The KEFI Minerals team has been evaluating potential joint ventures and prospects in the Kingdom of Saudi Arabia since mid-2008.
As a 40% shareholder and manager of Gold and Minerals Ltd (“G&M”), KEFI Minerals has established a strong foothold from which to build on the momentum achieved to date.
KEFI Minerals is well placed to advance and develop our projects with the assistance of our partner Abdul Rahman Saad Al Rashid and Sons Limited (“ARTAR”), a leading local industrial group owned by Sheikh Al Rashid and his family.
G&M’s primary target is the discovery and development of a >1 million ounce gold-equivalent deposit in Saudi Arabia’s under-explored Precambrian Shield.
Following the grant of the Jibal Qutman Exploration Licence (“EL”) in July 2012, KEFI Minerals has rapidly identified Mineral Resources totalling more than 600,000 ounces of gold. G&M is now evaluating producing gold via an open cut, heap leach operation while continuing to explore for further shallow gold resources at Jibal Qutman.
Following the grant of the Hawiah EL in December 2014, KEFI commenced exploration of an unusually large gossan for gold at the surface and a VHMS copper-gold-zinc sulphide ore body at depth. The Hawiah EL was one of KEFI’s higher priority Exploration Licence Applications (“ELAs”) as the geological setting is analogous to large VHMS deposits in the ANS that also have well-preserved, mature oxidised zones enriched in gold at surface.
G&M has currently 24 ELAs pending. Each ELA generally covers an area of approximately 100km2. The ELAs are targeting both gold and copper-gold mineralisation.
Mining Industry in Saudi Arabia
The Kingdom of Saudi Arabia is a country with a long history of gold and copper mining that dates back over 3,000 years. As part of a broader strategy to diversify the country’s revenues away from oil, Saudi Arabia is looking to expand and develop its mineral sector.
Key commercial advantages for KEFI in Saudi Arabia are:
- A country under-explored for minerals with only a few companies exploring for gold and copper;
- The Precambrian Arabian-Nubian Shield rocks are very prospective for gold and copper;
- Exploration, development and operating costs are low by industry standards, benefitting from low energy and labour costs;
- Saudi Industrial Development Fund provides loans for up to 75% of the capital cost of mine development at nominal interest rates;
- A modern mining code; and
- A strong local joint venture relationship.
The Kingdom of Saudi Arabia has instituted policies to encourage minerals exploration and development. A resurgence of the Kingdom’s minerals sector could generate significant employment and assist with development of infrastructure in remote areas of the country.
G&M is aligned with these policies with ARTAR as the majority shareholder and KEFI as the technical partner.
ARTAR is a Saudi Arabian conglomerate investing in different sectors such as construction, real-estate, agriculture and health care in the Kingdom of Saudi Arabia and abroad. ARTAR’s principal business activities include commercial and residential property development, engineering, and construction of large shopping malls, hotels, hospitals and high rise apartment complexes.
Investment in the fledgling minerals sector in Saudi Arabia is part of ARTAR’s business expansion plans. For further information on ARTAR, visit the ARTAR website.