With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources totalling 1.72 million ounces of gold, the Tulu Kapi gold project in Western Ethiopia is being progressed 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, full permits for the development and operation of the Tulu Kapi gold project and a 5% Government free-carried interest.
In June 2015, KEFI Minerals completed the Tulu Kapi Definitive Feasibility Study (“DFS”) evaluating a conventional open-pit mining operation and carbon-in leach (“CIL”) processing plant. The key DFS outcomes are:
- Gold production of 961,000 ounces of gold over a 13-year mine life.
- Average All-in Sustaining Costs of US$779/ounce, which ranks the project in the lowest cost quartile globally for gold producers.
- Initial capital cost of approximately US$132 million, based on the planned use of contract-mining and an all-new processing plant.
Following completion of the DFS, KEFI has continued to improve project economics. Based on feedback from project contractors, financiers and independent technical consultants, KEFI announced in January 2016 an increase in planned production at Tulu Kapi to circa 115,000 ounces per annum at an average AISC of US$742/ounce over nine year. This increase is a result of a planned increase in process plant capacity from 1.2Mtpa to 1.5-1.7Mtpa.
The Company has been recruiting personnel in line with Tulu Kapi's progress and the first KEFI Minerals Ethiopia newsletter was published in September 2016.
KEFI Minerals is targeting commencement of construction of Tulu Kapi in H2 2017.