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Kefi Minerals reflects on the ‘most productive quarter’ since inception

Kefi Minerals reflects on the ‘most productive quarter’ since inception

Photo by Bloomberg

28th July 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Reflecting on what MD Jeff Rayner describes as “the most productive quarter in the history of the company”, Aim-listed Kefi Minerals reported on Monday that it continues to advance its gold projects in Ethiopia and Saudi Arabia, raising over £2-million to ensure rapid development of the group’s flagship tenements.

“This has been the most productive quarter in the history of the company, where tangible progress has been achieved [at] our projects in both Ethiopia and Saudi Arabia.

“We strengthened our board with the appointment of former UK ambassador to Ethiopia Norman Ling and raised capital to ensure that we can continue to support the development of our projects,” he said in a quarterly operational update.

During the three months ended June 30, Kefi closed its private placing of ordinary shares, raising £2.13-million in cash for the acquisition of the remaining 25% of Tulu Kapi, in western Ethiopia, and the funding of 100% of costs to reactivate the project’s mining licence application (MLA) by the end of the year.

This followed an overhaul of the development and production plan for Tulu Kapi in May, to focus on selective mining, and the increase in life-of-mine production compared with what had been assumed at the time of the acquisition.

The project’s exploration licence was renewed on June 17, along with two adjacent licences, and the company appointed independent consultants to complete a definitive feasibility study (DFS) in two stages.

“The first stage would focus on securing the documentation required to reactivate the MLA, while the second stage would gather the documentation required for the establishment of the banking syndicate,” the miner stated.

The Tulu Kapi mineral resource now stood at 2.05-million ounces of gold, with 90% in the indicated category.

“Operationally, the selective mining approach we deployed at Tulu Kapi at the beginning of the year has had the effect of significantly lowering capital requirements, making the project a more attractive investment and financially  viable proposition.

“As a result, for Tulu Kapi, we are on track to complete the DFS documentation required to organise the project finance and reactivate the mining licence,” outlined Rayner.

In Saudi Arabia, results of drilling carried out at the group’s Jibal Qutman project confirmed that mineralisation remained open in three of the five adjacent pits included in the mineral resource.

“While the focus remains on expanding the mineral resources at Jibal Qutman, we are also working on refining documentation for triggering the MLA,” he said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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