Gold-Platinum Recovery Update re Choco Project

RNS Number : 5014W

Bezant Resources PLC

15 November 2017

 

15 November 2017

Bezant Resources Plc

("Bezant" or the "Company")

 Gold-Platinum Recovery to Bedrock Successfully Completed, Choco Gold-Platinum Project, Colombia

Bezant (AIM: BZT), the AIM quoted gold and platinum mining company, is pleased to announce that it has successfully mined into the High Grade gold-platinum Zones at its FKJ-083 licence area in the Choco region of Colombia (the "Choco Project").  

Highlights

The independent March 2017 scoping study estimated a break-even grade of approximately 0.17 grammes per tonne (238mg/m³) for combined Pt and Au based on an approximate 1:1 stripping ratio.

·      Grade verification work by the Company to bedrock has identified the following zones:

o  High Grade Zones ("HGZ")(>500 mg/m³ or 0.36 g/t combined grade)

o  Production Zones ("PZ") (>250 mg /m³ combined grade)

o  Low Grade Zones  ("LGZ") (<250mg/m³ or 0.18 g/t for combined Pt and Au)

·      High Grade Zone successfully opened at depth of 34m

o  0.37 grammes per tonne (519mg /m³) for combined Pt and Au achieved for 4.5m thick HGZ situated above the bedrock

o  Main HGZ located between 34m and 38.5m

·      Production Zone currently starts at depth of 21.5m

o  0.2 grammes per tonne (271mg/m³) average grade achieved for PZ

o  17m interval from 21.5m to the bedrock

o  Approximate stripping ratio of 1:1

·      Low Grade Zone located from surface to depth of 21.5m

o  Varying grades encountered depending on historical mining activity and tailings

o  Average grade of 0.06 grammes per tonne (85mg/m³) for LGZ

o  Secondary gravity separation process developed in order to recover metals from the LGZ as an addition to the model used as the basis for the scoping study

Production Overview

·      Over 110 oz of gold and platinum recovered during the grade verification process

·      Over 35,000 tonnes of material from the surface to bedrock tested and processed as part of the grade verification and production initiation process

·      ZERO mercury/arsenic gold and platinum recovery process now fully established

Outlook

·      Next phase of production ramp-up to commence following the successful completion of grade verification process

Further to the Company's announcement of 9 October 2017, Bezant has undertaken an extensive grade verification process, through mining and processing of material to bedrock level, as part of its mine ramp-up and general assessment of the Choco Project's feasibility. This mine grade verification work enables a comparison to be made with the grades obtained from historical third party mining and drilling operations. It also allows direct feasibility assessment versus the project's break-even grade of 0.17 grammes per tonne (238mg/m³) for combined Pt and Au as determined from the results of the independent scoping study announced on 8 March 2017.

Summary of Results of Grade Analysis

Mining operations to bedrock level and the associated grade verification process has enabled development of the following zoning model:

Zone	From	To	Interval	Weighted Average Combined Grade
Low Grade Zone	Surface	21.5m	21.5m	85mg/m3
Production Zone	21.5m	38.5m (bedrock)	17m	271mg/m3
High Grade Zone	34m	38.5m	4.5m	519 mg/m3

Production Overview

The Company has produced over 110 ounces of combined platinum and gold as part of its mine development work to bedrock and grade verification process. Over 39,000 tonnes of material from the surface to bedrock has been tested and processed as part of the grade verification and production initiation process. The Company has also developed a secondary gravity separation process in order to recover metals from the LGZ. The secondary processing plant will process material extracted from the LGZ whenever possible. The additional metals to be recovered via the secondary plant are not currently included in the financial model that formed the basis of the March 2017 scoping study.

Following the successful conclusion of the mining to bedrock and grade verification process, the Company will now commence the next phase of production ramp-up.

Commenting today, Bernard Olivier, CEO of Bezant, said:

"Our mining to bedrock and grade verification process has not only successfully tested production viability but has also identified high grade zones containing significant levels of metals. Following the successful conclusion of this process, we are now initialising the next phase of mine ramp-up. We have also developed a cost effective secondary processing system during our verification process work that is capable of treating low grade material extracted from the open pit operation without significant additional cost implications." 

Dr Bernard Olivier has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Olivier is Chief Executive Officer of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact:

Bezant Resources Plc Bernard Olivier Chief Executive Officer Laurence Read Executive Director / Communications Officer        Strand Hanson Limited (Nomad)  James Harris / Matthew Chandler / James Dance Peterhouse Corporate Finance Limited (Broker)  Lucy Williams / Duncan Vasey / Heena Karani Beaufort Securities Limited (Broker)  Elliot Hance or visit http://www.bezantresources.com

Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

- ENDS -

Glossary of technical terms:

"Au"	gold
"g"	grammes
"g/m3"	grammes per cubic metre
"m"	metre
"m3"	cubic metre
"mg"	milligramme
"mg/m3"	milligramme per cubic metre
"oz"	troy ounce (=31.103477 grammes)
"Pt"	platinum
"t"	tonne (=1 million grammes)

 

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