Tulu Kapi DFS

The Tulu Kapi 2015 Definitive Feasibility Study (“2015 DFS”) evaluated a conventional open-pit mining operation with a 1.2Mtpa carbon-in-leach (“CIL”) processing plant. The 2015 DFS was released in August 2015 and the full study is available for download (21MB pdf).

Following the positive 2015 DFS and the engagement of Lycopodium Minerals Pty Ltd (“Lycopodium”) as the engineering, procurement and construction contractor for the construction of the processing plant, Lycopodium completed in 2016 a Front-End Engineering Design Study (“FEED Study”) for the design and construction of an integrated 1.5Mtpa ore processing facility for Tulu Kapi.  

Lycopodium prepared the 2017 DFS Update which incorporated due diligence and refinements since the 2015 DFS. The 2017 DFS Update was released in May 2017 and the full report is available for download (23 MB pdf).

The same Mineral Resources and Ore Reserves underlie the production schedules in both studies. Utilising semi-selective mining techniques, it is planned to process ore mined above 0.5g/t gold. 

Key mining and financial parameters from these two studies are summarised below:


2017 DFS Update

2015 DFS

Waste:ore ratio



Total ore processed



Average head grade

2.1g/t gold

2.1g/t gold

Gold recoveries

93.3% 91.5%

Total gold production

980,000 ounces

961,000 ounces

Ore processing rate

1.5-1.7Mtpa 1.2Mtpa
Average annual gold production (first 8 years) 115,000 oz p.a. 95,000 oz p.a.

Cash Operating Costs

US$684/oz US$661/oz

All-in Sustaining Costs

US$777/oz US$780/oz
All-in Costs
(including initial capex)
US$933/oz US$906/oz
NPV at start of construction  (8% real discount rate) US$97M US$125M
NPV at start of production (8% real discount rate) US$272M US$256M


3 years 2.5 years
Net Operating Cash Flow (average for first 8 years) US$55M p.a. US$50M p.a.

The economic metrics on this page are for contract mining of the open pit only, based on a gold price of US$1,250 flat over life-of-mine and are on an unleveraged and after-tax basis.

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

KEFI also targets further increases in Tulu Kapi’s gold production with the addition of an underground mine operating concurrently with the open pit.