KEFI shares rise on developments in Saudi Arabia

KEFI Minerals reported a number of positive developments in Saudi Arabia on Thursday, including the expectation of a larger maiden resource of around 20 million tonnes in August, making fior an increase of 66% from the previous target of 12 million tonnes.

The AIM-traded firm said that was based on the completion of the first nine months of drilling, and subsequent analyses and interpretation, covering a strike of over four kilometres to a depth of up to 350 metres.

It said Hawiah remained open along strike and depth, where some higher grade intercepts had also been encountered, for further follow-up.

The expected average copper equivalent grade was around 2% copper, representing about 400,000 tonnes of contained metal, with an in situ value of more than $2.5bn (£1.99bn) at current market prices.

KEFI also noted that the Saudi cabinet recently approved a new mining investment law, which it said should help unlock value at its additional Saudi projects, including the Jibal Qutman Gold Project.

“The recent approval by the Saudi cabinet of the new mining investment law is a very positive development for our Hawiah copper-gold and Jibal Qutman gold projects in Saudi Arabia,” said executive chairman Harry Anagnostaras-Adams.

"The Hawiah deposit is shaping up to have a similar mix of metals and to be a larger deposit than the nearby operating Al-Masane underground mine in southwest Saudi Arabia.”

Harry Anagnostaras-Adams said the company was looking forward to releasing the initial Hawiah mineral resource in August, and thus providing further confirmation that its Hawiah deposit had the scale and grades for a potential long-life, profitable mine.

“At current copper prices, it is notable that the in-situ value of Hawiah is already likely to be more than $2.5bn.”

At 1220 BST, shares in KEFI Minerals were up 15.44% at 1.64p.