KEFI Gold and Copper plc (LON:KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, has provided the folowing operational update.
Ethiopia
KEFI’s subsidiary Tulu Kapi Gold Mines Share Company (“TKGM”) has completed its recent incident management and investigations and is now preparing for the launch of the Tulu Kapi Gold Project (the “Project”). Members of KEFI’s senior management team are based in Ethiopia supporting the various Project teams, including those at the Tulu Kapi site, which remains quiet despite the security situation elsewhere in the country, with the closest conflicts several hundred kilometres from TKGM’s sites.
Since the Company’s most recent update on the Project, announced on 16 November 2021, there has been a significant escalation of efforts, both domestically and internationally, to bring to an end Ethiopia’s internal conflicts, caused by rebels pressuring for a change of the recently elected Government. Recent developments include the commencement of mediation and a significant Ethiopian Government military offensive to push back the rebels.
The Company remains optimistic these efforts will result in a positive resolution to the dispute and preparations continue for Project launch, with TKGM’s current focus on satisfying all technical conditions precedent by the end of January 2022 and preparing the community.
Saudi Arabia
KEFI-operated joint venture company Gold and Minerals Limited (“G&M”) continues on track to update and upgrade the Mineral Resource Estimate (“MRE”) at its Hawiah Copper-Gold Project before the end of 2021. This update will incorporate the additional resources defined from the results of its successful 29,814 metre Phase 3 and Phase 4 drilling programmes, completed recently, and post the Maiden MRE of 19.3Mt @ 1.9% Cu equivalent announced in August 2020. The Company believes, tonnage, grade and resource classification are all expected to increase.
We are also pleased to report that communications with the regulatory authorities in Saudi Arabia have led us to expect clarification of Mining Licence tenure at The Company’s Jibal Qutman Gold Project in 2022.
KEFI Gold and Copper (LON: KEFI) is focused primarily on the advanced Tulu Kapi Gold Project development project in Ethiopia, along with its pipeline of other projects within the highly prospective Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi generates cash flows for capital repayments, further exploration and expansion as warranted and, when appropriate, dividends to shareholders.
