Ethiopia

With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources totalling 1.72 million ounces of gold, KEFI is advancing the Tulu Kapi Gold Project in Western Ethiopia towards development.

The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalised in April 2015. The terms include a 20-year Mining Licence, a 5% Government free-carried interest and full permits for the development and operation of Tulu Kapi.

In June 2015, KEFI completed the 2015 Definitive Feasibility Study (“2015 DFS”) which evaluated a conventional open-pit mining operation and carbon-in leach (“CIL”) processing plant at Tulu Kapi.

In May 2017, KEFI completed the 2017 DFS Update which incorporated due diligence and refinements since the 2015 DFS and provided increased confidence in the Company’s plans to develop Tulu Kapi.

Key points of the 2017 DFS Update are:

  • Process plant capacity increased from 1.2 Mtpa to 1.5-1.7 Mtpa.
  • Forecast open-pit gold production is 980,000 oz over ten years.
  • All-in Sustaining Costs of less than US$800/oz. 
  • For the first eight years of production:
    • Gold production averages c. 115,000 oz pa; and
    • Net operating cash flow averages US$55M pa at a gold price of US$1,250/oz.
  • Initial capital expenditure estimated at US$145M on a contract-mining basis.