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Nyota Minerals saw share price growth on the back of Q4 gold exploration success in Ethiopia

Last updated: 21:14 28 Jan 2011 AEDT, First published: 20:14 28 Jan 2011 AEDT

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Nyota Minerals (LON:NYO, ASX:NYO) today reflected on the progress made at its Tulu Kapi gold project in Ethiopia during the final quarter of 2010, which saw the share price nearly double.

At the flagship Tulu Kapi project, Nyota discovered a high grade feeder zone style mineralisation, characterised by abundant visible gold and associated high gold grades.

Among the intersections returned by drilling were 5.76 metres at 23.05 grams per tonne (g/t) gold, 15.7 metres at 37.04 g/t and 4.65 metres at 89.70 g/t gold.

Nyota said that the style of mineralisation served as a clear indication hat this could be one of the original gold bearing fluids. The combination of mineralogy and geophysical signature specific to this style of mineralisation has also been noted elsewhere within the project area, implying the presence of multiple high-grade feeder zones.

Extension reverse circulation (RC) drilling intersected mineralisation to the north-west of the Tulu Kapi deposit, reconfirming Nyota’s precious statement that gold mineralisation at the project continues along strike to the north of the existing resource.

Grades for RC holes included 44 metres at 2.09 g/t and 18 metres at 3.94 g/t and 8 metres at 1.20 g/t and 8 metres at 1.9 g/t gold.

Nyota has scheduled further drilling to target an extension to the known gold resource northwards.

During the period, Nyota took its interest in a portfolio of highly prospective Ethiopian regional tenements acquired earlier in 2010 from 80% to 100% and raised £21.58 million via two share placings in the UK and Australia.

These funds are currently being utilised to fast-track the exploration and development of Tulu Kapi and to fund Nyota’s regional exploration programme in Ethiopia.

A 44,700 line kilometre airborne geophysical survey over Nyota's entire Ethiopian land holding package was completed with the data gathered during the survey currently in the process of being analysed and interpreted, with results and recommendations for exploration activity expected in the current quarter.

Meanwhile, the company’s regional exploration programme has continued, with the commencement in early December 2010 of an initial 2,000 metre diamond drilling programme for the Billa Gulliso and Yubdo exploration licenses, focusing on several high-grade gold targets.

Amongst the targets for this regional programme are Soyoma and Dina.

The former has returned previous trench results of up to 14.2 metres at 8.2 grammes per tonne (g/t) gold and the latter returned up to 8.75 metres at 1.23 g/t and test borehole results of up to 7.1 metres at 8.23 g/t.

The positive newsflow from Ethiopia drove Nyota’s shares from 16 pence at the start of the quarter to 30 pence it hit in January before pulling back to 23 pence.

At the start of 2010, Nyota was valued at 8 pence per share, roughly 25% of its current share price.

No further work was carried out on the Muremera nickel project during the quarter as Nyota’s primary focus was on its Ethiopian operations.

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