Bezant Resources PLC Update re Plant Commissioning, Choco Project (0825J)

TIDMBZT

RNS Number : 0825J

Bezant Resources PLC

26 June 2017

26 June 2017

Bezant Resources Plc

("Bezant" or the "Company")

Update re Commissioning of Initial Platinum & Gold Recovery Plant, Choco Project, Colombia

Bezant (AIM: BZT), the AIM quoted mineral exploration and development company, is pleased to announce that its first gold platinum recovery plant (the "Plant") acquired on 31 May 2017 has arrived on site at the FKJ-083 licence area in Colombia and is currently in the final stages of commissioning with initial test production scheduled to occur by 30 June 2017.

Figures One is a recent photograph of the Plant assembly in situ in Colombia.

http://www.rns-pdf.londonstockexchange.com/rns/0825J_-2017-6-25.pdf

In preparation for regular production commencing in July 2017, extensive earthworks and civil engineering works have already been completed at the FKJ-083 site in order to prepare for plant assembly and operational commissioning. Three tailings ponds have been constructed, which will enable the plant to operate using a closed water circuit which seeks to maximise the recycling and reuse of water. The three tailings ponds have a combined capacity of over 1million cubic metres. . The initial operational mining pit has also been developed in preparation for test production.

Figure 2 shows and overhead photo of the mining area and tailings ponds

http://www.rns-pdf.londonstockexchange.com/rns/0825J_1-2017-6-25.pdf

The Plant will process near-surface gravels from the regional alluvial deposit, using a proven mercury-free gravity fed system, to recover free gold and platinum which requires no further treatment or processing prior to sale.

Earlier this year, the Company commissioned an independent scoping study from INGEX Grupo Minero SAS to assess economic sensitivities. The results of this study were announced in March 2017 with the following production estimates:

-- Financial modelling based on stage 1 production using a single plant operation with a plant processing rate of 1,800m(3) /day ("Stage 1 Production")

-- Comprehensive cost analysis and financial model derived the following key estimated parameters for Stage 1 Production over a 12-month operational period:

- US$768 per ounce total cost of production for platinum and gold recoveries;

- US$6.01/m(3) (US$4.29/tonne) total average mining and processing cost; and

- 0.17 grams per tonne (238mg/m(3) ) break-even grade for combined Pt and Au.

   --      Principal underlying assumptions applied in the financial model included: 

- combined Pt and Au grade of 300mg/m(3) for processed material based on an assessment of historic third-party mining operations and drilling data;

- metals prices of US$965 per ounce of platinum and US$1,176 per ounce of gold; and

- a discount rate of 10 per cent.

Bezant's strategy remains to develop a low-cost platinum-gold production portfolio in the Choco region of Colombia and to this end, it has, via Ulloa Recursos Naturales SAS, its wholly owned Colombian subsidiary, achieved the following key milestone to date:

-- Exercised certain options to acquire mining licences covering a total area of approximately 2,659 ha (with a further unexercised option held and under evaluation in respect of licence HGE-082 covering approximately an additional 91 ha)

-- Entered into a mining services agreement with Exumax S.A.S. a highly experienced Colombian based company with:

- over six years' experience of operating alluvial mining projects in Colombia;

- a senior management team comprising both Australian and Colombian mining professionals; and

- an emphasis on community relations and best practice environmental management.

-- Acquired its first processing plant together will all the engineering, technical drawings and data that will allow subsequent additional plants for the project to be manufactured locally in Colombia.

Once the Plant is in full operation, Bezant will seek to construct further recovery plants in-country in order to expand its operations in the Choco Region.

Bernard Olivier, CEO of Bezant, commented:

"This is the final stage in our production development strategy in Colombia and we look forward to establishing regular platinum and gold production during Q3 2017. Our objective is to rapidly build high-margin cashflow from near-surface recovery operations in Colombia. With the independent scoping study estimating all in OPEX costs of under US$800/oz for a 12 month pilot operation, we believe that Bezant can create a robust production portfolio to take advantage of potential global supply fluctuations in platinum and gold."

For further information, please contact:

 
Bezant Resources Plc 
 Bernard Olivier                            Tel: +61 40 
 Chief Executive Officer                    894 8182 
 
 Laurence Read 
 Executive Director / Communications        Tel: +44 (0)20 
 Officer                                    3289 9923 
 
 Strand Hanson Limited (Nomad) 
 James Harris / Matthew Chandler /          Tel: +44 (0)20 
 James Dance                                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 Regulations (EU) No. 596/2014.

- ENDS -

This information is provided by RNS

The company news service from the London Stock Exchange

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June 26, 2017 02:00 ET (06:00 GMT)