Bezant Resources PLC Phase 2 Gold & Platinum Recovery Results (2783B)

TIDMBZT

RNS Number : 2783B

Bezant Resources PLC

03 April 2017

3 April 2017

Bezant Resources Plc

("Bezant" or the "Company")

Choco Alluvial Gold-Platinum Project: Phase 2 Gold & Platinum Recovery Results

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, is pleased to announce the Phase 2 gold and platinum recovery results from its Choco alluvial Gold-Platinum exploration and development project located in Western Colombia (the "Choco Project"). The results are for material from within the proposed mining area of the FKJ-083 licence and the samples were taken below pit floor level from the Phase 1 exploration pit and include virgin ground. These latest results demonstrate gold ("Au") and alluvial platinum ("Pt") recoveries at grades well above the 0.17 grammes per tonne ("g/t") (238 miligrams per cubic metre ("mg/m(3) ")) break-even point, determined by an independent scoping study, announced earlier in the year. The Company has now initiated the development of a dry mining operation and scheduled to begin mine development and production in Q2 2017.

Highlights:

-- Independent scoping study announced on 8 March 2017 for dry mining on the Choco Project calculated a:

   o   0.17 grammes per tonne (238 mg/m(3) ) break-even grade for combined Pt and Au 
   --      Initial Phase 2 recovery analysis for gold-platinum from the FKJ-083 licence area: 

o 37 individual samples in aggregate from 14 pits with a total of 23.5 m(3) (32.9 tonnes) extracted and processed

o Average combined volume weighted Pt and Au grade of 0.235 g/t (329 mg/m(3) )

o Samples taken from the Phase 1 pit floor at depths between 9.5 and 17.5 metres below the surface

o Highest combined grade from virgin platinum and gold bearing gravels was 1.23 g/t (1724 mg/m(3) )

   --      Phase 2 work-plan summary: 

o Focussed on pitting, sampling and testing located, on the bottom of the Phase 1 open pit

o Concentrates treated and grades established through the onsite platinum and gold recovery laboratory and offsite refining of particles below 250 microns

The two principal recovery metrics used by Bezant during the assessment period were: grammes of precious metal recovered per tonne and milligrammes of precious metals per cubic metre of material. The [metric cube/cubic metre] measure has been used to assess the throughput rate of ore that can be processed by the initial dry mining plant to be developed at the Choco Project.. The Choco Project's model for platinum and gold recovery operations is based on the deployment, over time, of multiple sub-US$1 million dry mining plants each designed to process up to 1,800 mg/m(3) per day with a break-even opex cost below US$800/oz of gold and platinum based upon the recent 2017 scoping study results. The Company is targeting mine development, plant acquisition and commissioning as well as first production during Q2 2017.

Ed Nealon, Chairman of Bezant, today commented:

"These Phase 2 recovery results demonstrate the consistent levels of gold and platinum occurring in areas previously untested for precious metals and compare favourably with our Phase 1 results that were used to verify mining data from historic operations. Grades of both platinum and gold occur at levels well above the break-even point determined by the recent INGEX scoping study commissioned by Bezant and released to the market during the first quarter of 2017. We are now in the process of foccussing on the development of our first full-scale platinum and gold production operation that we have targeted for commissioning during Q2 2017. I look forward to updating shareholders as we meet these objectives in due course. The Choco province is an extremely exciting and long established platinum and gold field and Bezant has a clear first mover advantage in applying a coordinated, cost effective recovery operation in the area which focuses on low capital expenditure and achieving attractive margins with near-term cash flow."

Phase 2 Operational Update

Working with its mining contracting partner, Exumax SAS ("Exumax"), Bezant has now completed surface and near-surface exploration on the FJK-083 licence area. The FKJ-083 licence area was mined by the current owner/operator between 2007 and 2012 and the Bezant-Exumax programme is focusing on correlating open pit test results with historic mining, geological reports and platinum and gold recoveries.

On 8 March 2017, Bezant announced the findings of an independent scoping study prepared by INGEX Grupo Minero SAS for the FKJ-083 and surrounding licence areas. The scoping study calculated a combined Pt and Au break-even grade for the project of 0.17 g/t (238mg/m(3) ).

The exploration and verification work on the FJK-083 licence area focused on the development of a large trial pit and sampling over two phases. In Phase 1, a total of 25,000m(3) of material was excavated to form the first stage of the pit's development. This initial stage provided for the establishment of the trial pit with approximate dimensions of 80m length by 40m width at surface and a main pit floor at 9.5 m depth.

The now completed Phase 2 work involved the development of 14 smaller secondary pits in the main pit floor, which allowed deeper level sampling for a total of 34 samples of alluvial material. The samples have now been processed through the pilot sampling plant and the concentrate from the operation was subsequently treated and analysed through the Company's onsite mercury free, platinum and gold recovery laboratory. The samples returned an average combined volume weighted platinum and gold grade of 329 mg/m(3) (ca. 0.235 g/t) for the 14 test pits at depths in the range of 9.5 to 17.5 metres below surface. The highest combined Pt and Au pit grade was 1,724 mg/m(3) (1.23 g/t) recovered from a 0.5 tonne sample.

 
 Photo One: Example of                  Photo Two: on site sample 
 Platinum and Gold recovered             assessment and measurement 
 from sampling operations 
 

http://www.rns-pdf.londonstockexchange.com/rns/2783B_-2017-4-2.pdf

Confirmation of gold-platinum located within heavy particles

Test pitting has confirmed that the Choco Project has an alluvial deposit where the gold and platinum occur in free form within the gravels. The metals have typically settled above the bedrock layer in the region, within other heavy, larger particle constituents. The bedrock depth varies within an estimated range of between 18 and 30 metres from surface. Given the free platinum and gold nature of the deposit, the precious metals can be recoved through basic minerals processing methods and equipment. Furthermore, a generic model for alluvial mining and processing operations for multiple sites can also be model base on the FKJ-083 operation.

Further commenting on the recent operations, Judd van den Brenk of Exumax, said:

"The open pit has allowed us to confirm the presence at depth of very significant concentrations of both platinum and gold. We now enter a mobilisation phase for our main processing plant, and I look forward to repeating the success we have demonstrated in other parts of Colombia with our world class mining, environmental and social practices."

Dr Bernard Olivier has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Olivier is Chief Executive Officer of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact:

 
Bezant Resources plc 
 Bernard Olivier                            Tel: [phone] 
 Chief Executive Officer                    8182 
 
 Laurence Read 
 Executive Director / Communications        Tel: +44 (0)20 
 Officer                                    3289 9923 
 
 Strand Hanson Limited (Nomad) 
 James Harris / Matthew Chandler 
 / James Dance                              Tel: +44 (0)20 
                                            7409 3494 
 Beaufort Securities Limited (Broker) 
 Elliot Hance                               Tel: +44 (0)20 
                                            7382 8300 
 or visit http://www.bezantresources.com 
 

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.

Note to Editors:

Exumax (www.exumax.co) is a Colombian based mine operating Company with over 6 years mine operating experience in Colombia and has a well-established Colombian based team that can provide turnkey exploration solutions to Bezant's wholly owned Colombian subsidiary, Ulloa Recursos Naturales SAS. The principals of Exumax have over 50 years' of combined operating experience in the mining and construction industry in South America and in this period have developed extensive proprietary mining expertise. Exumax own and have imported special purpose alluvial mining equipment from New Zealand, where such operations are common, for use in low-cost alluvial extraction projects focused on precious metals. Exumax's activities are led by Judd van den Brenk a fluent Spanish speaker with 6 years alluvial mining experience in Colombia. Exumax have operated a series of alluvial projects in Colombia and prioritise community relations and environmental management work as key components to building successful mining operations in-country.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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April 03, 2017 02:01 ET (06:01 GMT)