24th Sep 2014 07:43
LONDON (Alliance News) - Kefi Minerals PLC shares were higher in early trade on Wednesday 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.
Kefi 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.
The company said it now finalising the independent verification of estimates for costs of capital expenditure, operating expenditures and closure, along with an independent verification of the ore reserves at the site. It is also working on securing a project financing facility for the site.
It 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.
"During the coming weeks, we expect to report further milestones, including independently verified project cost estimates and ore reserves. At the same time, we are working on securing project financing. As a result, we are confident of advancing to the development stage in the first half of 2015," said Jeff Rayner, managing director of Kefi.
Kefi shares rose 7.4% in early trade to 1.53 pence, making it one of the top performers on the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Kefi Gold & Copper