Aim-listed Kefi Gold and Copper has confirmed a new discovery, as well as provided an operational update for the Jibal Qutman gold project in Saudi Arabia in the company's minority-owned Gold and Minerals (GMCO) joint venture (JV).

A satellite deposit, Asfingia, was discovered with “excellent” grades of up to 66.6 g/t gold.

Drilling is ongoing on an identified 35 km mineralised strike across three contiguous licences.

The selection of a preferred production startup plan is expected in the middle of the year.

Having completed the 13 000 m in-fill drilling programme in the third quarter of 2023, GMCO switched to resource expansion drilling which quickly led to the discovery of the Asfingia satellite deposit, Kefi avers.

Systematic exploration is ongoing across the 270 km² of the three contiguous Jibal Qutman gold exploration licences (ELs) to confirm structural controls on higher-grade gold mineralisation and identify further resource potential.

Previous exploration primarily focused on an 8 km section of the original Jibal Qutman EL and the full 35 km mineralised strike length will now be tested.

Sampling and scout drilling programmes are currently under way across multiple targets, including recent shallow alluvial mining areas, and are expected to identify further drill targets.

In addition to scout and infill drilling, drone surveying, geological mapping, trenching and geophysical surveying programmes are all underway to help further define the structural framework of the area and assist in target delineation.

Two diamond drill rigs and ten experienced Saudi-based exploration geologists are focused on Jibal Qutman gold.

Reverse circulation (RC) drill rigs will also shortly join the project to further accelerate exploration.

Kefi’s GMCO JV partner, ARTAR, has agreed to fund the ongoing programme at present (without dilution) to ensure swift progress continues while Kefi triggers project launch in Ethiopia at the high-grade Tulu Kapi gold project.

Kefi highlights that the definitive feasibility study on Jibal Qutman gold is making “excellent” progress and release of its conclusions is expected in the middle of the year.

“Jibal Qutman gold is starting to shape up its plans for production. During the remainder of the first half of 2024, we expect to report a series of steps as we simultaneously select our preferred production startup plan and aggressively test our recent breakthroughs in the geological understanding of the mineralised system. We have two diamond rigs running 24/7 and RC rigs will shortly join the project.

“At the same time, the foot remains on the accelerator at our much larger discovery, the Hawiah copper-gold project in the Wadi Bidah Minerals Belt, where we have recently been joined as explorers by Saudi Arabia’s largest mining company, Ma’aden, which has been granted licences adjacent to us and quickly launched a large exploration programme in joint venture with Ivanhoe Electric. A separate update on Hawiah will be provided, as part of the ongoing recently expanded 65 000 m infill and expansion drill programme,” Kefi executive chairperson Harry Anagnostaras-Adams says.

“Saudi Arabia is indeed fast-tracking its mining sector and GMCO is at the forefront. We expect significant progress over the coming weeks and months, which will reinforce the value being created through GMCO’s aggressive exploration programme, for the past few years running at the rate of over $20-million per annum,” he posits.