Last checked at 
LONDON (Alliance News) - Kefi Minerals PLC Thursday said it is preparing a mine licence application for its Tulu Kapi gold project in western Ethiopia, following promising exploration results.
In a definitive feasibility study update, the company said recent drilling and trenching continues to confirm the previously modelled mineralisation, and an independent review of the resource model is underway.
Kefi said this milestone will be followed by a new mine plan and JORC-compliant reserves estimate, which are required to reactivate the Mining Licence Application by the end of 2014 and trigger construction in 2015.
JORC is the Joint Ore Reserves Committee, which provides mineral-resource classification schemes.
The company said reverse circulation infill drilling continued to hit strong gold mineralisation at the site, with results including 9 metres at 4.24 grammes per tonne of gold and 13 metres at 3.21 grammes per tonne of gold.
Last month, KEFI Minerals bought Nyota Minerals Ltd's remaining 25% in the Tulu Kapi gold project for GBP1.5 million in cash and shares, having bought the first 75% in December 2013 for GBP4.5 million.
Kefi Minerals shares were quoted up 1.8% at 1.40 pence Thursday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.