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Kefi announced in February 2022 that the Ethiopia-based planning and permitting team had been replaced by the development team in preparation for project launch and building the required workforce of about 1 000 people over the next 18 months.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 to start in December 2021.

Latest Developments
Kefi Minerals has reported that it remains on track with the development of multiparty project financing activities and the early development works of its Tulu Kapi project.

Kefi has maintained the full funding syndicate for the project and plans to sign the funding umbrella agreement this month to demonstrate the full funding commitment, in particular to the Ethiopian Ministry of Mines.

It also plans to present the full funding capacity of all syndicate members to the Ministry, clearly set out any outstanding conditions for the execution of the underlying definitive agreements between the respective individual counterparties to the umbrella agreement, and start project construction in October, which is the Ethiopian dry season.

Kefi also intends to execute the underlying detailed funding agreements with the individual counterparties to the umbrella agreement. These include security protection on transport routes and at the project sites, insurance policies and the registration of mortgages and direct agreements between the banks and government.

The company plans to complete the remaining few government tasks associated with the project. This includes the confirmation of security arrangements and various other project matters, as well as protection for the banks, such as the registration of historical costs, exploration rights in the areas in which Kefi is active, and from within which the Tulu Kapi mine development has been successfully planned.

Kefi has, thus far, received a final pricing proposal from the mining contractor, which is being reviewed. It has also commissioned further refinements of the process plant construction contract and pricing, but current supply chain strains internationally warrant intensified due diligence in this regard.

The company has also collaborated with local government authorities to implement the first stage of resettlement and compensation under the agreed protocols as per the performance standards of the World Bank International Finance Corporation.

It has also conducted several community and local-authority engagement meetings, and presented at the Mine Africa forum, held in Toronto, to promote Ethiopia for mining development.

As Kefi progresses with the development, it is keeping the Ethiopian Ministry of Mines informed to ensure that the procedure is met to demonstrate good faith and progress that is as fast as is reasonably possible.

Key Contractors, Suppliers and Consultants
Lycopodium (plant construction); and Corica Group (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.