TIDMKEFI
RNS Number : 6554T
Kefi Gold and Copper PLC
26 November 2021
26 November 2021
KEFI Gold and Copper plc
("KEFI" or the "Company")
Operational Update
KEFI Gold and Copper (AIM: KEFI), the gold exploration and
development company with projects in the Federal Democratic
Republic of Ethiopia and the Kingdom of Saudi Arabia, is pleased to
provide an operational update.
Ethiopia
KEFI's subsidiary Tulu Kapi Gold Mines Share Company ("TKGM")
has completed its recent incident management and investigations and
is now preparing for the launch of the Tulu Kapi Gold Project (the
"Project"). Members of KEFI's senior management team are based in
Ethiopia supporting the various Project teams, including those at
the Tulu Kapi site, which remains quiet despite the security
situation elsewhere in the country, with the closest conflicts
several hundred kilometres from TKGM's sites.
Since the Company's most recent update on the Project, announced
on 16 November 2021, there has been a significant escalation of
efforts, both domestically and internationally, to bring to an end
Ethiopia's internal conflicts, caused by rebels pressuring for a
change of the recently elected Government. Recent developments
include the commencement of mediation and a significant Ethiopian
Government military offensive to push back the rebels.
The Company remains optimistic these efforts will result in a
positive resolution to the dispute and preparations continue for
Project launch, with TKGM's current focus on satisfying all
technical conditions precedent by the end of January 2022 and
preparing the community.
Saudi Arabia
KEFI-operated joint venture company Gold and Minerals Limited
("G&M") continues on track to update and upgrade the Mineral
Resource Estimate ("MRE") at its Hawiah Copper-Gold Project before
the end of 2021. This update will incorporate the additional
resources defined from the results of its successful 29,814 metre
Phase 3 and Phase 4 drilling programmes, completed recently, and
post the Maiden MRE of 19.3Mt @ 1.9% Cu equivalent announced in
August 2020. The Company believes, tonnage, grade and resource
classification are all expected to increase.
We are also pleased to report that communications with the
regulatory authorities in Saudi Arabia have led us to expect
clarification of Mining Licence tenure at The Company's Jibal
Qutman Gold Project in 2022.
Enquiries
KEFI Gold and Copper plc
Harry Anagnostaras-Adams (Executive Chairman) +357 994 57843
John Leach (Finance Director) +357 992 08130
SP Angel Corporate Finance LLP (Nominated Adviser +44 (0) 20 3470
and Joint Broker) 0470
Jeff Keating, Adam Cowl
+44 (0) 20 7936
Brandon Hill Capital Ltd (Joint Broker) 5200
Oliver Stansfield, Jonathan Evans
+44 (0) 20 3934
IFC Advisory Ltd (Financial PR and IR) 6630
Tim Metcalfe, Florence Chandler
Further information can be viewed at
www.kefi-goldandcopper.com
Notes to Editor
KEFI Gold and Copper 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 in Ethiopia
Ethiopia has for some years been undergoing a remarkable
transformation both politically and economically. However, 2021 has
been a turbulent year for the country due to internal conflict due
to military challenges to the Federal Government from rebel
minorities.
The Tulu Kapi gold project in western Ethiopia has however
continued progressing towards development, following a grant of a
Mining Licence in April 2015.
The Company has refined contractual terms for project
construction and operation, together with having assembled the full
funding consortium and set the conditional terms for the
development funding package of c.US$356 million, to be triggered as
soon as normal conditions are satisfied including security.
Estimates include gold production of c.190,000oz pa. All-in
Sustaining Costs (including operating, sustaining capital and
closure but not including leasing and other financing charges)
remain US$800-900/oz, depending on the gold price impact on the
royalty payable. 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 in the Kingdom of Saudi Arabia
In 2009, KEFI formed Gold & Minerals Limited ("G&M") in
Saudi Arabia with local Saudi partner, ARTAR, to explore for gold
and associated metals in the Arabian-Nubian Shield. KEFI has a 34%
interest in G&M and is the operating partner.
ARTAR, on behalf of G&M, holds over 16 Exploration Licence
(ELA) applications pending the introduction of the new Mining Law.
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
mineral 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.
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