Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Kefi Minerals.

Project Description
A scoping level review of the Tulu Kapi project, acquired by Kefi in December 2013, indicates potential for further improvement in the economic performance of the project.

The review has confirmed that the targeted openpit mine production for the project can be increased to 1.2-million ounces a year, as opposed to the company’s preacquisition estimate of 800 000 oz/y.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital expenditure is estimated at $143-million.

Duration
The definitive feasibility study (DFS) is planned for completion in late 2014, with construction scheduled to start in 2015.

Latest Developments
Kefi updated the Joint Ore Reserves Committee-compliant indicated resource of the Tulu Kapi project in February this year to 18.8-million tonnes at 2.67 g/t of gold for 1.62-million ounces of gold.

This was an improvement on the indicated resource estimate of 18.4-million tonnes at 2.57 g/t for 1.52-million ounces of gold as at August 2014.

The gold exploration and development company will now progress to further optimise and update the mine design and the mining plans, as well as update the independent ore reserves estimate of the project, at which Kefi expects to break ground in the fourth quarter of this year.

As part of this process, various studies will be updated, including geotechnical, mine dilution and mine planning studies, as well as the verification of local input costs.

Kefi will also focus on obtaining the requisite licences and financing.

Further, Kefi has entered into discussions with selected candidates for contract mining and with the vendors of process plants that are suitable for relocation and refurbishment.

“All this gives the board confidence that development will commence in 2015, leading to commissioning at the end of 2016 for production in 2017,” says executive chairperson Harry Anagnostaras-Adams.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kefi Minerals, tel +90 232 381 9431, fax + 90 232 381 9071 or email info@kefi-minerals.com.