1st Oct 2014 07:49
LONDON (Alliance News) - KEFI Minerals PLC Wednesday said an independent verification of its cost estimates for the Tulu Kapi gold project in Ethiopia had resulted in significantly improved forecast cash flows and values.
KEFI said the total operating costs for the project had been estimated at USD626 per ounce, with all-in costs estimated at USD844 per ounce, including royalties, below industry averages.
The initial capital expenditure for the project has been estimated at USD130 million, while the working capital required for the start up is forecast at around USD20 million, KEFI said.
"We are pleased to report the independent review of our estimated costs for the development and operation of Tulu Kapi. The estimated cash flows and values have been significantly improved," said KEFI Chairman Harry Anagnostaras-Adams.
KEFI shares were boosted in late September after the company said it has received independent verification for its revised mine plan for the Tulu Kapi gold project in Ethiopia, including an increased production target for the site and plans to re-activate the mining licence application in October.
The group said the revised open pit development mine plan for Tulu Kapi has an annual gold production target of 86,000 ounces per annum for 10.5 years, up from the 84,000 ounces estimated when it last outlined production targets for the site in December 2013.
KEFI expects to re-activate the Tulu Kapi mining licence application in October this year and is working towards starting construction at the site in the first half of 2015.
KEFI shares are up 0.4% to 1.38 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Kefi Gold & Copper