Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Kefi Minerals.

Project Description
The Tulu Kapi project has a probable ore reserve of one-million ounces of gold and mineral resources of 1.9-million ounces of gold.

A definitive feasibility study (DFS) on the project is evaluating the construction of a 1.2-million-tonne-a-year processing plant, with an estimated gold production of 86 000 oz/y at a total operating cost of $626/oz.

Net Present Value/Internal Rate of Return
Not stated.

Value
The planned development expenditure for Tulu Kapi has been reduced from an estimated $150-million to about $120-million, based on initial bids received from mining contractors and on terms on offer to the company for the acquisition of the identified suitable process plants.

The development funding plan will be a combination of debt and equity finance, drawn down in the second half of this year and comprising $100-million of project debt. The balance of $20-million will be financed by one of several possible sources being assembled, including financing from contractors and equity at the project or parent company level.

Duration
Kefi aims to start development at the project this year, with production expected in 2017.

Latest Developments
Kefi has signed a mining agreement with Ethiopia’s Ministry of Mines to further its 1.9-million-ounce Tulu Kapi project.

The Aim-listed company has said the mining agreement on its 100%-owned mine is a “landmark achievement” that enables it to start development of this high-value and low capital expenditure (capex) asset.

Kefi executive chairperson Harry Anagnostaras-Adams has added that the company was grateful for the cooperation, vision and support of Ethiopia’s government.

Meanwhile, Kefi expects to reach several other milestones during the year, including the independently refined and verified mine plan; verified capex, operational expenditure and closure costs; independently verified ore reserves; and an updated definitive feasibility study.

The company will also aim to achieve the formalisation of a bank syndicate, the agreement of final terms for project finance, the securing of full development funding and the start of construction.

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.