KEFI Minerals said it has increased the size of the resource at Tulu Kapi, in Ethiopia, after re-analyzing existing data as it confirmed it is still on track to begin construction of its flagship gold project in the fourth quarter.
The independently verified indicated resource figure rises to 1.62mln ounces at 2.67 grams per ton from 1.52mln ounces at 2.57 grams per ton.
Work under the previous owners came up with a total of just over 1mln ounces – so this step-by-step approach is adding value.
The potential open pit down to 1,400 meters modelled by KEFI is estimated to host 1.42mln ounces, while the firm has identified a high-grade mineralization of almost 1.1mln ounces at 5.88 grams per ton.
The mine developer achieved the upgrade by ‘wire-framing’ the mineralized structures to create what it describes as ore-body solids, which was used to cross-check against the previous model.
The new JORC-compliant resource will provide the basis for a new reserve estimate, the firm said.
KEFI said in December it is talking to potential funders for Tulu Kapi as it gears up to take the project into production.
Updating on progress towards this goal, Chairman Harry Anagnostaras-Adams said: “Over the next few months we will finalize our development plans, taking into consideration contract mining submissions and existing process plants for sale.
“We are also on track for obtaining the requisite licensing, community resettlement, team building and financing.
“All this gives the board confidence that development will commence in 2015 leading to commissioning at the end of 2016 for production in 2017.”