Big picture - Why invest in KEFI Minerals plc
KEFI Minerals plc Snapshot
KEFI Minerals is currently progressing feasibility studies on two gold projects:
- 95%-owned Tulu Kapi project in Ethiopia with a Probable Ore Reserve of 1.0 million ounces and Mineral Resources totalling 1.7 million ounces; and
- 40%-owned Jibal Qutman project in Saudi Arabia with Mineral Resources totalling 0.7 million ounces.
As the operator of these joint-venture projects, KEFI Minerals is well positioned to develop these projects prudently while continuing to add value through further exploration.
Our aim is to create wealth for our shareholders by developing into profitable mines the gold and base metal deposits that the Company has discovered or acquired in a cost-effective manner.
Since KEFI Minerals was formed in 2006, we have rapidly evaluated and relinquished a number of exploration properties as well as acquiring new projects.
The highly prospective Arabian-Nubian Shield has been the Company’s primary focus since 2008 when it commenced exploration activities in the Kingdom of Saudi Arabia.
Our prudent approach is exemplified by the cost-effective acquisition of the Tulu Kapi project in the Democratic Republic of Ethiopia in late 2013. The £4.5 million cost of acquiring 75% of this advanced project equates to only $10 per reserve ounce and provides the information collected from historical expenditure of more than $50 million.
In September 2014, KEFI Minerals acquired the remaining 25% of Tulu Kapi for £750,000 and 50 million KEFI shares.
KEFI Minerals is now positioned as the operator of two gold development projects as well as a cost-effective explorer of its portfolio in the highly prospective Arabian-Nubian Shield.
With the appropriate mix of technical and financial expertise, the Company is prudently progressing its projects into profitable gold production with the aim of returning value to shareholders.
The KEFI Minerals team has been evaluating potential joint ventures and prospects in the Kingdom of Saudi Arabia since mid-2008.
As a 40% shareholder and manager of Gold and Minerals Ltd (“G&M”), KEFI Minerals has established a strong foothold from which to build on the momentum achieved to date.
KEFI Minerals is well placed to advance and develop our projects with the assistance of our partner Abdul Rahman Saad Al Rashid and Sons Limited (“ARTAR”), a leading local industrial group owned by Sheikh Al Rashid and his family.
The Kingdom of Saudi Arabia has instituted policies to encourage minerals exploration and development. A resurgence of the Kingdom’s minerals sector could generate significant employment and assist with development of infrastructure in remote areas of the country.
G&M is aligned with these policies with ARTAR as the majority shareholder and KEFI as the technical partner.
G&M’s primary target is the discovery and development of a >1 million ounce gold-equivalent deposit in Saudi Arabia’s under-explored Precambrian Shield.
Following the grant of the Jibal Qutman Exploration Licence (“EL”) in July 2012, KEFI Minerals has rapidly identified Mineral Resources totalling more than 600,000 ounces of gold. G&M is now evaluating producing gold via an open cut, heap leach operation while continuing to explore for further shallow gold resources at Jibal Qutman.
Jibal Qutman EL
The Jibal Qutman EL is located in the central southern region of the Arabian-Nubian Shield and covers an area of 99.9km2. The EL overlies part of the prospective Nabitah-Tathlith Fault Zone, a 300km-long structure with over 40 gold occurrences and ancient gold mines.
KEFI Minerals completed a Pre-Feasibility Study (“PFS”) on the Jibal Qutman Project in March 2014. The PFS demonstrated a profitable carbon-in-leach (“CIL”) operation with All-in Costs (including operating costs, capital expenditure and closure costs) under $1,000 per ounce. Read more...
In December 2014, the 95km2 Hawiah EL was granted to ARTAR on behalf of the G&M JV. The Hawiah prospect is located within the Wadi Bidah Mineral District (“WBMD”) in the southwest of the Arabian Shield. The WBMD is a 120km long belt which hosts over 24 volcanically hosted massive sulphide (“VHMS”) occurrences and historic workings for copper and gold.
The initial focus at Hawiah is on gold enrichment in surface gossans and a large VHMS target at depth, associated with a 6km-long, north-south exposure of a highly silicified and variably gossanous horizon. Initial surface exploration has confirmed that the gossans are enriched in gold and the mineralisation has good continuity along strike, as well as containing abundant secondary copper showings. Read more...
With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources totalling 1.72 million ounces of gold, KEFI is advancing the Tulu Kapi Gold Project in Western Ethiopia towards development.
The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalised in April 2015. The terms include a 20-year Mining Licence, a 5% Government free-carried interest and full permits for the development and operation of Tulu Kapi.
In June 2015, KEFI completed the 2015 Definitive Feasibility Study (“2015 DFS”) which evaluated a conventional open-pit mining operation and carbon-in leach (“CIL”) processing plant at Tulu Kapi.
In May 2017, KEFI completed the 2017 DFS Update which incorporated due diligence and refinements since the 2015 DFS and provided increased confidence in the Company’s plans to develop Tulu Kapi.
Key points of the 2017 DFS Update are:
- Process plant capacity increased from 1.2 Mtpa to 1.5-1.7 Mtpa.
- Forecast open-pit gold production is 980,000 oz over ten years.
- All-in Sustaining Costs of less than US$800/oz.
- For the first eight years of production:
- Gold production averages c. 115,000 oz pa; and
- Net operating cash flow averages US$55M pa at a gold price of US$1,250/oz.
- Initial capital expenditure estimated at US$145M on a contract-mining basis.
With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources totalling 1.72 million ounces of gold, the Tulu Kapi gold project in Western Ethiopia is being rapidly progressed towards development.
The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalised in April 2015. The terms include a 20-year Mining Licence, full permits for the development and operation of the Tulu Kapi gold project and a 5% Government free-carried interest. Read more...
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