Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Kefi Minerals.

Project Description
Tulu Kapi has a current mineral resource estimated at 20.2-million tonnes grading at 2.65 g/t of gold, and a reserve estimate of 15.5-million tonnes at 2.12 g/t of gold.

The project’s definitive feasibility study (DFS) is based on a conventional openpit drill-and-blast, and load-and-haul mining operation on 7.5 m benches, as well as a 1.2-million-tonne-a year carbon-in-leach processing plant, with gold recoveries averaging 91.5%.

Using semiselective mining techniques and 120 t backhoe configured excavators, it is planned to process ore mined above a cutoff of 0.9 g/t of gold for the first ten years, with ore mined between 0.5 g/t and 0.9 g/t of gold being stockpiled for later processing.

The project is expected to produce 961 000 oz of gold over its 13-year mine life.

Net Present Value/Internal Rate of Return
The project has a leveraged net present value at the start of construction this year of $106-million, at an 8% discount rate, and a leveraged internal rate of return of 52%, with a payback of 4.5 years.

Value
Total capital for the project is estimated at $121.6-million.

Duration
Commissioning of the processing plant is expected to start in the fourth quarter of 2016, with gold production expected to start in 2017.

Latest Developments
Kefi’s objectives during the third quarter of 2015 include the lowering of the initial funding requirement through the tendering and procurement programmes, as well as the refinement of the financing plan with contractors and the secured financiers.

Key expected milestones for the remainder of 2015 include finalising full development funding in the third quarter and starting community resettlement and major works on site in the fourth quarter.

Meanwhile, potential mining contractors and engineering, procurement and construction management contractors have been shortlisted. Final bidding will now proceed followed by procurement once development funding has been arranged.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kefi Minerals (Ethiopia), tel +251 11647 9976/73 or fax +251 11647 9975.