20th June 2014
KEFI Minerals Plc
("KEFI" or the "Company")
DEFINITIVE FEASIBILITY STUDY UPDATE
Tulu kapi project, Ethiopia
KEFI Minerals (AIM: KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and Ethiopia, is pleased to announce an update as regards the revision of the Definitive Feasibility Study ("DFS") at Tulu Kapi, in light of additional drill hole and trench results from the Company's field work since taking control of the Tulu Kapi project in Ethiopia.
HIGHLIGHTS
· The results of KEFI's infill drilling and surface trenching support the Company's structural interpretation and modelling of the orebody. This is significant as the Tulu Kapi project has complex geology/gold distribution and has required an equally complex methodology to allow interpretation for mine planning.
o Reverse circulation (RC) infill drilling intercepted strong gold mineralisation at Tulu Kapi, with best results of 12m at 4.23g/t Au, 5m at 9.71g/t Au, 2m at 24.86g/t Au, 8m at 4.24g/t Au, 4m at 10.36g/t Au and 4m at 9.80g/t Au. More details are set out below.
o Results of the surface trenching program at Tulu Kapi confirmed continuity of mapped mineralisation and returned new mineralised intervals, including 8.5m at 1.96g/t Au, 8.5m at 1.96g/t Au, 8.1m at 4.67g/t Au, 3.2m at 12.91g/t Au and 5.8m at 1.91g/t Au. More details are set out below.
· Having now completed that field work and classified 90% of the mineral resources within the indicated category of the JORC Code (for reporting resources and reserves), the Tulu Kapi resource is now considered ready for updating after which it will be used for estimating ore reserves and finalising mine planning.
Jeff Rayner, Managing Director of KEFI Minerals, commented:
"At Tulu Kapi these recent drill hole and trench results confirm the mineralisation as modelled. This validates our resource estimate methodology and we can now update resources, reserves, mine planning and the DFS required to reactivate the Mining Licence Application by the end of 2014 and trigger construction in 2015."
Detailed tabulations of Tulu Kapi infill drilling and trenching
Positive results have been received from the RC infill drilling and trenching campaign at Tulu Kapi. Results confirm the mineralisation model and alteration pattern.
KEFI has drilled 30 holes for a total of 4,285 meters in the planned open pit area, of which 15 returned intercepts in excess of 1.0 g/t, which is taken to be material in the context of the current resource estimate. The details for these holes are shown in the table as below.
The following table summarizes results received to date from 15 RC drill holes.
Hole |
From |
To |
Interval |
Gold Grade |
(m) |
(m) |
(m) |
(g/t) |
|
TKRC_332 |
80 |
84 |
4 |
3.51 |
|
92 |
106 |
14 |
2.77 |
Including |
95 |
97 |
2 |
14.18 |
TKRC_332 |
115 |
127 |
12 |
4.23 |
Including |
118 |
123 |
5 |
9.71 |
TKRC_332 |
137 |
139 |
2 |
24.86 |
|
167 |
179 |
12 |
4.08 |
Including |
169 |
173 |
4 |
9.60 |
TKRC_333 |
16 |
22 |
6 |
1.89 |
|
95 |
98 |
3 |
3.61 |
|
106 |
108 |
2 |
2.77 |
TKRC_334 |
9 |
20 |
11 |
2.33 |
|
26 |
28 |
2 |
1.33 |
|
31 |
32 |
1 |
3.30 |
|
35 |
38 |
3 |
1.40 |
|
80 |
83 |
3 |
2.20 |
TKRC_342 |
14 |
19 |
5 |
1.26 |
Including |
14 |
15 |
1 |
4.35 |
|
25 |
31 |
6 |
1.16 |
|
39 |
41 |
2 |
1.21 |
|
59 |
61 |
2 |
1.08 |
|
104 |
106 |
2 |
1.18 |
|
130 |
132 |
2 |
3.04 |
TKRC_343 |
6 |
9 |
3 |
1.30 |
|
81 |
83 |
2 |
3.26 |
|
118 |
126 |
8 |
1.76 |
|
143 |
151 |
8 |
8.89 |
Including |
143 |
149 |
6 |
11.77 |
|
170 |
175 |
5 |
3.37 |
TKRC_344 |
22 |
27 |
5 |
1.05 |
|
29 |
37 |
8 |
1.22 |
|
74 |
80 |
6 |
5.23 |
|
98 |
101 |
3 |
5.39 |
TKRC_345 |
16 |
18 |
2 |
3.17 |
|
21 |
24 |
3 |
1.19 |
|
39 |
49 |
10 |
1.23 |
|
91 |
93 |
2 |
1.75 |
|
105 |
107 |
2 |
1.06 |
|
121 |
125 |
4 |
3.31 |
Including |
121 |
123 |
2 |
5.83 |
TKRC_346 |
15 |
21 |
6 |
3.53 |
Including |
15 |
17 |
2 |
10.05 |
|
37 |
42 |
5 |
1.27 |
|
45 |
48 |
3 |
1.76 |
TKRC_347 |
44 |
63 |
19 |
1.62 |
Including |
57 |
65 |
8 |
4.24 |
|
93 |
97 |
4 |
2.08 |
|
130 |
134 |
4 |
5.84 |
|
136 |
141 |
5 |
6.49 |
|
143 |
147 |
4 |
2.53 |
|
158 |
162 |
4 |
1.71 |
TKRC_349 |
59 |
61 |
2 |
5.96 |
|
74 |
75 |
1 |
4.04 |
TKRC_350 |
46 |
48 |
2 |
2.98 |
|
81 |
94 |
13 |
1.80 |
TKRC_351 |
11 |
14 |
3 |
4.99 |
|
42 |
46 |
4 |
10.36 |
TKRC_352 |
47 |
51 |
4 |
9.80 |
|
55 |
59 |
4 |
1.06 |
Note: holes were drilled vertically or inclined up to 65o with azimuths ranging from N100 to N120. All intervals reported are downhole intervals.
KEFI has excavated 56 trenches for a total of 1,102 meters, of which 23 returned intercepts in excess of 1.0 g/t, which is taken to be material in the context of the current resource estimate. The details for these trenches are shown in the table as below.
The following table summarizes from 23 trench results:
Hole |
From |
To |
Interval |
Gold Grade |
(m) |
(m) |
(m) |
(g/t) |
|
TKTR_024 |
0.00 |
1.12 |
2.48 |
2.48 |
TKTR_025 |
4.16 |
8.27 |
4.10 |
1.01 |
TKTR_033 |
14.17 |
22.66 |
8.49 |
1.96 |
|
38.74 |
40.70 |
1.96 |
12.88 |
TKTR_033_SEE |
13.40 |
18.10 |
4.70 |
1.08 |
TKTR_034 |
20.20 |
22.25 |
2.06 |
1.13 |
TKTR_038_NWE |
34.68 |
37.25 |
2.56 |
1.04 |
TKTR_039 |
22.65 |
31.96 |
9.31 |
1.94 |
Including |
28.98 |
31.96 |
2.95 |
4.48 |
TKTR_039 |
46.93 |
47.86 |
0.93 |
3.60 |
TKTR_039_NWE |
16.98 |
21.29 |
4.31 |
1.19 |
TKTR_039_SEE |
18.18 |
19.16 |
0.97 |
3.72 |
|
25.68 |
33.80 |
8.12 |
4.67 |
Including |
3.75 |
4.70 |
0.95 |
3.41 |
TKTR_040 |
27.47 |
30.70 |
3.23 |
12.91 |
TKTR_040_NWE |
0.00 |
2.13 |
2.13 |
1.21 |
TKTR_041 |
3.77 |
7.40 |
3.63 |
1.74 |
|
9.41 |
22.52 |
13.11 |
1.45 |
TKTR_041_SEE |
2.88 |
5.99 |
3.11 |
1.98 |
TKTR_042 |
12.01 |
15.94 |
3.93 |
1.15 |
TKTR_042_SEE |
7.77 |
10.80 |
3.03 |
2.74 |
TKTR_045 |
0.00 |
1.03 |
1.03 |
2.85 |
|
3.00 |
8.78 |
5.78 |
1.91 |
TKTR_046 |
0.92 |
8.66 |
7.74 |
1.91 |
TKTR_047 |
0.00 |
8.98 |
8.98 |
1.68 |
TKTR_050_V1 |
0.00 |
0.84 |
0.84 |
12.23 |
TKTR_051 |
5.88 |
7.16 |
1.28 |
1.96 |
|
14.15 |
20.14 |
5.99 |
1.01 |
TKTR_052 |
10.34 |
21.58 |
11.24 |
1.36 |
TKTR_054 |
20.51 |
32.74 |
12.23 |
1.24 |
The following table summarizes from 3 geotechnical diamond drillholes results, performed in 2011, analysed by KEFI:
Hole |
From |
To |
Interval |
Gold Grade |
(m) |
(m) |
(m) |
(g/t) |
|
TKGT_032 |
54.0 |
61.9 |
7.9 |
1.07 |
TKGT_033 |
24.0 |
27.0 |
3.0 |
1.73 |
|
35.0 |
37.0 |
2.0 |
1.02 |
TKGT_034 |
40.7 |
42.0 |
1.3 |
2.03 |
|
47.0 |
47.8 |
0.8 |
8.86 |
|
63.3 |
64.1 |
0.8 |
3.98 |
|
73.8 |
75.2 |
1.4 |
2.86 |
All samples were prepared at the Tulu Kapi sample preparation laboratory and sent for analysis at internationally accredited laboratories ALS Romania and Al Amri Labs Kingdom of Saudi Arabia. Gold analysis was carried out by fire assay with an AA finish. KEFI monitors sample preparation and analysis for quality control and assurance.
All material results being reported are located within the outline of the existing resource and the purpose of the drilling and trenching was to infill selected areas of the resource as well as to confirm the geological model (rather than to materially expand the resource).
The foregoing information is provided for compliance with the JORC Code 2012, Table 1
Enquiries:
KEFI Minerals Plc |
|
Jeffrey Rayner |
+90 533 928 1913 |
|
|
Fox-Davies Capital (Nominated Adviser and |
|
Simon Leathers |
+44 203 463 5022 |
|
|
finnCap Ltd (Joint Broker) |
|
Elizabeth Johnson, Christopher Raggett |
+44 207 220 0500 |
|
|
Luther Pendragon (Financial PR) |
|
Harry Chathli, Claire Norbury, Ivana Petkova |
+44 207 618 9100 |
References in this announcement to exploration results and mineral resources have been approved for release by Mr. Jeffrey Rayner. Mr Rayner is KEFI's Managing Director, a geologist and has more than 25 years' relevant experience in the field of activity concerned. He is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has consented to the inclusion of the material in the form and context in which it appears.
Further information on KEFI is available at www.kefi-minerals.com.
KEFI Minerals Plc
KEFI is now positioned as an operator of two advanced gold development projects within the highly prospective Arabian-Nubian Shield, with an attributable 2.25Moz AU of JORC-compliant mineral resource plus significant resource growth potential. We currently target gold production at these projects attributable to KEFI of circa 80koz pa Au, generating cash flows for further exploration and expansion as warranted, recoupment of development costs and, when appropriate, dividends to shareholders. Reliable estimates will emerge from refinement of the DFS in due course.
KEFI in Ethiopia
KEFI Minerals has conditionally acquired the remaining 25% to have 100% ownership of the Tulu Kapi licence in western Ethiopia and intends to refine the development plan for the project, aimed at reducing the previously planned capital and operating expenditure. Early research has yielded encouraging results and was summarised in recent announcements in respect of the Tulu Kapi acquisition transaction.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed the Gold and Minerals Joint Venture Company ("G&M") in Saudi Arabia with local Saudi partner Abdul Rahman Saad Al-Rashid & Sons Company Limited ("ARTAR"), to explore for gold and associated metals in the Arabian Shield. To date, the G&M has conducted preliminary regional reconnaissance and lodged 30 Exploration Licence Applications (ELAs), of which four have been granted.
Two of the granted ELs were relinquished in May 2014.
The ELAs were initially applied for and granted to ARTAR. Incorporation of G&M has been completed and any granted Licences will be transferred into G&M in due course.
The Kingdom of Saudi Arabia has instituted policies to encourage minerals exploration and development and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this Government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.
-Ends-
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