Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Nyota Minerals says metallurgical test at Tulu Kapi gold project shows potential for high recoveries and low costs

Nyota Minerals (AIM & ASX: NYO) reported on the results of metallurgical tests at its flagship Tulu Kapi gold project in Ethiopia, which it said would support prefeasibility level capital and operating cost estimates for a gold recovery plant at Tulu Kapi. The results demonstrate the potential for high recoveries and low operating costs when the project commences production.

The samples were taken from diamond drill core from the exploration drilling that formed the basis for the maiden JORC resource estimate of 690,000 ounces with recoveries of up to 95% achieved.

The metallurgical tests returned results of 3.47 g/t (grammes per tonne) gold from lode one and 5.17 g/t gold from lode two, as well as 1.55 g/t and 4.69 g/t silver, 2.5% and 2.25% sulphur and 61.7% and 57.3% silica from lode one and lode two respectively.

The average intersection widths and estimated average grades in lodes one and two composites were 11.1 metres at 3.1 g/t gold and 7.2 metres at 4.9 g/t gold respectively. Intersections in lode one included 17.7 metres at 5.37 g/t gold, 11.77 metres at 4.6 g/t gold, 4.8 metres at 7.37 g/t gold and 4.05 metres at 5.79 g/t gold. Intersections comprising the lode two composite included 19.68 metres at 5.01 g/t gold, 4.86 metres at 8.95 g/t gold, 4.51 metres at 7.08 g/t gold, 4.2 metres at 5.17 g/t gold, 4 metres at 11.26 g/t gold and 2.64 metres at 21.2 g/t gold.

“We couldn't be more encouraged by these test results.  The sample of about 300kg is significant and the testwork was done to prefeasibility standards in a world class laboratory, giving us a high level of confidence that when Tulu Kapi commences production we will be able to build a low cost processing plant to extract the gold from the ore,” said chief executive Melissa Sturgess.

The test work results will be used to generate pre-feasibility level estimates of the capital and operating costs of gold recovery plants for Tulu Kapi. The data will help specify crushing and grinding equipment and estimate wear parts consumption as well as estimate equipment requirements and operating costs and gold recoveries.

The company raised £2.25 million to accelerate drilling at Tulu Kapi in December, two months after an independent technical review by Venmyn Rand to NI43-101 standard confirmed that the project was highly prospective with good upside potential from additional mineralisation and high gold recoveries from testwork.

Disclosure: The author holds no positions in the company