KEFI Gold & Copper drilling results to date show Hawiah deposit remains open at depth and to the south

KEFI Gold and Copper plc (LON:KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided an update on the current 13,000m drilling programme at the Company’s 34%-owned and operated Hawiah Project in Saudi Arabia.

Highlights:

·    16 holes totalling 7,836m from 13,000m drilling programme completed as at 22 January 2021

·    Focus is to extend the known mineralisation down-dip and down-plunge of the Camp Lode

·    Recent assay results consistently return copper intervals in excess of 1.3% copper, with significant intersections of copper mineralisation greater than 2.2% copper noted in drill holes HWD-74 and HWD-82

·    Recent drilling has demonstrated that mineralisation extends down-plunge by 470m to the south of Camp Lode and remains open down-dip, down-plunge and along-strike

·    Updated Mineral Resource targeted for Q3 2021

The focus of the current drilling programme, which is approximately 60% complete, is on wide-spaced drilling to extend the known mineralisation down-dip and down-plunge of the Camp Lode. The assay results received to date show that this objective is being successfully accomplished and also that copper grades have increased as predicted. We are now confident that we will in due course significantly expand the current Hawiah Mineral Resource Estimate (“MRE”) of 19.3 million tonnes at 0.9% copper (“Cu”), 0.8% zinc (“Zn”), 0.6g/t gold (“Au”) and 10.3g/t silver (“Ag”).

Current Drill Programme

A total of 16 drill holes, for 7,836m of the planned 13,000m drilling programme have been completed as of 22 January 2021. This drilling extended the down-plunge limit of known mineralisation to 470m south of the previous Camp Lode resource area (The drilling is illustrated in Figure 1 in the appended PDF available at http://www.rns-pdf.londonstockexchange.com/rns/2709N_1-2021-1-28.pdf). This drilling increases the vertical depth of known copper-zinc-gold-silver mineralisation to 570m.

The Camp Lode remains open with the southernmost drillhole (HWD-084) which intercepted 9.05m (6.0m estimated true width (“ETW”)) of massive sulphide. Assay results are pending for this hole.  

The recently received assay results confirm that higher-grade copper mineralisation continues down-dip and down-plunge in the Camp Lode. Highlights from the returned assays include hole HWD-082 which intersected a 9.7m interval (5.2m ETW) grading at 1.8% Cu, 1.6% Zn, 0.5 g/t Au and 11.8 g/t Ag, including a 6.5m interval at 2.4% Cu; and HWD-074 which intersected 10.37m (7.35m ETW) at 1.6% Cu, 1.4% Zn, 0.5g/t Au and 6.3 g/t Ag, including 6.74m at 2.2% Cu. 

Mineralisation continues to present as fine to coarse-grained massive sulphide with zones of clastic and breccia material. Sulphides present dominantly as pyrite with significant chalcopyrite, sphalerite and pyrrhotite observed. Chalcopyrite remains the major copper sulphide and continues to present as a secondary/re-mobilised phase with copper grades appearing to increase with depth and associated with zones of greater permeability.  

Table 1 – Summary of recent assays and intercepts from the Camp Lode

Hole IDTotal DepthFrom (m)To
(m)
Downhole Interval (m)Estimated true width (m)Cu %Zn
%
Au g/tAg g/t Mineralisation style
HWD_070583.50557.40563.225.824.30.740.330.278.41 Massive sulphide
HWD_071779.50  No Mineralisation
HWD_072335.50306.05316.029.976.00.791.530.478.28 Massive sulphide
HWD_074533.50504.26514.6310.377.351.611.410.476.29 Massive sulphide
HWD_075598.70  No Mineralisation
HWD_079460.00409.00418.669.666.251.491.290.548.26 Massive sulphide
HWD_080377.50351.14356.145.694.851.340.580.537.13 Massive sulphide
HWD_081626.50599.50606.006.54.61.240.280.268.83 Massive sulphide
HWD_082437.50407.84417.829.985.71.801.560.5011.78 Massive sulphide
HWD_07674.5050.2052.302.11.71.200.480.7217.97 Transition
HWD_07768.0046.3051.204.94.32.170.050.332.91 Transition

Detailed Assay and collar information for the Phase 3 drilling to date is contained in the appended Table 2.

By the end of Q1 2021, approximately 11,000m of drilling is expected to be completed in this southern Camp Lode area. It is intended that this will immediately be followed by infill drilling on a spacing that should allow for an updated Mineral Resource to be estimated in early Q3 2021.

Central Area Geophysics

The Central Area, which separates the Camp Lode from the Crossroads Lodes is currently being re-evaluated following the intersection of massive sulphides at a depth of 732.8m in drill hole HWD-073.

The geological team, in conjunction with geophysical consultants are currently re-modelling the 2019 IP/Rho geophysical survey using the now known mineralisation to better understand the geophysical response. This should allow for a predictive model for the Central Area to be built, acting as a guide for further drilling within the area to target the zones of thickest sulphide mineralisation.

Additional Exploration licences  

As previously announced, KEFI is pleased to note the recent developments of the Saudi Arabian mining laws and regulations, in-line with the Kingdom’s Vision 2030 strategy. The Company remains actively engaged with the Ministry of Industry and Mineral Resources (“DMMR”) to ensure that both the previously submitted exploration applications (“ELAs”) and new ELAs are processed within the new framework. The Company is looking forward to making advancements in this area by securing additional high-quality ground that will support the Company’s objectives in the Kingdom.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented:

“The drilling results to date show that the Hawiah deposit remains open at depth and to the south. The work programme has sought to quickly ‘stretch’ some of the extremities of the deposit and as such we are greatly encouraged to see returns of significant intercepts as drilling continues to demonstrate the size and scale of the Hawiah deposit.

“I’m especially encouraged by the most southern hole extending the Camp Lode, which has intercepted massive sulphide with an estimated true width of 6 metres, which indicates strong potential for the deposit to continue further to the south.

“As previously reported, in addition to the deeper drilling being undertaken, targeting a substantial increase in the maiden Hawiah resource, later this year, this programme will also include infill drilling with a view to upgrading key areas of the resource to the indicated category so as to warrant mine planning and the estimation of an initial Ore Reserve.

“We remain focussed on the work required for the completion of a Preliminary Feasibility Study during 2021, together with further exploration of the surrounding area for a large stockwork zone or ‘feeder zone’ to the massive sulphides, which represents a separate and potentially even larger-scale target.

“We look forward to reporting further progress at Hawiah and outcomes of this major drilling programme in due course.”

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