15th Oct 2014 07:36
LONDON (Alliance News) - KEFI Minerals PLC Wednesday said it has reactivated its mining license at its Tulu Kapi project in Ethiopia after receiving independent verifications and approvals from the government, which has led to initial discussions regarding funding for the project with multiple financial institutions.
During the third quarter ended September 30, it updated its JORC mineral resource at Tulu Kapi. Indicated and inferred resources now total 23.7 million tonnes at 2.51 grammes per tonne of gold, to produce 1.9 million ounces of gold.
It also updated its JORC ore resource, reporting 12.9 million tonnes of probable ore reserves at 2.41 grammes per tonne of gold to produce 1 million ounces of gold. It estimates its all-in-costs at the project will be USD844 per ounce, below global averages, said KEFI in a statement.
"We made tremendous progress during the last quarter which, post period, culminated in the reactivation of the mining licence application for Tulu Kapi. With the strong support of the Ethiopian government, KEFI can now see a clear path towards becoming a gold developer and commencing commercial production," said Executive Chairman Harry Anagnostaras-Adams.
The mining license was reactivated on October 6, and had been suspended since mid-2013 by the previous owner of the asset. Kefi now plans to begin construction at the site in early 2015, it said.
It also acquired the remaining 25% of the Tulu Kapi project for GBP6 million on September 3, which has given it full control of the project alongside funding flexibility. As a result, the company has received proposed terms for project finance of USD100 million from several financial institutions, which will develop as the project does, said KEFI.
KEFI now plans to focus on assessing further opportunities for further improvements at Tulu Kapi, including the possibility of refurbishing a plant rather than constructing a new one and using contract-mining rather than operate the mine itself, it said in a statement.
At its Jibal Qutman project in Saudi Arabia, it has continued with drilling and trenching of three of its five open pits that contain mineralisation.
"While the present focus is predominantly on Tulu Kapi, we are also ready to advance our strong exploration portfolio of carefully selected targets within the highly prospective Arabian-Nubian Shield," added Anagnostaras-Adams.
KEFI shares were trading flat at 1.25 pence per share Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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