KEFI Gold and Copper plc (LON:KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, has announced an upgrade to the Mineral Resource Estimates (MRE) at the Hawiah Copper-Gold Project, part of the Saudi Arabian joint-venture Gold and Minerals Company Limited (GMCO).
Total Combined Hawiah Project Mineral Resources increased by 26% to 38.2Mt,
including 14.7Mt in Open-Pit Scenarios
Indicated Resources increased by 161%, representing 85% of total Combined Hawiah Project Resources
Highlights
| · | Substantial increases and upgrading of the Mineral Resource Estimates for both the main Hawiah deposit and the nearby Al Godeyer deposit. | |
| · | Hawiah Mineral Resource Estimate has increased by 25% or 7.3 million tonnes (“Mt”) to 36.2 Mt at 0.82% copper, 0.85% zinc, 0.64g/t gold and 10.0g/t silver, representing a tonnage increase of 25%. Total contained metal is now: | |
| o | 297,000 tonnes of copper (up 16% from 258,000 tonnes); | |
| o | 310,000 tonnes of zinc (up 14% from 272,000 tonnes); | |
| o | 745,000 ounces of gold (up 20% from 620,000 ounces); and | |
| o | 11.6 million ounces of silver (up 23% from 9.4 million ounces). | |
| · | Hawiah Indicated Resource increased to 30.5Mt (up 146% from 12.4Mt) and upgraded to 85% of the total Hawiah Resource. | |
| · | Hawiah Resources reporting to the Open-Pit Scenario have increased to 12.7Mt (up 14% from 11.1Mt) and all in the Indicated Category, reaffirming the potential for an initial open-pit mining operation and a lower start-up capital requirement. | |
| · | Al Godeyer Mineral Resource Estimate has increased by 0.65Mt to 2.0Mt at 0.93% copper, 0.53% zinc, 1.21g/t gold and 7.4g/t silver, representing a tonnage increase of 48% and all in the Indicated Category. | |
| · | Resources for the Hawiah Copper-Gold Project now total 38.2Mt, of which 14.7Mt report to Open-Pit Scenarios. | |
The recently granted Umm Hijlan Exploration Licence , adjoining the original Hawiah EL which hosts the MRE reported herein, has already been demonstrated to contain the southern strike continuation of the main Hawiah volcanic massive sulphide system. The Umm Hijlan EL consolidates a 210km2 strategic licence area for GMCO and offers the prospect of adding significant additional oxide and sulphide resources.
Overall, the results of the updated MRE , combined with the prospectivity of the expanded licence holdings, provide a solid foundation for long-term development planning for what was already the third largest base metals development project in Saudi Arabia.
KEFI Gold and Copper Executive Chairman, Harry Anagnostaras-Adams, commented:
“The updated Mineral Resource Estimate for the Hawiah Copper-Gold Project has provided the firm basis for a long-life mine with potential for lower cost open-pit development during the early years of the Project.
“With 85% (32Mt) of the Project’s Mineral Resources now in the Indicated Resource category, further work is likely to define substantial Ore Reserves for a robust operation.
“Planned drilling of the recently granted Umm Hijlan EL is targeted to quickly define further nearby resources along strike of the Hawiah MRE. This is anticipated to commence in Q2 2025.
“KEFI is continuing to progress the strategic review of its GMCO holding, which we are targeting to be resolved in tandem with the launch of Tulu Kapi. KEFI has made it clear that the priority for its capital is to now optimise shareholder value via majority-owned projects.”
Updated Hawiah MRE
GMCO appointed The MSA Group (Pty) Ltd (“MSA”) as the Independent Consultants and Competent Person to prepare updated MREs for Hawiah and Al Godeyer in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code 2012”). The Hawiah and Al Godeyer MREs were recently signed off by MSA and then reviewed by GMCO and KEFI.
The updated MRE for the Hawiah deposit is detailed in Table 1 below and now totals:
– 36.2 Mt at 0.82% copper, 0.86% zinc, 0.64g/t gold and 10.0g/t silver.
Resources are classified as:
– Indicated – Open Pit – 12.7Mt at 0.85% copper, 0.83% zinc, 0.81g/t gold and 10.8g/t silver
– Indicated – Underground – 17.8Mt at 0.85% copper, 0.91% zinc, 0.56g/t gold and 9.9g/t silver
– Inferred – Open Pit – 0.01Mt at 1.18% copper, 1.14% zinc, 0.65g/t gold and 9.6g/t silver
– Inferred – Underground – 5.7 Mt at 0.69% copper, 0.74% zinc, 0.51g/t gold and 8.4g/t silver
Based on this MRE, the Hawiah deposit is estimated to contain a total of 297,000 tonnes of copper, 310,000 tonnes of zinc, 745,000 gold ounces and 11.6 million silver ounces.
Table 1 – Hawiah Mineral Resource as at 09 January 2025
| Class | Mining Type | Material Type | Tonnes (Mt) | Grade | Metal Content | ||||||
| Cu (%) | Zn (%) | Au (g/t) | Ag (g/t) | Cu (kt) | Zn (kt) | Au (koz) | Ag (koz) | ||||
| Indicated | Open Pit | Oxide | 1.2 | – | – | 2.11 | 8.0 | 0 | 0 | 83 | 313 |
| Transition | 2.9 | 1.22 | 0.72 | 0.72 | 13.0 | 36 | 21 | 68 | 1217 | ||
| Fresh | 8.5 | 0.84 | 0.99 | 0.65 | 10.4 | 72 | 84 | 179 | 2862 | ||
| Underground | Oxide | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 | |
| Transition | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 | ||
| Fresh | 17.8 | 0.85 | 0.91 | 0.56 | 9.9 | 151 | 162 | 322 | 5651 | ||
| Inferred | Open Pit | Oxide | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 |
| Transition | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 | ||
| Fresh | 0.01 | 1.18 | 1.14 | 0.65 | 9.6 | 0.1 | 0.1 | 0.2 | 3.4 | ||
| Underground | Oxide | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 | |
| Transition | 0.0 | – | – | – | – | 0 | 0 | 0 | 0 | ||
| Fresh | 5.7 | 0.69 | 0.74 | 0.51 | 8.4 | 39 | 42 | 93 | 1543 | ||
| Total Indicated | Open Pit | 12.7 | 0.85 | 0.83 | 0.81 | 10.8 | 107 | 105 | 330 | 4392 | |
| Underground | 17.8 | 0.85 | 0.91 | 0.56 | 9.9 | 151 | 162 | 322 | 5651 | ||
| All | 30.5 | 0.85 | 0.88 | 0.67 | 10.3 | 258 | 267 | 652 | 10043 | ||
| Total Inferred | Open Pit | 0.01 | 1.18 | 1.14 | 0.65 | 9.6 | 0.1 | 0.1 | 0.2 | 3.4 | |
| Underground | 5.7 | 0.69 | 0.74 | 0.51 | 8.4 | 39 | 42 | 93 | 1543 | ||
| All | 5.7 | 0.69 | 0.74 | 0.51 | 8.4 | 39 | 42 | 93 | 1546 | ||
| Total Mineral Resource | Open Pit | 12.7 | 0.85 | 0.83 | 0.81 | 10.8 | 107 | 105 | 330 | 4395 | |
| Underground | 23.5 | 0.81 | 0.87 | 0.55 | 9.5 | 190 | 204 | 415 | 7194 | ||
| All | 36.2 | 0.82 | 0.86 | 0.64 | 10.0 | 297 | 310 | 745 | 11589 | ||
Notes:
1. koz = one thousand ounces, kt = one thousand metric tonnes, Mt = one million metric tonnes.
2. All tabulated data have been rounded and as a result minor computational errors may occur.
3. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
4. The Gross Mineral Resource for the Project is reported.
5. The Mineral Resource is reported in accordance with the guidelines of the 2012 Edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘the JORC Code’).
6. A Whittle optimised pit shell was used to report open-pit Mineral Resources and a mineable shape optimisation (MSO) was completed for underground Mineral Resources outside the open-pit shell. The Whittle, MSO and cut-off grades were derived using the following assumed technical parameters:
No Oxide and Transition mined underground.
Pit slope angle: Fresh 53°, Transition and Oxide: 42°.
Dilution included in regularised block model (5 mX by 5 mY by 2.5 mZ) for open pit.
A minimum stope width of 2 m, and 0.2m dilution applied for underground.
Concentrator Recovery: Cu & Zn 90% in transitional and fresh; Au 84% in oxide and 74% in fresh; Ag 15% in oxide and 83% in transitional and fresh. No recovery of zinc and copper in oxide. Metallurgical factors based on initial metallurgical test-work.
Cost and revenue assumptions:
Metal Price: Cu 9350 USD/t, Zn 3300 USD/t, Au 2300 USD/oz, Ag 30 USD/oz.
Smelter recovery/payability: Cu concentrate – Cu 96.5%, Au 90%, Ag 90%. Zn concentrate – Zn 83.5%. Au Dore – Au 99.5%, Ag 99.6%.
Total mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4 USD/t, underground 30.0 USD/t. Cost adjustment for open-pit depth USD 0.004/ vertical m.
Total Processing cost: oxide 13.86 USD/t, transition and fresh 21.4 USD/t.
Rehandling: 0.70 USD/t
G&A: 5.6 USD/t ore.
7. The cut-off grade was applied on a NSR basis: underground fresh ore 57.7 USD/t, open-pit transitional and fresh ore 27.7 USD/t, open-pit oxide ore 20.16 USD/t. NSR was calculated for each block model cell using the following formulae:
Oxide = (Cu %*0)+(Zn%*0)+(Au g/t 61.7895 )+(Ag g/t*0.1409)
Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *54.4336)+(Ag g/t*0.7797).
Hawiah MRE Comparison
The previous (12 December 2022) Hawiah MRE totalled 29.0 Mt at 0.89% copper, 0.94% zinc, 0.67 g/t gold and 10.1 g/t silver.
The updated Hawiah MRE represents a significant increase in tonnage from 29.0Mt to 36.2Mt and small decreases in grades to 0.82% copper to 0.86% zinc, 0.64g/t gold and 10.0 g/t silver. The additional resource tonnage is largely driven by the expansion of Crossroads Extension Lode at depth.
Hawiah Open Pit Indicated Resources have increased by 3.5Mt to 12.7Mt. This continues to demonstrate a robust case for a lower cost open-pit development during the early years of the Project, further strengthening the economic case.
Updated Al Godeyer MRE
The updated MRE for the Al Godeyer deposit is detailed in Table 2 below and now totals:
– 2.0 Mt at 0.93% copper, 0.53% zinc, 1.21g/t gold and 7.4g/t silver,
and 94% of the MRE is now in the Indicated Resource category (previously all in the Inferred Resource category).
Based on this MRE, the Al Godeyer deposit is estimated to contain a total of 18,500 tonnes of copper, 10,600 tonnes of zinc, 77,900 gold ounces and 0.5 million silver ounces.
Table 2 – Al Godeyer Mineral Resource as at 09 December 2024
| Class | Mining Type | Material Type | Tonnes (Mt) | Grade | Metal Content | ||||||
| Cu (%) | Zn (%) | Au (g/t) | Ag (g/t) | Cu (kt) | Zn (kt) | Au (koz) | Ag (koz) | ||||
| Indicated | Open Pit | Oxide | 0.28 | – | – | 1.48 | 1.38 | 0.0 | 0.0 | 13.4 | 12.9 |
| Transition | 0.22 | 0.70 | 0.22 | 0.91 | 6.88 | 1.6 | 0.5 | 6.5 | 49.3 | ||
| Fresh | 1.38 | 1.12 | 0.65 | 1.19 | 8.28 | 15.4 | 8.9 | 52.7 | 366.4 | ||
| Total Indicated | All | 1.88 | 0.90 | 0.50 | 1.20 | 7.08 | 17.0 | 9.4 | 72.6 | 428.2 | |
| Inferred | Open Pit | Oxide | 0.00 | – | – | – | – | 0.0 | 0.0 | 0.0 | 0.0 |
| Transition | 0.00 | – | – | – | – | 0.0 | 0.0 | 0.0 | 0.0 | ||
| Fresh | 0.12 | 1.36 | 1.10 | 1.42 | 12.17 | 1.6 | 1.3 | 5.3 | 45.3 | ||
| Total Inferred | All | 0.12 | 1.36 | 1.10 | 1.42 | 12.17 | 1.6 | 1.3 | 5.3 | 45.3 | |
| Total Resource | All | 2.00 | 0.93 | 0.53 | 1.21 | 7.37 | 18.5 | 10.6 | 77.9 | 473.8 | |
Notes:
1. koz = one thousand ounces, kt = one thousand metric tonnes, Mt = one million metric tonnes.
2. All tabulated data have been rounded and as a result minor computational errors may occur.
3. Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.
4. The Gross Mineral Resource for the Project is reported.
5. The Mineral Resource is reported in accordance with the guidelines of the 2012 Edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (‘the JORC Code’).
6. A Whittle optimised pit shell was used to report open-pit Mineral Resources. The Whittle optimisation was based on the following assumed technical parameters:
Pit slope angle: Fresh 56°, Transition 51° and Oxide: 44°.
Dilution of 10% and mining recovery of 95%
Concentrator Recovery: Cu 90%, Zn 90%, Au 85%, Ag 60% No recovery of zinc and copper in oxide. Metallurgical factors based on initial metallurgical test-work.
Cost and revenue assumptions:
Metal Price: Cu 9,350 USD/t, Zn 3,300 USD/t, Au 2,300 USD/oz, Ag 30 USD/oz.
Smelter recovery/payability: Cu 96.5%, Zn 83.5%. Au Dore – Au 99.5%, Ag 99.6%.
Mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4 USD/t. Transport to Hawiah plant 1.125 USD/t and rehandling cost of 0.7 USD/t. Cost adjustment for open-pit depth USD 0.004 / vertical m.
Total Processing cost: oxide 13.9 USD/t, transition and fresh 21.4 USD/t.
G&A: 5.6 USD/t ore.
7. The cut-off grade was applied on a net smelter return (NSR) basis: open-pit transition and fresh ore 31.2 USD/t, open-pit oxide ore 23.5 USD/t. NSR was calculated for each block model cell using the following formulae:
Oxide = (Cu %*0)+(Zn%*0)+(Au g/t*62.5251 )+(Ag g/t*0.5637)
Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *62.5251)+(Ag g/t*0.5637).
Al Godeyer MRE Comparison
The previous (27 March 2023) Al Godeyer MRE totalled 1.35Mt at 0.6% copper, 0.54% zinc, 1.4g/t gold and 6.6g/t silver (all in the Inferred category).
Infill drilling allowed better definition of the high-grade zone in the core of the deposit and high-grade copper intersections enhanced the fresh zone copper grade.
The updated Al Godeyer MRE represents a 0.65Mt increase in tonnage from 1.35Mt to 2.0Mt. The additional resource tonnage is largely driven by further drilling extending the resource. The average resource grades are similar except for the copper grade increasing 55% to 0.93% copper, due to the increased ratio of Fresh Mineral Resources to Oxide Mineral Resources (for which copper is not reported) and additional drillholes confirming the higher grade central area.
