Nyota Minerals (AIM, ASX: NYO) has transferred-out its interest in the SwaziGold Project to its joint venture partner, Savinara Company SA, in preparation for the asset’s sale. The transaction simplifies SwaziGold’s ownership structure and reduces Nyota’s expenditure and time commitments in relation to the disposal. The company retains its entitlement to 50% of the proceeds from the anticipated disposal.
Nyota had previously been funding the project on a ‘care and maintenance’ basis, and as a result of the transfer it will cease to have any further funding or operational commitment in relation to SwaziGold. Consequently Nyota said it will be free to focus on its highly prospective Tulu Kapi gold project in Ethiopia.
Previously, Nyota held a 50% interest in Swazi Gold Ventures Ltd, the joint venture subsidiary which in-turn holds 90% of Swaziland Gold. Through the transaction, Nyota transferred its 50% interest in Swazi Gold Ventures to Savinara for a nominal consideration of US$1.
Savinara will manage the sale process, which is expected to commence as soon as practicable.
At Tulu Kapi, Nyota has been rapidly advancing the development its flagship gold project. Early this month, Nyota doubled the JORC inferred resource at the 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.
The resource statement follows the compilation and technical interpretation of 4,579 metres of reverse circulation drilling by independent consultants Venmyn Rand. The recent RC drilling program focused on the NE extension of mineralisation, which is contiguous with the area over which the 690,000oz maiden resource was defined. Nyota also completed infill drilling to increase the level of confidence attributable to earlier diamond drilling.
Nyota highlighted that the results of previous drilling demonstrate the continuity of mineralisation intersected at depth as it tracks closer towards surface, returning grades and widths that it believes demonstrate excellent potential to support a future open pit mining operation.
Last month, in its latest quarterly report, Nyota reflected on independent consultant Venmyn Rand’s findings at Tulu Kapi. The consultancy conducted a pre-scoping study which indicated that Tulu Kapi is economically viable and concluded that open pit mining would be most likely. The study calculated payback of capital within 4-5 years from the date of first production.
The company emphasised that the Venmyn study was based on the Mineral Resource (at that time), and as such, the additional resource drilling is likely to improve the development’s attractiveness.
Nyota Minerals prepares for SwaziGold disposal with asset transfer
Published: 06:06 24 May 2010 EDT