Name of the Project
Tulu Kapi gold project.

Location
The project is located in western Ethiopia.

Project Owner/s
KEFI Minerals will own 80% of the exploration and holding company for 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 a 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 after positive cashflows have begun to repay project debts.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, assuming a long-term gold price of $1 400/oz, of $236-million and an internal rate of return of (The openpit has an internal rate of return of) 49%.

Capital Expenditure
The 2020 Tulu Kapi plan shows total funding needs of about $221-million.

Planned Start/End Date
The start of full gold production at Tulu Kapi is expected in 2022.

Latest Developments
KEFI Minerals is progressing talks with Ethiopian investors and international specialist mining financiers to secure project equity ahead of closing the full financing package for the Tulu Kapi gold project by October.

The company remains focused on achieving key targets set out in February, including major site activities to start at the project.

KEFI plans to secure half of the funding for Tulu Kapi through senior debt and half as project-level equity.

Key Contracts and Suppliers
Ausdrill (mine services).

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