Bezant Resources PLC Initial Gold-Platinum Production at Choco Project (0769O)

TIDMBZT

RNS Number : 0769O

Bezant Resources PLC

16 August 2017

16 August 2017

Bezant Resources Plc

("Bezant" or the "Company")

Initial Commercial Gold-Platinum Production, Choco Project, Colombia

Bezant (AIM: BZT), the AIM quoted gold and platinum development company, is pleased to announce the commencement of commercial gold-platinum production at the Company's FKJ-083 licence area located in the Choco region of Western Colombia (the "Choco Project").

Through its wholly owned Colombian subsidiary, Ulloa Recursos Naturales S.A.S., and its operating partner, Exumax S.A.S, the Company has achieved initial commercial production of gold and platinum within just two months of plant commissioning at this first mining area. The FKJ-083 licence area forms part of a far larger alluvial system and deposit within the Choco province. Bezant will now seek to reach operational profitability at the FKJ-083 licence area within the next three months, targeting the operational and economic parameters outlined in the independent scoping study commissioned earlier this year, further details of which were announced on 8 March 2017, with equivalent estimated total production costs of less than US$800/oz.

The first production plant is being fed from the open pit currently under development, starting with material from the lower-grade upper layers of platinum and gold bearing gravels typical of the region. Whilst this upper layer material is processed, the pit will continue to be developed to deeper levels in order to intersect the higher grade gravels. Recovered gold and platinum is deemed as 'free' due to the alluvial nature of the project and should not be subject to any smelting penalties or further recovery costs typically associated with the liberation of ores. The Choco Project now has a fully established mining camp, including processing laboratories, and first sales from production are currently expected to occur during Q3 2017.

Outlook

Bezant anticipates a grade upscale commencing as production progresses down to the higher grade platinum and gold bearing gravels nearer to the bedrock. The intersection of the large material areas is planned to coincide with full production ramp-up at the first processing plant.

The Choco province is an area where significant historic gold and platinum mining activity has been recorded near surface. Prior to the discovery of the Bushveld complex in South Africa, Choco was the world's largest platinum mining region. The Company will closely monitor the success of its first production ramp-up and then seek to expand operations across the region. Utilising additional domestically constructed processing plants fed from open pit operations, Bezant aims to rapidly build production and cash flow supported by its established mining camp.

Bernard Olivier, CEO of Bezant, commented:

"First commercial production of gold and platinum has been achieved on schedule and we are now reviewing the run-of-mine production data to achieve full operational ramp-up during the next few months. I look forward to announcing further progress and the sale of our initial gold and platinum in due course. I am delighted with the speed with which we have delivered production and the Company is now excellently positioned to drive shareholder value from its implementation of a cash-generative mining model in gold and platinum with low upfront capital requirements and good margins."

For further information, please contact:

 
 
  Bezant Resources Plc 
  Bernard Olivier                            Tel: [phone] 
  Chief Executive Officer 
 
  Laurence Read                              Tel: [phone] 
  Executive Director / Communications        9923 
  Officer 
 
  Strand Hanson Limited (Nomad)              Tel: [phone] 
  James Harris / Matthew Chandler            3494 
  / James Dance 
 
  Peterhouse Corporate Finance               Tel: [phone] 
  Limited (Broker)                           0930 
  Lucy Williams / Duncan Vasey 
  / Heena Karani 
                                             Tel: [phone] 
  Beaufort Securities Limited (Broker)       8300 
  Elliot Hance 
 
  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.

- ENDS -

This information is provided by RNS

The company news service from the London Stock Exchange

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August 16, 2017 02:00 ET (06:00 GMT)