expected in mid-2024. Work is currently focused on:
- Incorporating the results of the 13,000m infill drilling program completed in Q3-2023 into preliminary mine design and scheduling across a range of production scenarios.
- Finalising metallurgical test work, which has already established potential recoveries of 80–93% on the oxide ore (depending on grade) and circa 70% on sulphide fresh ore through CIL processing.
- Optimisation studies continue for the sulfuric acid fresh ore.
- GMCO Board approval of the preferred start-up plan; and
- Finalising and publishing the underlying Mineral Resource Estimate (“MRE”), Maiden Ore Reserve, and DFS.