KEFI Gold and Copper PLC · LSE:KEFI
KEFI Gold and Copper — KEFI Minerals — Technical Presentation (April 2017)
69 slides from KEFI Gold and Copper's technical presentation, April 2017
Slide 1: Tulu Kapi Site Visit
Disclaimer TULU KAPI SITE VISIT April 2017
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by KEFI Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers g
Slide 3: Outline of Presentation
Outline of Presentation Disclaimer 1. Overview 2. Community 3. Mineral Resources 4. Ore Reserves and Mining 5. Metallurgy and Processing 6. Further Potential – Tulu Kapi Deeps 7. Further Potential – Tulu Kapi Near‐Mine Exploration 3
Slide 4: Corporate overview
Corporate overview Summary Capital Structure1 Exploration and development company focussed on gold and AIM code KEFI copper in the highly prospective Arabian‐Nubian Shield (ANS) Share price ‐ 12 mth 3.93p (low)/11.38p (high) Recent placing supports working capital for 12‐18 months Share price (2
Slide 5: Strong shareholders and partners
Strong shareholders and partners Lanstead Odey Ausdrill&Lyco Board Public 26% 20% 5% 3% 46% Al Rashid KEFI Minerals plc Ethiopia Gov’t 60% 40% 70‐80% 20‐30% Saudi JV Ethiopia JV Jibal Qutman, Tulu Kapi Hawiah and other KEFI’s Status for Ethiopian Government: Tulu Kapi is fully permitted and ready
Slide 6: Tulu Kapi: A financially robust project
Tulu Kapi A financially robust project The operation is strong financially Open pit production and AISC Gold production = 115k oz p.a. (8 year LOM) AISC Production 134 128 Low AISC of < $800/oz, (excl. finance charges) 124 120 1,500 105 105 111 Underpinned by: 93 1,000 $/oz Koz low strip rat
Slide 7: Tulu Kapi Project History
Project History Tulu Kapi • 1939: Italian Company mined the surface near Bedele Shear Zone • 1969‐1972: UNDP‐Ethiopian Government conducted reconnaissance exploration • 1996‐1998: Tan‐Range, Canadian Exploration Co conducted exploration • 2005‐2007: Golden Prospecting Mining Co Ltd (GPMC) exploratio
Slide 8: Location and Infrastructure
Location and Infrastructure • Tulu Kapi is located in Western Ethiopia, in the Western Wellega Zone of the Oromia Region approximately 360 km due west of Addis Ababa • The Project is accessible by main road from Addis Ababa, a distance of 520 km • The project area is about 9 km south of the village
Slide 9: Geology and Mineralisation
Geology and Mineralisation • Well constrained geological model • Extensive onsite exploration programmes • Well documented and verified technical databases • Significant drilling carried out under consultant supervision, physical samples kept on site • Solid exploration interpretation of collected d
Slide 10: Mineral Resource Estimate Background
Mineral Resource Estimate Background • Geological assay database validated independently and signed off after final update • 12 months spent updating, validating and refining: • Structural input • Estimation parameters • Interpolation methodology • Resulted in Indicator model (JORC 2012 compliant) a
Slide 11: Mine Design, Schedule and Ore Reserves
Mine Design, Schedule and Ore Reserves • 2012 DFS schedule suggested sub 2.0g/t mill feed and a bulk mining approach • 2015 DFS confirmed a 2.5g/t mill feed and a selective mining approach • 2015 DFS Ore Reserve is JORC 2012 compliant • Focus on: • Design optimisation (pit staging, geotech) • Mining
Slide 12: Metallurgy and Mineral Processing
Metallurgy and Mineral Processing • Significant detailed historic metallurgical testwork carried out by current consultant and 2015 DFS lead, SENET Pty Ltd • 2012 processing plant design optimised from 2.0 Mtpa lower grade feed to 1.5 Mtpa higher grade feed – significantly reduced capital cost • No
Slide 13: Community - Scope of Social Performance
Community ‐ Scope of Social Performance 1. KEFI Social Performance Management System 2. External Engagement and Communications 3. Partnerships 4. Resettlement • Compensation • Infrastructure Development • Livelihood Restoration 5. Community Development • KEFI Foundation 6. Access to Business Supply
Slide 14: CSR Policy & Strategy
CSR Policy & Strategy A Long-Term Partnership, KEFI-Government-Community: Open communication and transparency, cooperative and collaborative engagement Government support and guidance to help facilitate and coordinate, activate formal communication platforms Engage community for inputs into pr
Slide 15: Background to community resettlement
Background to community resettlement • Location: Genji Woreda, West Wollega Zone, Oromia Region (roughly 520km from Addis Ababa) • KEFI took over project in January 2014 • Mine has estimated life of 11‐20 years • Mining Licence issued by Ministry of Mines on 13 April 2015 • Resettlement required acr
Slide 16: Strategic Framework for Resettlement
Strategic Framework for Resettlement 16
Slide 17: Key Stakeholder Identification
Key Stakeholder Identification Government • Federal • Oromia Region • West Wollega Zone • Woreda – local government level (four target Woredas) • Kebele administration – closely linked with local communities Communities • Project affected communities • Special social groups including youth, women, a
Slide 18: Current context: Genji Woreda & Tulu Kapi area
Current context: Genji Woreda & Tulu Kapi area • Major livelihood in the area is production and sales of coffee • Food is self‐sufficient; cereal crops, fruits, vegetables, livestock • Schools, health clinics, all‐weather roads, water collection points, local markets and government administrations a
Slide 19: Tulu Kapi Project Site
Tulu Kapi Project Site 19
Slide 20: Cultural Heritage
Cultural Heritage • Cultural heritage management of churches, cemeteries, household graves • Three protestant churches in the mining area • Initial consultations with churches leaders and respective synods • Inventory of the graves have been made • Graves relocation procedures • Graves will be caref
Slide 21: Strategic framework for resettlement and livelihood restoration
Strategic framework for resettlement and livelihood restoration Objective: to improve income-earning capacity and standard of living for the resettled families to establish self-sufficient and sustainable communities 1: compensation (replacement land for loss of land and assets, monetary for loss of
Slide 22: Livelihood Programs
Livelihood Programs o Financial capacity building and assistance: • Objective: To improve knowledge and skills for compensation recipients to effectively utilise payment packages • What? Training on basic banking orientation, personal financial management and financial literacy, effective compensati
Slide 23: Mineral Resources Presentation Outline
Mineral Resources Presentation Outline • Overview o Deposit Geology o Drilling o Sampling • Resource Modelling o March 2014 Due Diligence and Drilling Update Model o August 2014 Drilling Update o November 2014 Mineralisation Model o February 2015 Wireframe Estimate 23
Slide 24: Tulu Kapi Overview Deposit Geology
Tulu Kapi Overview Deposit Geology • Moderately dipping to sub horizontal brittle structures host mineralisation • Structures likely formed in a contractional environment with σ1 in the E‐W and σ3 in the Z direction • Reverse movement on the BSZ and sub horizontal extensional veining • Steep lineati
Slide 25: Tulu Kapi Overview Deposit Geology
Tulu Kapi Overview Deposit Geology • Mineralised structures generally terminate at the E diorite/syenite contact. However, some do continue into the E diorite • Competency contrast between syenite and diorite; syenite is more brittle • Structures pinch out to the west in 25 the syenite
Slide 26: Tulu Kapi Overview: Drilling
Tulu Kapi Overview: Drilling Tulu Kapi Resource Area • 71,690 m of diamond drilling • 48,040 m of RC drilling • 2,620 m of RC hydrogeological drilling • 4,200 m of diamond geotechnical drilling • 1,310 m of trenching 26 • 20 m adit
Slide 27: Tulu Kapi Resource Drilling: Bias
Tulu Kapi Resource Drilling: Bias Samples from mineralised domains show no material bias between RC and diamond drilling. 27
Slide 28: Tulu Kapi Resource: Sampling
Tulu Kapi Resource: Sampling 28
Slide 29: Sample Preparation: On-site Laboratory
Tulu Kapi Resource Sample Preparation: On‐site Laboratory KEFI: • Oven dry • Crush to 70% passing 2 mm • 200g sent for fire assay to ALS Independent Labs in Romania or Al Amri Jeddah 29
Slide 30: Sampling: Umpire Laboratory
Tulu Kapi Resource Sampling: Umpire Laboratory Pulp duplicates sent to SGS Perth. No systematic difference between laboratory results (ALS & SGS). Au Au % Statistic (ALS) (SGS) Difference Number of pairs 374 374 Minimum 0.08 0.01 ‐87.5% Lower quartile 0.61 0.61 0.0% Median 1.12 1.06 ‐5.4% Mean 2.65
Slide 31: Tulu Kapi Resource Modelling
Tulu Kapi Resource Resource Modelling Metal Project Mineralized Sample Estimation Tonnes Year Company Grade (Moz) Status Model Selection Method (Mt) 0g/t COG Indicator NN 0.3 g/t bottom 2012 Nyota DFS DA, OK 24.9 2.3 1.9 DA cut 2013- Due Indicator NN 0.3 g/t bottom KEFI DA, OK 24.1 2.6 2.0 14 Dilige
Slide 32: Tulu Kapi Mineral Resources
Tulu Kapi Mineral Resources Mineral Resource totals 20.2 million tonnes at 2.65g/t gold, containing 1.72 million ounces: Cut‐off Tonnes Gold JORC (2012) Resource category Reporting elevation Ounces (million) (g/t gold) (Mt) (g/t) Indicated Above 1400 RL 0.45 17.7 2.49 1.42 Inferred Above 1400 RL 0.4
Slide 33: Ore Reserve and Mining Presentation Outline
Ore Reserve and Mining Presentation Outline • Mine Geology • Mining Schedule o Resource Model o Constraints and Flow o Dilution o Stage Sequence o Grade Control o Results • Pit Optimization • Ore Reserve o Geotech o Parameters • Mining Optimisation Study – Contract o Ore Definition Mining o Results
Slide 34: Mine Geology: Resource Model
Mine Geology: Resource Model KEFI Resource model used wireframe solids resulting in a more constrained tonnage. 2014 Resource Model: Cross Section 2014 Resource Model: Level Plan 2015 Resource Model: Cross Section 2015 Resource Model: Level Plan 34
Slide 35: Mine Geology: Dilution Factors
Mine Geology: Dilution Factors Factors effecting mine dilution and its optimisation: • Operator experience • Visual differential between ore and waste • Grade control methods • Ore thickness • Blasting outcomes • Bench size selection • Flitch height selection • Use of support machines to clear ore f
Slide 36: Mine Geology: Dilution Study Conclusions
Mine Geology: Dilution Study Conclusions • Snowden concluded the following from the thickness investigation: o That the mean vertical thickness was between 3.0 and 3.5 m o Half of the ounces are contained in lodes of greater than 3.5 m vertical thickness o 70% of the tonnes are found in lodes of ver
Slide 37: Mine Geology: Dilution Selective Mining
Mine Geology: Dilution Selective Mining Selective mining process: • Bulk waste removal; 200 t digger top loading • Clean waste from hanging wall contact; 120 t digger bottom loading • Rehandling of selective waste; 120 t digger bottom loading • Removal of bulk ore; 200 t digger top loading • Cleanin
Slide 38: Design of Pre-Mining Construction
Design of Pre‐Mining Construction • Quarry waste rock for initial ROM pad and TSF dam • Establish major road network and pit access: o E‐W and W road to explosives magazine o Infrastructure road from ROM to mine infrastructure o Eastern road to the south dump • 4.7 Mt quarried 38
Slide 39: Mine Design - Site Layout
KEFI Mine Design - Site Layout MINERALS \ Keley to Tulu Kapi iNew Access Road | | | segoseoceg
Slide 40: Ore Reserves
Ore Reserves Cut-off JORC (2012) Tonnes Au Ounces Reserve category (g/t (Mt) (g/t) (Moz) Au) Probable – High 0.90 12.0 2.52 0.98 grade Probable – Low 0.50 to 3.3 0.73 0.08 grade 0.90 Total 15.4 2.12 1.05 40
Slide 41: Mining - Risks and Opportunities
Mining ‐ Risks and Opportunities • Waste dumping and haulage optimisation o Following discussions with AMS, significant cost savings achieved by optimising the haul routes and dump locations. o Significantly shorter hauls on benches which “daylight” on the existing topography, especially in the nort
Slide 42: Calculated Recovery
PROCESSING PLANT ‐ METALURGICAL TESTWORK Grade‐Recovery Curves • Overall life‐of‐mine gold recoveries are 100.0% estimated to be 91.5% 95.0% • Steady increase in recovery as the Calculated Recovery head grade increases 90.0% • Recovery declines as the ore becomes more competent 85.0% • Recoveries ra
Slide 43: Processing Plant - Metallurgical Testwork
PROCESSING PLANT ‐ METALURGICAL TESTWORK Tulu Kapi gold is free milling and all the processes included in the CIL plant design are standard and common to many current gold operations 43
Slide 44: Processing Plant - Comminution Testwork
PROCESSING PLANT ‐ COMMINUTION TESTWORK Fresh Comp Fresh Comp Test Unit or Type Oxide Comp Lode1 Lode2 Abrasion Index g 0.3139 0..3898 0.6522 BRWi kWh/t 11.3 12.2 19.7 BBWi (106µm) kWh/t 15.5 15.5 18 A× b 111.9 81.8 38.6 JK Drop Weight ta 1.07 0.72 0.29 Optimum grind 80%-75µm Optimum cyanide additio
Slide 45: Process Plant - Capital Cost Estimate
PROCESS PLANT – CAPITAL COST ESTIMATE Basis of Estimate (FEED Design & EPC proposal) • Process plant design criteria • General layouts of the process plant • Process flow diagrams • Process plant equipment list • Piping and instrument diagrams • Instrument lists • Various discipline material take‐of
Slide 46: Process Plant - Operating Cost Estimate
PROCESS PLANT ‐ OPERATING COST ESTIMATE Level of Escalation factors accuracy not included -10 % +15 % Developed for • Comminution characteristics 3 ore types: • Milling power requirements Because • Reagents consumptions • Oxide/Saprolite • Shallow Fresh All vary by ore type • Deep Hard Fresh 46
Slide 47: Main cost elements of the process
PROCESS PLANT ‐ OPERATING COST ESTIMATE (continued) • Reagents and consumables • Power Main cost • Process plant operating and elements of maintenance labour the process • Maintenance, parts and supplies • Assay laboratory plant • Bullion refining and transport • First principles, where applicable •
Slide 48: Processing Plant - Flowsheet
PROCESSING PLANT ‐ FLOWSHEET Sections: Phase 2 secondary crushing circuit for harder ore • Crushing, stockpiling and reclaim • Grinding and classification • CIL plant • Cyanide detoxification • Tailings disposal • Acid wash • Elution • Carbon regeneration • Electrowinning (CIL) and smelting • Water
Slide 49: Further Potential - Tulu Kapi Deeps
Further Potential ‐ Tulu Kapi Deeps Underground mine would extend life and increase grade The underground provides strong upside Potential production profile (Koz Au)1 Thick, high‐grade gold zones below open pit Underground Open cut 150 150 150 150 135 Preliminary studies based on current resour
Slide 50: Tulu Kapi Deeps Mineral Resource
Tulu Kapi Deeps Mineral Resource Cut-off Tonnes Au JORC (2012) Resource category Reporting elevation Ounces (million) (g/t Au) (Mt) (g/t) Indicated Below 1400 RL 2.50 1.08 5.63 0.20 Inferred Below 1400 RL 2.50 0.12 6.25 0.02 Indicated and Inferred Below 1400 RL 2.50 1.20 5.69 0.22 The preliminary st
Slide 51: Tulu Kapi Deeps
Tulu Kapi Deeps Tulu Kapi Deeps • Mineralisation below the pit • Indicated resource category • >2.5 g/t Au
Slide 52: Tulu Kapi Deeps
Tulu Kapi Deeps • Mineralisation below the pit • Indicated resource category • >2.5 g/t Au
Slide 53: Tulu Kapi Deeps Mineralisation Style: Breccia
Tulu Kapi Deeps Mineralisation Style: Breccia AT FRO Rati Ca Te BHID TO Au Ag As Bi Cd Cu Fe In Mo Pb Sb Se Zn M o % TKBH_1 396. 7.0 62 0.9 2.1 5.9 28 15. 0.0 13 3.1 1. 125 53 55 4 396 397 13.5 4 0.52 .5 9 1 1 5 9 4 2.7 30 7 3 0.13 0
Slide 54: Tulu Kapi Deeps Mineralisation Style: Alteration
Tulu Kapi Deeps Mineralisation Style: Alteration Chlorite‐Sericite Alteration AT FRO Rati Ca Te BHID TO Au Ag As Bi Cd Cu Fe In Mo Pb Sb Se Zn M o % 54 TKBH_1 413. 414. 9. 0.4 1.2 33. 10 5.9 0.2 0.3 21 1. 228 14 1 413 4 13.4 15 1.12 6 1 6 8 8 4 2 8 30 3.9 1 0.1 0
Slide 55: Mineralisation Style: Shallow Disseminated/Replacement
Tulu Kapi Deeps Mineralisation Style: Shallow Disseminated/Replacement BHID AT FROM TO Au Ag Ratio As Bi Cd Cu Fe In Mo Pb Sb Se Te Zn TKBH_098 77.7 78.81 0.005 55 TKBH_098 78.81 79.8 0.46
Slide 56: Tulu Kapi Deeps
Tulu Kapi Deeps TKBH_293: 9 m @ 2.8 g/t Au
Slide 57: Tulu Kapi Deeps
Tulu Kapi Deeps Deeps mineralisation may be a plunging shoot
Slide 58: Tulu Kapi Deeps
Tulu Kapi Deeps TKBH_125: • intersection of mineralisation 140 m down‐plunge of Deeps shoot • Hole was not targeting the Deeps • Intersection interpreted to be east of main Deeps shoot
Slide 59: Northward Continuity: TKBH_125
Tulu Kapi Deeps Northward Continuity: TKBH_125 Mineralised altered dike Rati Te BHID FROM TO Au Ag As Bi Cd Cu Fe In Mo Pb Sb Se Zn o TKBH_1 563.6 1000 0.2 0.9 33. 2.8 17. 2.6 0. 10 25 5 564.4 2.45 0.53 0.22 0 4 1 6 2.9 0.04 9 5 4 3 0.03 7 TKBH_1 0.0 1.8 28. 1.8 0.8 18. 1.0 0. 0.00 21 25 564.4 565.4
Slide 60: Northward Continuity: TKBH_125
Tulu Kapi Deeps Northward Continuity: TKBH_125 Mineralised deformed breccia Rati Te BHID FROM TO Au Ag As Bi Cd Cu Fe In Mo Pb Sb Se Zn o TKBH_1 0.0 0.2 8.3 1.5 0.4 0. 0.00 15 25 573 574.5 0.2 0.09 0.45 21.9 5 3 30 5 0.07 1 8 5 9 5 0 60 TKBH_1 0.0 0.5 24. 1.0 1.4 0. 0.00 15 25 574 5 575 8 0 12 01 0
Slide 61: Tulu Kapi Deeps Coarse Gold
Tulu Kapi Deeps Coarse Gold M Te AT FRO Te BHID FROM TO Au Ag As Bi Cd Cu Fe In Pb Sb Se Zn BHID TO Au Ag As Bi Cd Cu Fe In Mo Pb Sb Se Zn o M TKBH_2 0. 0. 43 5. 0.0 1. 16 3. 0. 0. TKBH_1 345 6.7 4. 0.1 19. 16 5.5 0.1 2.5 11 5.9 0. 85 384.1 385 42 4.68 2.9 11 37 .1 92 1 04 .5 4 7 01 25 46 .8 345 346
Slide 62: Further Potential - Near-Mine Exploration: Guji-Komto Belt
Further Potential ‐ Tulu Kapi Near‐Mine Exploration Guji‐Komto Belt NEAR‐TERM GOLD PRODUCTION OPPORTUNITIES KEFI can quickly add to Tulu Kapi low‐ cost, open‐pit gold production • Shallow gold resources within trucking distance of TK processing plant or as a stand‐alone heap‐leach operations • Poten
Slide 63: Near-Mine Exploration: Strong targets defined by geochemistry and geophysics
Further Potential ‐ Tulu Kapi Near‐Mine Exploration Strong targets defined by geochemistry andDisclaimer geophysics Geochemical surveys identify strong gold anomalies along major shear zones defined by geophysical surveys 63
Slide 64: Early days for modern mining industry in Ethiopia
Early days for modern mining industry in Disclaimer Ethiopia ‐ an emerging gold province Artisanal mines, prospects and major Au and Cu deposits in Ethiopia • Highly prospective ‐ limited modern exploration • Lege Dembi is the only operating Au mine • Dish Mountain and Ashashire represent an undevel
Slide 65: Greatest value created from discovery and triggering development
Greatest value created from Disclaimer discovery and triggering development Location of KEFI’s exploration portfolio in the ANS • Ethiopia: • Tulu Kapi underground +1Moz target at +5g/t Au below THE EXISTING 1Moz at +2g/t Au open‐pit reserve. Target to lift production from the initial 115Koz p.a. Au
Slide 66: Contacts
Contacts Harry Anagnostaras‐Adams, Executive Chairman John Leach, Finance Director Cyprus ‐ Group corporate team Ethiopia ‐ Development and exploration teams Saudi Arabia ‐ Exploration team Email: info@kefi‐minerals.com Website: www.kefi‐minerals.com Luther Pendragon Ltd (Financial PR) Harry Chathli
Slide 67: Appendices
KEFI MINERALS APPENDICES
Slide 68: Ethiopia - A country on the rise
Ethiopia ‐ A country on the rise 15 years of 7‐10% GDP growth, HQ for African Union, with a pro‐development culture, provides UN peacekeepers Africa’s fastest growing economy for region (2015 ‐ 10.2% Real GDP growth)1 Ranks ahead of Kenya, Mali, Mozambique and South Africa Ethiopia is Second most po
Slide 69: Competent Persons Statement
COMPETENT PERSONS STATEMENT The information in this presentation that relates to exploration results, Mineral Resources and Ore Reserves is based on information compiled by Mr Jeffrey Rayner. He was the Exploration Director of KEFI Minerals and a Member of the Australasian Institute of Mining and Me