KEFI Minerals targets reactivation of Tulu Kapi in 2015

1st Apr 2014 11:46

With a two-month drilling programme under way, KEFI Minerals said it has begun moving its focus from exploration to development. Having acquired the Tulu Kapi gold project in Western Ethiopia in December the AIM-listed company immediately re-opened it with a view of reactivating the Mining Licence Application (MLA). KEFI has begun a two-month drilling programme to modify the Definitive Feasibility Study (DFS) in order to reactivate the MLA with the aim of starting construction of the mine in 2015. "In Saudi Arabia, Jibal Qutman project is equally important although its timeline is less clear pending refinement of technical studies after regulatory reviews."Broker FinnCap said it believed the company was undervalued, with the acquisition of Tulu Kapi for £4.5m in shares and cash "a transformational deal for KEFI that a sceptical market has failed to appreciate". "With a pre-feasibility study (PFS) and mining application tabled to the authorities in Saudi Arabia, KEFI could be in production from two mines by FY 2016 and could be producing over 100,000 oz of gold per year by full year 2017."Shares in KEFI were flat at 1.83p on Tuesday. OH