10 May 2018
Bezant Resources Plc
("Bezant" or the "Company")
Copper-Gold Strategic Review Results
Bezant (AIM: BZT), the copper-gold exploration and development company, is pleased to announce the findings from its in-depth internal review process across all aspects of its operations and portfolio assets and to outline the potential prospects for shareholder value.
Highlights:
· Strategic review completed on all of the Company's existing assets and operations
· Findings:
o The Company's Mankayan copper-gold project in the Philippines believed to be a world class asset and relatively unknown to the trade and wider market in terms of its scale and potential
o Major potential to generate further value from the existing data set held on Mankayan
o Eureka project in Argentina has little existing 3D definition and represents a significant copper-gold target - sizeable potential and hosted gold content not yet fully understood
o Recent disposal of Choco alluvial gold-platinum project in Colombia, as by comparison deemed to have less potential to contribute positively to the group's performance. Disposal has removed exposure to all costs and liabilities associated with the project
o Group overheads minimised during review process and additional cost cutting initiatives being identified and implemented
Mankayan, Copper-Gold Project - Philippines
· Independent JORC Ore Reserve and Mineable Inventory Statement and conceptual study for the Mankayan Project released in January 2011. Probable Ore Reserves of 189 million tonnes at 0.46 per cent. copper and 0.49g/t gold resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2,210,000 ounces of gold
· Total Mining Inventory of approximately 390 million tonnes of ore at an average grade of 0.38 per cent. copper and 0.42g/t gold, equating to approximately 1.4 million tonnes of copper and 3.9 million ounces of gold
· Project's location has good infrastructure close to Baguio City in the Philippines
· Philippines welcomes foreign investment
· Last hole, BC-60, drilled by Gold Fields Netherlands Services BV (details of which were announced on 12 February 2014) returned 342m of core at an average grade of 0.6% cu and 1.01 g/t au
· Eastern side of the ore body has the propensity for an increase in the resource tonnage and grade to add further value to the overall economics of the project
· Independent conceptual study and reports in 2014 suggested a potential post-tax IRR of 21% and post-tax NPV of approximately US$793m at a 8% discount rate
· Total post-tax net cash flows of approximately US$3.7 billion
· Conclusion:
o Substantial copper-gold project in a country whose infrastructure and people are familiar with and experienced in large-scale mining
o Project's economics are good with significant scope to increase with further work
o Represents one of the most advanced copper-gold projects not currently being developed
Eureka Project - Argentina
· This project has been subjected to a full desk top review and site visit
· Postulated 600,000 tonnes of contained copper and 52,000 oz of gold. Geological review of likely peers including "Red Bed" types of layered conglomerate
· Positive geophysics suggest the potential for underlying "Feeder" beds
· Desktop review and site visit has identified that the potential gold contribution could be significantly greater than historically indicated
· Conclusion:
o As a brown field site this project is reasonably well understood
o Further exploration work required to determine the potential for a significant copper-gold ore resource
Laurence Read, CEO of Bezant, today commented:
"Our review process has identified a number of fundamental aspects within our copper-gold portfolio where value can be extracted by adopting an innovative technical approach. I am particularly excited at the potential to revisit the historic Mankayan engineering study and apply new technical approaches in order to further enhance the potential financial returns. This engineering review work coupled with the opportunity to focus on a distinct high grade zone affords us multiple options to progress the project. Mankayan not only has the capability to be a major future mine, but I believe it can also be developed in a staged approach to minimise the front end capital required. The injection of new ideas and expertise in to Bezant has been enormously important over the last three months and I look forward to announcing further updates on our projects in due course."
Colin Bird, Executive Chairman of Bezant, today commented:
"I am pleased to have been part of this review process and I am delighted to be part of the team taking Bezant forward. The Mankayan property is a world class asset and highly advanced and has substantial potential in the current marketplace where there is demand for large, new copper projects. The Eureka Project has underlying fundamentals, which make it drill ready and amenable to further work as we continue to assess its potential and position in the portfolio. I look forward to working with the rest of the team to identify, evaluate and potentially acquire other projects of similar quality, whilst enjoying the opportunity to progress the enhancement and refinement of the economics of the Mankayan project, which I firmly believe is achievable."
For further information, please contact:
Bezant Resources Plc Laurence Read Chief Executive Officer Colin Bird Executive Chairman Strand Hanson Limited (Nomad) James Harris / Matthew Chandler / James Dance Novum Securities Limited (Broker) Jon Belliss or visit http://www.bezantresources.com |
Tel: +44 (0)20 3289 9923 Tel: +44 (0)20 7409 3494 Tel: +44 (0)20 7399 9400 |
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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.
