KEFI Minerals Plc (LON: KEFI), the gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, is today reported that, based on advice received from the Ethiopian Ministry of Mines, Petroleum and Natural Gas its Ethiopian exploration tenements will be expanded seven-fold to c.1,900 sq km to encompass the wider Tulu Kapi Gold Project District surrounding the 7 sq km mining licence area already held by the Company’s subsidiary Tulu Kapi Gold Mines Share Company.
Kefi understands that this expanded exploration land position is planned for granting after Project construction commences and encompasses all potential satellite deposits within trucking distance of the Project. The area contains several already-drill-intercepted Tulu Kapi style and volcanogenic massive sulphide prospects as reported previously, plus significant additional areas of prospectivity.
Exploration funding is intended to be covered from the planned development funding and operational cash flows of TKGM which will have pre-emptive rights to any additional ore on arms-length terms and subject to financier approval. Independently verified financial models indicate an 8-year average annual TKGM Operating Cash Flow before Finance Charges and Tax from the Project of c. £50 million (US$65 million or ETB1.7 billion) at the current spot gold price of US$1,230/oz.
KEFI Minerals plc
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.
