30th Oct 2009 07:00
QUARTERLY REPORT 30 September 2009
NYOTA MINERALS LIMITED (ASX: NYO.ASX; AIM: NYO.L)
Highlights during the Quarter
Corporate
- Acceptances of the Company's takeover offer by 91.01% Minerva shareholders allowed the Company to close its offer and post quarter end move to 100% ownership of Minerva
- Company name changed to Nyota Minerals Limited
- Cash balance of GBP5 million at end of Quarter
Tulu Kapi Gold Project in Ethiopia
- Maiden JORC Resource of 690,000 ounces of gold at a cut off of 0.50g/t Au
- Commenced new field season exploration programme focussing on expansion of the existing JORC Resource
- Encouraging trenching results received for initial regional exploration including peak intersections of 8.18g/t Au over 14.2m, 3.77g/t Au over 3.0m and 1.34g/t Au over 6.90m
Muremera Nickel Project in Burundi
- Drilling commenced during the previous Quarter was completed with five of the seven holes intersecting separate sulphide-mineralised ultramafic bodies
- Drilling successfully intersected two styles of mineralisation believed necessary for the future discovery of nickel sulphide bodies
TULU KAPI MAIDEN JORC RESOURCE DEFINITION AND EXPLORATION PROGRAMME
Nyota Minerals completed the acquisition of 100% of the issued share capital of Minerva Resources plc ("Minerva") from Minerva shareholders on 23 October 2009. This acquisition provided a low cost entry in to the Tula Kapi gold project in Ethiopia
On 14 September 2009, Nyota announced the conversion of historical drilling and assay data to a JORC compliant Maiden Resource of 690,000 ounces of gold at a 0.50g/t Au cut-off. This work was completed by Hellman & Schofield, acting as an independent consultant and Competent Person.
Modelling of the resource was completed at different cut-off grades. The relatively small reduction in total ounces of gold at elevated cut-offs suggests that a high rate of conversion from the current Inferred to an Indicated status can be achieved with future infill drilling. The Inferred resource at different cut-offs grades is:
|
Cut-off |
Tonnes |
Grade |
Gold |
|
(g/t Au) |
(Mt) |
(g/t Au) |
(oz Au) |
|
0.50 |
13.52 |
1.58 |
690,000 |
|
1.00 |
6.70 |
2.47 |
530,000 |
|
1.50 |
3.94 |
3.30 |
430,000 |
Figures for contained ounces have been rounded and include both primary and supergene resources. Significant figures used for tonnages and grades do not imply precision.
A contract has been signed with Geosearch International ("Geosearch"), a South African based drilling company for the delivery to site of a reverse circulation ("RC") rig and a diamond drilling rig. These were dispatched from the Geosearch regional office in Tanzania and are travelling overland to Ethiopia. The contract requires Geosearch to complete an initial 10,000m of RC drilling and 2,000m of diamond drilling at the Tulu Kapi site. Drill pads and access roads are being established for the first phase of drilling. The initial programme will include some twinning of existing diamond drill holes, to check the veracity of RC samples and assay data, as well a programme designed to intersect the assumed up-dip extension to the Maiden JORC Resource. More than 20km of targets have been identified based on a combination of historical diamond drill data, trenching, gold in soil geochemical surveys and geological mapping.
The upcoming diamond drilling campaign will provide detailed geological and structural information over the most significant targets, all of which form contiguous extensions to the existing Maiden Resource.
The RC rig will follow the diamond drill campaign meaning it can be relocated to the next mineralised extension seamlessly. Assay and geological data generated by this process
will be fed back to the independent consultants responsible for resource estimation with a view to regularly adding to the global gold resource.
Regional exploration has also commenced on the Bila Gulliso and Yubdo Exploration licences, located adjacent to the Tulu Kapi Licence. Excellent results have been generated from trenching programmes with the Kobera and Soyoma Prospects returning particularly encouraging results. Detailed exploration on these two licences prior to the acquisition of Minerva, focussed on less than 15 per cent of the total surface area. Based on a preliminary assessment by Nyota, further discoveries are likely, supported by clear evidence of quartz vein outcrop, alteration and ideal regional structure.
Trenching of the Soyoma Prospect, situated at the southern end of the Bila Gulliso Licence has exposed a number of mineralised zones over a strike length of 300m. The zone remains open to both the north and south and includes the remnants of a 900m long shallow open cast small-scale mining operation from the 1930's. All of the new trenches excavated were placed outside of the former mining area and returned a peak grade of 8.18g/t Au over 14.2m.
|
Trench No |
From (m) |
To (m) |
Metres (m) |
Grade (g/t Au) |
|
SOTR5A |
1.00 4.10 |
3.50 5.70 |
2.50 1.60 |
2.02 2.71 |
|
SOTR5B |
0.00 |
4.00 |
4.00 |
0.59 |
|
SOTR6 |
0.00 |
14.20 |
14.20 |
8.18 |
Trench results for Soyoma trench programme
Trenching at Kobera, a prospect located in the NE quadrant of the Bila Gulliso licence exposed a broad zone of mineralisation over a strike length of 400m. The target remains open along strike. Of particular significance at Kobera was the presence of a large number of sub-parallel quartz veins with a sulphide association, albeit at low gold grades over substantial widths offering scope for bulk open cast potential. Further exploration is required to establish the extent of the mineralisation and the potential for improved grades at depth.
|
Trench No |
From (m) |
To (m) |
Metres (m) |
Grade (g/t Au) |
|
KTR10 |
9.00 |
16.80 |
6.90 |
1.34 |
|
KTR11 |
3.00 |
6.00 |
3.00 |
1.23 |
|
KTR13 |
6.00 9.80 |
9.00 11.80 |
3.00 2.00 |
3.77 1.11 |
|
KTR14 |
6.00 |
7.60 |
1.60 |
1.25 |
Nyota has employed an additional three geologists specifically to focus on regional exploration and target generation. Work will focus on extending the strike length of targets already identified by trenching and the delineation of new targets supplemented by Landsat imagery and detailed geological mapping. The objective remains to build a substantial number of targets for follow up drilling and to ensure that the entire licence areas have been prospected prior to the requirement to relinquish a portion of the total area at the time of licence renewal. There are a considerable number of drill targets in and around Tulu Kapi and no drilling of new regional targets is planned for the current exploration campaign.
As part of the exploration programme, the Company has purchased a fully equipped sample preparation facility from ALS Chemex Laboratories ("ALS") in South Africa. ALS has dispatched the unit via Durban for delivery to the Tulu Kapi site. Once established, the facility will be staffed by qualified ALS personnel to ensure that sample preparation meets the required QAQC Standards. Sample pulps to be generated will be dispatched to the ALS laboratory in South Africa for assay. The reduction in sample size is expected to reduce transport costs and possibly speed up the turnaround of samples and assay results.
The Company has also entered into a contract with Geoscientific Mineral Resources for the delivery of multispectral satellite imagery as well as digital elevation and contour data, topographical mapping and structural interpretation covering the entire area currently held under licence. This data is expected to add considerably to the exploration programme, confirming some of the regional prospective trends already identified as well as generating new targets for follow up.
A Technical Review of the Tulu Kapi, Bila Gulliso and Yubdo Exploration licences was undertaken by independent consultant Venmyn Limited ("Venmyn"). Venmyn's report was positive and demonstrated the following:
- The Tulu Kapi Project represents a highly prospective gold project;
- Provision of an independent confirmation that drilling, logging and sampling was carried out to a high standard;
- Numerous positive indications of mineralisation beyond the immediate area of Tulu Kapi offers good potential to add to the Project's mineral resources
During the Quarter, Nyota has reviewed all available historical data for the Yubdo platinum licence held in Ethiopia.
MUREMERA EXPLORATION PROGRAMME UPDATE
Seven diamond drill holes for a total of 1,750.62 metres were completed during the Quarter over priority targets. The objective was primarily to test previously generated geophysical targets with the aim of refining the interpretation of geophysical data to aid future exploration for sulphide mineralisation.
Five of the 7 holes intersected sulphide mineralised ultramafic bodies and clearly identified the two styles of mineralisation considered essential for the discovery of economic quantities of sulphide nickel bodies. Exploration of this type is typically geophysically-led and the recent discoveries are considered highly significant.
The Directors are of the view that these discoveries are extremely encouraging and serve to strengthen the case for continued exploration at Muremera.
SWAZILAND
A project data compilation and review commenced during the quarter. No field work was undertaken during this period.
For further information please contact:
Melissa Sturgess
Nyota Minerals Limited
(+44) (0)78 2555 1397 or [email protected]
In United Kingdom
Richard Brown/ Richard Greenfield
Ambrian Partners Limited
(+44) (0)20 7634 4700
Press enquiries
Charlie Geller or Leesa Peters
Conduit PR
+44 (0)20 7429 6604/ +44 (0)79 7006 7320
Or visit: http://www.nyotaminerals.com
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