Following the publication of a definitive feasibility study in June this year on its 100%-owned Tulu Kapi gold project, in Ethopia, KEFI Minerals is now reviewing bids from prospective Engineering, Procurement and Construction Management (EPCM) contractors as well as looking at options to lower the estimated peak capital investment of US$130 million to around about US$120 million.
The mine, which is due to commence production in 2017, will use contractor mining for the open pit with processing by conventional CIL at a rate of 1.2 Mt/y. The mine will produce 95 koz/y of gold at a projected average All-in Sustaining Cost (AISC) of US$780/oz over a 13 year life of mine. Reserves are 15.4 Mt at a grade of 2.12 g/t for 1.05 Moz of gold contained.
KEFI’s project finance advisory team is now engaging with short-listed financiers to optimise the funding mix using financing scenarios at gold spot prices down to US$850/oz.
KEFI reviewing construction and financing options for Tulu Kapi gold project: KEFI