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LONDON (Alliance News) - KEFI Minerals PLC Friday said the latest drilling results from its Tulu Kapi gold project in Ethiopia confirm that the complicated mineralisation at the site is as had been modelled, meaning the company can now update its resources, reserves and mine planning.
The update will be a key step it needs for its definitive feasibility study, which it needs to reactivate its mining licence application by the end of this year and start construction at the site next year.
The company did infill drilling and surface trenching at the site, and said the results support its structural interpretation and modelling of the orebody. It said this is significant as the Tulu Kapi project has complex geology and gold distribution and has required an equally complex methodology to allow interpretation for mine planning.
The best results from the reverse circulation infill drilling showed strong gold mineralisation, it said, including 12 metres at 4.23 grammes per tonne gold, 5 metres at 9.71 grammes per tonne, 2 metres at 24.86 grammes per tonne, 8 metres at 4.24 grammes per tonne, 4 metres at 10.36 grammes per tonne and 4 metres at 9.80 grammes per tonne gold.
The results of the surface trenching programme confirmed the continuity of mapped mineralisation and returned new mineralised intervals, it added
"At Tulu Kapi these recent drill hole and trench results confirm the mineralisation as modelled. This validates our resource estimate methodology and we can now update resources, reserves, mine planning and the definitive feasibility study required to reactivate the mining licence application by the end of 2014 and trigger construction in 2015," Managing Director Jeff Rayner said in a statement.
KEFI Minerals shares were up 2.5% at 1.64 pence Friday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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