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Kefi upgrades Tulu Kapi indicated resource

4th February 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Emerging gold miner Kefi Minerals on Wednesday announced an updated Joint Ore Reserves Committee-compliant indicated resource of 18.8-million tonnes at 2.67 g/t of gold for 1.62-million ounces of gold at its Tulu Kapi project, in Ethiopia.

This was an improvement on the indicated resource estimate of 18.4-million tonnes at 2.57 g/t for 1.52-million ounces of gold as at August 2014.

“[The update] further validates the opportunity that the Kefi team, led by exploration director Jeff Rayner, identified and our belief that we have an attractive openpit project and underground mining potential,” executive chairperson Harry Anagnostaras-Adams said in a statement on Wednesday.

The gold exploration and development company would now move to further optimise and update the mine design and the mining plans, as well as update the independent ore reserves estimate of the project, on which Kefi expects to break ground in the fourth quarter of this year.

As part of this process various studies would be updated, including geotechnical, mine dilution and mine planning studies, as well as the verification of local input costs.

Kefi would also focus on obtaining the requisite licences, community resettlement, team building and financing.

"Over the next few months we will finalise our development plans, taking into consideration contract mining submissions and existing process plants for sale,” he explained.

Kefi had entered into discussions with selected candidates for contract mining and with the vendors of process plants that were suitable for relocation and refurbishment.

“All this gives the board confidence that development will commence in 2015 leading to commissioning at the end of 2016 for production in 2017,” Anagnostaras-Adams highlighted.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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