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.

In October 2017, KEFI announced further increases to the planned production rate of the Tulu Kapi Gold Mine:

  • Process plant capacity increased to 1.9-2.1Mtpa from 1.5-1.7Mtpa.
  • For the first three years of production:
    • Gold production increased to 144,000 oz pa from 115,000 oz pa; and
    • Net operating cash flow Increased to US$74M pa (at a gold price of US$1,250/oz).
  • Total forecast gold production remains 980,000 oz from the open pit
  • All-in Sustaining Costs remains less than US$800/oz