Update re Eureka Project - Argentina

RNS Number : 2815M

Bezant Resources PLC

15 August 2011

 



15 August 2011

Bezant Resources Plc

("Bezant" or the "Company")

Update re Eureka Project - Argentina

Highlights:

·    Encouraging geophysical responses identified during stage one of the initial exploration programme on the Company's Eureka Copper-Gold Project in Argentina

·    Zones of high electrical chargeability and resistivity identified from interpretation of a  three-dimensional Induced Polarisation ("IP") survey

·    The identified zones of high electrical chargeability and resistivity provide additional targets for the drilling phase of Bezant's planned exploration programme

·    Generation of a geographic information system ("GIS") database

·    Preparation for stage two of the initial exploration programme has now commenced

·    Preferred acquirer for the Company's Mankayan Project in the Philippines is currently at an advanced stage in its comprehensive due diligence exercise

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines, Argentina and Tanzania, is pleased to announce the completion of stage one of the initial exploration programme at its Eureka Project located in the Jujuy Province of north-west Argentina.

The Eureka Project comprises a package of 11 highly prospective copper and gold exploration licences, covering, in aggregate, an area in excess of approximately 5,500 hectares. Bezant is the sole operator and currently owns 15 per cent. of the project's holding company, Puna Metals S.A., with an option to progressively acquire the remaining 85 per cent. subject to making certain staggered cash payments to 30 December 2012.

Current Eureka Work Programme

Interpretation of a historic three-dimensional Induced Polarisation (IP) survey has identified a broad consistent zone of high electrical chargeability in the central part of the survey area. The zone develops at 100 - 150m depth and appears to be approximately 200m thick, dipping to the west whilst plunging and thickening to the south as shown in Figure 1. The IP survey covered an area of approximately 2.5km by 1.25km with a 3-D array, line spacing of 200m and 50m station spacing along the lines. The data is presented as 3-D inversion models of electrical chargeability and resistivity.

Figure 1

http://www.rns-pdf.londonstockexchange.com/rns/2815M_-2011-8-12.pdf

The zone of high electrical chargeability is also associated with a high resistivity zone, which also dips to the west, as shown in Figure 2. Based on dips identified from surface mapping, management has interpreted this feature to probably occur within the Eureka Formation.

Figure 2.

http://www.rns-pdf.londonstockexchange.com/rns/2815M_1-2011-8-12.pdf

The combination of elevated electrical chargeability and higher resistivity may indicate a silicified interval within the Eureka Formation as shown in Figure 3. A strong, partly defined, chargeability high anomaly has also been identified at the southern end of the survey area.

Figure 3.

http://www.rns-pdf.londonstockexchange.com/rns/2815M_2-2011-8-12.pdf

The zones of high electrical chargeability and resistivity together with the voluminous anomaly located in the southern part of the survey area, presents additional targets for the drilling phase of the Company's initial planned exploration programme.

GIS database compilation

The Company has also now reviewed, digitised and compiled the existing historical data on the project area, including regional and local geological maps, into a GIS database. This digital database will be used to facilitate stage two of the initial work programme.

Exploration Outlook

The Company has recently engaged Ayni Consulting Group S.R.L. in Argentina to assist it with the formulation and preparation of stage two of the initial work programme which it is currently envisaged will comprise:

·    Regional and local geological reconnaissance and mapping to gain a better understanding of the structural and stratigraphic nature of the mineralisation;

·    Surface and underground rock chip sampling; and

·    Preparation of a comprehensive reverse circulation ("RC") and / or rotary air blast ("RAB") drilling programme with associated sampling and testing.

Mankayan Project

Further to the interim results announcement of 30 March 2011, the Company has held discussions and site visits with a number of parties who have expressed an interest in potentially acquiring the Company's flagship Mankayan Project in the Philippines. The Company's preferred acquirer is currently at an advanced stage in its comprehensive due diligence exercise and commercial negotiations with the Board. Although the Board remains confident of a satisfactory outcome to its sale process, there can be no certainty as to the timing and nature/structure of any disposal and a further announcement will be made as and when appropriate.  

Gerry Nealon, Executive Chairman of Bezant, commented: 

"I am delighted to announce the completion of the first stage of the initial work programme on our promising Eureka Project in Argentina and look forward to progressing onto stage two of our evaluation of this attractive asset.

Despite the current uncertain economic environment and market turmoil, discussions are at an advanced stage with respect to the potential disposal of our Mankayan Project and we remain confident of achieving a satisfactory outcome in the near future."

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 Technical Director of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact:

Gerry Nealon Executive Chairman, Bezant Resources Plc                              Bernard Olivier Technical Director, Bezant Resources Plc                                James Harris / Matthew Chandler / David Altberg Strand Hanson Limited                                                           James Maxwell / Jenny Wyllie Singer Capital Markets Limited                                               Laurence Read / Beth Harris Threadneedle Communications (UK) Email: [e-mail]  or visit http://www.bezantresources.com

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

Notes to editors:

Bezant is currently focussed primarily on the copper and gold mineral sector and its flagship project is its Mankayan copper/gold project situated in the Mankayan-Lepanto mining district of the Philippines, an area of established copper and gold mining. The deposit is located approximately 260km north of Manila and 6km east of the copper/gold mine owned and operated by Lepanto Consolidated Mining Company.  Since its discovery in the early 1970s, extensive drilling (more than 45,000 metres over 48 holes) and metallurgical work has been undertaken by Goldfields Asia Ltd, Pacific Falkon and others.  Bezant currently has a JORC compliant mineral resource of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred, grading at 0.49% for copper and 0.52g/t for gold, at a 0.4% copper cut-off.  This equates to an Indicated Resource of 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, with a further Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 600,000 ounces of gold. In December 2010, the Company upgraded its independent Mankayan resource estimate to JORC Compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2.21 million ounces of gold. A Total Mining Inventory Statement was also reported of approximately 400Mt of ore at an average grade of 0.38% copper and 0.42g/t gold.

The 11 licences comprising the Eureka Project are located in north-west Jujuy near to the Argentine border with Bolivia and are formally known as Mina Eureka, Mina Eureka II, Mina Sur Eureka, Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I and Mina Paul II, covering, in aggregate, an area in excess of approximately 5,500 hectares and accessible via a series of gravel roads.  To date, no JORC compliant or equivalent resource estimate has been established, but historic exploration activities have been conducted on the project area since the 1980s by Minera Penoles, Codelco and Mantos Blancos, with unaudited unclassified estimates in the order of, in aggregate, up to approximately 62 million tonnes grading at 1% copper and approximately 52,000 ounces of gold as credits. The copper oxide mineralisation occurs in loosely consolidated conglomerates and is the focus of the project's economic potential.  The near surface mineralisation is amenable to heap leaching, while the carbonate content of the conglomerate is reported to be low, thereby reducing potential acid consumption.

 

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