Update re Hope Copper-Gold project

RNS Number : 0037T

Bezant Resources PLC

15 July 2020

 

15 July 2020

Bezant Resources Plc

("Bezant" or the "Company") 

Due diligence and strategy update re

Hope Copper-Gold Project (subject to completion)

Bezant (AIM: BZT), the copper-gold exploration and development company, further to its announcement on 19 June 2020 in relation to the proposed acquisition of 100% of Virgo Resources Ltd and its interest in the hope gold copper project in Namibia is pleased to announce its due diligence is progressing as anticipated. Set below is an update of the technical aspects of the Hope Copper-Gold Project in Namibia including historical drilling information which has come to light as part of the Due Diligence Review:

Highlights of technical review :

· High-grade Copper-gold Volcanic Massive Sulphide (VMS) project located in the stable, safe and mining friendly jurisdiction of Namibia

· Project combined Mineral Resource of 10.2Mt @ 1.9% Cu and 0.3g/t Au at a 0.7% Cu cut-off, reported in accordance with the JORC Code (2012)

· Including the Hope Deposit: 3.09Mt @ 2.53% Cu and 0.84g/t Au at a 0.7% Cu cut-off and Indicated Mineral Resource confidence category, reported in accordance with the JORC Code (2012)

· Significant historic drill intersections at Hope include:

o  HDD42: 7.1 m @ 9.18% Cu from 186m

o  HDD63: 7.65m @ 5.32% Cu & 1.37g/t Au from 147.66m

o  HDD66: 12.09m @ 1.47% Cu & 0.21g/t Au from 280.7m; including 5.01m @ 3.15% Cu & 0.37g/t Au from 287.32m

o  HDD71: 4.4m @ 7.79% Cu & 1.73g/t Au from 365m

o  HDD82m: 23.31m @ 1.59% Cu & 0.23g/t Au from 464.09m; including 9.68m @ 3.18% Cu & 0.42g/t Au from 477.17m

o  HDD91: 10.12m @ 5.72% Cu & 0.56g/t Au from 525.57m

o  HDD99: 7.11m @ 5.26% Cu & 1.14g/t Au from 528.89m

· Metallurgical test work: excellent recoveries of 96% copper and 84% gold to a 28% Cu grade concentrate via conventional floatation

· Also including the Gorob-Vendome Deposit: 3.83Mt @ 1.91% Cu & 0.04g/t Au   at a 0.7% Cu cut-off and Inferred Mineral Resource confidence category, reported in accordance with the JORC Code (2012)

· Significant historic drill intersections at Gorob-Vendome include:

o  GD43: 6.67m @ 4.19% Cu (no gold assay) from 154.99m

o  GD45: 2.73m @ 4.38% Cu (no gold assay) from 116.95m

o  GD49: 5.25m @ 3.41% Cu (no gold assay) from 548.82m

· Unrealised gold grade potential : Gorob-Vendome mineral resource - most historic drilling not assayed for gold

· Excellent exploration potential : Historic, ground EM on known deposits only found that the copper-gold mineralisation is conductive but no regional EM completed

Colin Bird, Executive Chairman of Bezant, commented :

" This is an exciting potential project for the Company and the more we dig into the archives, it becomes evident that resources quoted were the subject of extensive drilling programmes which gives us added confidence. It is also evident that the contribution of gold has been neglected which in today's timescould in our view be quite significant.. We intend to re-evaluate the gold contribution and drill as soon as possible further holes at Gorob-Vendome to test for gold where previous statements suggest that there is either none or very little. In essence, the project represents the opportunity for revaluation but more importantly gives the scope for further discovery of similar type mineralisation as the tenure contains 150km not yet tested ."

Mineral Resource: Hope Copper-Gold Project

The Hope Copper-Gold Project (EPL5796) and adjacent tenures (EPL6605 and EPL7170) cover over 1,200 km² of the highly prospective Matchless Copper Belt, hosts multiple high-grade copper-gold VMS-style sulphide deposits, such as historically mined Otjihase Copper Mine (>16Mt @ 2.2% Cu & 1.2g/t Au). The project area contains a combined Mineral Resource of 10.2Mt @ 1.9% Cu and 0.3g/t Au at a 0.7% Cu cut-off, reported in accordance with the JORC Code (2012). Approximately 30% of the mineral resource in the 'Indicated' Mineral Resource category and the balance in the 'Inferred' Mineral Resource category. Also, due to the fact that many of the historic drill holes were not assayed for gold, the overall gold grade in the current mineral resources (0.3g/t Au) is interpreted to be a significant underestimate.

Unrealised Gold Potential

The combined Mineral Resource is derived from 3 deposits, Hope (including Hope extension), Gorob-Vendome and Anomaly. The Hope Deposit portion of the Mineral Resource Estimate has the highest gold grade (0.84g/t Au) but also has most of historic drill holes that have been assayed for gold (from youngest drill program in 2009). Whereas most of the drilling at the Gorob-Vendome Deposit is from older drill programs (late 70's and early 80's) and were not assayed for gold. The lack of gold grade information from the copper mineralised intersections within the drill holes at the Gorob-Vendome Deposit is interpreted to have resulted in the gold grade of the Gorob-Vendome Deposit portion of the Mineral Resource Estimate being much lower (0.04g/t Au).  In order to test this hypothesis, a rockchip survey was completed on the outcropping extent of the Gorob-Vendome mineralisation, which returned gold grades of 0.1 - 6.8g/t Au in association with the copper mineralisation. These rockchip results show that there is gold associated with the copper mineralisation within the Gorob-Vendome Deposit, similar to that found at the Hope Deposit and therefore, it is interpreted that the gold grade of the current JORC (2012) Mineral Resource is a significant underestimate. Drill plans have been formulated to address this gold grade underestimation issue.

Value Creation Strategy

The strategy for the Company to deliver shareholder value from the Hope Copper-Gold Project once the acquisition has been completed is twofold .

The first part of the strategy is to concentrate on increasing the size and confidence of the current, high-grade mineral resources on the Hope Copper-Gold Project;	especially understanding the unrealised gold grade potential within the current mineral resource due to many historic drill holes not being assayed for gold, as well as extending the known mineralisation along plunge. This will involve resampling of historic drill core, twinning historic drill holes and completing new drilling along plunge of the thickest and highest-grade mineralisation found to date. These results will then be applied to generate an improved mineral resource estimate that will underpin a scoping study into the viability of a mining operation on the Hope Copper-Gold Project.
The second part of the strategy is to complete modern, regional exploration (electromagnetic surveys and then drill testing) on this project,	as well as the adjacent tenures along the Matchless Copper Belt. Due to the significant extent of outcropping mineralisation already found and the lack of modern, regional exploration in this area focused on looking immediately below the surface, this project remains highly prospective.
The objective of this strategy is to	Increase the size and confidence of the current high-grade copper-gold resources, the identification of further high-grade copper-gold mineralisation and the commensurate development of the Hope Copper-Gold Project will potentially be a key driver of future shareholder value.

Conditions Precedent to Completion

As announced on 19 June 2020, the acquisition of 100% of Virgo Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia   is subject to the following conditions precedent:

i)  Bezant completing due diligence to its satisfaction during the Due Diligence Period;

ii)  Bezant obtaining all necessary regulatory approvals or waivers and shareholder approval pursuant to the AIM listing rules, or any other law or statute (including, but not limited to England and Wales) and all third-party approvals, consents and necessary documentation required to complete the Acquisition;

iii)  Virgo obtaining all necessary regulatory approvals or waivers and shareholders' approval is pursuant to any law or statute (in Australia) and all third-party approvals, consents and necessary documentation required to complete the Acquisition; and

iv)  Vendors signing the necessary documents to transfer their Virgo shares, Virgo unlisted options and Virgo deferred consideration performance shares to Bezant.

NOTES:

The information on the Hope Copper-Gold Project has been sourced from the geology and resource estimate competent persons report prepared by Measured Group Pty Ltd for Virgo Resources Limited on 18 October 2019, the ASX announcement issued by Takoradi Limited on 30 January 2009, " Gorob-Hope Prospect, Namib-Naukluft Park - Geological Reports 1973-1980, Volume 1A" Gorob Management and Mining Company, August 1984 and "The Matchless Belt and associated sulphide mineral deposits, Damara Orogen, Namibia" by A.M. Killick

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

  For further information, please contact:

Bezant Resources Plc Colin Bird Executive Chairman	[phone]
Beaumont Cornish (Nominated Adviser)  Roland Cornish	[phone]
Novum Securities Limited (Broker) Jon Belliss	[phone]

or visit  http://www.bezantresources.com  

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Qualified Person's Statements

In accordance with the AIM Note for Mining and Oil & Gas Companies, June 2009, Colin Bird, CEng, FIMMM, a South African and UK Certified Mine Manager and Executive Chairman of Bezant, with more than 40 years' relevant experience, is the qualified person who has reviewed and approved the technical information contained herein.

Geological information in this announcement relating to the licence area has been reviewed by Edward (Ed) Slowey, BSc, PGeo, a consultant to Bezant. Mr Slowey is a graduate geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and a qualified person under the AIM Rules. Mr Slowey has reviewed and approved the geological content of this announcement.

Glossary

A 'Mineral Resource' is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

"Au"  Gold

"Cu"  Copper

"Mt"  million tonnes

"kt"  thousand tonnes

"g/t"  grams a tonne

EEAA

 

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