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 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 opened the final bidding for process plant and mine operation construction contracts at its 1.2-million-ton-a-year Tulu Kapi gold mine.

Site visits by shortlisted candidates were expected to start this week, with the winning bidders to be selected by next month.

The opening of the final bidding follows the completion of preliminary reviews of the recently completed DFS by the independent technical consultants for the secured financiers.

Short-listed contractors comprise leading international firms from several continents, all of which have been selected based on their representations, experience, commitment to the development of the Ethiopian mining industry and capacity to contribute development funding through their contractual arrangements.

Progress on the project remains on schedule for optimisation of development funding this quarter, commencement of works next quarter and production in early 2017.

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.