Name of the Project
Tulu Kapi gold project.

Location
Western Ethiopia.

Project Owner/s
London-listed KEFI Gold and Copper (formerly KEFI Minerals) will own 80% of the exploration and holding company for the government of Ethiopia, KME, which, in turn, will own 56% of Tulu Kapi Gold Mines Share Company (TKGM), thus bestowing KEFI with a 45% beneficial interest in the project.

Project Description
Tulu Kapi has an ore reserve estimate of 15.4-million tonnes at 2.1 g/t gold for 1.1-million ounces of gold.

Openpit gold production is estimated at 140 000 oz/y over a seven-year mine life.

Total life-of-mine production is estimated at 980 000 oz.

The conventional openpit mining operation will include a carbon-in-leach processing plant. The mine will be connected to Ethiopia’s electricity grid through a new, 47-km-long, 132 kV dedicated power line relatively close to the country’s major hydropower-generation source. An emergency diesel power plant will also be installed to provide emergency backup power for critical process equipment in the event of grid power failure.

An updated standalone preliminary economic assessment (PEA) supports detailed planning for the Tulu Kapi underground mine. The preliminary mining inventory comprises 2.38-million tonnes at 3.3 g/t gold containing about 253 000 oz. Underground ore is expected to be blended with openpit feed, lifting combined steady-state production to about 180 000 oz/y and contributing about 237 000 oz of recovered gold. The PEA includes inferred resources and does not constitute an ore reserve; there is no certainty that its outcomes will be realised.

Potential Job Creation
The project is expected to create about 1 000 direct jobs and 5 000 to 10 000 indirect jobs, with foreign direct investment of about $500-million, including historical investment.

Net Present Value/Internal Rate of Return
At gold prices of between $3 000/oz and $5 000/oz, the net present value (NPV) of Tulu Kapi at the start of construction is between $710-million and $1.6-billion.

Once in production, Tulu Kapi is set to generate between $1.9-billion and $3.6-billion of net operating capital over seven years, or between $284-million and $526-million a year. This equates to an internal rate of return (IRR) of between 112% and 200%.

On a standalone incremental basis and at an assumed gold price of $2 350/oz, the 2026 underground PEA estimates an after-tax NPV, at a 5% discount rate, of about $274.1-million, an IRR of 220% and payback of nine months.

Capital Expenditure
KEFI expects the full development to cost $340-million. The total project cost is about $500-million after taking into account that the mining contractor finances the mining fleet of $60-million and historical expenditure is more than $100-million.

Preproduction development capital for the underground mine is estimated at $8.09-million, with a maximum cash drawdown of about $10.5-million. The expenditure is expected to be funded from openpit operating cash flow, with no new equity assumed.

Planned Start/End Date
Before the September 2026 suspension, openpit production was targeted for mid-2028. Underground engineering was scheduled for completion in the fourth quarter of 2027, decline development and trial production for 2028, and first stope ore and ramp-up for 2029. It is too early to assess what impact the suspension may have on the development timetable.

Latest Developments
Project development started in March 2026. Before the suspension, work included the new access road, targeted for completion in December 2026; the electricity connection, planned before the end of 2027; plant and equipment orders for delivery during 2027; and phased community resettlement and contractor arrangements.

On September 4, 2026, a serious security incident resulted in multiple fatalities involving security personnel and community members, including one company employee. KEFI immediately suspended project-development activities and will not resume them until measures are in place to provide a safe and secure operating environment. 

Further project-financing drawdown or deployment has been deferred while the circumstances are assessed. KEFI has said it remains committed to the project, but that it is too early to determine the effect on the development timetable.

Key Contractors, Suppliers and Consultants
Principal contractors: Lycopodium (process plant design and construction); PW Mining; the Ethiopian Electric Power Company (electricity connection); and the Ethiopian Roads Authority (new access roads); Dashen (house construction for the resettled community); and BCM (bulk earthworks and mining).

Contact Details for Project Information
KEFI Gold and Copper, tel +357 2225 6161 or email email info@kefi-minerals.com.