17:00 Tue 23 Apr 2019
Bezant Resources PLC - Option Agreement for Buffalo Copper / Gold Project
("Bezant" or the "Company")
Option Agreement for Buffalo Copper /
Bezant (AIM: BZT), the copper-gold exploration and development company, is pleased to announce that it has entered into a binding memorandum of agreement with
Under the terms of the Agreement and as consideration for such 50 per cent. interest in the
Highlights
Low cost, 10 month project assessment |
All expenditure during the Initial Expenditure Phase to be invested directly in the
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Accessible underexplored iron oxide copper-gold ("IOCG") location |
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Historic work includes drilling and current small scale activity |
Historic records of exploration and mining at the
Limited small scale mining is taking place in the project area on obviously visible ore outcrops. After extraction, the ore is hand sorted to further upgrade the ore.
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Strong geological indicators |
Composite grab sample collected from the ore zone by Bezant assayed 3.17 per cent. Cu and 0.97g/t Au. Steeply dipping mineralised zone traced over 80m along strike and continuing into the hillside, 15-20m wide with central high grade gossan zone 3-5m across.
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Buffalo Project Summary
Historic third party reports note that the Buffalo copper prospect was first identified in 1899, through outcropping mineralisation on the side of a small hill. During the 1920s, pitting,
trenching, tunnelling and crosscutting were carried out into the hillside. This work reportedly discovered a high-grade (6 per cent.) copper zone at the base of the hill. Further trenching was undertaken in the 1960s followed by the drilling of four diamond drillholes. The best drill intersection obtained was 28m at 1.07 per cent. Cu, including 6m at 1.87 per cent. Cu. No gold assays were recorded.
Limited small scale mining is taking place in the project area on obviously visible ore outcrops. After extraction, the ore is hand sorted to further upgrade the ore.
The mineralised zone in the open pit trends northeast-southwest and is more or less vertical with mining advancing into the hillside towards the southwest where the zone can be seen to continue. This continuity was not recognised by previous explorers due to near-surface leaching of copper mineralisation. The mineralised zone is 15-20m wide, with a central high grade core about 3-5m across. A composite grab sample from blasted ore material was collected recently by Bezant and tested at the
The brecciated mineralised zone comprises soft, highly leached and weathered gossan, with much malachite, hematite and limonite throughout. The host rock is a siliceous, grey shale/
siltstone forming a well-marked hill. The mineralised zone has been exploited over a strike length of approximately 80m and remains open to the southwest into the hillside and possibly to depth.
No systematic drill testing has been carried out along strike or to depth, such that no resource estimate has yet been established.
"We have decided to pursue our copper mission in
"We will commence our initial assessment on clearly defined veins, with apparent significant strike and the potential future opportunity to commence small-scale mining supplying ore to third party processing plants. I am most pleased to have negotiated this Agreement and see the potential for achieving shareholder value enhancement in a stable jurisdiction with a long history of copper mining."
"This Agreement fits well with our global copper mission and we intend to swiftly assess and analyse all potential copper development opportunities for the Buffalo Project with a view to maximising value creation for all of our stakeholders."
Key Terms of the Agreement
Parties: The Agreement was entered into on 20th
The Option: The Company has agreed to spend up to
Right to withdraw: The Company may at any time during the Option period withdraw, should it deem the
Proposed Establishment of SPV: KPZ has agreed to incorporate a new local Zambian
special purpose vehicle to hold the Licence and all assets and liabilities associated with the
Potential scoping study: Assuming the Initial Assessment is successfully completed and the Option is exercised, the Agreement stipulates that Bezant will, by no later than
For further information, please contact:
Chief Executive Officer Executive Chairman |
Tel: +44 (0)20 3289 9923
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Strand |
Tel: +44 (0)20 7409 3494 |
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Tel: +44 (0)20 7399 9400 |
or visit http://www.bezantresources.com |
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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.
Qualified Person's Statements
Geological information in this announcement relating to the Licence has been reviewed by
In accordance with the AIM Note for Mining and Oil & Gas Companies,
"Guidance Note"),
Manager and Executive Chairman of Bezant, with more than 40 years relevant experience mainly in hard rock mining, is the qualified person who has reviewed and approved the technical information contained herein.
Notes to Editors:
Bezant's Copper-Gold Project Portfolio
The Guinaoang deposit is principally hosted by a 900m long by 400m wide north-south striking intrusive stock complex composed largely of quartz diorite porphyry. The igneous rocks have intruded a thick sequence of andesitic volcanics and a basement of biotite quartz schists and mafic flows. The size, grade and mineralogy of the deposit are typical of porphyry copper deposits.
From
The Eureka Project covers in excess of 10 thousand hectares and is located in the north-west corner of the Jujuy province in northern
The property hosts the historical "
Historic exploration resulted in non-compliant resource estimates from Minera Penoles in the order of 62 million tonnes grading at approximately 1% for copper (620,000 tonnes of copper) and from Mantos Blancos, of 600,000 tonnes grading at approximately 2.7 g/t of gold (52,000 ounces of gold).
The Company is currently developing and pursuing potential Joint Venture options for this project.
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