KEFI Gold and Copper has conditionally approved the development of its Jibal Qutman Gold Project in Saudi Arabia, with the initial stage requiring an estimated US$87 million in capital expenditure and construction targeted to begin in the fourth quarter of 2026, subject to outstanding approvals and financing arrangements.
The approval was granted by Gold and Minerals Company (GMCO), the Saudi Arabian joint venture responsible for the project. KEFI holds a 13% interest in GMCO, with Saudi industrial group ARTAR owning the remaining 87%. Jibal Qutman is expected to become the joint venture’s first mining operation, providing a potential starting point for the wider development of its Saudi Arabian gold and copper-gold assets.
Stage 1, known as JQ1, will focus on near-surface oxide gold resources using conventional open-pit mining and carbon-in-leach processing. The definitive feasibility study estimates that the operation could recover approximately 258,000 ounces of gold over an initial seven-year mine life.
The estimated capital requirement of US$87 million is equivalent to approximately A$124 million. The feasibility study assesses the project under gold price scenarios of US$3,000 and US$5,000 per ounce, producing estimated post-tax net present values of US$141 million and US$275 million respectively, based on a 5% discount rate.
The projected internal rate of return ranges from 23% to 60%, with estimated payback periods of 1.9 years under the lower gold price scenario and 0.9 years under the higher scenario. These figures are based on feasibility study assumptions and remain subject to changes in gold prices, development costs, operating performance and other project risks.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
