Addis Fortune (Addis Ababa)

27 January 2013

Ethiopia: Nyota Minerals Announces Success Despite Budget Cuts

Nyota Minerals announced last week that the feeder zone drilling programme at its Tulu Kapi Gold Project in Ethiopia was successful, although budget cuts owing to working capital problems might result in operations being suspended.

Our feeder zone drilling programme has successfully demonstrated, in a matter of four months, the potential to add significant high grade ounces to the Tulu Kapi resource inventory, Richard Chase, Nyota's Chief Executive Officer said. "However, it is disappointing to be having to make significant cuts in our prior budget, but we face a shortfall in working capital for the quarter ahead unless we do so", he added.

The new high grade intersections in the feeder zone include 15.04 gram a tonne of gold over 9.45m, 10.55 gram a tonne of gold over 13.96m, 5.34 gram of gold over 12.25m and 5.24 gram of gold over 26m. The inferred resource estimate is currently 1.1 million tonnes at an average grade of 5.4 gram a tonne containing 188,000 ounces of gold.

Two weeks ago, the company announced that the Ministry of Mines (MoM) has completed its review of Nyota Minerals' Definitive Feasibility Study (DFS) for the development of the mining operation at the company's flagship Tulu Kapi Gold Project, including the Environmental and Social Impact Assessment (ESIA).

The company is currently undergoing discussions with various parties, including major shareholders to secure interim funding to enable it to complete its negotiation of the fiscal and legal terms for the issue of the mining licence, according to the press release posted on the company's official website.

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