JOHANNESBURG (miningweekly.com) – Aim-listed Kefi Minerals on Wednesday announced that the total operating costs for its Tulu Kapi gold project, in Ethiopia, had been estimated at $626/oz, with all-in costs being estimated at $844/oz including royalties.
The company said this all-in cost was well below global industry averages.
"We are pleased to report the independent review of our estimated costs for the development and operation of Tulu Kapi. The estimated cash flows and values have been significantly improved,” Kefi chairperson Harry Anagnostaras-Adams commented.
Further, the project’s initial capital expenditure had been estimated at around $130-million, with the working capital required for the start-up of the project estimated at $20-million.
Anagnostaras-Adams noted that the company was now focused on reactivating its Tulu Kapi mining licence application this month, after finalising the independent verification of ore reserves and the agreement of an indicative term sheet for project finance with the preferred banking syndicate.
The company was also currently enlarging and reorganising its team in preparation for starting the development and start-up of Tulu Kapi as well as the next stage of expanding the initial development plan to pursue additional value.
Construction on the project was expected to start in 2015.