Bezant Resources aims for profits from Colombia licence in 3 months

Bezant Resources announced on Wednesday the start of commercial production from its FKJ-083 licence in the Choco province of Western Colombia and said it was expecting to reach operational profitability in the next three months.

Initial production of gold and platinum within just two months after plant commissioning through its wholly owned Colombian subsidiary, Ulloa Recursos Naturales and its operating partner, Exumax.

It would now seek to reach operational profitability from the licence area, which forms part of a larger alluvial system and deposit within the Choco Province, within the next three months targeting the operational and economic parameters with equivalent estimated total production costs of less than $800 per oz, as outlined in the independent scoping study commissioned earlier this year and announced on 8 March 2017.

Its first production plant was being fed from the open pit currently under development, starting with material from the lower-grade upper layers of platinum and gold bearing gravels typical of the region, the AIM-listed outfit said in a statement.

The Choco Project now also had a fully established mining camp, including processing laboratories and first sales from production were currently expected to occur during the third quarter of 2017.

The Choco Province was an area where significant historic gold and platinum mining activity had been recorded near surface. Prior to the discovery of the Bushveld complex in South Africa, Choco was the world's largest platinum mining region.

"The company will closely monitor the success of its first production ramp-up and then seek to expand operations across the region. Utilising additional domestically constructed processing plants fed from open pit operations, Bezant aims to rapidly build production and cash flow supported by its established mining camp", it said.

As of 1612 BST shares of the miner were ahead by 10.34% to 1.60p.