leadf
logo-loader
viewNyota Minerals

Ambrian raises stance on Nyota Minerals after visiting Tulu Kapi gold project in Ethiopia

stock_news350_4ae975918a38f.jpg

Ambrian Capital issued a note on African focused nickel and gold exploration and development junior Nyota Minerals (AIM, ASX: NYO), lifting its rating on the stock to ‘BUY’ from ‘Speculative Buy’ following a site visit to the Tulu Kapi gold project in western Ethiopia this month. It has an initial price target of 11.4 pence a share, a significant upside compared to the current level of around 6.88p.

It is applying a value of US$20.7 million to the initial resource, assuming a price of US$30 per ounce, and a nominal US$10 million to the Muremera nickel project in north-east Burundi.

Tulu Kapi is one of the assets acquired by Nyota, formerly Dwyka Resources, in the July 2009 £1.8 million takeover of Minerva Resources. The package included a substantial database of mapping, geochemistry and drilling.

Only last week, Nyota said the project, which has a maiden inferred gold resource of 690,000 oz, has been progressing well with drill rigs currently making their way to the site to drill around of Tulu Kapi Main to delineate 1 million oz of gold and increase the potential size of the orebody.  Trenching and drilling would also commence on a number of “very exciting satellite targets.”

The broker said it believes that Tulu Kapi has the potential to support a Bankable Feasibility Study for a standalone commercial gold mining project. The proposed drill programme will thus be the main share price driver. There have been factors affecting the delivery of the drill equipment, which are likely to affect the resource development schedule, but should have little impact on fundamental value factors.

“If the company achieves the targeted 0.5 million of measured & indicated plus 0.8 million oz inferred resource, that equates to a net total valuation of 18.7p/share,” Ambrian added.

Quick facts: Nyota Minerals

Price: - -

AIM:NYO
Market: AIM
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Mining Capital's Alastair Ford on the importance of ESG for the mining industry

Mining Capital's Alastair Ford talks to Katie Pilbeam about the importance of ESG - Environmental, Social, and Corporate Governance - for miners in the modern world. He describes ESG funding which can be invested in sports teams, schools, hospitals - which he says is 'very cost...

12 minutes ago

2 min read