1st Apr 2014 11:56
LONDON (Alliance News) - KEFI Minerals PLC Tuesday said that its two-month drilling programme at the Tulu Kapi gold project in western Ethiopia is underway, and it anticipates a 1.2 million metric tonnes per annum production rate, at higher grades than previously planned.
The company manages two joint ventures: 75%-owned KEFI Minerals Ethiopia Ltd, purchased from Nyota Minerals Ltd in December 2013, and 40%-owned Gold & Minerals LLC Ltd.
In a trading update for the first quarter ended March 31, the AIM-quoted gold and copper exploration and development company said that drilling continued during the quarter at Gold & Minerals's Jibal Qutman project in Saudi Arabia. It said that mineralisation remains open in three of the five adjacent open pits included in the mineral resource.
At Tulu Kapi, it said it has engaged independent consultants for Stage 1 of modifying the Definitive Feasibility Study, which it needs to reactivate the Mining Licence Application (MLA), to suit the anticipated 1.2 million tonnes per annum production rate at higher grades than historically planned.
KEFI Minerals also said that during the recent quarter it settled the VAT liability with the Ethiopian government, with an agreed 3-year payment schedule.
The company said that milestones for 2014 are expected to include results from fieldwork on licences in both Ethiopia and Saudi Arabia.
"We have a number of milestones ahead for the year, targeting the re-activation of Tulu Kapi's MLA in 2014 and the start of construction in 2015. In Saudi Arabia, Jibal Qutman project is equally important although its timeline is less clear pending refinement of technical studies after regulatory reviews," said Managing director Jeff Rayner in a statement.
KEFI Minerals shares were trading 1.4% lower at 1.80 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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