Aim-listed Kefi Minerals' Ethiopian exploration tenements will be expanded to about 1 900 km2 to encompass the wider Tulu Kapi gold project district surrounding the 7 km2 mining licence area already held by subsidiary Tulu Kapi Gold Mines Share Company (TKGM).
"The company 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," Kefi said in a statement issued on Tuesday.
Exploration funding will likely 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 TKGM will have operating cash flows before finance charges and tax from the Tulu Kapi project of about £50-million or about $65-million a year at the current spot gold price of $1 230/oz, Kefi pointed out.