Nyota Minerals doubles Tulu Kapi JORC inferred resource to 1.38Moz, smashing previous 1Moz target

Nyota Minerals (AIM, ASX: NYO) has doubled the JORC inferred resource at the Tulu Kapi gold project in Ethiopia from 690,000 ounces to 1.38 million ounces. The new JORC resource estimate is based on the data from Tulu Kapi maiden resource statement, plus assay data from 25 further reverse circulation (RC) drill holes.

The new JORC resource represents a 38% increase on Nyota's previously stated objective of a 1 million ounce resource target and a 100% increase on the maiden inferred resource announced in September 2009.

The resource statement follows the compilation and technical interpretation of 4,579 metres of reverse circulation drilling by independent consultants Venmyn Rand. 

"We will undertake further localised drilling to upgrade the inferred resource to an indicated category in order to provide the level of confidence needed to allow the company to proceed to feasibility.  We will also continue to target drilling towards an increase in the current inferred resource”, Nyota chief executive Melissa Sturgess said.

Furthermore, the company is yet to include data from 10 drill holes already completed, as part of the recent program, in the latest JORC resource estimate.

The recent RC drilling program focused on the NE extension of mineralisation, which is contiguous with the area over which the 690,000oz maiden resource was defined.  Nyota also completed infill drilling to increase the level of confidence attributable to earlier diamond drilling.

“Drilling to date has focused within a small area of the Tulu Kapi Licence and the planned deeper drilling will remain within this defined block”, Sturgess added. “Further work will be required to test the other extensions known to occur within the immediate environs of Tulu Kapi, and there is significant potential to encounter further mineralisation outside of the small area where drilling has focused to date."

Nyota highlighted that the results of previous drilling demonstrate the continuity of mineralisation intersected at depth as it tracks closer towards surface, returning grades and widths that it believes demonstrate excellent potential to support a future open pit mining operation.

Last month, in its latest quarterly report, Nyota reflected on Venmyn Rand’s findings at Tulu Kapi. The independent consultants conducted a pre-scoping study which indicated that Tulu Kapi is economically viable and concluded that open pit mining would be most likely. The study calculated payback of capital within 4-5 years from the date of first production.

The company emphasised that the Venmyn study was based on the Mineral Resource (at that time), and as such, the additional resource drilling is likely to improve the development’s attractiveness.

“Further, at a regional level, Venmyn believes that the evidence to date suggests the existence of a much larger goldfield within the greater Tulu Kapi/Ankore licence area held by the company”, Nyota stated. Nyota also noted the very positive initial metallurgical testwork results received in the period, which showed recoveries in excess of 95%.

http://www.proactiveinvestors.co.uk/companies/news/16323/nyota-minerals-doubles-tulu-kapi-jorc-inferred-resource-to-138moz-smashing-previous-1moz-target-16323.html