KEFI Minerals (AIM: KEFI), has appointed and told investors it has selected African Mining Services ( AMS ) , a wholly-owned subsidiary of Ausdrill Limited, as preferred contractor for mine establishment and operation for the Tulu Kapi gold mining project in Ethiopia.
The arrangement will cover certain pre-mining earthworks as well as the life-of-mine open pit operation, though Kefi will remain directly responsible for key input costs such as explosives and fuel.
With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources totalling 1.72 million ounces of gold, the Tulu Kapi gold project in Western Ethiopia is being rapidly progressed towards development.
The altitude of the project area Tulu Kapi gold mining in Ethiopia is between 1,600m and 1,765m above sea level. The climate is temperate with annual rainfall averaging about 150cm.
Tulu Kapi is located approximately 360km due west of Ethiopia’s capital, Addis Ababa. A main road to Addis Ababa is within 12km of Tulu Kapi and is being sealed with asphalt during 2014. Power lines on the main electricity grid are within 40km of the project.
Geology And Mineralisation In Tulu Kapi Gold mine Ethiopia
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| Mineralisation In Tulu Kapi Gold mine Ethiopia |
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| Trenching at Tulu Kapi in Ethiopia |
The Tulu Kapi region has typical greenstone type geology which is characterized by prominent hills of intrusive rocks and deeply incised valleys containing metasediments and metavolcanic rocks.
Gold at the Tulu Kapi deposit is hosted in quartz-albite alteration zones as stacked sub-horizontal lenses in a syenite pluton into which a swarm of dolerite dykes and sills have been intruded. Gold mineralisation extends over a 1,500m by 400m zone and is open at depth (+400m).
The mineralisation is characterised by a simple mineralogy comprising gold, silver, pyrite and minor sphalerite and galena. Metallurgical recoveries of gold average more than 93% for oxide and sulphide ore in the planned open pit.
Gold Mineralisation in Tulu Kapi occurs in veins, breccia and crackle zones of the Proterozoic syenites along with intrusions of porphyritic syenite, diorite and dolerite.
It is affiliated with albitisation zones which contain quartz and sulphide veins. The ore present in the deposits is expected to contain gold mixed with pyrite and silicate gangue.
The mine comprises four lode structures, designated 1, 2, 3 and 4, which are parallel to each other below the earth surface. The structures are separated by +60m or - 60m barren syenite area.
The lode structures one and two contain a simple mineralogy consisting of gold along with pyrite, sphalerite and galena. The lode structures three and four comprise sulphide metals, sphalerite, galena, arsenopyrite, chalcopyrite as well as gold and pyrite.
The mine is expected to produce 80,000oz to 85,000oz of gold a year for the ten year initial life-of-mine.
Mining And Processing Methods In Tulu Kapi Gold mine
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| Mineral drilling test process at Tulu Kapi |
A combination of open-pit and underground mining operation is being considered for the gold mining project Tulu Kapi in Ethiopia., subject to feasibility.
A central processing unit with a capacity of 1.2 million tonnes per annum is being considered.
The Tulu Kapi mine development is estimated to cost $143m. The processing is expected to cost around $500 per ounce. The operating cost for underground mining and processing is estimated at $35.83 a ton.
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