5 November 2014

Bezant Resources Plc

("Bezant" or the "Company")

Revised Cost Estimates and Financial Model 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, further to its announcement of 24 September 2014, it has now received the supplementary review report, incorporating an updated financial model, on the historic conceptual study in respect of the group's Mankayan copper/gold project in the Philippines.

Highlights :

·       Financial and technical review of the historic conceptual study improves the economic feasibility of the Mankayan Project

·       Supplementary report has remodelled and investigated the original Mine Design, Mine Schedule, Cave Footprint and Cost Estimations and incorporated revised estimates in an updated financial model

·       US$307 million potential cost reduction identified compared with the original 2011 study

o   Change in mine design to a decline access plus conveyor decline for material haulage from the previous decline and shaft haulage configuration

·       Report recommends an up to 20 million tonnes per annum ("Mtpa") block caving operation over an estimated 28 year mine life

·       At current metals prices (US$3.00 per pound of copper and US$1,250 per ounce of gold) and a production rate of 20Mtpa, the project returns an estimated:

o   post-tax NPV of approximately US$739 million at an 8% discount rate

o   total post-tax net cashflow of approximately US$3.7 billion

o   post-tax IRR of 21%

·       Total estimated costs of US$17.31 per ore tonne, at a production rate of 20Mtpa, inclusive of all royalties, taxes, capital costs, equipment ownership, operating and processing costs, and administrative and technical services costs

·       Total capital infrastructure costs of approximately US$1 billion over the duration of the project at a production rate of 20Mtpa

·       Report indicates that an estimated additional 80Mt can be generated through improvements in the mine schedule and change in the cave column heights

·     Additional studies recommended to further investigate production levels in excess of 20Mtpa and      optimisation of the mine design

1 .  Introduction

The supplementary review undertaken by Mining Plus Pty. Limited ("Mining Plus") in Australia, assessed the findings and recommendations from the recently completed GHD Group Pty. Limited ("GHD") report in order to remodel and investigate the Mine Design, Mine Schedule, Cave Footprint and Cost Estimations and incorporate revised estimates in an update to its historic financial model.

The scope of its report included the following areas:

·      Review of the recently completed GHD study

·      Review of the primary materials handling system changed from vertical shaft to conveyor decline

·      Modifications to the ventilation network and air motivation

·      Removal of refrigeration plant requirements

·      Commentary regarding the alignment of the revised mine design with modern block cave practices and on whether anticipated attendant cost savings are reasonable

·      Identification of any additional improvements and cost savings

·      Provision of an updated financial model reflecting, inter alia , current metals prices and changes to the mine design

2 . Overview of Report's Technical Findings

Both the original 2011 scoping study prepared by TWP Australia Pty. Limited ("TWP") and Mining Plus and GHD's recent review, considered block caving as the most suitable mining method to extract the deposit. Mining Plus has recommended that the initial and marginal cut-off grades be recalculated to reflect the changes in the capital and operating costs associated with conveyor haulage as it is possible that more of the mineralisation can fall within the block cave envelope.

A production rate of 12 million tonnes per annum ("Mtpa") was originally selected for the 2011 scoping study by TWP/Mining Plus as the maximum capacity achievable from single shaft haulage. Mining Plus has commented that using the industry average block caving draw-down rate of 143mm per day would result in a production rate of up to 16Mtpa.  Mining Plus concurs with GHD's study that a production rate of up to 16Mtpa and additional cost savings can both be achieved by switching from vertical shaft haulage to a conveyor decline haulage system.

Mining Plus has modelled the following mine design changes as recommended in GHD's report:

·       Haulage shaft changed to a fresh air raise with reduced diameter

·       Addition of conveyor decline with stockpiles and ventilation connections

·       Fresh air ventilation access drives moved to join into the extraction level

·       Lower fresh air ventilation drive removed

·       Transfer conveyor drive linked to conveyor decline

The design changes were evaluated and sequenced to produce an updated EPS mine schedule. Two revised mine schedules of 16Mtpa and 20Mtpa, respectively, were modelled based on the higher column production rate with potential scope for a further increase in this rate.

Please click on the following link to view Figure 1 showing the original 2011 scoping study mine design and Figure 2 showing the adjusted design http://www.rns-pdf.londonstockexchange.com/rns/1003W_-2014-11-4.pdf.

Mining Plus also conducted a review of the original cave footprint to determine the impact of the revised mine design, schedule and cost changes on optimum cave geometry. A re-blocking of the cave block model would result in efficiencies for the lift extraction levels, cave column heights and cave footprint. The changes to the mine design, schedule and cost estimates results in an overall reduction in the total cost per tonne for the project. The total cost per tonne for the 12Mtpa schedule was reduced from US$23.93 to US$19.04 per tonne, whilst the new 20Mtpa schedule and design resulted in a total cost of US$17.31 per tonne. The total cost per tonne includes all royalties, taxes, capital costs, equipment ownership, operating and processing costs, and administrative and technical services costs.

3 . Overview of Report's Financial Analysis

Mining Plus changed the cost model to reflect the capital and operating costs of the revised materials handling system and scheduling. The revised project costs for the 12Mtpa schedule scenario resulted in a total cost saving of US$307 million and a total unit cost of US$1.7/lb including gold credits.

Mining Plus also generated a revised financial model by incorporating updates to the cost model and the various versions of the revised mine schedule as detailed above.

The mine design, materials handling and schedule revisions resulted in an overall project net present value ("NPV") improvement from US$300 million to US$333 million for the 12Mtpa case, at an 8% discount rate and at the current spot prices (US$3.00 per pound of copper and US$1,250 per ounce of gold). The increase in production rate from 12Mtpa to 20Mtpa, at similar prices and the same discount rate, increases the project's NPV to US$739 million and the post-tax internal rate of return ("IRR") from 12% to 21%. Mining Plus' report also states that an increase in overall cave column height could contribute an additional 4 years full production life to the project at a production rate of 20Mtpa, which would increase the project's NPV from US$739 million to US$859 million at similar prices and the same discount rate.

As in all aspects of mining evaluation, there are uncertainties inherent in the interpretation of geological and technical data and economic factors. All conclusions by GHD and Mining Plus represent only their informed professional judgments. Estimated taxation for the purposes of the updated financial model has been based on the currently prevailing Mining Tax Laws in the Philippines.

Bernard Olivier, Chief Executive Officer, commented :

"The generation of these revised cost estimates and updated financial model in respect of the 2011 scoping study will facilitate our ongoing potential sale/JV discussions with third parties interested in progressing our Mankayan project. The independent review reports have identified significant cost savings and improved economics for what was already a highly robust copper-gold project. Mankayan has both scale and robust economics in terms of its potential copper output and its pre-existing resource estimate, with JORC compliant Probable Ore Reserves of 189 million tonnes grading at 0.46% copper and 0.49g/t gold, serves to considerably reduce the project's exploration risk."  

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 as a member of the Byrnecut Group of companies. It now operates on a global scale with offices spanning Australia, Canada and Peru servicing both exploration and mining customers (www.mining-plus.com). 

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