Update re Eureka Project, Argentina

RNS Number : 5091B

Bezant Resources PLC

18 April 2012

 



18 April 2012

Bezant Resources Plc

("Bezant" or the "Company")

Update re Eureka Project, Argentina

Highlights:

·    Environmental Baseline Study (the "Baseline Study") completed

·     Environmental Impact Study ("EIS") completed

·     Surface rock samples that formed part of the Baseline Study returned copper values of up to 4.5%

·     High copper values of over 1% obtained over 1km strike length, confirming the presence of a significant copper oxide deposit

·     Stage 1 of hydrogeological study currently nearing completion

Bezant (AIM: BZT), the AIM listed gold and copper exploration and development company operating in the Philippines and Argentina, is pleased to announce an operational update in respect of its Eureka Project, located in the Jujuy Province of north-west Argentina.

The Eureka Project comprises a package of 11 highly prospective copper and gold mining and exploration licences, covering, in aggregate, an area in excess of approximately 5,500 hectares. Bezant is the sole operator and owns 100 per cent. of the project's holding company, Puna Metals S.A.

Since September 2011, Bezant has been working closely with Ayni Consulting Group S.R.L., an integrated exploration services consulting firm based in Salta, Argentina, on an Environmental Impact Study ("EIS") and an Environmental Baseline Study (the "Baseline Study") for the Eureka Project.

Bezant has now completed a comprehensive EIS for submission to the Director of Mines and Energy Resources for the Province of Jujuy.  The Company looks forward to working with the Committee of Experts, the Minister of Production and the Secretary General of the Provincial Government. Once the EIS has officially been approved, the Company will be permitted to start the main phase of its exploration work programme which will consist of trenching, surface sampling, drilling, as well as underground sampling after the existing adit is dewatered and secured.

The Baseline Study is also now complete and will be presented to the mining judge of the Province of Jujuy, the Director of Mines and Energy Resources and the Director of Environmental Policies for Natural Resources in due course. As part of the Baseline Study, the Company sampled 41 stream sediment, soil, mine dump and surface rock samples. These samples confirmed the exceptionally environmentally friendly nature of the deposit. The results of 6 water samples taken from the old underground workings indicate that the water is suitable for animal consumption and that all total metal content and metals in solution are within Argentine standards.

A total of 18 surface rock samples were collected as part of the Baseline Study and sent for geochemical analysis. Not all the samples were collected from identifiable copper seams and the returned copper values ranged from 27ppm to 4.48%. The average copper value for all the surface rock samples equated to 1.7%Cu, eleven of which returned values in excess of 1% Cu namely, 1.1%, 1.2%, 1.8%, 2.1%, 2.3%, 2.35%, 2.8%, 3.5%, 4.0%, 4.2% and 4.5%Cu. The samples containing 1% or more copper were taken along a 1,000 metre strike extent of identifiable copper mineralisation outcropping on surface.

Due to the nature of the sampling exercise, the analyses did not return any significant gold values, however silver values of up to 11.2g/t which appears to be associated with barium and arsenic enriched fluids were identified. Once the EIS has been approved a comprehensive sampling programme will be initiated to investigate the copper, gold and silver mineralisation.

The Company has also initiated a comprehensive hydrogeological study to complement its Baseline Study, with the aim of identifying sustainable water resources for future project use. Stage 1 of this study (December 2011 - April 2012) comprises the following activities in the principal catchment basins with direct contact to the area of influence of the Eureka Project:

-  Installation of 3 automatic meteorological stations;

-  Stream gauge measurements of water flows in the principal and sub-basins at key field derived 
locations;

-  A water sampling programme, with in-situ determination of physical and chemical properties, 
followed up by a complete lab analysis;

-  Infiltration tests and collection of stream sediments for subsequent grain-size analysis; and

-  Compilation of the meteorologic, stream-gauge and infiltration database for its subsequent evaluation.

Gerry Nealon, Executive Chairman of Bezant, commented: 

"The successful completion of the EIS is a vital intermediary step for the Company with regards to the Eureka Project, in terms of both community and Governmental support, and we now look forward to receiving official approval, so that we can swiftly move towards the main phase of our exploration programme. 

The return of high copper values from the Baseline Study's surface rock samples is extremely promising and is further confirmation of previous studies indicating the presence of significant high-grade copper mineralisation."

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:

Gerry Nealon Executive Chairman, Bezant Resources Plc                              Bernard Olivier Chief Executive Officer, Bezant Resources Plc                                James Harris / Matthew Chandler / David Altberg Strand Hanson Limited                                                           James Maxwell / Jenny Wyllie Singer Capital Markets Limited                                               Graham Herring / Beth Harris Newgate Threadneedle   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 a little known copper-gold target for approximately 5.5 million shares and US$500,000 cash. Over a period of approximately three years the Company has 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 ("Gold Fields") for the potential sale of the Mankayan Project for US$63 million in addition to an upfront Option fee of US$7 million was ratified by shareholders. Bezant intends to return a significant amount of cash to Shareholders in due course in addition to progressing its near surface "Eureka" copper-gold project in Argentina.

 

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