Mankayan Project MPSA renewal
18 March 2022
Bezant Resources Plc
("Bezant" or the "Company")
Mankayan Project MPSA renewal
Bezant (AIM: BZT), the copper-gold exploration and development company, further to its announcements dated 13 September 2021 and 21 October 2021 and 22 November 2021, confirms that the Mines and Geosciences Bureau of the Department of Environment and Natural Resources of the Philippines government ("MGB") has renewed Crescent Mining Development Corporation's ("Crescent") Mineral Production Sharing Agreement No. 057-96-CAR (the " MPSA ") for a second 25 year term with effect from 12 November 2021 (the " MPSA Renewal ").
Highlights
Mankayan project
· The MPSA Renewal for 25 years is seen by the Company as a catalyst for the development of the Mankayan Project which is a potentially world class copper-gold porphyry project at a time when the Philippines is looking to further develop its mining industry.
· Since the acquisition by IDM Mankayan Pty Ltd ("IDM") from Mining and Minerals Industries Holding Pte Ltd. (MMIH) of MMIH's interest in the project including project reports commissioned by MMIH there has been an extensive review of the work undertaken in relation to the project during 2019 to 2021 which is referred to under the project's background information summary below.
Bezant's Interest in the Mankayan project
· Bezant's interest in the Mankayan Project is via its 27.5% shareholding in IDM, a company incorporated in Australia, established to support Crescent in developing the Mankayan Project in the Philippines, with the remaining 72.5% owned by established investors in the mining sector. IDM owns 100% of Asean Copper Investments Limited, further details of IDM and its interest in the Mankayan Project were announced on 13 September 2021.
Project work underway and planned
· Crescent has commenced the feasibility study process and has engaged internationally recognised firms with in-country presence and Philippine firms to complete the scoping phase of the project and to plan a drill campaign to assist with geotechnical studies.
ASX Listing
· As previously announced on 13 September 2021 it is proposed that IDM will be acquired by IDM International Limited (ACN 108029198) with the view that IDM International Limited in the future may apply for a listing on the Australian Stock Exchange ("ASX").
Colin Bird, Executive Chairman of Bezant, commented: We are very pleased with the renewal of the MPSA for 25 years which will be a catalyst for the development of this world class copper gold porphyry project. We are very confident that management in the Philippines supported by IDM have the experience and expertise to take the project forward through the next stages of evaluation and development which will significantly enhance the value of the project. We are also aware of the renewed focus of the Philippines since the lifting in August 2021 of the moratorium on new mining projects and the nationwide ban on open-pit mining method, in ensuring that the Philippines considerable mining resources are developed and play a significant role in the development of the Philippine economy in the post COVID era."
Mankayan Copper-Gold Porphyry Deposit Background information
The Guinaoang (Mankayan) copper-gold deposit forms part of the major Lepanto mineralisation system located approximately 240km north of Manila on Luzon Island, Philippines. The district hosts a number of large copper and gold deposits, including the Far Southeast porphyry deposit, the Lepanto lodes, and the Suyoc epithermal gold-silver veins.
The copper mineralisation encountered in the Guinaoang deposit is typical of porphyry copper-gold style deposits. The Pliocene intrusive stock complex is composed largely of quartz diorite porphyry rocks, with two distinct phases of igneous intrusion, both of which are host to copper and gold mineralisation. In plan view the intrusives occupy an area which is approximately 400m wide and 900m long and it has been drilled to more than 900m depth.
By way of background information the following information is provided as it is in the public domain:
· Several phases of drilling defined a copper-gold resource estimate by Snowden Mining Industry Pty Limited ("Snowden") in 2009 under JORC (2004) which defined an initial mineral resource as per the table below. The Snowden report was prepared for the Company and was JORC compliant when issued in 2009 but is not compliant with JORC (2012).
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Mankayan Resource Summary, JORC (2004) to a 0.4% Cu cut-off prepared by Snowden in 2009 |
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Resource Category |
Tonnes (Mt) |
Cu % |
Au g/t |
Cu metal (Mt) |
Au metal (Moz) |
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Indicated |
221.6 |
0.49 |
0.52 |
1.1 |
3.7 |
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Inferred |
36.2 |
0.44 |
0.48 |
0.2 |
0.6 |
· In November 2020 MMIH announced an updated Mineral Resource was prepared by Derisk Geomining Consultants Pty Ltd ("Derisk") for MMIH under JORC (2012) and stated that "Mankayan is now estimated to have combined Mineral Resources of 793 million tonnes containing 2.8 million tonnes of copper, 9.6million ounces of gold and 20 million ounces of silver. It has indicated Mineral Resource of 638 million tonnes @ 0.37% Cu, 0.40 g/t Au and 0.90 g/t Ag, and inferred Mineral Resource of 155 million tonnes @ 0.29% Cu, 0. 30g/t Au and 0.5 g/t Ag." This information is provided as MMIH have made it publicly available but it is not an updated JORC resource statement in accordance with AIM Rules and should therefore not be relied upon until it has been independently verified or updated by the Company. As referred to above Crescent are undertaking further technical studies and the Company will make further announcements as soon as practical once these studies are completed.
A 2019 study by Mining Plus Pty Limited announced by Bezant on 12 February 2019 and based on the 2009 resource identified and assessed a number of high-level alternative mining options for the Mankayan project as well as substantially improving the underlying economics of the proposed operations. In total, eleven options were investigated, with the two main options being block cave development routes at different scales. The highest mining rate examined was 24Mtpa.
Further potential remains to extend the resource through additional drilling, as well as delineating higher grade copper-gold zones within the deposit as a potential focus for mining start-up.
Bezant interest in the Mankayan project: The Company announced on 13 September 2021 i) the Company's agreement with IDM under which it was agreed that IDM would take the Mankayan Project forward and the Company would own 27.5% of IDM with anti-dilution rights to enable the Company to maintain its shareholding; and ii) IDM's agreement with Mining and Minerals Industries Holding Pte Ltd. ("MMIH") under which it acquired MMIH's interest in Asean Copper Investments Ltd and MMIH's Project information ( the "IDM Agreements").
Proposed ASX listing: As previously announced It is proposed that IDM will be acquired by IDM International Limited (ACN 108029198) with the view that IDM International in the future may apply for a listing on the Australian Stock Exchange ("ASX").
For further information, please contact:
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Bezant Resources Plc Colin Bird, Executive Chairman |
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Beaumont Cornish (Nominated Adviser)
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+44 (0) 20 7628 3396 |
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Novum Securities Limited (Broker) Jon Belliss
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+44 (0) 20 7399 9400
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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 Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).
Technical Sign-Off: Technical information in this announcement has been reviewed by Edward (Ed) Slowey, BSc, PGeo, Technical Director of Bezant. Mr Slowey is a geologist with more than 40 years' relevant experience in mineral exploration and mining, a founder member of the Institute of Geologists of Ireland and is a Qualified Person under the AIM rules. Mr Slowey has reviewed and approved this announcement.
Technical Glossary
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"Au" |
Gold
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"Cu" |
Copper
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"Cu eq" |
Copper equivalent: Copper equivalent grades are based on a copper price of US$2.80/lb and a gold price of US$1,800/oz Au.
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"g/t" |
grammes per tonne
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"Indicated Mineral Resource" |
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. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes, and is sufficient to assume geological and grade (or quality) continuity between points of observation where data and samples are gathered (JORC 2012)
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"Inferred Mineral Resource" |
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.
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"kt" |
thousand tonnes
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"Mineral Resource" |
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.
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"Moz" |
million ounces
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"Mt" |
million tonnes
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"Mtpa" |
million tonnes per annum
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