Last checked at 29 Oct 2018 07:00
29 October 2018
KEFI Minerals plc
("KEFI" or the "Company")
Field Activities Advancements for Tulu Kapi Project
KEFI Minerals (AIM: KEFI), the gold and copper exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, is pleased to report the escalation of preparatory field activities in relation to the Company's Tulu Kapi Gold Project in Ethiopia ("Tulu Kapi" or the "Project") since announcing on 8 October 2018 that local, zonal and regional authorities had confirmed their intention to expedite community resettlement.
The authorities have undertaken the necessary preparatory steps to carry out the planned community resettlement in Q1 2019. The addition field activities in the past week include the following surveys and inspections:
· Completion of a 14km road route survey by the Ethiopian Roads Authority, for a new road required for the Project production phase;
· Completion of a 47 km route survey for electricity transmission lines from the regional main line to the site for the Tulu Kapi sub-station, carried out by the Ethiopian Electricity Power Corporation;
· Siting of the last geotechnical drilling to enable the final design of foundations for the processing plant and associated infrastructure, set out by Lycopodium with independent geotechnical consultants Knight Piesold;
· Reconfirmation of compensation calculations, carried out by the local government (Wareda);
· An inspection of new host lands, being carried out by the West Walega Zonal Administration; and
· Follow-up base line environmental surveys completed by independent consultant Golder Associates.
The Company is pleased to report that the field and community work has intensified now that the 2018 wet season has passed. These developments are progressing in parallel with work on government administrative tasks, construction planning and financing arrangements. All parties are focused on construction start-up in early 2019 and first production in H2 2020. Further updates will be provided as matters progress.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries
KEFI Minerals plc |
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Harry Anagnostaras-Adams (Managing Director) | +357 99457843 |
John Leach (Finance Director) | +357 99208130 |
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SP Angel Corporate Finance LLP (Nominated Adviser and Joint Broker) | +44 20 3470 0470 |
Ewan Leggat, Jeff Keating, Soltan Tagiev |
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Brandon Hill Capital Ltd (Joint Broker) | +44 20 7936 5200 |
Oliver Stansfield, Jonathan Evans |
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IFC Advisory Ltd (Financial PR and IR) | +44 20 3934 6630 |
Tim Metcalfe, Heather Armstrong |
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Notes to Editor
KEFI Minerals plc
KEFI is focused primarily on the advanced Tulu Kapi Gold Project development project in Ethiopia, along with its pipeline of other projects within the highly prospective Arabian-Nubian Shield. KEFI targets that production at Tulu Kapi generates cash flows for capital repayments, further exploration and expansion as warranted and, when appropriate, dividends to shareholders.
KEFI Minerals in Ethiopia
Ethiopia is currently undergoing a remarkable transformation both politically and economically.
The Tulu Kapi gold project in western Ethiopia is being progressed towards development, following a grant of a Mining Licence in April 2015.
The Company has now refined contractual terms for project construction and operation. Estimates include open pit gold production of c. 140,000oz pa for a 7-year period. All-in Sustaining Costs (including operating, sustaining capital and closure but not including leasing and other financing charges) remain c. US$800/oz. Tulu Kapi's Ore Reserve estimate totals 15.4Mt at 2.1g/t gold, containing 1.1Moz.
All aspects of the Tulu Kapi (open pit) gold project have been reported in compliance with the JORC Code (2012) and subjected to reviews by appropriate independent experts.
A Preliminary Economic Assessment has been published that indicates the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi open pit, after the start-up of the open pit and after positive cash flows have begun to repay project debts. An area of over 1,000 square kilometres adjacent to Tulu Kapi has been reserved for exploration by KEFI upon commencement of development, with a view to adding satellite deposits to development and production plans.
KEFI Minerals in the Kingdom of Saudi Arabia
In 2009, KEFI formed G&M in Saudi Arabia with local Saudi partner, Abdul Rahman Saad Al Rashid & Sons Company Limited ("ARTAR"), to explore for gold and associated metals in the Arabian-Nubian Shield. KEFI has a 40% interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 20 EL applications. ELs are renewable for up to three years and bestow the exclusive right to explore and to obtain a 30-year exploitation (mining) lease within the area.
The Kingdom of Saudi Arabia has announced policies to encourage minerals exploration and development, and KEFI Minerals supports this priority by serving as the technical partner within G&M. ARTAR also serves this government policy as the major partner in G&M, which is one of the early movers in the modern resurgence of the Kingdom's minerals sector.