The Jibal Qutman gold project, in which KEFI Gold and Copper (KEFI ) has a significant interest, looks set for a development decision in 2026.
Any decision will follow the completion of a definitive feasibility study at Jibal Qutman, which is currently being finalised.
Jibal Qutman current boasts a 900,000 ounce JORC gold resource.
KEFI’s exposure to Jibal Qutman comes via its 13% stake in Gold and Minerals SLA, otherwise known as GMCO, a joint venture created with Abdul Rahman Saad Al Rashid and Sons Company Limited (ARTAR).
To date GMCO has made two discoveries and delineated JORC-compliant resources of 3.8 million ounces of gold equivalent.
A total of 16 gold and base metal exploration licences have been secured so far for GMCO, which has also recently formed a joint venture over additional areas with major Australian miner Hancock Prospecting and is formalizing another joint venture with Saudi conglomerate AJ Lan Bros.
In addition to Jibal Qutman, GMCO also offers KEFI exposure to Hawiah, a 36.2 million tonne deposit that’s estimated to 297,000 tonnes of contained copper of 297,000 tonnes, 745,000 ounces of gold, 11.6 million ounces of silver and 310,000 tonnes of zinc.
The resource potential at Hawiah has been expanded with the award of the Umm Hijlan exploration licence which has doubled the strike length of the Hawiah mineralised system currently under development study.
GMCO's new joint venture with Hancock Prospecting has also secured the highly prospective Al Hajar North mineralised belt, which is parallel with and analogous to the Wadi Bidah Minerals District which hosts Hawiah.
The financing package recently closed for development of KEFI’s Tulu Kapi project in Ethiopia included cost overrun reserves and a capital allocation for the initiation of growth opportunities.
However, going forward beyond the initiation phase, the Saudi projects and other non-Tulu Kapi initiatives will be funded independently of the Tulu Kapi project financing - optimising the application of project finance, other non-ownership dilutive capital structures and joint ventures.
In collaboration with ARTAR, GMCO has recently been strengthened as a standalone entity with a dedicated management team, operating independently of shareholders and supported by an enlarged board.
At the same time, Jeff Rayner has rejoined KEFI as Head of Exploration. Jeff was KEFI's inaugural managing director, then focused on grass roots exploration which, under his leadership, led to the early discoveries in Saudi Arabia, Ethiopia and elsewhere.
His skills and experience will now again be used to lead KEFI's exploration initiatives as they are prioritised and to support the Saudi joint venture wherever appropriate.
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KEFI's historical investment in GMCO is approximately US$13 million, now written off under conservative accounting policies. The company is in the process of securing an independent valuation for its GMCO stake, which in the long run could turn out to be substantial. Saudi Arabia has always offered tantalising upside, and is now beginning to deliver on that upside at scale. But there could be a lot more to come.