KEFI Minerals Plc (LON:KEFI), the gold exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, has today noted that the Government of the Federal Democratic Republic of Ethiopia has announced the lifting of the state of emergency implemented in October 2016, following a vote in the country’s parliament.
KEFI continues to progress its Tulu Kapi gold project in western Ethiopia towards development, with support from the Ethiopian Government. The World Bank forecast Ethiopia to be the world’s fastest growing economy in 2017 in its latest edition of “Global Economic Prospects” published in June 2017.
he Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.
Following completion of KEFI Minerals Plc Definitive Feasibility Study for Tulu Kapi, the Company is now progressing contractual terms for project construction and operation. Latest estimates for annual gold production are c. 120,000oz pa and All-in Sustaining Costs (including operating, sustaining capital and closure but not including financing charges) of <US$800/oz. Tulu Kapi’s Ore Reserve estimate totals 15.4Mt at 2.12g/t gold, containing 1.05Moz.
All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts. These plans now also reflect the agreed construction and operating terms with project contractors, and have been independently reviewed by experts appointed for the project finance syndicate.
A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts.
The projected cash flows indicate that the net cash build-up (after servicing financing) in the first three production years is US$61 million to US$251 million for the gold price range of US$1,100/oz to US$1,900/oz which prevailed during the past seven years.
