Kefi Minerals has received a Front End Engineering and Design proposal for US$68 million from Lycopodium for the EPC contract to build a mine at its 95%-owned Tulu Kapi gold project, in Ethiopia. Including contingencies and provisions for non-Tulu Kapi costs, the total capital estimate for the project has been increased to approximately US$150-160m.
The open pit, processing ore by conventional CIL at a rate of 1.5 Mt/y, is expected to commence production in mid-2018 at a life-of-mine rate of 100 koz/y of gold.
The company has raised £3.8m, primarily for resettlement of the Tulu Kapi community. The board is currently considering financing proposals for the project.
Kefi Minerals expects production at Tulu Kapi in mid-2018: KEFI