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Tulu Kapi gold project, Ethiopia

22nd August 2014

  

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Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Kefi Minerals.

Project Description
A scoping level review of the Tulu Kapi project, acquired by Kefi in December 2013, indicates potential for further improvement in the economic performance of the project.

The review has confirmed that the targeted openpit mine production for the project can be increased to 1.2-million ounces a year, as opposed to the company’s preacquisition estimate of 800 000 oz/y.

Value
Capital expenditure is estimated at $143-million.

Duration
The definitive feasibility study (DFS) is planned for completion in late 2014, with construction scheduled to start in 2015.

Latest Developments
Kefi announced an independently verified updated Joint Ore Reserves Committee- (Jorc-) compliant indicated and inferred resource of 23.7-million tons at a grade of 2.51 g/t of gold for the project on August 18.

This translates into a reserve of 1.9-million ounces of gold. The resource was estimated following 12 months of intense review by Kefi and its independent specialists and after considering all drilling and trenching conducted to date, along with improved understanding of geological structural controls.

The next step of producing the estimate of probable reserves is well advanced, following which the independent reviews of the company’s plans for project, community and finance will occur in quick succession.

As a result, the company is on track to lodge the mining licence application during the fourth quarter of 2014, and, at the same time, expand project documentation for the planned project financing. All this gives the board confidence that development will start in 2015.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kefi Minerals, tel +90 232 381 9431, fax + 90 232 381 9071 or email info@kefi-minerals.com.

Edited by Creamer Media Reporter

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