Kefi Gold & Copper Regulatory News (KEFI)

1 Feb 2007 07:00

Kefi Minerals plc01 February 2007 AIM: KEFI 1 February 2007 EXPLORATION UPDATE KEFI Minerals Plc ("KEFI Minerals" or the "Company"), the gold and copperexploration company with projects in Turkey and Bulgaria, announces results ofactivities since the Company was admitted to AIM on 18 December 2006. Duringthis period field activities have been accelerated and steps have been taken toadd new exploration licences to KEFI's portfolio. LEHOVO PROJECT In southwest Bulgaria, initial encouraging gold results have been returned fromthe Lehovo Project. Reconnaissance rock chip sampling has returned encouragingresults in the 8km long northeast-trending structural corridor between theKazaniteh and Touchi Dol prospects. Mineralisation is hosted in a series ofstacked quartz-sulphide veins and best results include 7.6g/t gold and over 100g/t silver. ARTVIN PROJECT In Turkey, reconnaissance rock chip sampling results from the Uzumlu prospect inthe Artvin Project area has also returned positive results of up to 0.5g/t goldand 104g/t silver. The prospect is part of a recently identified 4km longalteration zone in volcanic rocks. This belt of volcanic rocks is host to thegiant copper-gold deposits at Cayeli (19 million tonnes at 4.2% copper, 6.5%zinc and 0.8g/t gold), Murgul (80 million tonnes at 1.1% copper) and Cerateppe(2.8 million tonnes at 5.1% copper). DATABASE KEFI Minerals has intensified the field reconnaissance of its proprietarydatabase which contains extensive information about precious metal and basemetal geology and mineralisation in Turkey. This database was built by a largeteam of epithermal and porphyry experts from Australia and the Directors of KEFIMinerals believe it has a current replacement cost exceeding £1.5 million. Anumber of highly prospective areas have been identified that are not currentlyheld under licence by other companies. The Company is competing in government-administered tenders of ExplorationLicences in Turkey on selected areas that contain advanced explorationprospects. KEFI Minerals has already successfully bid for one licence and haslodged an application for another where previous rock chip sampling and streamsediment sampling had identified anomalous gold and silver. Further informationon these licences will be reported to shareholders when the legal formalitiesare completed, which should take under two months. KEFI Minerals' Managing Director, Jeff Rayner, commented:"We are moving quickly with our focused approach to adding value. This has been made possible utilising the exploration database acquired from EMED Mining which covers approximately 100 locations in Turkey. Interpretation of this data has enabled KEFI Minerals to narrow its exploration efforts to the most prospective areas of Turkey and move quickly as opportunities arise." -Ends- EnquiriesKEFI Minerals WH Ireland Bishopsgate CommunicationsJeffrey Rayner Laurie Beevers Maxine Barnes Katy Mitchell Nick Rome+905 36963 0111 +44 161 832 2174 +44 20 7562 3350www.kefi-minerals.com References in this announcement to exploration results and potential have beenapproved for release by Messrs Jeff Rayner, Managing Director of KEFI Mineralsand Ron Cunneen, Head of Exploration for EMED Mining Group. Both individualshave more than 15 years' relevant experience in the field of activity concerned.Ron Cunneen is a member of The Australian Institute of Geoscientists ("AIG") andJeff Rayner is a Corporate Member of the Australian Institute of Mining andMetallurgy ("AUSIMM"). Both have consented to the inclusion of the material inthe form and context in which it appears. Notes to Editors: KEFI Minerals was formed on 24 October 2006 for the purposes of holding EMEDMining's exploration interests in Turkey and Bulgaria with a view to creatingshareholder value through the discovery and exploitation of gold and copperdeposits. In November 2006, KEFI Minerals completed the acquisition of EMED Mining'sTurkish and Bulgarian exploration interests through the acquisition of EMEDMining's subsidiary Mediterranean Minerals (Bulgaria) EOOD. In addition, KEFIMinerals acquired from EMED Mining a database of mining information relating toTurkey. KEFI Minerals commenced trading on AIM on 18 December 2006, following thesuccessful placing of 46,666,667 shares at 3p to raise £1.4 million. KEFIMinerals' market capitalisation was £2.7 million at the placing price onadmission to AIM. In Turkey, KEFI Minerals has two initial exploration projects: • At Artvin in northeastern Turkey, areas of extensive hydrothermal alteration have been recognised in the project area, and there is evidence of historical workings indicating potential for economic mineralisation. • At Gumushane in eastern Turkey, areas of extensive hydrothermal alteration have been recognised in the project area, as well as coincident areas of interest identified through interpretation of Aster data. KEFI Minerals also has an extensive exploration database which containsinformation about approximately 100 further prospective sites in Turkey. Thisdatabase provides the Company with a competitive advantage to identifyprospective areas for project generation in Turkey. Procurement of newprospective licences has commenced and monitoring of the exploration licencestatus of geologically prospective areas will be carried out on an ongoing basisso that KEFI Minerals can acquire further exploration opportunities as soon asthey become available. In southern Bulgaria, reconnaissance work in the Lehovo Project area hasidentified a structural corridor with a strike length of approximately eightkilometres with the potential for gold and base metal mineralisation. EMED Mining has agreed to provide technical and administrative systems andpersonnel to KEFI Minerals on a cost-recovery basis, thus enabling KEFI Mineralsto reduce overheads and spend more on exploring Turkey and Bulgaria. KEFI Minerals' Board of Directors is comprised of Mr Harry Anagnostaras-Adams(Chairman), Mr Jeffrey Rayner (Managing Director), Professor Ian Plimer (DeputyChairman) and John Leach (Finance Director). Further information on KEFI Minerals is available at www.kefi-minerals.com andthe Company's AIM code is "KEFI". This information is provided by RNS The company news service from the London Stock Exchange