Operational update re Choco Gold-Platinum Project

RNS Number : 8774U

Bezant Resources PLC

24 January 2017

 

24 January 2017

Bezant Resources Plc

("Bezant" or the "Company")

Operational update re Choco Gold-Platinum Project, Colombia 

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, announces an operational update in respect of the Company's Choco gold-platinum project in Western Colombia (the "Choco Project").

Highlights

·      Gold-platinum recovery analysis programme on schedule:

o  Initial surface and shallow pit sampling successfully completed with 105 individual samples of alluvial material collected from the FKJ-083 licence area in the Choco Province of Colombia ("Licence FKJ-083"); and

o  Phase 1 of a large trial pit completed, with Phase 2, extending to deeper levels, having commenced.

·      Grades and trial mining analysis have to date confirmed reported grades and conditions from historic third party mining operations.

·      Further to the results returned to date from test pitting operations, the Company has engaged INGEX Grupo Minero, a mining consultancy firm based in Colombia with experience of alluvial mining in Choco, to prepare a financial scoping study. The study will be principally based on:

o  results from the pilot open pits; and

o  cost models from comparative alluvial operations in Colombia.

·      Scoping study currently expected to be completed in Q1 2017.

·      Active and positive engagement with the local community in the FKJ-083 licence area.  

Test Pits and Processing Summary

·      Surface phase pits established in order to confirm that historical workings were restricted to shallow depths (average 7m).

·      Phase 1 of a large trial pit development has been completed to an average depth of approximately 10m, with approximate dimensions of 80m by 40m at the surface.

·      Phase 2 underway to an expected maximum depth of 25m as an internal sub-pit.

·      Large trial pit will enable full simulation of mining and processing conditions

·      Total of 25,000m³ of large trial pit already excavated, with completion of pit and sampling expected during Q1 2017.

·      Concentrates treated and grades established through the Company's onsite platinum and gold recovery laboratory:

o  Grades of over 300mg/m³ achieved from virgin platinum and gold bearing gravels

o  Selected tailings grades of over 100mg/m³ returned but tailings still considered to be uneconomic pending further mining costs analysis.

Operational Update

Working closely with its mining contract partner in Colombia, Exumax SAS ("Exumax"), Bezant has now completed surface and near-surface exploration activities on the FKJ-083 licence. Licence FKJ-083 was mined by the current owner/operator between 2007 and 2012 and the Bezant-Exumax work programme is focusing on correlating test open pit results with historic mining and geological reports and platinum and gold recoveries.

The primary stage of exploration on Licence FKJ-083 is the development of a large trial pit over two phases. A total of 25,000m³ of material has already been excavated to form the first stage of the pit's development. This Phase 1 activity has been completed and has resulted in a trial pit with approximate dimensions of 80m by 40m at surface and a main pit floor at 10m depth. Phase 2 involves the development of a smaller secondary pit in the main pit floor, which will then allow sampling of material down to the bedrock at 25m. Phase 2 has now commenced and is expected to be completed and samples processed during Q1 2017. In addition to permitting full profile sampling down to bedrock, the large trial pit will also allow the simulation and investigation of mining and processing conditions on the licence area, including:

o   investigation of open pit side wall stability, water seepage and general mining conditions;

o   full geological investigation of the various alluvial facies and flow regimes; and

o   sampling of various units, including tailings, overburden and main platinum and gold bearing alluvial gravels and bedrock.

Confirmation of gold-platinum located within heavy particles

Test pitting has confirmed that the Choco Project has an alluvial deposit where the gold and platinum occur in free form within the gravels. The metals have typically settled above the bedrock layer in the region, within other heavy, larger particle constituents. The bedrock depth varies within an estimated range of between 18 and 30 metres from surface. Simple minerals processing methods and equipment can efficiently recover the platinum and gold metals, therefore whilst each site would have its own particular costs, it is possible to prepare a general model for alluvial mining operations from data obtained from alluvial mining operations in sites similar to Licence FKJ-083.

A total of 105 samples of alluvial material were collected and processed through the pilot sampling plant during Q4 2016 and the concentrates from this operation were subsequently treated and analysed through the Company's onsite, mercury free, platinum and gold recovery laboratory. Combined platinum and gold grades of over 300mg/m³ were achieved from shallow virgin platinum and gold bearing gravels. As part of the investigation work, numerous samples were also taken from historical tailings dumps. The majority of the tailing dumps sampled are not located on the test pit area. Although selected tailings' samples did return grades of over 100mg/m³ the average grade for the tailings samples was 30mg/m³ which therefore confirmed the Company's previous opinion that treatment of the historical tailings dumps is likely to be uneconomic unless it forms part of the overburden located on virgin platinum and gold bearing gravels.

Independent cost analysis and scoping study

The grades and test pitting analysis performed to date has confirmed the historic third party reported grades and conditions encountered by historical mining operations and the Company has therefore proceeded to commission an independent cost analysis and scoping study on the project. The study is being conducted by mining consultancy, INGEX Grupo Minero (www.ingexgrupominero.com), located in Medellin, Colombia, which has previous experience of alluvial mining in Choco where the Company's operations are based. The study is currently incorporating the data being compiled from the development of the large trial pit, including operational conditions, operating costs, capex requirements and the grades achieved in order to develop an economic model for alluvial operations in the Choco Province. The scoping study will also incorporate cost models from comparative alluvial operations in Colombia and is currently scheduled for completion during Q1 2017.

As announced previously, Bezant holds options over an approximate 2,600 hectare land package on the Choco Platinum and Gold Plateau in Colombia. Whilst the test open pits and scoping study are focussing on the Licence FKJ-083, the results will also assist Bezant in making decisions on exercising the options it holds over various licences and opportunities in the Choco district.

Photo 1 shows the Phase 1 Open pit at Licence FKJ-083, being developed. Photo 2 shows sample of platinum and gold recovered from the sampling process

Photo 1: http://www.rns-pdf.londonstockexchange.com/rns/8774U_-2017-1-23.pdf

Photo 2: http://www.rns-pdf.londonstockexchange.com/rns/8774U_1-2017-1-23.pdf

Commenting today, Ed Nealon, Chairman of Bezant, said:

"Further to the test pitting results to date and confirmation of recoveries in-line with historic mining operations, we have taken the decision to commission an independent scoping study to assess operating costs and sensitivities. Our focus is on rapidly establishing a low cost, at surface, dry mining portfolio of gold and platinum plants in this major platinum region of Colombia. My belief is that our model will ultimately unlock a new concept for producing economic platinum and gold. I look forward to updating the market further in due course."  

Judd van den Brenk of Exumax further commented:

"The Exumax team is training local staff on site and making good progress. I take much pride in my team's performance and the excellent relationship that is developing between the project's personnel and the wonderful community of Condoto. On a personal level, as an alluvial miner, I am truly excited to be working in the Choco region where I believe the potential is second to none."

Dr Evan Kirby 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 Kirby is a Non-Executive Director 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 Beaufort Securities Limited (Broker)  Elliot Hance or visit http://www.bezantresources.com 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 ("MAR").

Note to Editors:

Exumax (www.exumax.co) is a Colombian based mine operating Company with over 6 years mine operating experience in Colombia and has a well-established Colombian based team that can provide turnkey exploration solutions to Bezant's wholly owned Colombian subsidiary, Ulloa Recursos Naturales SAS. The principals of Exumax have over 50 years' of combined operating experience in the mining and construction industry in South America and in this period have developed extensive proprietary mining expertise. Exumax own and have imported special purpose alluvial mining equipment from New Zealand, where such operations are common, for use in low-cost alluvial extraction projects focused on precious metals. Exumax have operated a series of alluvial projects in Colombia and prioritise community relations and environmental management work as key components to building successful mining operations in-country.

 

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