EFI said that the deal presents it with an “excellent” opportunity to quickly become a gold producer
KEFI Minerals (LON:KEFI) has been granted an exclusivity period over the Tiouit gold-copper mine and a tailings project in Morocco to decide if it wants to enter a joint venture agreement.
KEFI paid Moroccan company Roche Invest SARL US$250,000 for five months of exclusivity over Tiouit and an associated tailings retreatment project. During this period, KEFI will conduct a definitive feasibility study to evaluate the retreatment of gold and silver and initiate a pre-feasibility study on restarting underground mining operations.
Depending on the outcome of the studies, KEFI will decide whether to enter a joint venture agreement with Roche over either or both projects.
KEFI said that the deal presents it with an “excellent” opportunity to quickly become a gold producer.
Around one million tonnes have been mined historically at Tiout with an average recovered grade of 7.9 grammes per tonne (g/t) gold, 67g/t silver and 0.45 percent copper. Previous drilling at the Tiouit mine intersected numerous high grade gold veins, which have not been followed up or fully evaluated.
Some 720,000 tonnes of tailings were generated by previous mining operations and stored in a number of tailings dams at surface.
A technical report completed earlier this year estimated three of the tailings dams to contain 460,000 tonnes of ore grading 3 to 4 g/t gold and 20 to 30 g/t silver. The estimate was not compliant with the globally recognized JORC standard.
KEFI may also access the remainder of the tailings, which are buried underneath shallow waste cover and dilapidated infrastructure, for retreatment.
“Operations may be targeted to commence with the reprocessing of “low risk” gold tailings at a relatively low capital cost, with the net proceeds of that project being utilised for the development of the high-grade gold, silver and copper ore from the underground mine,” said managing director of KEFI Minerals Jeff Rayner.
The agreement has also set a framework for KEFI and Roche Invest to evaluate additional mining opportunities in Morocco and elsewhere in Africa.
Investors welcomed the agreement, sending shares in KEFI up 4 percent to 4.58 pence in early deals in London.
