Nyota Minerals Limited (LON:NYO, ASX:NYO) has reported further positive results from the ongoing exploration program at its flagship Tulu Kapi gold project in Ethiopia. The additional program, of reverse circulation (RC) and diamond drill (DD) holes, has discovered a new high-grade structure beneath the current 1.38Moz Inferred Resource, where it intersected 8.7m averaging 8.9 grams per tonne (g/t) gold.
The company believes that the new structure could be included in the planned open pit.
Diamond drill results have confirmed the presence of a new mineralized structure beneath the current Inferred Resource of 1.38 million ounces (Moz) of gold - 25.45Mt at 1.68g/t gold - with four deep diamond holes 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.
Assays from only one of these deeper holes have been received to date. DD-TKBH-038 intersected 8.90g/t gold over 8.7m, between 244- 252.7m depth. Nyota has said that this third Lode, “occupies a position in the geological profile 30 m below the base of known Lode 2 mineralization and could potentially fall within the limits of conceptual pit design”.
Additionally, the company told investors that the drilling highlights, of the 15 additional infill and expansion RC holes, indicate additional mineralization is present and consequently it is planning to continue to extend DD and RC drilling further to the west, north and southwest.
The extended program is in addition to the ongoing infill drilling program. Nyota has recently completed a close-spaced ground magnetic geophysical survey over the main Tulu Kapi deposit and surrounding area. The company noted that a number of new targets have been defined and drill pads have been established over these new sites.
The emphasis of the drilling is on target areas which are likely to generate outcropping and near-surface mineralization, consistent with the objective of defining an additional open-pittable resource.
Nyota said that, as of June 12, additional results are pending for 35 RC and 6 DD holes.
Nyota has been rapidly advancing the development of its flagship gold project. Last month, Nyota doubled the JORC inferred resource at Tulu Kapi from 690,000 ounces to 1.38 million ounces. The new JORC resource estimate is based on the data from Tulu Kapi maiden resource statement, plus assay data from 25 further reverse circulation (RC) drill holes.
The new JORC resource represents a 38% increase on Nyota's previously stated objective of a 1 million ounce resource target and a 100% increase on the maiden inferred resource announced in September 2009.
Also, earlier this week, the company expanded it foot-print 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.
"The north-west of Ethiopia is rapidly attracting the attention of a number of exploration companies and we are delighted to have secured this strategic addition to our tenement portfolio”, Nyota chief executive Melissa Sturgess commented.
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.
“Our increasing understanding of the regional geology and ongoing success at Tulu Kapi gives Nyota a significant first-mover advantage in targeting further discoveries, which will augment the already exciting potential of Tulu Kapi", Sturgess added.