KEFI Pauses Launch of Ethiopian Gold Project on Security Concerns, Shares Dive
By Jaime Llinares Taboada
(Marketwatch)—Shares in KEFI Gold & Copper PLC fell on Wednesday morning after it said that it has paused the launch of its Tulu Kapi gold project in Ethiopia due to security concerns.
The AIM-listed junior gold miner said concerns arose during preparations for the launch of the development phase, which was expected in October.
KEFI said that preparations continue for launch as soon as appropriate during the fourth quarter, but that no guarantee can be given.
Shares at 0806 GMT were down 24% at 1.22 pence.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
Tulu Kapi Gold Project
Tulu Kapi Gold Mine is situated 28km east of Ayra-Gulliso town in the state of Oromia, Ethiopia.
Producer KEFI Minerals Location Oromia, Ethiopia
Mineral Gold Reserves
Indicated resources: 21.2mt graded at 2.73g/t Au, Inferred resources: 2.89Mt graded at 2.03g/t Au
Tulu Kapi Gold Mine is situated 28km east of Ayra-Gulliso town in the state of Oromia, Ethiopia. The mine is owned by KEFI Minerals, who bought 100% of the license held earlier by UK-based gold exploration and development company Nyota Minerals (Ethiopia) by 2014. The property lies in the Tulu Kapi-Ankore license area and has a surface area of 8.44km2.
“The Tulu Kapi mine lies in the northern sector of Arabian-Nubian Shield which is depicted as a granite-greenstone terrain.”
SAPIE, an Italian mining company, carried out commercial scale hydro-mining at the Tulu Kapi mine during 1930s. The company did not carry out detailed work in the exploration of the mine and adjacent licenses, leaving behind the mine development.
The Tulu Kapi-Ankore exploration license was granted to Minerva Resources in May 2005.
Nyota Minerals had acquired the Tulu Kapi mining license by purchasing Minerva Resources in August 2009. Nyota Minerals further applied for the large scale mining license (LSML) at Tulu Kapi in May 2011.
Nyota Minerals launched the definitive feasibility study (DFS) of the mine in September 2011. Following the mine’s sale, KEFI Minerals altered the mine plan and launched a refined definitive feasibility study (DFS). The DFS is expected to be completed by the end of 2014 and construction is planned to begin in 2015.
Geology of the Ethiopian-based mine area
The Tulu Kapi mine lies in the northern sector of Arabian-Nubian Shield which is depicted as a granite-greenstone terrain. The deposits of the mine are hosted in Upper Proterozoic age intrusive rocks which cut through a volcano-sedimentary succession to form mafic and sericite schists.
Gold mineralisation is hosted by a coarse-grained syenite pluton into which a stream of dolerite dykes and sills were intruded.
The mine also hosts Precambrian to Tertiary age group rocks. The Precambrian rocks comprise granite, low rated volcano-sedimentary rocks consociated with mafic to ultramafic intrusions and meta intrusive rocks.