18 February 2025

KEFI Gold and Copper plc

("KEFI" or the "Company")

Substantial Increases to Mineral Resource Estimates at Hawiah Project

Total Combined Hawiah Project Mineral Resources increased by 26% to 38.2Mt,

including 14.7Mt in Open-Pit Scenarios

Indicated Resources increased by 161%,

representing 85% of total Combined Hawiah Project Resources

KEFI (AIM: KEFI), the gold and copper exploration and development company focused on the Arabian-Nubian Shield, is pleased to announce an upgrade to the Mineral Resource Estimates ("MRE") at the Hawiah Copper-Gold Project ("Project"), part of the Saudi Arabian joint-venture Gold and Minerals Company Limited ("GMCO").

Highlights

The recently granted Umm Hijlan Exploration Licence ("EL"), adjoining the original Hawiah EL which hosts the MRE reported herein, has already been demonstrated to contain the southern strike continuation of the main Hawiah volcanic massive sulphide ("VMS") system.  The Umm Hijlan EL consolidates a 210km² strategic licence area for GMCO and offers the prospect of adding significant additional oxide and sulphide resources.

Overall, the results of the updated MRE , combined with the prospectivity of the expanded licence holdings, provide a solid foundation for long-term development planning for what was already the third largest base metals development project in Saudi Arabia.

KEFI Executive Chairman, Harry Anagnostaras-Adams, commented:

"The updated Mineral Resource Estimate for the Hawiah Copper-Gold Project has provided the firm basis for a long-life mine with potential for lower cost open-pit development during the early years of the Project.

"With 85% (32Mt) of the Project's Mineral Resources now in the Indicated Resource category,  further work is likely to define substantial Ore Reserves for a robust operation.

"Planned drilling of the recently granted Umm Hijlan EL is targeted to quickly define further nearby resources along strike of the Hawiah MRE. This is anticipated to commence in Q2 2025.

"KEFI is continuing to progress the strategic review of its GMCO holding, which we are targeting to be resolved in tandem with the launch of Tulu Kapi. KEFI has made it clear that the priority for its capital is to now optimise shareholder value via majority-owned projects."

Updated Hawiah MRE

GMCO appointed The MSA Group (Pty) Ltd ("MSA") as the Independent Consultants and Competent Person to prepare updated MREs for Hawiah and Al Godeyer in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code 2012").  The Hawiah and Al Godeyer MREs were recently signed off by MSA and then reviewed by GMCO and KEFI.

The updated MRE for the Hawiah deposit is detailed in Table 1 below and now totals:

-      36.2 Mt at 0.82% copper, 0.86% zinc, 0.64g/t gold and 10.0g/t silver.

Resources are classified as:

-      Indicated - Open Pit - 12.7Mt at 0.85% copper, 0.83% zinc, 0.81g/t gold and 10.8g/t silver

-      Indicated - Underground - 17.8Mt at 0.85% copper, 0.91% zinc, 0.56g/t gold and 9.9g/t silver

-      Inferred - Open Pit - 0.01Mt at 1.18% copper, 1.14% zinc, 0.65g/t gold and 9.6g/t silver

-      Inferred - Underground - 5.7 Mt at 0.69% copper, 0.74% zinc, 0.51g/t gold and 8.4g/t silver

Based on this MRE, the Hawiah deposit is estimated to contain a total of 297,000 tonnes of copper, 310,000 tonnes of zinc, 745,000 gold ounces and 11.6 million silver ounces.

Table 1 - Hawiah Mineral Resource as at 09 January 2025

Notes:

1.             koz = one thousand ounces, kt = one thousand metric tonnes, Mt = one million metric tonnes.

2.             All tabulated data have been rounded and as a result minor computational errors may occur.

3.             Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.

4.             The Gross Mineral Resource for the Project is reported.

5.             The Mineral Resource is reported in accordance with the guidelines of the 2012 Edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code').

6.             A Whittle optimised pit shell was used to report open-pit Mineral Resources and a mineable shape optimisation (MSO) was completed for underground Mineral Resources outside the open-pit shell. The Whittle, MSO and cut-off grades were derived using the following assumed technical parameters:

No Oxide and Transition mined underground.

Pit slope angle: Fresh 53°, Transition and Oxide: 42°.

Dilution included in regularised block model (5 mX by 5 mY by 2.5 mZ) for open pit.

A minimum stope width of 2 m, and 0.2m dilution applied for underground.

Concentrator Recovery: Cu & Zn 90% in transitional and fresh; Au 84% in oxide and 74% in fresh; Ag 15% in oxide and 83% in transitional and fresh. No recovery of zinc and copper in oxide. Metallurgical factors based on initial metallurgical test-work.

Cost and revenue assumptions:

Metal Price: Cu 9350 USD/t, Zn 3300 USD/t, Au 2300 USD/oz, Ag 30 USD/oz.

Smelter recovery/payability: Cu concentrate - Cu 96.5%, Au 90%, Ag 90%. Zn concentrate - Zn 83.5%. Au Dore - Au 99.5%, Ag 99.6%.

Total mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4 USD/t, underground 30.0 USD/t. Cost adjustment for open-pit depth USD 0.004/ vertical m.

Total Processing cost: oxide 13.86 USD/t, transition and fresh 21.4 USD/t.

Rehandling: 0.70 USD/t

G&A: 5.6 USD/t ore.

7.             The cut-off grade was applied on a NSR basis: underground fresh ore 57.7 USD/t, open-pit transitional and fresh ore 27.7 USD/t, open-pit oxide ore 20.16 USD/t. NSR was calculated for each block model cell using the following formulae:

Oxide = (Cu %*0)+(Zn%*0)+(Au g/t 61.7895 )+(Ag g/t*0.1409)

Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *54.4336)+(Ag g/t*0.7797).

Hawiah MRE Comparison

The previous (12 December 2022) Hawiah MRE totalled  29.0 Mt at 0.89% copper, 0.94% zinc, 0.67 g/t gold and 10.1 g/t silver.

The updated Hawiah MRE represents a significant increase in tonnage from 29.0Mt to 36.2Mt and small decreases in grades to 0.82% copper to 0.86% zinc, 0.64g/t gold and 10.0 g/t silver. The additional resource tonnage is largely driven by the expansion of Crossroads Extension Lode at depth.

Hawiah Open Pit Indicated Resources have increased  by 3.5Mt to 12.7Mt. This continues to demonstrate a robust case for a lower cost open-pit development during the early years of the Project, further strengthening the economic case.

Updated Al Godeyer MRE

The updated MRE for the Al Godeyer deposit is detailed in Table 2 below and now totals:

-      2.0 Mt at 0.93% copper, 0.53% zinc, 1.21g/t gold and 7.4g/t silver,

and 94% of the MRE is now in the Indicated Resource category (previously all in the Inferred Resource category).

Based on this MRE, the Al Godeyer deposit is estimated to contain a total of 18,500 tonnes of copper, 10,600 tonnes of zinc, 77,900 gold ounces and 0.5 million silver ounces.

Table 2 - Al Godeyer Mineral Resource as at 09 December 2024

Notes:

1.             koz = one thousand ounces, kt = one thousand metric tonnes, Mt = one million metric tonnes.

2.             All tabulated data have been rounded and as a result minor computational errors may occur.

3.             Mineral Resources, which are not Mineral Reserves, have no demonstrated economic viability.

4.             The Gross Mineral Resource for the Project is reported.

5.             The Mineral Resource is reported in accordance with the guidelines of the 2012 Edition of The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ('the JORC Code').

6.             A Whittle optimised pit shell was used to report open-pit Mineral Resources. The Whittle optimisation was based on the following assumed technical parameters:

Pit slope angle: Fresh 56°, Transition 51° and Oxide: 44°.

Dilution of 10% and mining recovery of 95%

Concentrator Recovery: Cu 90%, Zn 90%, Au 85%, Ag 60% No recovery of zinc and copper in oxide. Metallurgical factors based on initial metallurgical test-work.

Cost and revenue assumptions:

Metal Price: Cu 9,350 USD/t, Zn 3,300 USD/t, Au 2,300 USD/oz, Ag 30 USD/oz.

Smelter recovery/payability: Cu 96.5%, Zn 83.5%. Au Dore - Au 99.5%, Ag 99.6%.

Mining cost: open pit oxide 2.2 USD/t, open pit transition and fresh 2.4 USD/t. Transport to Hawiah plant 1.125 USD/t and rehandling cost of 0.7 USD/t. Cost adjustment for open-pit depth USD 0.004 / vertical m.

Total Processing cost: oxide 13.9 USD/t, transition and fresh 21.4 USD/t.

G&A: 5.6 USD/t ore.

7.             The cut-off grade was applied on a net smelter return (NSR) basis: open-pit transition and fresh ore 31.2 USD/t, open-pit oxide ore 23.5 USD/t. NSR was calculated for each block model cell using the following formulae:

Oxide = (Cu %*0)+(Zn%*0)+(Au g/t*62.5251 )+(Ag g/t*0.5637)

Transition and Fresh = (Cu %*76.5870)+(Zn%*20.1118)+(Au g/t *62.5251)+(Ag g/t*0.5637).

Al Godeyer MRE Comparison

The previous (27 March 2023) Al Godeyer MRE totalled  1.35Mt at 0.6% copper, 0.54% zinc, 1.4g/t gold and 6.6g/t silver (all in the Inferred category).

Infill drilling allowed better definition of the high-grade zone in the core of the deposit and high-grade copper intersections enhanced the fresh zone copper grade.

The updated Al Godeyer MRE represents a 0.65Mt increase in tonnage from 1.35Mt to 2.0Mt. The additional resource tonnage is largely driven by further drilling extending the resource. The average resource grades are similar except for the copper grade increasing 55% to 0.93% copper, due to the increased ratio of Fresh Mineral Resources to Oxide Mineral Resources (for which copper is not reported) and additional drillholes confirming the higher grade central area.

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Competent Person Statement

The Hawiah and Al Godeyer Mineral Resource estimates were completed by Mr. Jeremy Charles Witley (BSc Hons, MSc (Eng.)) who is a geologist with 36 years' experience in base and precious metals exploration and mining as well as Mineral Resource evaluation and reporting. He is a Principal Mineral Resource Consultant for The MSA Group (an independent consulting company). He is registered with the South African Council for Natural Scientific Professions ("SACNASP"), is a Fellow of the Geological Society of South Africa ("GSSA") and a Fellow of the Professional Society of Independent Experts of the Subsurface Resources ("PONEN"), Kazakhstan. Mr. Witley has the appropriate relevant qualifications and experience to be considered a "Competent Person" as defined by JORC (2012) for the style and type of mineralisation and activity being undertaken. Mr Witley consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

The information in this announcement that relates to exploration results and geological interpretaion is based on information compiled by Mr Tomos Bryan for GMCO. Mr Bryan is a member of the AusIMM. Mr Bryan is a geologist with sufficient relevant experience for Company reporting to qualify as a Competent Person as defined in the JORC Code 2012. Mr Bryan consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Notes to Editor

KEFI Gold and Copper plc

KEFI is focused primarily on the development of the Tulu Kapi Gold Project in Ethiopia and its pipeline of highly prospective  exploration projects  in the  Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi will generate cash flows for capital repayments, further exploration and dividends to shareholders.

Appendix A - Glossary of Technical Terms

APPENDIX B

Additional Background information on the Hawiah VMS deposit and MRE

The Hawiah deposit is located within the Wadi Bidah Mineral Belt ("WBMB") in the southwest of the Arabian Shield. The WBMD is a 120-kilometre-long belt which hosts over 20 Volcanic Massive Sulphide ("VMS") known occurrences and historic workings for copper and gold.

GMCO commenced drilling at Hawiah in September 2019 and quickly confirmed that large-scale VMS style of mineralisation underlies the gossanous ridgeline at surface.

A total of 375 diamond drillholes, 114 reverse circulation drillholes and 56 trenches have been used for this Mineral Resource Estimate.

Mineralisation modelled comprises a continuous subvertical tabular layer for approximately 4.5km along north to south strike at outcrop. Localised minor pinch outs occur, which are not significant. Two major zones (lodes) of down-dip extent have been defined (the Camp Lode in the south and the Crossroads Lode in the north) which plunge approximately 25° to the south for 1.7km (Camp) and 1.8km (Crossroads) to approximately 740m vertical depth below surface.

The mineralised layer normally has a thickness of between 1m and 15m and thins towards the edges of the lodes. The central portions of the deposit between the main lodes extends vertically to between 100m and 200m.

Summary of Resource Estimate Parameters and Reporting Criteria

In accordance with the JORC Code (2012 Edition), a summary of the material information used to estimate the Mineral Resource is detailed below (for further information please refer to Table 1 in Appendix D).

Geology and Geological Interpretation

The Hawiah VMS deposit is located on the eastern limb of a regional-scale antiform in within the locally know, 'Group 2' mafic volcanics of the Wadi Bidah Mineral Belt.

The Hawiah deposit forms a prominent north-south trending ridgeline, exposed over a total length of approximately 4,500m with a thickness that varies from 1-15m. The ridge has been interpreted by GMCO as the modern-day expression of the original VMS palaeohorizon. The rock package comprises a suite of gossanous ex-massive sulphides, chert breccias, banded ironstones and intermediate volcanic breccias. The deposit has been subject to varying degrees of supergene alteration as a result of groundwater interactions.

The deposit comprises of four weathering/alteration domains: oxide, oxide/transitional, transitional and fresh. The oxide domain typically shows supergene gold enrichment, while portions of the transitional domain shows copper enrichment. The fresh mineralised domain appears to be a dominantly pyritic stratiform massive sulphide body.

The oxide mineralisation transitions from an oxide zone to a tabular massive sulphide deposit at between 40 m and 80 m below surface with localised areas of deeper oxidation. The deposit strikes from north to south and generally dips from vertically to 80° towards the east with local areas that are steeply dipping towards the west. The massive sulphide dominantly comprises fine grained pyrite, which has sharp contacts with the greenschist which forms the hangingwall and footwall.

Sampling Techniques and Hole Spacing

A total of 375 diamond drillholes, 114 reverse circulation drillholes and 56 trenches have been used for the Hawiah Mineral Resource Estimate. Drilling spans over 5km of strike length.

Drillhole spacing in the Oxide and Transition is typically 50m. Spacing within the Fresh domain is typically 30-80m (Indicated classification) and approximately 120m (Inferred classification).

Drillholes were logged for a combination of geological and geotechnical attributes. The core has been photographed and measured for RQD and core recovery. 

Sampling and Sub-Sampling Techniques

Diamond drilling and surface trenching was used to obtain sample intervals that typically range from 0.3-3m for drilling, 1-3m for reverse circulation drilling and trenching.

Whole diamond core was split using a core saw by GMCO personnel and then submitted for preparation at ALS Arabia (Jeddah), during which material was crushed to 2mm, pulverised to ~75µm, with 250g split sent for analysis. The sample preparation procedures used for reverse circulation and trench samples is consistent with the drillcore samples.

The mineralised interval for all sample types was continuously sampled from hangingwall to footwall, which included samples a short distance into the hangingwall and footwall.

Sampling Analysis Method

Samples have undergone analysis at the ALS Laboratory, located in Jeddah., Saudi Arabia.

-      Gold - Fire assay digest with AAS instrumentation

-      Copper, Zinc, Silver: Four acid digest ICP-AES

QAQC

QAQC procedures include:

-      Insertion of CRM standards, certified blanks, and field duplicates at rate of 15%;

-      Monthly internal QAQC reporting; and

-      Regular communication with the laboratory, including periodical lab inspections. 

Estimation Methodology

In summary, for this MRE, the following approach has been utilised:

Classification Criteria

The Hawiah resource has been classified in the Inferred and Indicated Mineral Resource classification category, as defined by JORC 2012.

Mineral Resource Statement Parameters and Cut-off Grade

MSA has applied basic economic considerations based on initial metallurgical testwork results and assumptions provided by the Company, similar deposit types located within Saudi Arabia and MSA's experience to determine which portion of the block model has reasonable prospects for eventual economic extraction by underground and open-pit mining methods.

To achieve this, the Mineral Resource has been subject to an underground Mineable shape optimisation ("MSO") and open-pit optimisation studies, based on long-term metal price forecasts (with appropriate uplift to reflect potential for assessing Mineral Resources) for copper, zinc, gold and silver, to assist in determining the material with potential for underground and open pit mining and reporting above a suitable Resource Net Smelter Return ("NSR") USD/t cut-off value ("Resource NSR").

The Resource NSR cut-off calculation has been determined based on metal price forecasts, initial metallurgical recovery results and assumptions, mining costs, processing costs, general and administrative ("G&A") costs, and other NSR factors. The final Resource NSR value calculation is based on average assumptions for the deposit and applied to the block model using the following formulae:

·    Resource NSR (USD) value for oxide material = (Cu%*0) + (Zn%*0) + (Au g/t*61.7895) + (Ag g/t*0.1409) 

·    Resource NSR (USD) value for transition and fresh material = (Cu%*76.5870) + (Zn%*20.1118) + (Au g/t*54.4336) + (Ag g/t*0.7797)

The cut-off values determined for reporting the Mineral Resource on a Resource NSR USD/t basis, are given below and were based on the technical and economic inputs presented in the table below:

-      USD20.2/t for open pit material reported from within the oxide mineralisation domain;

-      USD27.7/t for open pit material reported from within the transition and fresh mineralisation domains; and

-      USD57.7/t for underground material reported from within the fresh mineralisation domains.

Summary of key assumptions for conceptual underground stope optimisation, open pit optimisation and cut-off grade calculation for Hawiah MRE.

Mining and Metallurgical Methods and Parameters

In determining Reasonable Prospects for Eventual Economic Extraction (RPEEE) the following assumptions were made:

Initial metallurgical test work has been completed for the transitional and fresh (sulphide) and oxide mineralisation at Hawiah. This test work comprised flotation and cyanide leach methods. Further test work is ongoing including Albion amenability and resin in leach testing. Once testwork is completed, if the metallurgical recovery results change significantly from the current approximated values, this would impact the parameters used to report the Mineral Resource, which, in turn, could also impact the tonnages and grades considered to have 'reasonable prospects for eventual economic extraction' for reporting in the Mineral Resource Statement.