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LONDON (Alliance News) - KEFI Minerals PLC Wednesday said it has received an independently updated ore reserve for the Tulu Kapi gold project in Ethiopia which confirmed the project has over 1.0 million ounces of gold, as the company turns its attention to completing the definitive feasibility study.
The updated ore reserve shows probable resources of 15.4 million tonnes of ore at 2.12 grammes of gold per tonne to produce 1.05 million ounces of gold. This compares with the previous estimate of 12.9 million tonnes of ore at 2.41 grammes of gold per tonne for just over 1.0 million tonnes, showing a decline in grade has been offset by increased ore.
"The independent verification of the updated one million ounce Tulu Kapi reserve complements our recently published production, cost and valuation estimates and serves to facilitate the completion of the 2015 definitive feasibility study this quarter as scheduled," said Harry Anagnostaras-Adams, chairman of KEFI.
KEFI said it is also on schedule to finalise full development funding for the project in the third quarter of 2015, which the company said will consist of around USD100 million in senior-secured finance with the balance being paid in equity in the project or potentially the company to contractors or investment institutions, it said in a statement.
Development at the project is expected to begin in the fourth quarter once financing has been secured, with production expected to commence in 2017.
KEFI shares were down 1.2% to 1.06 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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