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 determined that there is potential to mine for gold at three prospects adjacent to its one-million-ounce Tulu Kapi openpit gold mine in Ethiopia.

The gold mineralisation could potentially provide satellite feed to the central processing plant at Tulu Kapi or be developed as standalone heap leach projects.

Two parallel shear zones immediately west of Tulu Kapi, the Komto-Guji Shear and the Bila-Gulliso Shear, are host to a number of gold prospects that have similar geology to Tulu Kapi.

Eight trenches have recently been excavated by hand in accessible areas and all trenches returned positive ore grade intercepts over a 3 km strike length, including 7 m at 7.27 g/t gold.

At the Soyoma prospect, on the Bila-Gulliso Shear, 15 km north-west of Tulu Kapi, previous wide-spaced trench sampling has returned 14.2 m at 8.2 g/t.

A small gravel pit for road base has recently been excavated over the top of two trenches, which has revealed a series of flat-lying stacked quartz veins.

These individual veins have been channel sampled and returned best results of 3 m at 4.2 g/t, 2 m at 2.75 g/t and 1 m at 2.65 g/t gold. The vein zone and historic workings have been mapped over a 2 km strike and further trenching and drilling was planned.

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.