Tulu Kapi gold project, Ethiopia – update

Drill core from the Tulu kapi project

Photo by Kefi Gold and Copper

8th March 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


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Name of the Project
Tulu Kapi gold project.

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 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
The project will employ 1 000 people directly and up to 10 000 people indirectly.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure

Planned Start/End Date
Production is expected to start in 2025.

Latest Developments
Kefi Gold and Copper has announced that a retail offer through PrimaryBid has been successfully completed, raising gross proceeds of about £495 916, before expenses, through the issue of 82.7-million ordinary shares.

This follows an announcement on March 4 of a fundraising package to facilitate full project launch at the Tulu Kapi gold project, with project launch expected to occur by midyear.

The gross proceeds of the capital raise will be used for the completion of project financing and the launch of Tulu Kapi; the extinguishing of certain current liabilities and advances to strengthen its balance sheet ahead of proposed project development; and general working capital purposes.

In total, the capital raise is expected to raise gross proceeds of about £5-million through the £4.5-million firm placing and the £495 916 retail offer.

The fundraising package, or capital raise, comprises a firm placing of 750-million new ordinary shares; a conditional issue of 83-million ordinary shares; and an offer through PrimaryBid of new ordinary shares.

The completion of the conditional remuneration issue remains subject to the passing of resolutions at the company’s general meeting to be convened on March 26.

Key Contractors, Suppliers and Consultants
Principal contractors: Lycopodium (process plant design and construction); PW Mining and the Ethiopian Electric Power Company and the Ethiopian Roads Authority.

Contact Details for Project Information
Kefi Gold and Copper, tel +90 232 381 9431, fax +90 232 381 9071 or email


Edited by Creamer Media Reporter



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