KEFI Gold and Copper is moving its Tulu Kapi gold project in Ethiopia towards construction while also advancing plans for a second, underground mining operation beneath the main open pit.
Work on the open pit mine and processing plant is progressing, with plant fabrication already procured through specialist international workshops. Activity at site includes community resettlement and preparations for construction, with the programme expected to accelerate during the dry season. The current schedule targets the start of open pit production in mid-2028.
At the same time, KEFI has advanced planning for an underground mine following an updated Preliminary Economic Assessment. The underground operation would target higher-grade mineralisation below the open pit and use the processing infrastructure already being developed for the main project.
That structure could allow KEFI to add underground production without building a separate processing facility. Underground ore would instead be blended with open pit material, with plant modifications planned to support higher throughput.
The current underground mining inventory stands at 2.38 million tonnes grading 3.30 grams of gold per tonne, containing about 253,000 ounces of gold. Based on estimated metallurgical recovery of around 94%, approximately 237,000 ounces could be recovered from the underground operation.
Combined with an estimated 985,000 ounces from the open pit, the current plan points to total recovered gold of around 1.2 million ounces over an eight-year period. At steady state, the combined operation is expected to produce around 180,000 ounces of gold per year for seven to eight years, based on the mineral resources currently defined.
The underground project is also designed to limit the need for additional upfront funding. Estimated pre-production development capital is US$8.09 million, with maximum cash drawdown of about US$10.5 million. KEFI currently expects this funding to come from cash flow generated by the open pit operation, rather than through new equity.
The Preliminary Economic Assessment uses a gold price of US$2,350 per ounce and estimates a post-tax net present value of about US$274.1 million at a 5% discount rate. It also indicates an internal rate of return of 220% and a payback period of nine months.
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.
