29th Jan 2010 07:00
QUARTERLY REPORT 31 December 2009
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NYOTA MINERALS LIMITED ('NYOTA' OR THE 'COMPANY') (ASX: NYO.ASX; AIM: NYO.L) |
Highlights during the Quarter
Corporate
GBP2.25 million raised to accelerate drilling at Nyota's flagship Tulu Kapi gold project in Ethiopia
Appointment of Mr Martyn Churchouse as Technical Director to complement increased pace of development at Ethiopian operations
Tulu Kapi Gold Project in Ethiopia
Independent technical review by Venmyn Rand to 43-101 standard confirms that Tulu Kapi is highly prospective, with good upside potential from additional mineralisation and high gold recoveries from testwork
Identification of 2 new drill targets adjacent to the existing 690,000 ounce JORC Inferred resource
Diamond drilling programme underway at Tulu Kapi
Drilling programme accelerated by the addition of a second Reverse Circulation (RC) drill rig to support existing RC and diamond rigs at Tulu Kapi site
Preparation completed for 4 diamond drill holes at Guji target
Muremera Nickel Project in Burundi
Review of historical exploration data and associated 3D modelling of project geology
Revision of work programme to include additional ground and downhole geophysics comprising electromagnetic surveys over the most prospective areas within the project licence
TULU KAPI PROJECT AND OTHER ETHIOPIAN GOLD TARGETS
Overview
As reported last Quarter, in September 2009 Nyota announced a JORC compliant Maiden Resource of 690,000 ounces of gold at a 0.50g/t Au cut-off at the Tulu Kapi gold project in Ethiopia. This work was completed by Hellman & Schofield, acting as an independent consultant and Competent Person. Subsequently, Nyota engaged recognised independent experts Venmyn Rand to undertake a technical review of the Tulu Kapi gold project and surrounding exploration licences, based on all historical and recent reports and exploration results, to produce a Technical Statement to internationally-recognised 43-101 standard. As announced on 6 October 2009, Venmyn's report demonstrated that Tulu Kapi represents a highly prospective gold project within Ethiopia, confirming both that existing drilling, logging and sampling work had been carried out to a high standard and also that numerous positive indications of mineralisation beyond the immediate Tulu Kapi area offered good potential to add to the project's mineral resources.
RC drilling - Tulu Kapi
Reverse Circulation ("RC") Drilling commenced in mid-December 2009. An RC rig was used to commence step-out drilling to the east of the current Maiden Resource with holes planned at approximately 80m intervals along the extension of traverse lines 240N, 160N, 80N, Line 00, 80S, 160S and 240S. The first three RC holes completed during the Quarter were drilled along Line 160N and each hole was drilled to an average depth of 200m.
The purpose of drilling was to intersect the projected up-dip extension of mineralisation previously defined during the original diamond drill programme that defined the current Inferred Resource of 690,000oz Au.
As of the end of the Quarter, representative samples from each metre drilled had been dispatched to ALS Laboratories in Johannesburg for sample preparation and gold fire assay, with results expected during the first Quarter of 2010.
Trench excavation further east, beyond the previously assumed limits of mineralisation, intersected albitisation with quartz veins and sulphide mineralisation. The evidence of further mineralisation was considered sufficiently compelling to warrant the planning of further step-out drilling and an extension of the RC drill grid beyond the limits of the current programme.
Diamond drilling - Tulu Kapi
The diamond drill rig contracted from Geosearch International was used to drill two short diamond holes close to a former UNDP diamond borehole drilled in the 1970's with the purpose of evaluating potential for gold mineralisation over a 300m long exposure of syenite with quartz veins, sulphide mineralisation and intermittent albite alteration.
Hole TRBH035, a short hole, was collared close to the UNDP borehole with the purpose of intersecting the local geological units present and determining the true dip, strike and foliation of host rocks and quartz veins. Core logging established that the former UNDP hole had been drilled parallel to the strike of mineralisation and had failed to intersect the albite hosted mineralisation evident at surface. Hole TRBH036, a vertical hole, was underway during December 2009 over visible mineralisation and will be drilled to an estimated depth of approximately 160m. Initial logging of the core shows a band of albitisation with massive sulphides and quartz veining over a width of approximately 30m. Visible gold was present in the top of the hole. Representative samples will be collected from every metre drilled and submitted to ALS Laboratories for analysis. No analytical results had been received as at the end of the Quarter.
The evidence of more than 300m of outcropping syenite with quartz veins, albitisation and sulphide mineralisation supplemented by the vertical borehole which intersected approximately 30m of continuous albitisation provides strong evidence for a new area of mineralisation situated to the NE of the main Tulu Kapi body. Two trenches TKTR04 and TKTR05 have been excavated close to the UNDP site. Both trenches exposed albitisation, quartz veining and sulphide mineralisation at or close to surface over widths ranging from 1.0m to 26.0m. Whilst assays were not expected before the first Quarter of 2010, the cumulative evidence provided by drilling and trenching was sufficient to warrant the planning of future RC drilling over the target.
Diamond drilling - Guji Target
The Company completed the preparation of 4 drill pads over the Guji target located approximately 3km NE of Tulu Kapi. Drilling is expected to commence in the first quarter of 2010.
At Guji, a recent resistivity geophysical survey confirmed the presence of a steeply dipping unit with an average width of approximately 20m over a strike length of 1,200m. This anomaly is coincident with historical gold in soil geochemical data and the estimated unit width of approximately 20m ties in well with a diamond drill hole completed prior to Nyota's involvement in the project that returned a cumulative mineralised intersection of 3.0g/t Au over 17m. Diamond drilling planned will be wide spaced to confirm the presence of the mineralised unit.
Trenching - Tulu Kapi
The presence of albitisation with quartz veining and sulphide mineralisation at surface beyond the current limits of the 24 hole RC programme planned for the up-dip extension of mineralisation led the Company to undertake additional trenching to evaluate these exposures. As a result, two trenches were excavated, TKTR01 and TKTR02 with encouraging results being reported in January 2010. TKTR01 was sited 40m due east of drill hole TKBH029 and exposed albitisation over a width of approximately 9.0m. TKTR02 was sited approximately a further 150m east of TKTR01 to test for further mineralisation close to the presumed surface expression of the known NNE-SSW oriented shear zone. The trench exposed albitisation over a width of 1.0m. These two intersections validate the planned expansion of the RC grid beyond the initial 24 hole up-dip extension programme and planning is underway to determine the number of additional holes required to test for potential additional mineralisation.
Metallurgical testwork - Tulu Kapi
Approximately 300kg of drill core was collected for metallurgical testwork from previously drilled diamond core used to determine the Maiden Resource at Tulu Kapi. Representative samples were collected for both Zone 1 and Zone 2 mineralisation. This core was dispatched to an independent laboratory in Perth, Australia for standard testwork including a range of comminution tests and cyanidation bottle rolls. Results are expected during the first Quarter of 2010.
MUREMERA EXPLORATION PROGRAMME UPDATE
Activity during the Quarter focussed on a review of all available historical exploration data by an independent consultant specialising in nickel geology. As part of the review, new software has been purchased specifically to undertake 3D modelling of the geology based on geological mapping, diamond drill hole log data and geophysical information. In addition, the work programme for Muremera has been revised to include a new round of ground and downhole geophysics comprising electromagnetic surveys over the most prospective areas within the licence. A tender process is currently underway to select a geophysical contractor to undertake the work.
Subject to the outcome and interpretation of new geophysics data, the work programme anticipates further follow up drilling of priority targets within the next 18 months.
SWAZILAND
Project data compilation and review continued during the quarter. No field work was undertaken during this period.
CORPORATE
Following positive results of the work undertaken to date at Tulu Kapi and confirmation by external consultants Venmyn Rand of the highly prospective nature of the project, in October 2009 Nyota appointed Mr Martyn Churchouse as Technical Director to oversee expanded plans for the development of the asset, included an accelerated drilling campaign as described above. In addition, and in support of the fast-tracking of further exploration and development work at Tulu Kapi, the Company raised GBP2.25 million (before expenses) in December 2009 by way of a placement of 32,142,858 new ordinary shares at a placing price of 7 pence per share to institutional investors. As indicated above, an additional RC rig is presently on its way to the Tulu Kapi site to complement the existing RC and diamond drill rigs undertaking work there, as part of an increased drilling programme designed to increase the 690,000 ounce Au JORC Inferred resource towards 1,000,000 ounces, upgrading part of that resource to the Measured and Indicated category, and drilling of the Northern Extension target at Tulu Kapi described above.
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For further information please contact:
Melissa Sturgess
Nyota Minerals Limited
(+44) (0)78 2555 1397 or [email protected]
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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