KEFI now expects the Ethiopia- based mine to produce 1.2mln ounces during the open pit stage, against an estimate of 0.83mln ounces just before it took over the project last year.
There is no change in the estimated all-in cost of US$700 per ounce, KEFI said, adding the mine plan will be refined further after completion of a current programme of drilling and trenching.
Information from this will be integrated into an updated definitive feasibility study (DFS) that will take into account work undertaken by KEFI on metallurgical testing, engineering, cost verification and economic optimisation.
KEFI said the new open target is still based on processing 1.2Mtpa tonnes of ore per year, but the total rise to 17mt from 12Mt previously.
Jeff Rayner, KEFI Minerals’ managing director, said: "We are delighted with the sustained progress at Tulu Kapi. This increase in targeted open pit mine production further validates our strategy in acquiring the project five months ago.”
"As we continue to refine the selective mining techniques, we expect to report further improvements during the following months and to reactivate the Mining Licence Application by the end of 2014.
“As a result, we remain confident of fulfilling our commitments to the Ethiopian Government that production will commence in 2016."
KEFI acquired a 75% interest in Tulu Kapi at the end of 2013 since when it has redrawn the strategy with a target now of processing 1.2mln tonnes per annum (Mtpa) of ore.