Bezant Res Regulatory News (BZT)

24 September 2014

Bezant Resources Plc

("Bezant" or the "Company")

Revised Cost Estimates for Conceptual Development of the

Mankayan Copper/Gold Project, Philippines

Bezant (AIM: BZT), the AIM listed copper-gold exploration and development company operating in the Philippines and Argentina, announces that its associate, Crescent Mining and Development Corporation ("CMDC"), has recently commissioned and received an independent review report on the historic conceptual study in respect of the group's Mankayan copper/gold project in the Philippines.

CMDC commissioned GHD Group Pty. Limited ("GHD") to undertake a high level review of the conceptual (technical and economic) study completed previously by TWP Australia Pty. Limited ("TWP")and Mining Plus Pty. Limited ("Mining Plus") in January 2011. GHD's scope was, inter alia, to review the project's conceptual design details and assumptions in the context of recent trends in porphyry copper/gold ore mining and processing. In addition, capital and operating cost estimates were to be considered and updated to reflect current local costs in the Philippines and to incorporate likely opportunities for any improved design elements identified. 

GHD's review identified, outlined and recommended two key changes to the development plans with the potential for significant associated cost savings. The revisions reflect recent developments in high-tonnage underground mining and can be summarised as follows:

· a change from vertical shaft ore haulage to conveyor decline haulage; and

· improved mine ventilation to avoid the capital and operational costs for a refrigeration plant.

Bezant has also separately commissioned Mining Plus to provide a supplementary review and update to its historic financial model. Mining Plus developed the block caving plan and prepared the financial model for the original TWP conceptual study. Mining Plus has commenced its review and will focus on identifying other possible areas for achieving cost savings and will update its financial model to incorporate the revised cost estimates and possible savings identified by GHD's report, as well as reflecting current metals prices. Mining Plus has recent and ongoing worldwide experience of cutting-edge mining projects using the latest "rapid development" methods and conveyor decline haulage. The Company currently anticipates receiving the revised financial model in early Q4 2014.

The principal cost savings identified by the high level GHD review can be summarised as follows:

Revised capital expenditure parameters (order of magnitude)

Revised operational expenditure parameters (order of magnitude)

Based on the original assumed production rate of 12Mtpa, GHD has indicated likely revised cost estimates for both capital expenditure and operational expenditure as outlined above. Its report utilised the unit rates from Philex Mining Corporation's well established Padcal mine at Padcal, Tuba, Benguet (the "Philippine Block Cave Mine") to indicate capital estimates and was supported by carrying out peer analysis on other major block caving mines both in the Philippines and Australia. Applying general block caving principles to the Mankayan deposit and taking into account the distinct characteristics of the ore body, the resulting overall mine layout presented originally by TWP/Mining Plus was found to be broadly within industry standards.

However, GHD noted some significant differences between the operation of the Philippine Block Cave Mine and the proposed TWP/Mining Plus conceptual mine design. It suggested that the block cave mine layout generated by TWP/Mining Plus could be retained and become the model for an integrated block cave mine layout, but with some changes to seek to achieve lower capital and operating costs. The proposed changes in GHD's Integrated Block Mine Layout are highlighted below:

· The original proposed haulage shaft is converted into a fresh air intake shaft and shaft diameter is reduced from 9.8m to 6m.

· No shaft hoisting of ore.

· An additional 8km decline, (nominally 5.5m x 4m), be developed for conveyor haulage of ore and fresh air intake.

· The return airway raise to be enlarged from 6m to 9m in diameter.

· No fresh air access level below the extraction level.

· Fresh air from the Intake shaft No.1 to be coursed directly to the extraction level and the western crusher chamber. Fresh air from the Intake shaft No.2 to be coursed directly to the undercut level and to the eastern crusher chamber.

· The sizes of the undercut level and extraction level drives of the Philippine Block Cave Mine to be adopted.

· No refrigeration plant during the operation of the second mining lift at 455 masl.

Please click on the following link to view figure 1 showing GHD's proposed integrated block cave mine layout http://www.rns-pdf.londonstockexchange.com/rns/4165S_-2014-9-23.pdf.

GHD indicated that its Integrated Block Cave Mine Layout could reduce the labour cost component of the resulting capital infrastructures, capital mining costs and operating costs. In effect, the net labour cost reduction is approximately nine per cent.

Bernard Olivier, Chief Executive Officer, commented:

"Our Mankayan project is one of the most significant, undeveloped, copper/gold deposits in the world that is defined to an advanced resource standard. We commissioned GHD's review as part of our ongoing potential sale/JV discussions with third parties seeking to progress the project. The potential cost savings identified from using GHD's proposed integrated block cave mine layout are most interesting and we are currently studying GHD's full report in detail. GHD is well renowned in our industry for its in-depth mining engineering knowledge and development experience both in the Philippines and globally. We look forward to receiving an updated financial model from Mining Plus in due course."

Dr Evan Kirby has reviewed and approved the technical information contained within this announcement in his capacity as a qualified person, as required under the AIM rules. Dr Kirby is a Non-Executive Director of the Company and a Member of the Australasian Institute of Mining and Metallurgy.

For further information, please contact:

Notes to editors:

Bezant is currently focussed primarily on the copper and gold mineral sector and its core flagship project remains its Mankayan copper/gold project situated in the Mankayan-Lepanto mining district of the Philippines, an area of established copper and gold mining. The deposit is located approximately 240km north of Manila and 6km east of an established copper/gold mine owned and operated by Lepanto Consolidated Mining Company. Since its discovery in the early 1970s, extensive drilling (more than 45,000 metres over 48 holes) and metallurgical work has been undertaken by Goldfields Asia Ltd., Pacific Falkon Resources Corp and others.

Bezant currently has a JORC compliant mineral resource estimate for the project of 221.6 million tonnes Indicated and 36.2 million tonnes Inferred, grading at 0.49% for copper and 0.52g/t for gold, at a 0.4% copper cut-off. This equates to an Indicated Resource of 2.42 billion pounds (1.1 million tonnes) of copper and 3.7 million ounces of gold, with a further Inferred Resource of 0.44 billion pounds (0.2 million tonnes) of copper and 600,000 ounces of gold. In December 2010, the Company upgraded its independent Mankayan resource estimate to JORC compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, resulting in total Recoverable Metal Reserves of 811,000 tonnes of copper and 2.21 million ounces of gold. A Total Mining Inventory Statement was also reported of approximately 400Mt of ore at an average grade of 0.38% copper and 0.42g/t gold.

GHD

GHD is one of the world's leading professional services companies operating in the global markets of water, energy and resources, environment, property and buildings, and transportation. GHD provides engineering, architecture, environmental and construction services to private and public sector clients. Established in 1928 in Melbourne, Australia and privately owned, GHD operates across five continents - Asia, Australia, Europe, North and South America and the Pacific region. GHD's global network employs more than 5,500 people in 100+ offices to deliver projects with high standards of safety, quality and ethics across the entire asset value chain (www.ghd.com).

TWP

Founded in 1982, TWP grew into a highly capable ISO 9001:2000 accredited multi-disciplinary resource and infrastructure focused project design house providing a full range of mining, process, energy, infrastructure and project management solutions. TWP commenced operations in Australia during 2006 as a subsidiary of TWP Holdings Limited, part of the Basil Read Group in South Africa. In October 2011, WSP Group (Australia) Pty. Ltd, a subsidiary of the London-listed WSP Group plc, acquired 50% of TWP resulting in a change of name to TWSP Pty. Ltd. (www.twsp.com.au).

Mining Plus

Mining Plus is a consultancy firm specialising in mining engineering, environmental science, geoscience, mine safety and risk assessment and has grown to become a significant industry player since its establishment in 2006. It now operates on a global scale with offices spanning Australia, Canada and Peru servicing both exploration and mining customers (www.mining-plus.com).

Glossary of technical terms: