HOPE COPPER-GOLD PROJECT ACQUISITION
On 19 June 2020 Bezant announced the acquisition of 100% of Virgo Resources Ltd and its interests in the Hope Copper-Gold Project in Namibia. Virgo Resources Ltd is incorporated in Australia (ACN 626 148 347) (“Virgo”). the acquisition of Virgo completed on 14 August 2020. Virgo, through its 100% owned Australian subsidiary Hepburn Resources Pty Ltd (ACN 624 189 162), owns i) 70% of Hope and Gorob Mining Pty Ltd incorporated in Namibia which owns EPL5796, ii) 80% of Hope Namibia Mineral Exploration Pty Ltd Incorporated in Namibia which owns EPL6605 and iii) has the option to acquire a 80% interest in EPL7170 (under offer). the balance of the project is held by a local partner.
HOPE COPPER-GOLD PROJECT PRESENTATION
The following presentation is a high level summary of the Hope Copper-Gold project updated in November 2020 to include pictures of the drill program commenced in November 2020.
HOPE COPPER-GOLD PROJECT EXPLORATION
On 1 October 2020 Bezant announced the commencement of exploration work, including trial target testing, over the Hope Copper-Gold Project including:
|Preparation work||Preparation for geophysical surveying and drilling at high-grade Hope copper-gold massive sulphide project in Namibia|
|Geophysical drill target||Recently identified 3km Hope North geophysical target adjacent to Hope deposit earmarked for drilling|
|Drilling for untested gold||Drilling at Gorob-Vendome prospect aimed at establishing untested gold grade within previously delineated copper resource|
|EM Surveying||Further ground EM surveying planned at Gorob-Vendome to trace down-plunge continuation of known mineralisation|
On 24 November 2020 Bezant announced initial results for its drilling programmes, as well as positive tenure update news, from the Hope Copper-Gold Project in Namibia including:
|Completion of two drill holes||Drilling of two holes has been completed at the Gorob-Vendome prospect aimed at confirming reported copper intervals within the previously delineated mineral resource and to provide core samples for gold testing|
|Both holes intersected the copper zone||Both holes intersected the copper zone, with a 6-metre zone of strong copper mineralisation logged in hole GOD002 from 172m to 178m depth|
|Drill core to be assayed and sampled||Drill core will be sampled and assayed for copper, gold and other associated minerals|
|Drill rig now at Hope deposit||The drill rig has now moved to the Hope deposit to test an EM anomaly target north of the main deposit|
|Two year renewal of EPL 5796||Renewal of Exclusive Prospecting Licence (“EPL”) 5796 owned by the group’s 70% subsidiary Hope and Gorob Mining Pty Ltd covering the Hope and Gorob prospects has been confirmed by the Namibian authorities for a two-year period to 19 October 2022|
HOPE COPPER-GOLD PROJECT DRILL PROGRAM PICTURES
Picture 1 - Drilling at site of hole GOD002
Picture 2 - Drill core at site of hole GOD002
Picture 3 - Chalcopyrite copper mineralisation in hole GOD001
Picture 4 - High grade copper mineralisation in hole GOD002
Picture 5 - Detailed logging and sample demarcation GOD001
Picture 6 - Core marking in hole GOD002
Picture 7 - Mineralised quartzite near Gorob drill site
Picture 8 - Mapping copper mineralised outcrop at the Gorob prospect
HOPE COPPER-GOLD PROJECT TECHNICAL INFORMATION
Project Area: The Hope Cooper-Gold project EPL5796 (345 km2) and adjacent tenures EPL6605 (570 km2) and EPL7170 under application (310 km2) cover an area of approximately 1,200km2 in central Namibia, approximately 100km to the south west of Windhoek, the capital of Namibia, and about 120km to the south east of the major African port of Walvis Bay. The tenures are located in the Namib Desert of Namibia within the Swakopmund District, Erongo Region, accessible by well-maintained gravel roads. The project area lies within the highly prospective Matchless Copper Belt which hosts multiple high-grade copper-gold Besshi Type massive sulphide deposits, such as the historically mined Otjihase Copper-Gold deposit (>16Mt @ 2.2% Cu & 1.2g/t Au) to the northeast of the Hope property.
Regional Geology: the area covered by the Hope Copper-Gold Project is characterised by superficial quaternary sand and gravel overlying the Swakop Group of the Damara Supergroup. the area is dominated by massive mica schists of the Kuiseb Formation of the Pan-African Damara Orogen.
JORC Resource: the Hope project area contains a combined gross mineral resource within three closely-spaced deposits (namely Hope, Gorob-Vendome and Anomaly) of 10.18Mt at 1.89% Cu and 0.3 g/t Au at 0.7% Cu cut-off reported in accordance with the JORC code (2012), with 192kt of contained Cu and 3,190kg of contained Au. Approximately 30% of the Mineral Resource tonnage is classified in the Indicated Mineral Resource category with the balance in the Inferred Mineral Resource category and was based on 339 drill holes for a total of 63,855 metres.
The Hope deposit itself has an Indicated Mineral Resource of 3.09Mt @ 2.53% Cu and 0.84g/t Au at a 0.7% Cu cut-off. Historic drill intersections include 23.31m @ 1.59% Cu & 0.23g/t Au from 464.09m, including 9.68m @ 3.18% Cu & 0.42g/t Au from 477.17m (hole HDD82) and 10.12m @ 5.72% Cu & 0.56g/t Au from 525.57m (hole HDD91).
Metal Recovery Test Work: Metal recovery at the Hope project during previous ore processing tests was excellent, indicating recoveries of 96% copper and 84% gold to a 28% Cu grade concentrate via conventional flotation.
Further Exploration Targets: Review of past exploration on EPL5796 in the vicinity of the known deposits has highlighted several untested targets and potential extensions. these include a Natural Source Audio Magneto-Telluric (NSAMT) geophysics anomaly at the Hope deposit which indicates the presence of an untested, sub-parallel conductor a short distance to the north. this may suggest the presence of a hidden second or multiple shoot system over 3km of strike.
Gold is an important accompanying mineral to the copper deposits of the Matchless Belt. Core was not always assayed for gold during previous drilling campaigns, leaving scope for adding value to many of the prospects along the Belt, including Gorob-Vendome. Bezant will test for gold as a standard procedure during its planned exploration programmes, including planned confirmatory drilling at Gorob.
Elsewhere in the Project Area the Niedersachsen deposit cluster includes three previously discovered copper prospects (Niedersachsen, Aros and Kobos) within EPL 6605 and one copper prospect situated in EPL7170 (Schlesien, situated close to the north-eastern border of EPL 6605). While the primary historic exploration focus has been on the known prospects, but this has left the vast majority of the 1,200km2 area unexplored, especially by modern exploration techniques.
HOPE COPPER-GOLD TRANSACTION INFORMATION
Bezant acquired 100% of Virgo Resources Ltd, incorporated in Australia (ACN 626 148 347) (“Virgo”) (the “Acquisition”) on 14 August 2020. Virgo through its 100% owned Australian subsidiary Hepburn Resources Pty Ltd (ACN 624 189 162) owns i) 70% of Hope and Gorab Mining Pty Ltd incorporated in Namibia which owns EPL5796, ii) 80% of Hope Namibia Mineral Exploration Pty Ltd Incorporated in Namibia which owns EPL6605 and iii) has the option to acquire a 80% interest in EPL7170 (under application).
The share and cash consideration payable by Bezant at completion of the Acquisition was i) the issue of 422,062,525 new ordinary shares of 0.002 pence each in the capital of the Company (“Bezant Shares”) at a deemed issue price of 0.2 pence per Bezant Share (“Ordinary Shares Consideration”), ii) £135,000 settled by the issue of 113,333,333 new Bezant Shares of which 79,333,333 have been issued and 34,000,000 are to be issued on 15 February 2020 (the “Asset Sellers Consideration”); and iii) cash of AUD157,021 (approx.. £86,600 (the “Consideration”).
Ownership and location: the tenures are located in the Namib Desert of Namibia within the Swakopmund District, Erongo Region accessible by well-maintained gravel roads. EPL5796 is held by Hope and Gorob Mining (Pty) Ltd which is 70% owned by Hepburn Resources Pty Ltd (100% owned subsidiary of Virgo) and 30% owned by a local partner. EPL6605 is held by Hope Namibian Mineral Exploration (Pty) Ltd, which is owned 80% by Hepburn Resources Pty Ltd and 20% by a local partner and has an option to acquire EPL 7170 which is under application.
EPL Licences: Exclusive Prospecting Licences such as EPL5796 and EPL6605 allow searching, whether by way of excavations or otherwise, for minerals or group of minerals with a view to delineating or evaluating deposits or concentrations of any such a mineral or group of minerals. EPL 5796 is for base and rare metals and precious metals and EPL 6605 is for base and rare metals: dimension stone, industrial minerals; precious metals. An EPL is issued for 3 (three) years and may be renewed twice for a period of 2 (two) years per renewal and shall not expire during a period when an application for renewal has been lodged no later than 90 days before the expiry date. EPL 5796 was issued on 18 June 2015 and the expiry date of its second 2 (two) year renewal is 19 October 2022. EPL 6605 was issued on 26 September 2018 and its initial 3 (three) year term expires on 25 September 2021.
Option Consideration to be issued 1 August 2021: Bezant will issue 98,361,250 unlisted Options which vest on 1 August 2021 and expire on 31 August 2023 with an exercise of 0.30 pence which represents a premium of 150 per cent. to of 0.12 pence being the closing middle market price on 18 June 2020.
Deferred Consideration: If within 36 months from completion there is a total Mineral Resource (as defined in the JORC code (2012 addition)) (Mineral Resources) on any of the current or future projects of Virgo of 400,000 tonnes of contained copper, Bezant will issue a further £400,000 worth of Bezant shares based on the 10 day VWAP of the Bezant share price at the time of this milestone being achieved (“Deferred Consideration”).
Lock up and Orderly Market: the Ordinary Share Consideration, the Asset Sellers Consideration and the Deferred Consideration (if issued) (the “Shared-based Consideration”) will be subject to orderly market trading and release schedule is as follows;
i) 25% of the Share-based Consideration will be freely tradable on Completion and Settlement
ii) 25% of the Share-based Consideration will be freely tradable after six (6) months from Completion and Settlement
iii) 50% of the Share-based Consideration will be freely tradable after twelve (12) months from Completion and Settlement
24 November 2020