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 the government of 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 the repaying of project debts through positive cash flows.

Potential Job Creation
Kefi announced in February 2022 that the Ethiopia-based planning and permitting team had been replaced by the development team in preparation for project launch and building the required workforce of about 1 000-strong over the next 18 months.

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
Commissioning of the project is planned for 2023, with key development activities due to start in December 2021.

Latest Developments
Kefi Gold and Copper has said that joint venture (JV) subsidiary TKGM has worked intensely with the Ethiopian Ministry of Mines to expedite the Tulu Kapi project and that the Ministry has given it until July 8 for full project financing and launch commitments to be achieved.

As from this month, TKGM will restart the project development activities that were suspended in 2021 as a precautionary measure, owing to the civil war, which has abated since peaking at the end of December 2021 and the Ethiopian state of emergency has been lifted.

Activities will include preparation of new host lands for resettling households and also accommodation for construction personnel. An appropriate security system is being installed in readiness for construction and operations, Kefi has noted.

The launch of the project requires several matters to be completed, which are all under way.

Firstly, the JV partners will undertake an external independent security assessment of the project site, district and transport routes over several months of uninterrupted project preparation activities. This is expected to be possible later this month amid the situation on the ground.

There is also the completion of administrative arrangements with government regarding the Tulu Kapi project finance plans.

The finance syndicate remains in place and on standby to finalise documents for signing.

Key Contracts, Suppliers and Consultants
Corica Group (mining contractor).

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.