KEFI advances Saudi gold project with US$87m development approval
Jibal Qutman Stage 1 is expected to produce 258,000 ounces of gold over seven years, with development targeted to begin in the fourth quarter of 2026
KEFI Gold and Copper has secured conditional approval for an approximately US$87 million development programme at its Jibal Qutman Gold Project in Saudi Arabia, bringing its joint venture closer to establishing its first producing operation in the country.
The approval was granted by Gold and Minerals Company Limited (GMCO), the joint venture between KEFI, which holds a 13% interest, and Saudi Arabian industrial conglomerate ARTAR, which owns the remaining 87%.
Development of Jibal Qutman Stage 1 (JQ1) is expected to commence in the fourth quarter of 2026, subject to the completion of outstanding procedural requirements. These include the granting of a Mining Licence by Saudi Arabia’s newly appointed Minister of Industry and Mineral Resources.
The oxide-ore project will use conventional carbon-in-leach processing and is expected to operate for approximately seven years, recovering an estimated 258,000 ounces of gold.
At gold prices ranging between US$3,000 and US$5,000 per ounce, the project is expected to deliver a post-tax net present value of US$141 million to US$275 million, at a 5% discount rate. Its estimated internal rate of return ranges between 23% and 60%.
KEFI’s share of the development capital is estimated at between US$10 million and US$12 million over 24 months, assuming the contribution is entirely funded through equity.
Based on current discussions, approximately half of the total capital requirements is expected to be provided at the start of development. The remaining US$5 million to US$6 million will be optimised in terms of funding source and amount after 12 months, once financing alternatives have been assessed.
The development is also expected to provide GMCO with an operating and financial base from which to advance other projects in its Saudi Arabian portfolio.
GMCO’s portfolio includes the Jibal Qutman Gold Project and Hawiah Copper-Gold Project, with combined mineral resources of approximately four million ounces of gold equivalent. Both projects are expected to be developed in stages, with the longer-term production target set at approximately 350,000 ounces of gold and gold equivalent annually.
