14/10/2015 - 15:18

Ausdrill preferred for $US300m deal

14/10/2015 - 15:18

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Mining services company Ausdrill has been named the preferred contractor for a $US300 million ($A415 million) contract at Kefi Minerals’ Tulu Kapi gold project in Ethiopia.

Site work at Kefi Minerals' Tulu Kapi gold project in Ethiopia.

Mining services company Ausdrill has been named the preferred contractor for a $US300 million ($A415 million) contract at Kefi Minerals’ Tulu Kapi gold project in Ethiopia.

London-listed explorer Kefi has engaged Ausdrill subsidiary, African Mining Services, for the establishment and operation of the Tulu Kapi project, with the contract’s value estimated over the mine’s approximate 10-year life.

“The principal terms and conditions of the appointment are subject to full detailed documentation and will encompass scope of works for certain pre-mining earthworks as wells as the life-of-open-pit mining operation; schedule of rates payment structure based on per cubic metre delivered; and free issue by Kefi of explosives and fuel,” Ausdrill said in a statement.

Kefi is working towards producing gold at Tulu Kapi by 2017.

The mine’s ore reserve estimate totals 15.4 million tonnes at 2.12 grams per tonne gold, containing 1.05 million ounces.

The explorer completed a definitive feasibility study on the project last month, which detailed a planned production of 100,000oz per annum at an all-in sustaining cost of $US760/oz.

Ausdrill closed 2.8 per cent higher to 36.5 cents each.

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