Nyota Minerals (LON:NYO) , the AIM listed mining group, has reported an increase in the inferred resource at its Tulu Kapi gold project in Ethiopia to 1.38 million ounces from 690,000 ounces, defined at a cut off grade of 0.50 grams per ton of gold. The move follows an independent assessment of 4,597m of drilling work undertaken at Tulu Kapi which focused on a north-east extension of mineralisation at the project. The company said it hoped that gold grades at different cut-offs would improve in parallel with a closely spaced infill drilling programme that is currently underway.
Nyota acquired Tulu Kapi as part of its takeover of fellow mining group Minerva Resources last summer. In December it raised £2.25m in a share placing priced at 7p in order to fund the ongoing drilling work there. Today’s news saw the company’s shares rise by 7.4% to 14.5p. It is now set to undertake further localised drilling to upgrade the inferred resource to an indicated category in order firm up confidence in the project ahead of a feasibility study. It also wants to continue to target drilling towards an increase in the current inferred resource.
Melissa Sturgess, the chief executive of Nyota, said: “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. 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.”
More confirmation that this is a beauty of a gold discovery. The resource ounces per drilled metre is just brilliant, and they've only begun to scratch the surface of what is a very large prospective area.
IMO
