Name of the Project
Tulu Kapi gold project.

Location
Western Ethiopia.

Project Owner/s
KEFI Gold and Copper (formerly KEFI Minerals) will own 80% of the exploration and holding company for Ethiopia, KME, which, in turn, will own 56% of Tulu Kapi Gold Mines Share Company (TKGM), thus bestowing KEFI with a 45% beneficial interest in the project.

Project Description
Tulu Kapi has an ore reserve estimate of 15.4-million tonnes at 2.1 g/t gold for 1.1-million ounces of gold.

Openpit gold production is estimated at 140 000 oz/y over a seven-year mine life.

Total life-of-mine production is estimated at 980 000 oz.

The conventional openpit mining operation will include a carbon-in-leach processing plant. The mine will be connected to Ethiopia’s electricity grid through a new 47-km-long, 132 kV dedicated power line relatively close to the country’s major hydropower-generation source. An emergency diesel power plant will also be installed to provide emergency backup power for critical process equipment in the event of a grid power failure.

A preliminary economic assessment has indicated the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi openpit after the startup of the openpit and after positive cash flows have begun to repay project debts.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, assuming a long-term gold price of $1 400/oz, of $236-million.The openpit has an internal rate of return of) 49%.

Capital Expenditure
The 2020 Tulu Kapi plan shows total funding needs of about $221-million.

Planned Start/End Date
The start of full gold production at Tulu Kapi is expected in 2022.

Latest Developments
Kefi Gold and Copper has maintained an aggressive, yet risk-managed approach to maintain momentum with its projects in Ethiopia and Saudi Arabia.

The company is set to start the development of the Tulu Kapi gold project early this year, once financing closes, with the production of 190 000 oz/y expected to start in late 2022.

Kefi aims to finalise agreements with a funding consortium for $221-million required to increase its beneficial ownership from 45% to 65% in the Tulu Kapi gold project.

Key Contracts, Suppliers and Consultants
Ausdrill (mine services).

Contact Details for Project Information
KEFI Gold and Copper, tel +90 232 381 9431, fax +90 232 381 9071 or email info@kefi-minerals.com.