KEFI Gold and Copper Unveils Plans for Tulu Kapi Underground Mine

KEFI Gold and Copper has announced updated plans for its Tulu Kapi Underground Mine in Ethiopia, which is expected to contribute significantly to the company's gold production. The new plan estimates that the mine will produce around ~250koz of gold per year, up from the previous estimate of ~200koz. This increase is due to a lower cut-off grade and higher gold price assumptions.

The underground mine is expected to be developed using open pit funds, with engineering studies set to be completed in 4Q27. The decline development will start after open pit commissioning in mid-2028, followed by infill and step-out drilling from underground and an updated mineral resource estimate in 2029.

The combined open pit and underground mine is estimated to produce around ~1.2moz of gold over a 7-8 year life of mine (LOM), with an all-in sustaining cost (AISC) of $1,100-1,300/oz. The post-tax net present value (NPV5) at a $2,350/oz gold price is estimated to be around ~$274m, with an internal rate of return (IRR) of 220% and a payback period of just 9 months.