Aim-listed gold and copper explorer and developer Kefi Gold and Copper reports that the mineral resource estimate (MRE) for the joint venture (JV) Hawiah copper/gold project, in Saudi Arabia, has increased by 5.6-million tonnes, to 24.9-million tonnes.

This MRE for the project, which is operated by Kefi under a JV with precious metals producer Gold and Minerals (G&M), comprises 0.9% copper, 0.85% zinc, 0.62 g/t gold and 9.81 g/t silver – representing a tonnage increase of 29%.

As such, the total contained metal content now stands at 223 000 t of copper – up 33% from 168 000 t; 210 000 t of zinc, up 34% from 157 000 t; 497 000 oz of gold, up 42% from 349 000 oz; and 7.8-million ounces of silver, up 22% from 6.4-million ounces.

Also, the new MRE provides an upgrade in key areas from the previous inferred category mineral resource, with 10.9-million tonnes now in the indicated category of the mineral resource at 0.96% copper, 0.86% zinc, 0.64 g/t gold and 9.98 g/t silver. This lays the foundation for a preliminary feasibility study to take place later this year.

Further, the new MRE results in the total mineral resource (indicated and inferred) reporting for the openpit having increased from 100 000 t to 8.4-million tonnes – raising the possibility of an initial openpit mining operation and a lower start-up capital requirement.

“This presents as a clear opportunity for lower-cost development during the early years of the project, further strengthening the economic case,” says Kefi executive chairperson Harry Anagnostaras-Adams.

Kefi points out that the Hawiah deposit remains largely open at depth, with drilling programmes starting this month with the intention of further increasing the Hawiah mineral resource, thereby raising the likelihood of further increases to the MRE this year.

He says the updated MRE for the Hawiah project achieves Kefi’s key objectives of a tonnage increase of about 30% and a slightly higher overall increase in metal content owing to overall improved grades.

This also includes ten-million tonnes of the total of 25-million tonnes now being classified as an indicated mineral resource, facilitating the estimation and reporting of initial ore reserves as part of the prefeasibility study for potential development, says Anagnostaras-Adams.

“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; and the Jibal Qutman gold project, also in Saudi Arabia,” he says.

Anagnostaras-Adams adds that 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.

“This could also be a significant potential contributor.”