KEFI optimistic despite escalating tensions in Ethiopia

Gold exploration and development company KEFI updated the market on its operations on Friday, reporting that at its Ethiopia subsidiary Tulu Kapi Gold Mines (TKGM), it has completed its recent incident management and investigations and was now preparing for the launch of the Tulu Kapi Gold Project.

The AIM-traded firm said members of its senior management were based in Ethiopia supporting the various project teams, including those at the Tulu Kapi site, which remained “quiet” despite the security situation elsewhere in the country.

It said the closest conflicts were “several hundred kilometres” from TKGM's sites.

“Since the company's most recent update on the project on 16 November, there has been a significant escalation of efforts, both domestically and internationally, to bring to an end Ethiopia's internal conflicts, caused by rebels pressuring for a change of the recently-elected government,” KEFI’s board said in its statement.

“Recent developments include the commencement of mediation and a significant Ethiopian government military offensive to push back the rebels.

“The company remains optimistic these efforts will result in a positive resolution to the dispute and preparations continue for project launch, with TKGM's current focus on satisfying all technical conditions precedent by the end of January and preparing the community.”

In Saudi Arabia, meanwhile, the KEFI-operated joint venture company Gold and Minerals (G&M) was on track to update and upgrade the mineral resource estimate at the Hawiah copper-gold project before the end of the year.

The company said the update would incorporate the additional resources defined from the results of its 29,814 metre phase three and four drilling programmes, completed recently, and post the maiden mineral resource estimate of 19.3 million tonnes at 1.9% copper equivalent, announced in August 2020.

“The company believes tonnage, grade and resource classification are all expected to increase,” the board said.

“We are also pleased to report that communications with the regulatory authorities in Saudi Arabia have led us to expect clarification of mining licence tenure at the company's Jibal Qutman gold project in 2022.”

At 1015 GMT, shares in KEFI Gold and Copper were down 5.32% at 0.87p.