3rd Sep 2014 09:02
LONDON (Alliance News) - Nyota Minerals Ltd Wednesday said it has recently submitted renewal applications for both of its Northern Block licences, and added that technical reports for the license and field work for the year just ended are being prepared.
In addition, the company said it is continuing discussions with the Ethiopian Ministry for Mines over the potential for its Towchester subsidiary to mine and treat the alluvial river gravel deposits adjacent to the Abay River, or Blue Nile, that bisects the Northern Block licenses.
According to Nyota, the gravels are known to be gold-bearing and are being hand dug and panned for gold by local people at a number of localities within the licenses.
"The areas will, within a few years, be flooded by the Grand Ethiopian Renaissance Dam; a new hydroelectric power dam being constructed on the Blue Nile. Alluvial gold deposits in Ethiopia are usually reserved for exploitation by artisanal miners. However, as the deposits will be flooded, large scale mechanized mining to maximize potential gold recovery is receiving favorable consideration," Nyota said in a statement.
"The flooding caused by the dam will not affect the highest priority hard rock gold exploration targets in the Northern Block licenses," the company added.
Nyota shares were Wednesday untraded at 0.27 pence.
By Samuel Agini; [email protected]; @samuelagini
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