Nyota Minerals Discovers Gold in Northern Ethiopia

Nyota Minerals Limited, the gold exploration and development Company in East Africa, announced today October 12, 2011 that it has discovered gold in three places in Northern Ethiopia. 

The company made two discoveries at the Bendokoro North Prospect and one discovery within the Boka Sirba Prospect, approximately 100 Km north of flagship gold project Tulu Kapi in western Ethiopia.

“Any one of the Boka Sirba, Bendokoro or Tsole Mole targets would probably be sufficient to sustain a typical junior gold explorer,” said Richard Chase, CEO of the company in an update the company released a few hours ago.

Nyota considers these three targets to be ‘drill ready’ and a multi-purpose drill rig has been allocated to them. The Bendokoro East anomaly comprises an 800-metre strike length, 100-metre wide target and has returned samples with peak grades of 10.6 grams per tonne gold, 8.89 grams per tonne, 8.81 grams per tonne, 5.67 grams per tonne, 4.29 grams per tonne and 3.18 grams per tonne.

The Bendokoro West anomaly extends over a one-kilometre strike length, is between 100 and 200 metres wide and includes continuous gold-in-soil geochemical results that peak at 1.39 grams per tonne. Meanwhile, Boka-Sirba West, the latest target of three Boka targets, shows high copper, zinc and silver values associated with samples that returned peak gold grades of 16.06 grams per tonne and 8.84 grams per tonne.

The company noted that further exploration and drilling to commence at the end of wet season, while reconnaissance exploration will continue over the substantial number of additional targets.

“Exploration results validate the Company’s belief that while Tulu Kapi is to be developed as a flagship project, that the independent Northern Blocks contain significant value for future development,” Nyota said.

"The initial interpretation of the airborne magnetic survey completed over the Northern Blocks was announced on 18th May 2011 and identified a total of 47 targets of merit. Prior to the commencement of the rainy season 7 initial targets were followed, according to the statement."

The England-based company, Nyota, holds six explorations licenses totaling +3400 km2 and has other applications pending. The four licenses (Tulu Kapi, Yubdo, Billa Gulliso and Ankore) are located in the Tulu Kapi area (281 km2) and a further two licenses, Brantham and Towchester (3147 km2) are located approximately 100 km north of Tulu Kapi.

Exploration is operated on a number of fronts. A Proximal and Satellite program is testing targets located within a 5 km radius of the planned Tulu Kapi mine site aimed at providing additional feed for the plant.

A southern regional program is targeting prospects situated in the Yubdo and Billa Gulliso EPL’s in a radius of 25 km of Tulu Kapi. A separate northern regional program is testing prospects identified within the Brantham and Towchester exploration licenses.

Prospect

Ethiopian Government estimates that production could rise to 40 tons a year given sufficient investment. The primary gold mine, Legedembi, which has been transferred from public to private ownership, is the largest gold mine in the country.
There are also several mines in the Gambella, Somali, Tigray, Amhara, Gambela, Benishangul and Southern region of the country.

The country earned a total of over 360 million US dollars in 2010 from gold export. Revenue from gold exports is expected to increase as the price of gold is growing in the international market and the number of companies engaged in exploration is increasing.

Foreign investment in the mining sector of the country reached to 1 billion US dollars in 2009. Foreign companies already investing in Ethiopia’s mining sector come from all over the world including the UK, China, South Africa, Canada, USA, Guyana, Italy and Norway.
http://www.newbusinessethiopia.com