LONDON (Alliance News) - Kefi Minerals PLC Wednesday said it has increased the targeted open pit mine production at its newly acquired Tulu Kapi gold project in Ethiopia.
The gold and copper exploration and development company, with operations in Saudi Arabia and Ethiopia, said its targeted production has been increased to 1.2 million ounces, from Kefi's previous estimate of 800,000 ounces in December 2013.
The company said that despite the increase its all-in-costs are still estimated at roughly USD700 per ounce and the new conclusions were developed from the company's scoping level review of the major site.
Kefi said the increased production information reduces the risk and improves the returns from the Tulu Kapi site, while it is now able to refine the project parameters in an updated Definitive Feasibility Study of the sites.
"As we continue to refine the selective mining techniques, we expect to report further improvements during the following months and to reactivate the Mining Licence Application by the end of 2014," managing Director Jeff Rayner said in a statement. "As a result, we remain confident of fulfilling our commitments to the Ethiopian Government that production will commence in 2016."
The company holds a 75% interest in the site, while Nyota Minerals Ltd holds the other 25% interest after selling down its 100% holding in the site for GBP1 million cash and just under 107.1 million shares in Kefi during December.
Kefi Minerals shares were up 2.9% to 1.93 pence Wednesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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