Nyota Minerals chairman and CEO Melissa Sturgess buys 1 mln shares

Nyota Minerals (LON:NYO, ASX:NYO) told investors that chairman and chief executive Melissa Sturgess bought 1 million shares in the company on the market at 17p each, taking her direct and indirect interests to approximately 8.8 million shares. The company has been making good progress in recent months as it advances the 1.38Moz Tulu Kapi gold project towards the development phase.

Earlier this week, Nyota told investors that a fourth drill rig has arrived on-site in Ethiopia, to allow the company  to maintain its momentum in upgrading the current 1.38Moz Tulu Kapi Inferred gold resource - based on 25.45Mt at 1.68g/t gold – and to delineate additional resources.

The new diamond drill rig will be allocated to drill in-fill and stratigraphic holes, with the specific purpose of upgrading the current Inferred Resource and providing detailed geological/structural data aimed at expanding the geological model. 

Nyota highlight that the three rigs currently on site are focused on separate but complementary drilling programmes. One RC rig is completing infill drilling over the Inferred Resource, whilst the second RC rig is drilling a number of high priority prospective targets, which form extensions to the main Tulu Kapi orebody. The second diamond drill rig will multi-task, undertaking drilling to support the other programmes and ensure the schedule is achieved.

The company said that the work is essential, as it will also assist with compilation of data needed to establish conceptual open pit limits. In terms of its operational performance, Nyota said that the current drilling progress is excellent, with cumulative drilled metres exceeding 250m per day.  In total, since work began at Tulu Kapi, Nyota has drilled 90RC holes for a total of 17,000m and 21 diamond holes for a total of 4,400m. The company’s exploration work supplements the existing34DDH holes, drilled by Minerva, for a total of approximately 6,800m.

Of the 145 holes drilled, 100 have formed the basis of the current 1.38moz inferred gold resource, with assays from the remaining 45 holes yet to be received. The next drilling update is expected during the third quarter of 2010.

In June, Nyota reported further positive results from the ongoing exploration, as the company discovered a new high-grade structure beneath the current resource, where it intersected 8.7m averaging 8.9 grams per tonne (g/t) gold. Four deep diamond holes were drilled below the current resource, which sits at a maximum depth to date of 200m.The deeper holes have intersected sulphide mineralization in structures stacked beneath the two known lodes, which form the Inferred Resource.

Also, the company has expanded its footprint in the surrounding area, through the acquisition of an 80% interest in a highly prospective land package, totalling over 4,500km2, to the north of Tulu Kapi.

With the acquisition, the company has secured first-mover advantage in an area which has been drawing attention from a number of rival exploration companies, it said in a statement. Nyota initially optioned the property back in April, and following shareholder approval this option has now been exercised.

According to Nyota, the highly prospective ground exhibits the same major geological structure thought to control the mineralisation at Tulu Kapi, which therefore increases the company's confidence of the potential for additional discoveries which could bolster the main Tulu Kapi resource.