Update re Eureka Copper-Gold Project, Argentina

RNS Number : 5503Q

Bezant Resources PLC

16 October 2013

 



16 October 2013

Bezant Resources Plc

("Bezant" or the "Company")

Update re Eureka Copper-Gold Project, Argentina

Results of Phase One Exploration Programme

Highlights:

·      Phase One exploration programme completed comprising a trenching campaign at Eureka, a near surface copper-gold resource, Jujuy province, Argentina

·      Results indicate an average 1.68 per cent. copper content for the samples assayed

o   Assay results to date strongly support the project's potential and confirm previous sample values

o   68 samples taken from the 17 trenches excavated were dispatched for analysis

·      Trenching activity consisted of extensions to existing work and infill trenches to demonstrate the continuity of mineralised bodies

·      High copper in fines and low content of acid consuming minerals are positive features of the mineralisation

Bernard Olivier, Chief Executive Officer of Bezant, commented:

"The 1.68 per cent. average copper content from our trenching work confirms our belief that Eureka hosts a valuable near surface copper-gold resource. Located near established infrastructure in an area with a history of profitable small-scale mining, we continue to assess the viability of Eureka through our ongoing considered exploration work programme. We are further encouraged by the high copper assay results and geological similarities between the known Eureka I mine area and the samples taken along a potential southern extension over the 10km of the mineralised zone."

Bezant (AIM: BZT), the AIM listed copper-gold exploration and development company operating in the Philippines and Argentina, announces results from a surface trench exploration and analysis programme conducted at its wholly owned Eureka Project ("Eureka"), located in Jujuy province, north-west Argentina.

The project area has previously hosted historic small-scale mining operations for both copper and gold. Eureka is held under fully granted mining licences and is situated close to established infrastructure in a thinly populated area. The Company believes that Eureka affords the opportunity to potentially develop profitable low-cost mines using modern technology.  Near surface mineralisation is believed to be amenable to straightforward, low-cost, and environmentally acceptable mining and minerals processing operations.

Trenching Campaign

Phase One of the current exploration programme consisted of a trenching campaign aimed at delineating extensions to known copper mineralisation and proving the continuity of mineralised zones by infill trenching.  Work on Phase One commenced in June 2013, following approval of the Environmental Impact Assessment (EIA) by the requisite authorities, and  Bezant's Argentinian geologist closely supervised the excavation and sampling work performed by a local workforce. 

Samples were prepared on site and then dispatched to ALS Geochemistry ("ALS"), Mendoza, Argentina, for copper and multi-element analysis. ALS is one of the world's largest producers of  testing services and has operations in more than 350 locations spanning 55 countries on six continents.

A total of 17 trenches were excavated and 68 samples selected and dispatched for analysis, 50 samples were selected on the Eureka I Mine tenement over a strike extension of over 2.5km. The remaining 18 samples were taken along various localities along the potential extent of the mineralised zone with a further sample point located approximately 10km to the south west of Eureka I Mine.

The samples returned copper assay values ranging from 0.23 per cent. to 6.09 per cent. The average copper value for all of the 68 samples equated to 1.69 per cent. Cu with 46 samples returning values in excess of 1 per cent.  Details of the assay results are summarised  in Table 1 below.           

The lithology of the samples is a coarse grained siliceous conglomerate formed by the erosion of the Actoite Formation which consists of metamorphosed sandstone and other fine-grained sedimentary rocks.  Clasts of volcanoclastic origin which has been weakly bonded by mineralising fluids are present at the base of the unit. Copper mineralisation is typically associated with the permeable sandy sheetflow that is enveloped by the conglomerate layers. The samples contain only trace levels of carbonate minerals and very low levels of clay minerals. 

Initial indications are that this lithological makeup is well suited to copper extraction by heap or dump leaching.  Agglomeration to prevent fines migration might not be necessary due to the low clay mineral content. Furthermore, the low carbonate content suggests the potential for very low acid consumption in leaching.

During the trenching process the samples breakdown into naturally coarse and fine fractions with virtually all of the copper reporting to the fines.  This behaviour will be investigated further by simple testwork as it could form the basis for concentrating copper values by a simple minerals processing operation.

Table 1: Summarised Trenching Results

Trench No.	Sample No.	% fine Fraction	Cu % fine Fraction	% Cu Total in sample
1	1	77.0	1.247	0.961
	2	71.6	0.571	0.409
2	1	67.7	1.423	0.964
	2	55.0	1.515	0.833
	3	66.3	0.848	0.562
	4	69.5	1.375	0.955
	5	81.2	2.694	2.187
	6	69.0	0.938	0.648
	7	78.0	2.229	1.739
	8	70.7	0.522	0.369
	9	62.4	0.900	0.562
3	1	71.6	1.517	1.086
	2	79.5	2.252	1.789
	3	85.4	3.280	2.800
	4	75.2	1.095	0.823
	5	78.2	1.970	1.540
	6	80.2	1.622	1.301
	7	64.5	0.905	0.584
	8	84.9	1.857	1.577
	9	79.7	2.334	1.861
	10	76.0	2.575	1.956
	11	72.2	2.078	1.501
	12	76.7	2.705	2.076
	13	84.7	3.146	2.664
	14	74.5	2.282	1.700
	15	88.0	2.312	2.033
	16	75.4	2.386	1.798
	17	40.2	3.593	1.445
4	1	79.7	0.700	0.558
	2	68.5	0.336	0.230
	3	56.5	0.814	0.460
	4	81.3	1.611	1.310
	5	65.3	1.187	0.775
	6	82.9	1.338	1.109
	7	70.4	1.631	1.148
5	1	81.2	2.233	1.814
	2	72.4	0.893	0.646
	3	92.3	1.256	1.160
6	1	88.2	3.762	3.318
7	1	88.2	3.308	2.919
	2	90.4	2.675	2.418
	3	74.5	2.529	1.884
	4	56.8	0.935	0.531
8	1	80.6	0.737	0.594
	2	80.3	1.069	0.858
	3	83.0	0.773	0.641
9	1	100.0	4.283	4.283
	2	100.0	4.345	4.345
10	1	76.0	0.835	0.634
	2	80.8	1.181	0.954
	3	87.9	1.551	1.363
11	1	74.7	3.523	2.631
12	1	92.4	2.100	1.940
	2	87.2	2.763	2.409
13	1	86.3	3.045	2.628
	2	72.5	2.802	2.032
	3	66.9	2.471	1.654
14	1	64.3	1.846	1.187
	2	61.5	3.109	1.913
	3	86.2	2.644	2.279
15	1	80.2	1.941	1.557
	2	89.4	3.558	3.179
	3	91.8	2.859	2.625
	4	95.1	2.976	2.832
16	1	86.9	2.049	1.781
	2	92.6	1.962	1.816
	3	97.0	3.293	3.196
17	1	96.4	6.313	6.088
Averages:		78.14	2.08	1.68

Dr Bernard Olivier has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules.  Dr Olivier is CEO of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact: Bernard Olivier Chief Executive Officer, Bezant Resources Plc     Laurence Read Director / Communications Officer, Bezant Resources Plc                            James Harris / Matthew Chandler / James Dance Strand Hanson Limited                                                           James Maxwell / Jenny Wyllie N+1 Singer                                               or visit http://www.bezantresources.com Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone]

Notes to editors:

Eureka Project

The 11 licences comprising the Eureka Project are located in north-west Jujuy near to the Argentine border with Bolivia and are formally known as Mina Eureka, Mina Eureka II, Mina Gino I, Mina Gino II, Mina Mason I, Mina Mason II, Mina Julio I, Mina Julio II, Mina Paul I and Mina Paul II, covering, in aggregate, an area in excess of approximately 5,500 hectares and accessible via a series of gravel roads. To date, no JORC compliant or equivalent resource estimate has been established, but historic exploration activities have been conducted on the project area since the 1980s by Minera Penoles, Codelco and Mantos Blancos, with unaudited unclassified estimates in the order of, in aggregate, up to approximately 62 million tonnes grading at 1% copper and approximately 52,000 ounces of gold as credits. The copper oxide mineralisation occurs in loosely consolidated conglomerates and is the focus of the project's economic potential. The near surface mineralisation is amenable to heap leaching, while the carbonate content of the conglomerate is reported to be low, thereby reducing potential acid consumption.

Copper-Gold Exploration Track Record

In 2007, Bezant acquired the little known Mankayan copper-gold target in the Phillippines for approximately 5.5 million shares and US$500,000 cash. Over a period of approximately three years the Company proved up JORC Compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2.21 million ounces of gold for an exploration cost of approximately US$5 million. On 26 October 2011 the grant of an option to Gold Fields Netherlands Services BV for the potential sale of the Mankayan Project was ratified by the Company's shareholders and such option was subsequently amended and extended to 31 January 2014. Bezant returned approximately £5.2 million to its shareholders in May 2013 and intends to return a further significant amount of cash to its shareholders in due course, subject to the option being exercised, in addition to progressing its near surface "Eureka" copper-gold project in Argentina.

 

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