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: Market cap is only 900k - Bezant Resources PLC Option Agreement for Buffalo Copper / Gold Project 23/04/2019 7:00am UK Regulatory (RNS & others) Bezant Resources (LSE:BZT) Intraday Stock Chart Today : Tuesday 23 April 2019 Click Here for more Bezant Resources Charts. TIDMBZT RNS Number : 7130W Bezant Resources PLC 23 April 2019 23 April 2019 Bezant Resources Plc ("Bezant" or the "Company") Option Agreement for Buffalo Copper / Gold Project, Zambia Bezant (AIM: BZT), the copper-gold exploration and development company, is pleased to announce that it has entered into a binding memorandum of agreement with KPZ International Limited ("KPZ") (the "MOU" or "Agreement") granting the Company a conditional option to acquire a 50 per cent. interest in small scale copper mining licence number15164-HQ-SML in The Republic of Zambia (the "Licence") which contains the Buffalo exploration project (the "Buffalo Project"). Under the terms of the Agreement and as consideration for such 50 per cent. interest in the Buffalo Project, Bezant is required to complete an initial assessment of the Licence area at a cost of up to US$200,000 by 1 February 2020 (the "Initial Expenditure Phase") (the "Option"). Throughout the Initial Expenditure Phase, Bezant will retain the right, at its sole discretion, to cease expenditure on the initial assessment and withdraw from the Option, whereupon all other obligations under the Agreement would be terminated. Highlights Low cost, 10 All expenditure during the Initial Expenditure month project Phase to be invested directly in the Buffalo assessment Project rather than being paid to the project's sponsors. ------------------------- ----------------------------------------------------- Accessible underexplored The Buffalo Project is located 300km north iron oxide copper-gold west of Lusaka, accessed via tarred road and ("IOCG") location then 150km of gravel/dirt road from Kasempa town. The project is situated in the Central Zambian IOCG belt, which has long been recognised as being of high potential but which remains underexplored compared to the more well-established Zambian Copper Belt. ------------------------- ----------------------------------------------------- Historic work Historic records of exploration and mining includes drilling at the Buffalo Project exist from 1899, with and current small a 6 per cent. copper zone reported by Rhodesia scale activity Congo Border Concession Limited in the 1920's 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 per cent. Cu, including 6m at 1.87 per cent. Cu. Limited small scale mining is taking place in the project area on obviously visible ore outcrops. After extraction, the ore is hand sorted to further upgrade the ore. ------------------------- ----------------------------------------------------- Strong geological Composite grab sample collected from the ore indicators zone by Bezant assayed 3.17 per cent. Cu and 0.97g/t Au. 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. ------------------------- ----------------------------------------------------- Buffalo Project Summary The Buffalo Project's copper-gold property comprises approximately 398 hectares within licence number 15164-HQ-SML and is located approximately 300km north west of Lusaka and accessed by a 150km gravel/dirt road from Kasempa, which is within the Zambian IOCG belt. The Licence was issued on 1 March 2013 and is valid for 10 years until 28 February 2023. Application is being *** for the Licence to be extended to cover gold in addition to copper. Historic third party reports note that the Buffalo copper prospect was rst identified in 1899, through outcropping mineralisation on the side of a small hill. During the 1920s, pitting, trenching, tunnelling and crosscutting were carried out into the hillside. This work reportedly discovered a high-grade (6 per cent.) copper zone at the base of the hill. Further trenching was undertaken in the 1960s followed by the drilling of four diamond drillholes. The best drill intersection obtained was 28m at 1.07 per cent. Cu, including 6m at 1.87 per cent. Cu. No gold assays were recorded. Limited small scale mining is taking place in the project area on obviously visible ore outcrops. After extraction, the ore is hand sorted to further upgrade the ore. The mineralised zone in the open pit trends northeast-southwest and is more or less vertical with mining advancing into the hillside towards the southwest where the zone can be seen to continue. This continuity was not recognised by previous explorers due to near-surface leaching of copper mineralisation. The mineralised zone is 15-20m wide, with a central high grade core about 3-5m across. A composite grab sample from blasted ore material was collected recently by Bezant and tested at the Geochemical Analytical Laboratory at the University of Lusaka School of Mines. This sample assayed 3.17 per cent. Cu and 0.97g/t Au, along with minor silver and trace cobalt. The brecciated mineralised zone comprises soft, highly leached and weathered gossan, with much malachite, hematite and limonite throughout. The host rock is a siliceous, grey shale/ siltstone forming a well-marked hill. The mineralised zone has been exploited over a strike length of approximately 80m and remains open to the southwest into the hillside and possibly to depth. No systematic drill testing has been carried out along strike or to depth, such that no resource estimate has yet been established. Colin Bird, Executive Chairman of Bezant, commented: "We have decided to pursue our copper mission in Zambia as the country has excellent copper mining fundamentals and is known to have 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. "We will commence our initial assessment on clearly defined veins, with apparent significant strike and the potential future opportunity to commence small-scale mining supplying ore to third party processing plants. I am most pleased to have negotiated this Agreement and see the potential for achieving shareholder value enhancement in a stable jurisdiction with a long history of copper mining." Laurence Read, CEO of Bezant, commented: "This Agreement fits well with our global copper mission and we intend to swiftly assess and analyse all potential copper development opportunities for the Buffalo Project with a view to maximising value creation for all of our stakeholders." Key Terms of the Agreement Parties: The Agreement was entered into on 20(th) April 2019 by the Company and KPZ International Limited (the "Parties"). The Option: The Company has agreed to spend up to US$200,000 during the Initial Expenditure Phase in order to assess the suitability of the Buffalo Project for a resource drilling programme and has agreed to provide the results of such assessment to KPZ by 1 February 2020 (the "Initial Assessment"). The Initial Assessment its and associated expenditure shall be deemed as consideration for a 50 per cent. interest in the Licence should Bezant elect to exercise the Option. Right to withdraw: The Company may at any time during the Option period withdraw, should it deem the Buffalo Project unsuitable for further investment and would thereupon i) forfeit any rights in respect of the Buffalo Project and ii) be required to provide KPZ with all information and results gathered during the Initial Expenditure Phase to the point of withdrawal. Proposed Establishment of SPV: KPZ has agreed to incorporate a new local Zambian special purpose vehicle to hold the Licence and all assets and liabilities associated with the Buffalo Project (the "SPV") by June 2019. KPZ will initially hold 100% (less 5% to be held by a local Zambian Shareholder) in the SPV. In the event that the Company completes the Initial Assessment and exercises the Option, Bezant will obtain a 50% shareholding in the SPV. Potential scoping study: Assuming the Initial Assessment is successfully completed and the Option is exercised, the Agreement stipulates that Bezant will, by no later than 1 May 2020, present a detailed budget to KPZ to conduct initial test drilling and produce a scoping study on the Buffalo Project (the "Scoping Study"). Should KPZ wish to fund its 50 per cent. share of the Scoping Study costs, it will be required to so confirm by 1 June 2020 and each party will thereafter equally fund the project. If KPZ does not wish to provide 50 per cent. of the funding required for the Scoping Study, it will be diluted to a 25 per cent. equity interest in the SPV, with the Company's interest increasing to 75 per cent. in return for funding the entire Scoping Study. For further information, please contact: Bezant Resources Plc Tel: +44 (0)20 3289 Laurence Read 9923 Chief Executive Officer Colin Bird Executive Chairman Strand Hanson Limited (Nomad) Tel: +44 (0)20 7409 James Harris / Matthew Chandler / James 3494 Dance Novum Securities Limited (Broker) Tel: +44 (0)20 7399 Jon Belliss 9400 or visit hxxp://www.bezantresources.com