KEFI Gold and Copper gets award of exploration licences in Saudi Arabia

LONDON, UK: KEFI Gold and Copper (LON: KEFI) announced the issuance of the Al Godeyer and Al Godeyer East Exploration Licences to the KEFI-operated Saudi Arabian joint-venture Gold and Minerals Limited (G&M).

The licences are situated 12km south-west of the Company’s Hawiah discovery (see Figure 1 in the attached appendix), which is expected to shortly upgrade the 2020 Mineral Resource Estimate (MRE) of 19.3Mt at 1.9% copper equivalent.

Highlights

· Al Godeyer and Al Godeyer East licences granted on an initial 5-year term

· Exploration work suggests a strike length of more than 2km for the identified gossan horizon

· Accelerated Exploration programs targeting a Maiden resource within 2022

· Situated adjacent to the Company’s significant Hawiah discovery

The Company’s Hawiah Copper-Gold VMS project (“Hawiah’) is now advancing through the Preliminary Feasibility Study (“PFS”) for potential development, having completed 42,000m of drilling across the project during the 2019-2021 initial exploration phase.

An update to the MRE, in conjunction with SRK Consulting (UK) Ltd, is nearing completion and is expected to be announced later in December 2021. This will form the basis for much of the PFS works including mine and process design.

The granting of the AG Licences is a significant step in G&M’s plans for the development of the wider Hawiah Project area, representing the first of the satellite targets to be explored. The proximity and shared mineralisation style should present an excellent opportunity to enhance the Hawiah project with additional grade and tonnage.

Harry Anagnostaras-Adams, Executive Chairman of KEFI, commented: “The Hawiah project already appears to be a robust standalone development proposition. However, it has always been our opinion that Hawiah is greater than just one deposit, instead we believe it will prove to be a district of VMS deposits.

G&M have already identified multiple VMS targets in the surrounding Hawiah area, and today’s announcement marks the first step in expanding a single project at Hawiah into a mining district of complementary deposits. Shared infrastructure between the projects will leverage the value of each one and reinforce the overall development strategy.

“These new licences, plus the imminent December Hawiah MRE, reinforce the established position of KEFI in Saudi Arabia as a leading explorer and developer. 2022 is set to be a very positive and busy year for the joint-venture with the expected delivery of the PFS and further resource growth at Hawiah, as well as the start of additional regional projects. Furthermore, based on discussions with the regulatory authorities in the current quarter, we also now anticipate progress of the Jibal Qutman Gold mining licence, our first discovery in Saudi Arabia with an existing resource in excess of 700,000 ounces of gold.

“I look forward to providing further updates on both our operations in Saudi Arabia and also Ethiopia, where the political situation continues to improve and good progress is being made with respect to finalising the funding for the launch of the Tulu Kapi project development.”

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