TIDMKEFI
RNS Number : 5683X
Kefi Gold and Copper PLC
06 January 2022
6 January 2022
KEFI Gold and Copper plc
("KEFI" or the "Company")
Update to Hawiah Mineral Resource
KEFI Gold and Copper (AIM: KEFI), the gold and copper
exploration and development company with projects in the Federal
Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is
pleased to announce an update to the Mineral Resource Estimate
("MRE") at the Hawiah Copper-Gold Project ("Hawiah" or the
"Project"), part of the KEFI-operated Saudi Arabian joint-venture
Gold and Minerals Limited ("G&M").
Highlights
-- Hawiah Mineral Resource Estimate has increased by 5.6 million
tonnes ("Mt") to 24.9 Mt at 0.90% copper, 0.85% zinc, 0.62 g/t gold
and 9.81 g/t silver, representing a tonnage increase of 29%.
-- The total contained metal content now stands at 223,000
tonnes of copper (up 33% from 168,000 tonnes), 210,000 tonnes of
zinc (up 34% from 157,000 tonnes), 497,000 ounces of gold (up 42%
from 349,000 ounces) and 7.8 million ounces of silver (up 22% from
6.4 million).
-- An upgrade in key areas from the previous Inferred category
Mineral Resource with 10.9Mt now an Indicated category Mineral
Resource at 0.96% copper, 0.86% zinc, 0.64 g/t gold and 9.98 g/t
silver, paving the way for the completion of the Preliminary
Feasibility Study ("PFS") in 2022.
-- Total Mineral Resource (Indicated and Inferred) reporting to
the Open-Pit Scenario have increased from 0.1 Mt to 8.4 Mt, raising
the possibility of an initial open-pit mining operation and a lower
start-up capital requirement.
-- The Hawiah deposit remains largely open at depth and drilling
programmes are commencing in January 2022 with a view to further
increasing the Hawiah Mineral Resource, raising the likelihood of
further increases to the MRE in 2022.
Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented
:
"The updated Mineral Resource Estimate for the Hawiah
Copper-Gold Project achieves our key objectives: a tonnage increase
of approximately 30% and a slightly higher overall increase in
metal content due to overall improved grades, plus 10 million
tonnes of the total of 25 million tonnes is now classified as an
Indicated Mineral Resource, facilitating the estimation and
reporting of initial Ore Reserves as part of the Preliminary
Feasibility Study for potential development.
"In addition, we are also pleased to report that the Mineral
Resource reporting to the Open-Pit Scenario have increased from the
0.1 Mt reported in 2020 to a total of 8.4 Mt at 0.93% copper 0.72%
zinc, 0.74 g/t gold and 10.05 g/t silver. This presents as a clear
opportunity for lower cost development during the early years of
the Project, further strengthening the economic case.
"KEFI now has a platform of three advanced projects for
development in the next few years: the Tulu Kapi Gold Project in
Ethiopia which is development ready for when security and other
normal conditions precedent to finance closing are satisfied; the
now larger Hawiah Copper-Gold Project in Saudi Arabia; and the
Jibal Qutman Gold project, also in Saudi Arabia. The Hawiah work
programme will also incorporate the previously announced works that
will start at the proximal Al Godeyer licence granted to G&M in
December 2021. This could also be a significant potential
contributor.
"We are very pleased with the updated Hawiah MRE and the
priorities for the field work in Saudi Arabia will be determined
this month and then commenced immediately."
Background
Following the commencement of major exploration works at the
Hawiah Copper-Gold Project ("Hawiah") in early 2019, KEFI announced
in August 2020 a maiden MRE of 19.3 Mt at 0.87% copper, 0.81% zinc,
0.56 g/t gold and 10.25 g/t silver.
Diamond drilling has since continued with an additional 29,892m
completed, bringing the Project total to 41,841m. This latest
drilling had three main objectives:
- Upgrade existing resources in key areas of the deposit to
Indicated category classification for use in the PFS for potential
development;
- Expand the known resource areas to increase the global tonnage; and
- Increase drilling density within the copper-rich Transition
Zone to demonstrate grade continuity and allow for better
evaluation of an open-pit scenario.
Following the conclusion of the 2021 drilling programme, G&M
appointed SRK Consulting (UK) Ltd ("SRK") as the Independent
Consultants and Competent Person for the preparation of the updated
MRE for the Hawiah Project. This MRE is reported in accordance with
the Australasian Code for the Reporting of Exploration Results,
Mineral Resources and Ore Reserves, The JORC Code, 2012 Edition
("JORC Code 2012").
The G&M geological team have been pleased with the results
of the programmes, having achieved all its objectives and with the
deposit remaining open are confident that despite already
presenting as a robust multi-commodity deposit, the Hawiah deposit
has additional potential for further expansion.
Work programmes including reverse-circulation and diamond
drilling are now being finalised to help define additional near
surface material to expand the MRE and to finalise the PFS in 2022.
These programmes are alongside the exploration commencing in
January 2022 at the recently granted proximal Al Godeyer
Exploration Licence, which is also very prospective for volcanic
massive sulphide ("VMS") mineralisation.
Updated Hawiah MRE
The updated MRE for the Hawiah deposit is detailed in Table 1
below and now the total stands at:
- 24.9 Mt at 0.90% copper, 0.85% zinc, 0.62 g/t gold and 9.81 g/t silver.
Resources are classified as:
- Indicated - 10.9 Mt at 0.96% copper, 0.86% zinc, 0.64 g/t gold and 9.98 g/t silver
- Inferred - 14.0 Mt at 0.85% copper, 0.83% zinc, 0.61 g/t gold and 9.67 g/t silver
Based on this resource the Hawiah Project is estimated to
contain a total of 223,000 tonnes or 491 million lbs of copper,
210,000 tonnes or 463 million lbs of zinc, 497,000 gold ounces and
7.84 million silver ounces.
Table 1 : SRK Mineral Resource Statement for the Hawiah
Project,
Effective Date 16 December 2021 (see notes 1,2,3,4,5,6,7)
Mineral Mining Material Million Grade Metal Content
Resource Type Type Tonnes
Classification (Mt)
Category
---------------- ------------- ---------- -------- -----------------------------
Cu Zn Au Ag Cu Zn Au Ag
(%) (%) (g/t) (g/t) (kt) (kt) (koz) (koz)
---------------- ------------- ---------- -------- ----- ----- ------ ------- ------ ------ ------- -------
Sub-Total
Indicated Open-Pit ALL 7.0 1.03 0.78 0.66 10.03 72 55 149 2,271
Underground ALL 3.9 0.83 1.00 0.61 9.89 32 39 76 1,230
ALL ALL 10.9 0.96 0.86 0.64 9.98 104 94 225 3,501
--------------------------- ----- ----- ------ ------- ------ ------ ------- -------
Sub-Total
Inferred Open-Pit ALL 1.4 0.43 0.41 1.17 10.14 6 6 52 446
Underground ALL 12.6 0.89 0.88 0.55 9.61 113 111 221 3,892
ALL ALL 14.0 0.85 0.83 0.61 9.67 118 116 273 4,338
--------------------------- ----- ----- ------ -------
Total Open-Pit ALL 8.4 0.93 0.72 0.74 10.05 78 61 200 2,717
Underground ALL 16.5 0.88 0.91 0.56 9.68 145 149 297 5,122
ALL ALL 24.9 0.90 0.85 0.62 9.81 223 210 497 7,839
--------------------------- ----- ----- ------ ------- ------ ------ ------- -------
Notes on SRK Mineral Resource statement:
(1) Mineral Resources are not Ore Reserves and do not have
demonstrated economic viability.
(2) All figures are rounded to reflect the relative accuracy of
the estimate and have been used to derive sub-totals, totals and
weighted averages. Such calculations inherently involve a degree of
rounding and consequently introduce a margin of error. Where these
occur, SRK does not consider them to be material.
(3) G&M is a joint venture partnership between ARTAR and
KEFI. The Exploration Licence is held by ARTAR, under the terms of
the G&M Joint Venture agreement. ARTAR currently has a 68%
share of the Project, with the remainder (31.2%) owned by KEFI,
where KEFI is the operating partner. The MRE is given on 100%
basis.
(4) The standard adopted in respect of the reporting of Mineral
Resources for the Project is in accordance with the guidelines of
the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC
Code).
(5) SRK reasonably expects portions of the Hawiah deposit to be
amenable to both underground and open-pit mining methods:
a. Open pit Mineral Resources include the oxide, transition and
fresh material/domains, reported within an optimised open-pit shell
and reported based on a Mineral Resource Net Smelter Return (NSR)
cut-off of USD12/t for oxide and USD20/t for transition and fresh.
Open-pit slope angles within the oxide were defined from
geotechnical parameters provided by G&M and their Advisors and
set to 43deg in the oxide, 46deg in the transition and 52deg in the
fresh. A revenue factor (RF) of 0.8 of the Mineral Resource
commodity prices was used for selecting the final MRE open-pit
shell used for reporting, as this is likely to be closer (compared
with RF1.0) to the potential Ore Reserve-case pit design that will
be developed as part of G&M's PFS study. The Mineral Resource
is not sensitive to reporting by mining methodology.
b. Underground Mineral Resources are constrained to the
transition and fresh domains, reported from within an underground
reporting volume derived from underground stope optimisation
wireframes (with 2m minimum mining width, and appropriate stope
dimensions) and a NSR cut-off which considers mining, processing
and G&A costs and 15% total dilution, totalling USD54/t for
both transition and fresh material. Oxide material is currently
excluded from the underground Mineral Resource reporting due to it
being close to surface, its highly-weathered nature and associated
uncertainty with respect to geotechnical stability during
underground mining.
(6) The Mineral Resource NSR cut-off calculation has been
determined based on metal price forecasts*, metallurgical testwork
results and assumptions **, mining costs, processing costs, general
and administrative (G&A) costs, and other NSR factors. The
final Mineral Resource NSR calculation is based on average
assumptions for the deposit and applied using the following
formulae:
a. Mineral Resource NSR (USD) for oxide material = (CU_PCT*0) +
(ZN_PCT*0) + (AU_PPM*43.6528) + (AG_PPM*0.1217)
b. Mineral Resource NSR (USD) for transition and fresh material
= (CU_PCT*71.9407) + (ZN_PCT*14.4408) + (AU_PPM*41.7501) +
(AG_PPM*0.6582)
* Metal price forecasts (with appropriate uplift for assessing
Mineral Resources) considered for the calculation of Mineral
Resource NSR (USD): Gold (USD1,820/oz), Silver (USD26/oz), Copper
(USD9,200/t), Zinc (USD3,000/t).
** Resource NSR cut-off calculations assume average
metallurgical recoveries of Copper (0%), Zinc (0%), Gold (75%),
Silver (15%) for oxide, and Copper (92%), Zinc (71%), Gold (74%),
Silver (84%) for transition and fresh (sulphide) material.
(7) Initial metallurgical testwork has been completed for the
transitional and fresh (sulphide) mineralisation at Hawiah,
comprising flotation and cyanide leach methods. No metallurgical
testwork results are available for the oxide mineralisation;
however, metallurgical parameters have been approximated based on
similar deposit types/styles located within Saudi Arabia and SRK's
experience. Once additional testwork is completed, if the
metallurgical recovery results change significantly from the
current values, this would impact the parameters used to report the
Mineral Resource, which, in turn, could also impact the tonnages
and grades considered to have 'reasonable prospects for eventual
economic extraction' for reporting in the Mineral Resource
Statement.
Mineral Resource Estimation comparison and future expansion
The updated MRE represents a significant increase to the tonnage
from 19.3 Mt to 24.9 Mt, an increase in copper and zinc grades from
0.87% Cu to 0.90% Cu and from 0.81% Zn to 0.85% Zn, an increase in
gold grade from 0.56 g/t Au to 0.62 g/t Au and a reduction in
silver grade from 10.3 g/t Ag to 9.8 g/t Ag (Table 2) .
Table 2 - 2020 MRE and Updated MRE comparison - Grade and
Tonnage.
2020 Updated Difference
MRE MRE (%)
Tonnage (Mt) 19.3 24.9 +29%
------ -------- -----------
Copper (%) 0.87 0.9 +3%
------ -------- -----------
Zinc (%) 0.81 0.85 +5%
------ -------- -----------
Gold (g/t) 0.56 0.62 +11%
------ -------- -----------
Silver (g/t) 10.25 9.81 -4%
------ -------- -----------
The additional resource tonnage is largely driven by:
- expansion of the Camp Lode at depth
- expansion of Crossroads Extension at depth
- inclusion of a greater portion of the oxide material based on
updated optimisation parameters used to generate the open-pit
Resource open-pit shell
As predicted by the geological model, the depth extension of the
Camp Lode portion of the orebody has an elevated copper grade, on
average 1.2% Cu, making it the highest copper grade area outside of
the copper enriched transition zones. The final and deepest
drillhole into the mineralisation within this area (HWD 092)
intersected 5.45m (estimated true width of 4.4m) at approximately
1.6% copper, demonstrating that this high-grade area of the Hawiah
deposit remains open at depth (down plunge) in the Camp Lode.
Whilst the lower limits of the Crossroads Extension present with
a lower average copper grade, when combined with the zinc, gold and
silver grades, this results in the majority of the additional
mineralisation defined in this area of the Hawiah deposit reporting
to the underground Mineral Resource reported under the parameters
of the resource estimation model (and underground stope
optimisation), again demonstrating the potential for expansion in
this area.
The early phases of exploration in 2022 will focus on resource
definition within the Central Zone portion of the orebody (see
Figure 1 in Appendix B), where only limited drilling has currently
taken place, as well as resource classification upgrade drilling
within the oxide portions of the deposit to aid with the open-pit
study as part of the PFS.
Open-Pit Scenario
G&M is also pleased to report that the Mineral Resource
reporting to the Open-Pit Scenario have been expanded from the
previous 0.1 Mt reported in 2020 to a total of 8.4 Mt at 0.93%
copper 0.72% zinc, 0.74 g/t gold and 10.05 g/t silver (see Figure 2
in Appendix B).
This presents as a clear opportunity for lower cost development
during the early years of the project, further strengthening the
economic case. This Open-Pit Scenario will be fully evaluated
during the PFS. Drilling programmes are set to start in January
2022 to increase drilling density in the areas of the Inferred
Resource that report to the Open-Pit Scenario.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Managing Director) +357 99457843
John Leach (Finance Director) +357 99208130
SP Angel Corporate Finance LLP (Nominated
Adviser and Joint Broker) +44 (0) 20 3470 0470
Jeff Keating, Adam Cowl
Tavira Securities Limited (Joint Broker) +44 (0) 20 7100 5100
Oliver Stansfield, Jonathan Evans
WH Ireland Limited (Joint Broker) +44 (0) 20 7220 1666
Adrian Hadden, Andrew de Andrade
IFC Advisory Ltd (Financial PR and IR)
Tim Metcalfe, Florence Chandler +44 (0) 20 3934 6630
Competent Person Statement
The information in this announcement that relates to Mineral
Resources is based on information reviewed and compiled by a team
of consultants from SRK, overseen by Mr Mark Campodonic who is a
Member with Chartered Professional Status (Geology) of the
Australian Institute of Mining and Metallurgy ("AusIMM"). Mr
Campodonic is a full-time employee of SRK and is the Competent
Person for this Mineral Resource estimate. He has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he
has undertaken to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr
Campodonic consents to the inclusion in this announcement of the
matters based on his information in the form and context in which
it appears.
The information in this announcement that relates to exploration
results is based on information compiled by Mr Tomos Bryan,
Exploration Manager G&M. Mr Bryan is a member of the AusIMM. Mr
Bryan is a geologist with sufficient relevant experience for
Company reporting to qualify as a Competent Person as defined in
the JORC Code 2012. Mr Bryan consents to the inclusion in this
announcement of the matters based on this information in the form
and context in which it appears.
Notes to Editor
KEFI Gold and Copper plc
KEFI is focused primarily on the development of the Tulu Kapi
Gold Project in Ethiopia and its pipeline of highly prospective
exploration projects in the Arabian-Nubian Shield. KEFI targets
that production at Tulu Kapi will generate cash flows for capital
repayments, further exploration and dividends to shareholders.
KEFI Gold and Copper in Ethiopia
Ethiopia is currently undergoing a remarkable transformation
both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being
progressed towards development, following a grant of a Mining
Licence in April 2015.
The Company has now refined contractual terms for project
construction and operation. Estimates include open pit gold
production of c. 140,000oz pa for a 7-year period. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt
at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been
reported in compliance with the JORC Code (2012) and subjected to
reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that
indicates the economic attractiveness of mining the underground
deposit adjacent to the Tulu Kapi open pit, after the start-up of
the open pit and after positive cash flows have begun to repay
project debts. An area of over 1,000 square kilometres adjacent to
Tulu Kapi has been reserved for exploration by KEFI upon
commencement of development, with a view to adding satellite
deposits to development and production plans.
KEFI Gold and Copper in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a
31.2% interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
("EL") applications currently subject to approval from the various
ministries as required under the new Mining Law. ELs are renewable
for up to fifteen years and bestow the exclusive right to explore
and to obtain a 30-year exploitation (mining) lease within the
area.
The Kingdom of Saudi Arabia has announced policies to encourage
mineral 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.
Background - Hawiah VMS deposit
The Hawiah deposit is located within the Wadi Bidah Mineral
District ("WBMD") in the southwest of the Arabian Shield. The WBMD
is a 120-kilometre-long belt which hosts over 20 Volcanic Massive
Sulphide ("VMS") known occurrences and historic workings for copper
and gold.
G&M commenced drilling at Hawiah in September 2019 and
quickly confirmed that large-scale VMS style of mineralisation
underlies the gossanous ridgeline at surface.
A total of 193 diamond drillholes have led to the definition of
the following three copper-zinc-gold-silver massive sulphide lodes
that remain largely open at depth (see Figure 3 in Appendix B):
-- The deepest massive sulphide intersection at the Camp Lode is
at a vertical depth of 590m where 4.4m true width of massive
sulphide was intersected, this extends the total plunging strike
length of mineralisation to 1.2km from the surface, with
mineralisation remaining open. The average true width of the 'Camp
Lode' is 7m with the widest intersection of 20m found at a depth of
90m;
-- The 'Crossroads Lodes': 1.1km long, with an average width of
5m with the widest intersection being 10m true width; and
-- The 'Crossroads Extension Lode': 0.7km long, with an average
width of 5m with the widest intersection being 13m true width. This
lode has been explored to a maximum vertical depth of 390m where
5.4m of massive sulphide was intersected, open at depth.
Drilling spans over 5 kilometres of strike length at a drill
spacing on the Camp and Crossroads Lodes at approximately 40-60m
within areas reporting to Indicated classification and 120-140m for
areas reporting to Inferred classification.
Drilling within the Central Area is limited and yet to be fully
defined - as such only the oxide potions of this area qualify for
Inferred classification.
Summary of Resource Estimate Parameters and Reporting
Criteria
In accordance with the JORC Code (2012 Edition), a summary of
the material information used to estimate the Mineral Resource is
detailed below (for further information please refer to Table 1 in
Appendix C).
Geology and Geological Interpretation
The Hawiah VMS deposit is located on the eastern limb of a
regional-scale antiform in within the locally know, 'Group 2' mafic
volcanics of the Wadi Bidah Mineral Belt.
The Hawiah deposit forms a prominent north-south trending
ridgeline, exposed over a total length of approximately 4,500m with
a thickness that typically varies from 1-15m. The ridge has been
interpreted by G&M as the modern-day expression of the original
VMS palaeohorizon. The rock package comprises a suite of gossanous
ex-massive sulphides, chert breccias, banded ironstones and
intermediate volcanic breccias. The deposit has been subject to
varying degrees of supergene alteration as a result of groundwater
interactions.
The deposit comprises of three main weathering/alteration
domains; oxide, transitional and fresh, within which different
resulting facies are described. The oxide domain typically shows
supergene gold enrichment, while large portions of the transitional
domain shows copper enrichment. The fresh mineralised domain
appears to be a dominantly pyritic stratiform massive sulphide
body.
Sampling Techniques and Hole Spacing
A total of 193 diamond drillholes (41,841) and 53 trenches
(1,622m) have been used for this Mineral Resource Estimate.
Drillhole spacing is typically 40-60m (Indicated classification)
and 120-140m (Inferred classification).
Drillholes were logged for a combination of geological and
geotechnical attributes. The core has been photographed and
measured for RQD and core recovery.
Sampling and Sub-Sampling Techniques
Diamond drilling and surface trenching was used to obtain sample
intervals that typically range from 0.3-3m for drilling and 1-3m
for trenching.
Whole core was split using a core saw by G&M personnel and
then submitted for preparation at ALS Jeddah, during which material
was crushed to 2mm, pulverised to 75um, with 250g split sent for
analysis. The sample preparation procedures used for trench samples
is consistent with the drillcore samples.
Sampling Analysis Method
Samples have undergone analysis at the ALS Laboratory, located
in Jeddah., Saudi Arabia.
- Gold - Fire assay digest with AAS instrumentation
- Copper, Zinc, Silver: Four acid digest ICP-AES
Estimation Methodology
In summary, for this Mineral Resource Estimate, the following
approach has been utilised:
-- modelling of the mineralised lode and weathering domains in
3D, in conjunction with the G&M geological team;
-- composited the sample data to 2m intervals;
-- applied high grade caps per estimation domain from log histograms;
-- undertaken geostatistical analyses to determine appropriate
interpolation parameters;
-- created a block model with parent block dimensions of 2 x 25
x 25 m, (sub-blocked to a minimum of 0.5 x 1.5 x 3.0 m);
-- interpolated Cu, Zn, Au and Ag grade into the block model
using ordinary kriging (or IDW where adequate variogram models
where not possible);
-- assigned average or lithology-weighted average density values
by weathering domain; and
-- visually and statistically validated the estimated block
grades relative to the original sample results.
Classification Criteria
The Hawiah resource has been classified in the Inferred and
Indicated Mineral Resource classification category, as defined by
JORC 2012.
Mineral Resource Statement Parameters and Cut-off Grade
SRK has applied basic economic considerations based on initial
metallurgical testwork results and assumptions provided by the
Company, similar deposit types located within Saudi Arabia and
SRK's experience to determine which portion of the block model has
reasonable prospects for eventual economic extraction by
underground and open-pit mining methods.
To achieve this, the Mineral Resource has been subject to an
underground floating stope optimisation and open-pit optimisation
studies, based on long-term metal price forecasts (with appropriate
uplift to reflect potential for assessing Mineral Resources) for
copper, zinc, gold and silver, to assist in determining the
material with potential for underground and open pit mining and
reporting above a suitable Resource Net Smelter Return ("NSR")
USD/t cut-off value ("Resource NSR").
The Resource NSR cut-off calculation has been determined based
on metal price forecasts, initial metallurgical recovery results
and assumptions, mining costs, processing costs, general and
administrative (G&A) costs, and other NSR factors. The final
Resource NSR value calculation is based on average assumptions for
the deposit and applied to the block model using the following
formulae:
Resource NSR (USD) value for oxide material = (CU_PCT*0) +
(ZN_PCT*0) + (AU_PPM*43.6528) + (AG_PPM*0.1217)
Resource NSR (USD) value for transition and fresh material =
(CU_PCT*71.9407) + (ZN_PCT*14.4408) + (AU_PPM*41.7501) +
(AG_PPM*0.6582)
The cut-off values determined for reporting the Mineral Resource
on a Resource NSR USD/t basis, are given below and were based on
the technical and economic inputs presented in Table 3 below:
- USD12/t for open pit material reported from within the oxide mineralisation domain;
- USD20/t for open pit material reported from within the
transition and fresh mineralisation domains; and
- USD54/t for underground material reported from within the
transition and fresh mineralisation domains.
Table 3 - Summary of key assumptions for conceptual underground
stope optimisation, open pit optimisation and cut-off grade
calculation
Parameters Units
Production Rate
Production Rate - Ore (mtpa) 1.8 - 2.2
Geotechnical
Overall Slope Angle (Oxide) (Deg) 43
Overall Slope Angle (Transition) (Deg) 46
Overall Slope Angle (Fresh) (Deg) 52
Open Pit Mining Factors
Dilution (%) Included in regularised
Block Model 5x5x2.5 m
Recovery (%)
Underground Mining Factors
Minimum stope dimension (m) 2m width x 25 m height
x 20 m length
Dilution (%) 15%
Processing (Oxide: Heap Leach)
Recovery - Cu (%) 0%
Recovery - Zn (%) 0%
Recovery - Au (%) 75%
Recovery - Ag (%) 15%
Processing (Transition and Fresh: Floatation and Cyanide
Leach)
Recovery - Cu (%) 92%
Recovery - Zn (%) 71%
Recovery - Au (%) 74%
Recovery - Ag (%) 84%
Commodity Prices
Cu (USD/t) 9,200
Zn (USD/t) 3,000
Au (USD/oz) 1,820
Ag (USD/oz) 26
Operating Costs
(USD/t
Open Pit Mining (Oxide) rock) 1.9
(USD/t
Open Pit Mining (Transition) rock) 2.2
(USD/t
Open Pit Mining (Fresh) rock) 2.1
Underground Mining (Transition (USD/t
and Fresh) ore) 27.0
(USD/t
Processing (Oxide: Heap Leach) ore) 6.0
Processing (Transition and
Fresh: Floatation and Cyanide (USD/t
Leach) ore) 13.9
G&A (incl. corporate, sales/ (USD/t
marketing) ore) 5.6
--------------------------------- -----------------------
Mining and Metallurgical Methods and Parameters
Initial metallurgical testwork has been completed for the
transitional and fresh (sulphide) mineralisation at Hawiah,
comprising flotation and cyanide leach methods. No metallurgical
testwork results are available for the oxide mineralisation;
however, metallurgical parameters have been approximated based on
similar deposit types/styles located within Saudi Arabia and SRK's
experience. Once testwork is completed, if the metallurgical
recovery results change significantly from the current approximated
values, this would impact the parameters used to report the Mineral
Resource, which, in turn, could also impact the tonnages and grades
considered to have 'reasonable prospects for eventual economic
extraction' for reporting in the Mineral Resource Statement.
Appendix A - Glossary of Technical Terms
Ag Silver
AAS Atomic Absorption Spectroscopy
--------------------------------------------------
AIC All-in Costs
--------------------------------------------------
Arabian-Nubian The Arabian-Nubian Shield is a large area
Shield or ANS of Precambrian rocks in various countries
surrounding the Red Sea
--------------------------------------------------
ARTAR Abdul Rahman Saad Al Rashid & Sons Company
Limited
--------------------------------------------------
Au Gold
--------------------------------------------------
Cu Copper
--------------------------------------------------
DFS Definitive Feasibility Study
--------------------------------------------------
g/t Grams per tonne
--------------------------------------------------
Gossan An iron-bearing weathered product overlying
a sulphide deposit
--------------------------------------------------
ICP-AES Inductively Coupled Plasma-Atomic Emission
Spectroscopy
--------------------------------------------------
IDW Inverse Distance Weighted
--------------------------------------------------
IP Induced polarisation - a ground-based geophysical
survey technique measuring the intensity
of an induced electric current, used to
identify disseminated sulphide deposits
--------------------------------------------------
JORC Joint Ore Reserves Committee
--------------------------------------------------
JORC Code 2012 Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves
--------------------------------------------------
m Metres
--------------------------------------------------
Massive sulphide Rock comprised of more than 40% sulphide
minerals
--------------------------------------------------
Mt Million tonnes
--------------------------------------------------
Mtpa Million tonnes per annum
--------------------------------------------------
MRE Mineral Resource Estimate
--------------------------------------------------
NSR Net Smelter Return
--------------------------------------------------
oz Troy ounce of gold
--------------------------------------------------
PCT Percent
--------------------------------------------------
PEA Preliminary Economic Assessment
--------------------------------------------------
PFS Pre-Feasibility Study
--------------------------------------------------
PPM Parts per million
--------------------------------------------------
Precambrian Era of geological time before the Cambrian,
from approximately 4,600 to 542 million
years ago
--------------------------------------------------
VMS deposits Volcanogenic massive sulphides; refers
to massive sulphide deposits formed in
a volcanic environment with varying base
metals (copper, lead and zinc) often with
significant additional gold and silver
--------------------------------------------------
Zn Zinc
--------------------------------------------------
Appendix B - Diagrams
The Appendix B diagrams may be accessed via the following
link
http://www.rns-pdf.londonstockexchange.com/rns/5683X_1-2022-1-5.pdf
Appendix C - JORC Table 1
The Hawiah MRE JORC Table 1 can be accessed as a PDF via the
following link
http://www.rns-pdf.londonstockexchange.com/rns/5683X_2-2022-1-5.pdf
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