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Kefi announced in February 2022 that the Ethiopia-based planning and permitting team had been replaced by the development team in preparation for project launch and building the required workforce of about 1 000 people over the next 18 months.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
Kefi Gold and Copper confirmed on October 20 that the capital requirement to build the Tulu Kapi gold mine is 7% higher than originally anticipated.

The higher capital cost of $320-million, compared with the initial $300-million, is owing to significant inflation increases being experienced worldwide.

The project’s financing syndicate members, however, have indicated a willingness to increase their investment, ensuring that the project will be funded under a previously agreed financing structure.

Further, Kefi says one syndicate members has waived a key condition that was necessary, involving agreement with a particular Ethiopian government policy matter, owing to “a good relationship between parties and significant progress made”.

Planned Start/End Date
Commissioning of the project is planned for 2023, with key development activities to start in December 2021.

Latest Developments
The final proposed finance plan for the Tulu Kapi project has been circulated among syndicate members for final sign-off.

This broader syndicate approval is expected in mid-November, following which mine construction will start.

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.