JEDDAH – KEFI Minerals Friday revealed high- grade exploration results from the Hikyrin South and Selib North gold projects in Saudi Arabia, UK-based Proactiveinvestors reported.
So far it has completed mapping, trenching and sampling operations on the projects. Later in the current quarter drill work will begin.
KEFI encountered grades of up to 16.3 grams per tonne at Hykirin South while at Selib North gold grades reached 27.7 grams per ton.
"We are very pleased with the progress of our exploration programs at Hikryn South and Selib North Projects, in Saudi Arabia," said managing director Jeffrey Rayner.
"Having already recognised new gold bearing shear zones and quartz veins at Selib North, we are delighted by the encouraging sample results at Hikyrin South.
"We look forward to commencing the drilling program this quarter which we hope will further highlight the huge prospectivity of the region and the potential to add value for the long term benefit of all stakeholders."
KEFI said that its program at Hykirin South comprised twenty four samples spread across a 700 meter strike length. The results had an average grade of 5.9 grams per ton. This follows an oversubscribed £1.85 million funding at the tail end of February.
Fox-Davies analyst Juan Alvarez told clients that it is "good to see" that KEFI is making such rapid progress since the placing.
Alvarez repeated a "Speculative Buy" recommendation for the shares in a note to clients.
"These high grade results are very interesting and deserve further investigation," he said. "The first phase of RC and diamond drilling is planned to commence in mid-late May and we are waiting the first results with anticipation."
KEFI’s exploration venture, carried out through the Gold & Minerals (G&M) vehicle, is a partnership with Saudi investment group ARTAR.
The AIM-quoted firm has a 40 per cent stake in G&M. The venture is targeting gold and copper equivalent discoveries in excess of one million ounces.
During the 1970s and 1980s, the Geological Surveys departments of the US and of France documented 5,000 mineral occurrences, including over 1,000 for gold. Only 51 of these mineral occurrences were drilled. At present, the Saudi portfolio comprises three five-year exploration licenses. G&M also has 15 further applications for exploration licenses that are pending.
It is expected that a number of these licenses will be granted this year. – SG