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
Not stated.

Capital Expenditure
While there have been no material changes in the estimated $253-million in capital costs of the project – comprising about $221-million for development, about $21-million for sustaining capital and about $21-million for closure costs – a standby facility has now been included in the finance plan to provide additional headroom.

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

Latest Developments
Kefi Minerals reports that financing for the Tulu Kapi gold project remains on track, with the project finance consortium expecting to achieve financial close in March.

Production is expected to start in the fourth quarter of 2022.

A due diligence work programme was recently undertaken to serve the consortium. This included a site inspection and meetings with project site-based teams, the community and local government.

While the project financing is being finalised, scheduled long-lead project activities are continuing, including procurement and other works for off-site infrastructure funded by the Ethiopian government as its project equity contribution.

Other activities that are progressing include resettlement preparations in accordance with World Bank International Finance Corporation performance standards, updates to input costs and details of the arrangements with contractors. This includes the processing plant front-end engineering design for construction and local subcontractor competitive quotations, and updated competitive bids for the full schedule of rates for the mining operation

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.