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Summary
- The gold and copper exploration and development company’s drilling program at Hawiah in Saudi Arabia has yielded additional mineralization
- It raised its mine resource estimate than what it had presented in its September PEA report
- The new drilling data doubles the mine’s mineralization estimate of the mine, increasing the value of the project to $362 million
- The company raised capital worth £3 million in November by selling equity at a price of 1.6 pence per share to fund its drilling operations.
Mining company KEFI Gold and Copper Plc has shared an update on its 13,000-meter drilling programme at its Hawiah Project in Saudi Arabia, where it owns a 34 per cent stake. It has significantly boosted the resource estimates at its mines. Earlier, the company had released the Preliminary Economic Assessment (PEA) report in September where the estimated value of this project was given as $96 million. However, the new drilling data indicates that it could go up to $362 million, three times the previous estimate.
The company had a successful capital raising in November, where it was able to sell its shares at 1.6 pence per share, which is 63.2 per cent higher than its trading value at the beginning of the year, 1 January: 0.98 pps.
Harry Anagnostaras-Adams, Executive Chairman of KEFI said that the drilling results showed that the deposit was open at depth and to its south. The company was encouraged to see returns of significant intercepts as drilling continued, he emphasised.
Along with a deeper drilling initiated to expand the resource estimate of the project, the company is also going in for infill drilling to upgrade key resource areas for effective mine planning and calculating an initial ore reserve. Besides, the company has hired a second drilling rig to expand its exploration activities at the project site.
The company in its news release on 8 December has stated that it will come out with its Preliminary Feasibility Study report on the Hawiah project in 2021 where it will be providing all the updates on the developments taking place at the site.
Existing projects
KEFI Gold and Copper Plc is currently having interests in mines located in Saudi Arabia and Ethiopia. The company is in an exploration stage at both these places. The PEA report of reserves from both mining deposits have indicated high economic attractiveness. Moreover, the company has completed the regulatory requirements in both countries and expects to commence production soon.
Share price performance: one month
(Source- EODHD/Others Thomson Reuters)
The shares of KEFI Gold and Copper plc were trading at GBX 1.78 per share on 9 December (10.39 AM GMT+1), gaining 0.28 per cent over the previous day’s close.
