KEFI Minerals intercepts large scale massive sulphides at Hawiah
London-listed has intercepted large scale massive sulphides following a drilling programme at the group’s Hawiah prospect in Saudi Arabia, it announced this morning.
The gold exploration company drilled directly below 4km of the gossanous ridgeline to encounter a ‘laterally continuous’ mineralisation that was present from surface to a vertical depth of 275m.
Assay results are still being received, but the company said it has already drawn 'overwhelmingly positive conclusions' from the drilling.
The massive sulphides have an estimated true thickness ("ETW") of intervals ranging from 0.5m to 11.5m, they reported, whilst sufficient drilling has now been completed to identify two particular zones for potentially mineable lodes.
The group said drilling had confirmed Hawiah to be a large Volcanic Massive Sulfide (‘VMS’) system with the sulphides containing a polymetallic blend of copper, zinc, gold and silver.
Executive Chairman, Harry Anagnostaras-Adams noted that the prospect’s continuity over the 4km makes the option to drill out "easy" and amenable to “straightforward” underground mining.
Shares in KEFI Minerals were trading 10.17% higher at 1.68p on Thursday morning.
Based on published records, drilling has shown Hawiah to pose similar characteristics to, and be larger than, the nearby Al Masane polymetallic VMS mine in southern Saudi Arabia.
“We have already commenced the next phase of drilling which is likely to lead to an initial Mineral Resource estimate,” added Anagnostaras-Adams.
Gold & Minerals Limited (‘G&M’), a JV company with Abdul Rahman Saad Al Rashid and Sons (‘ARTAR’), which KEFI conducts its activities through in Saudi Arabia, has now approved a second phase drilling programme to be conducted over the next 6 months.
The programme will be aimed at delineating an initial mineral resource and an economic assessment and development feasibility study will be undertaken, if warranted, the company explained.
KEFI, who previously diluted its interest in G&M in return for funding, said it was now in a ‘solid position’ to contribute its share of G&M costs going forward.
Due to the continuous nature of the mineralisation, the company anticipates that Hawiah can be developed at relatively low cost and added that funding would be available in due course.
KEFI's initial Hawiah drilling programme was completed in the last quarter of 2019 and following positive results, was extended from 2,500m to 3,000m of diamond drilling, the statement acknowledged.
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