Name of the Project
Tulu Kapi gold project.

Location
Western Ethiopia.

Project Owner/s
Kefi Gold and Copper (formerly KEFI Minerals) will own 80% of the exploration and holding company for the government of 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 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 the repaying of project debts through positive cash flows.

Potential Job Creation
The project is expected to create about 1 000 direct jobs and 5 000 to 10 000 indirect jobs, with foreign direct investment of about $500-million, including historical investment.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
$320-million.

Planned Start/End Date
Production is expected to start in 2026.

Latest Developments
Kefi Gold and Copper is on track with early works at the project, which is expected to start production at 140 000 oz/y from mid-2026.

Some of the early works include building construction camps, drilling water wells, geotechnical drilling to confirm the foundation design of certain infrastructure, final infrastructure budget updating with the principal contractor and studies to increase processing activity.

The company expects the principal contractor to sign a fixed-price construction agreement with international plant fabricators in September 2024.

As Kefi is considering adding an underground component to the mine development, it is evaluating an increase in processing capacity by at least 20% – within existing capital and operational expenditure forecasts.

Government authorities have surveyed new host lands and will update a survey of existing properties of resettlers within the Tulu Kapi community, which is a precursor for starting main works on the mine property.

Meanwhile, secured lenders have visited the site for a second time, which is helping to facilitate final credit approval, expected next month. Kefi has said its financing agreements no longer require negotiation, only documentation finalisation and formal execution.

However, Kefi is still waiting for local investors to confirm their level of participation by the end of August so that other regional investors know what is available for finalisation by them in September.

Chairperson Harry Anagnostaras-Adams has assured shareholders that the company and its subsidiary are pressing ahead on the ground in Ethiopia as fast as permitted by land access.

Key Contractors, Suppliers and Consultants
Principal contractors: Lycopodium (process plant design and construction); PW Mining; the Ethiopian Electric Power Company; and the Ethiopian Roads Authority.

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