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Kefi announced in February 2022 that the Ethiopia-based planning and permitting team had been replaced by the development team in preparation for project launch and building the required workforce of about 1 000 people over the next 18 months.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 Gold and Copper on June 27 refuted media reports in Ethiopia that it had lost its Tulu Kapi licence.

It noted that it had received a reminder from the Ethiopia Minister of Mines referring to a new deadline of June 30, by which time it was required to demonstrate the availability of project funding and check compliance with regard to the environment, duties and taxes, land rent and exploration reports.

The company has said that it remains confident about its compliance with all regulatory requirements and in its ability to achieve its plan as set out in its announcement dated June 15, including the signing of the umbrella funding agreement by the end of June.

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.