Name of the Project
Tulu Kapi gold project.

Location
Western Ethiopia.

Project Owner/s
London-listed 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
Kefi expects the full Tulu Kapi development to cost $340-million.

Planned Start/End Date
Production is expected to start in 2027.

Latest Developments
Kefi Copper and Gold reported on October 13 that it expected a $240-million debt capital offering towards its Tulu Kapi project to be signed in the week.

The financing had been put on hold following a procedural matter that had to be addressed by one syndicate party, which has now been resolved.

Kefi has said that the overall process remains unchanged from the expected steps and schedule for the project, with various construction projects already under way.

In turn, project equity capital arrangements are also advancing. The company has confirmed that it has unused working capital resources and undrawn facilities in place pending drawdown of full project finance.

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.