JOHANNESBURG (miningweekly.com) – Gold exploration and development company Kefi Minerals has completed the definitive feasibility study (DFS) for its Tulu Kapi project, in Ethopia, on time and within budget.
"This has been a very successful quarter where we have been granted full development permitting from the government of Ethiopia, completed a scheduled equity placing and we have now tabled the DFS for financier review.
"Once production starts, this development will bring substantial benefits to Ethiopia, including the creation of 700 jobs at the mine site over its planned initial 13-year life,” Kefi Minerals chairperson Harry Anagnostaras-Adams said.
Gold production at the flagship project remained at 960 000 oz, at an average of 95 000 oz/y . All-in sustaining costs would be around $780/oz, which ranked the project in the lowest-cost quartile globally for gold producers.
This included all operating costs, royalties, sustaining capital and closure costs, but excluded initial capital investment.
The initial funding requirement stood at $120-million, based on the planned use of contract-mining and an all-new processing plant, while Kefi would seek $100-million of secured debt-based finance and $20-million of equity finance for development funding plans.
This would be done either at the contractor-funding level, project subsidiary level or parent company level. The projected equity investment was in addition to the $65-million that had been invested in the project to date.