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LONDON (Alliance News) - KEFI Minerals PLC Wednesday said it made "significant progress" in the first quarter of 2015, and said it expects to receive numerous pieces of news and results in the second quarter about its flagship Tulu Kapi project and its earlier-stage projects in Saudi Arabia.
The miner operating in Saudi Arabia and the Democratic Republic of Ethiopia said it has made progress on obtaining the mining agreement for the Tulu Kapi project in the first quarter of 2015, after it was approved by the Ethiopian Minister of Mines and submitted to the Council of Ministers for clearance.
"The council of ministers has not met for some weeks due to current election and other processes but KEFI has received confirmation that the mining agreement is an agenda item for when it next meets," said the company.
"Since the beginning of the year, the company has taken great strides towards becoming a gold producer in 2017, as per expectations. The definitive feasibility study at Tulu Kapi is on schedule to be updated in the second quarter which should enable KEFI to progress negotiations with project financiers and begin construction in late 2015," said Executive Chairman Harry Anagnostaras-Adams.
At its joint venture project in Saudi Arabia, the company said exploration drilling continued in the first quarter with 42 holes and 3,600 metres of reverse circulation drilling over four prospects completed. A metallurgical diamond drilling programme was also completed that targeted the oxidised and transitional gold mineralisation and the results are expected in the second quarter.
Results from the preliminary economic assessment to evaluate the potential of a heap leach operation at the project is also expected to be completed in the second quarter.
At the Hawiah license, also in Saudi Arabia, the company said it has completed a first-pass trenching programme after being awarded the exploration license in December.
"In Saudi Arabia, we expect the results of studies evaluating the treatment of Jibal Qutman's oxide gold via heap leach and initial testing of the large copper-gold system at the Hawiah exploration license to demonstrate that Tulu Kapi is not the only bright prospect we have in the company," said Anagnostaras-Adams.
KEFI shares were down 4.3% to 1.10 pence per share on Wednesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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