KEFI Gold and Copper PLC (AIM:KEFI, OTC:KFFLF) said it continued to make progress in Ethiopia and Saudi Arabia in the second quarter following an improvement in the local working environment in both countries since late 2021.
"Work is gathering pace on many fronts,” executive chairman Harry Anagnostaras-Adams said in the gold exploration and development company’s second-quarter operational update.
“We are firmly on track to achieve the following milestones in Q4 2022: in Ethiopia for financial close and the launch of construction of our Tulu Kapi gold project and in Saudi Arabia our larger Hawiah copper-gold project to deliver its PFS [pre-feasibility study].”
During the second quarter, KEFI continued its project launch preparations for Tulu Kapi, set to be the first industrial scale mine development in Ethiopia in over 30 years, and signed an umbrella financing agreement.
READ: Kefi Gold jumps on Tulu Kapi umbrella financing
The security situation has materially improved in Ethiopia since the end of last year, with the end of the civil war in the country's northern regions in December 2021, the lifting of the national state of emergency in February 2022 and an agreed ceasefire in March 2022, the AIM-traded company said.
It is aiming for a full project launch in the Ethiopian dry season starting in October 2022, once the security situation has been independently assessed and the few remaining regulatory administrative tasks have been completed.
KEFI is also keen to resume its exploration of the additional prospects it has successfully identified within the Tulu Kapi district exploration area.
"In addition, we have other exciting developments in Saudi Arabia. Our Jibal Qutman gold project is fast-tracking its DFS [definitive feasibility study], mining licence and financing work so as to launch in 2023,” said Anagnostaras-Adams. “Plus, we have been greatly honoured by the Saudi authorities to be granted two new exciting gold exploration projects.”
READ: KEFI granted two new exploration licences in Saudi Arabia as pace of work accelerates