Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Kefi Minerals.

Project Description
The Tulu Kapi project has a probable ore reserve of one-million ounces of gold and mineral resources of 1.9-million ounces of gold.

A definitive feasibility study (DFS) on the project is evaluating the construction of a 1.2-million-tonne-a-year processing plant, with an estimated gold production of 86 000 oz/y at a total operating cost of $626/oz.

Net Present Value/Internal Rate of Return
Not stated.

Value
The planned development expenditure for Tulu Kapi has been reduced from an estimated $150-million to about $120-million, based on initial bids received from mining contractors and on terms on offer to the company for the acquisition of the identified suitable process plants.

The development funding plan will be a combination of debt and equity finance, drawn down in the second half of this year and comprising $100-million of project debt. The balance of $20-million will be financed by one of several possible sources being assembled, including financing from contractors and equity at the project or parent company level.

Duration
Kefi aims to start development at the project this year, with production expected in 2017.

Latest Developments
The planning parameters for the DFS have been independently confirmed. Kefi’s milestones for 2015 include licensing, resettling affected households, arranging project finance in mid-2015 for major works to start in the final quarter of 2015 and commissioning production at the end of 2016.

Meanwhile, Kefi has received approval from Ethiopia’s Ministry of Mines to develop the Tulu Kapi project.

The company's application for the mine is before the Council of Ministers for approval of the mining agreement and to issue the mining licence and full permitting to develop and operate the project for 20 years.

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.