Nyota Minerals Unearths More Gold in Ethiopian Project

PUBLISHED: 03 Dec 2012 @ 11:02 | Comments (0) | More info about Kenneth G. Mondero

Gold explorer, Nyota Minerals Limited (LSE:NYO), has unearthed further potential for its proposed open pit mine in its flagship project in Ethiopia ahead of the definitive feasibility study (DFS) soon to be released within this month.

In a statement, the ASX- and AIM-quoted exploration and development company said further high-grade mineralisation was encountered below the proposed open pit mine at the Tulu Kapi Gold Project, providing the company with more reason to continue drilling the surrounding licence area.

The Feeder Zone drilling programme below the proposed open pit mine has encountered as much as 14 metres with an average grade of 8.35 grams per tonne, a result confirming that the area is “favourable for future mining and construction”, as stated by the company’s Chief Executive, Richard Chase.

Nyota plans to commence a pre-feasibility study on the new sections drilled by the first quarter of 2013 to assess the viability of an underground mining, the company said.

Increasing Potential

“Tulu Kapi continues to yield high grade results, and re-affirms the prospectivity of the Project beyond the existing drilled open pit area, which we already believe has the potential to be a commercially producing mine,” Mr. Chase commented.

Nyota has 100% interest in four licences encompassing the Tulu Kapi deposit and is still in talks with the Ethiopian Government for the conversion of the exploration licence into a mining licence.

Tulu Kapi’s most recent JORC-compliant resource estimate is at 1.87 million ounces, extractable from 24.9 million tonnes of ore at an average grade of 2.3 g/t and is due to provide a maiden reserve estimate to be released this month, along with the DFS.

Nyota’s share price spiked as much as 20.45% of Friday’s closing price and settled back to 4.4 pence by 10:45 AM GMT over a volume of 3.3 million shares, trading on the London Stock Exchange.

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