M&A

Bezant to acquire 50% of KPZ's Buffalo

Copper and gold explorer and developer Bezant Resources has agreed to acquire a 50% interest in the Buffalo copper-gold exploration project in Zambia from KPZ International.

Staff reporter
Bezant Resources has decided to get involved in the Buffalo copper-gold project in Zambia

Bezant Resources has decided to get involved in the Buffalo copper-gold project in Zambia

Under a binding memorandum of agreement, Bezant will spend up to US$200,000 on initial assessment of the licence area by February 1, 2020, though it will maintain the right to stop expenditure at any time and withdraw from the option.

Bezant executive chairman Colin Bird said initial assessment would start on clearly defined veins, with apparent significant strike and potential to start small-scale ore supply to third-party processing plants. 

Under the agreement, all spending during the initial expenditure phase will be invested directly in the project, with none going to Buffalo's sponsors.

If the initial assessment is successful, Bezant will present KPZ with a detailed budget before May 1, 2020, to conduct initial test drilling and produce a scoping study on the project.

KPZ can then decide whether it wants to fund its 50% share of the scoping study costs and, if so, will be required to confirm this by June 1, 2020. If not, KPZ will be diluted to a 25% equity interest in Buffalo and Bezant's interest will increase to 75% in return for funding the entire scoping study.

Bezant CEO Laurence Read said the agreement fitted with Bezant's global copper mission and the company planned to "swiftly assess and analyse all potential copper development opportunities for the Buffalo project".

The 398-hectare project 300km north-west of Lusaka is within the Zambian iron oxide copper-gold (IOCG) belt, with the copper exploration licence running from March 1, 2013, to February 28, 2023, and an application to extend the licence to include gold exploration.

Bezant said composite grab sample collected from the ore zone assayed 3.17% copper and 0.97g/t gold, with a steeply dipping mineralised zone traced over 80m along strike and continuing into the hillside, 15-20m wide, with central high-grade gossan zone 3-5m across.

It added historic exploration and mining had taken place in the late 1800s and a 6% copper zone reported by Rhodesia Congo Border Concession in the 1920s from pitting in siliceous, brecciated and hematitic siltstone.

"Four diamond holes drilled in the 1960s by Chartered Exploration Limited recorded a best intercept of 28m at 1.07% copper, including 6m at 1.87% copper," Bezant said.

There is limited small-scale mining in the project area on obviously visible ore outcrops, with the ore hand sorted after extraction and sent for further upgrade.

Bird said Zambia had "excellent copper mining fundamentals" and was known for its transparent mining legislation. 

"The Buffalo project is a well-established concession, which has the benefit of good historic work more directed to small scale mining. The Central Zambian IOCG belt has significant exploration potential, but has always played a secondary role to the main copper belt in Zambia to the north which has hosted many large, world-class underground copper mines," he said.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.