Nyota Minerals Limited has plans to equal Ethiopia’s sole commercial gold producer MIDROC Gold’s yearly output of about three thousand kilograms annually from its Tulu Kapi Gold Project lying on 10 square kilometers of land.
Tulu Kapi Gold Project is located about 500Km west of Addis Ababa in Genji Woreda, Gimbi zone of Oromia region.
According to Kebede Belete (Dr.), country manager of Nyota Minerals Limited (Ethiopia), the company which took an exploration license in May 2005 has completed its advanced exploration activities and studies to enter into production phase. The company has taken licenses for open pit mining and underground mining.
Nyota Minerals conducted its feasibility study on the project area with a South African based company S.R.K Consulting firm for the environmental and social impact assessment, while a UK based company Wardell Armstrong International consulting firm looked into the mineral resources of the area. The environmental and social impact assessment relates to the quality of air, water as well as the socio-economic prospect for the region because of the advent of mining.
It is based on this feasibility study that the company asked the Ethiopian government for a mining license on May 2011, according to Kebede.
Kebede further said that so far, the company through its study has found gold deposits of 1.5 million ounces in the area, which is around 45,500Kg of gold and has applied for a mining license for over a 10 year period with a projected annual output of three thousand Kg of gold annually. Currently an ounce of Gold is trending more than 1700 US dollars in the International Commodity market.
The company has put a lot of money into the project. Two hundred seventy million birr was spent in the 2010/11 fiscal year for exploration as well as paying for gold excavation which costs more than 8.7 million birr per month.
According to Kebede the exploration phase of the project was costly as the machines and expertise came from South African based, Geo-search International Drilling Company.
The company is also conducting what is known as a Bankable Definitive Feasibility study in order to obtain financing. That study began in September and will be finished in June 2012.
The feasibility study for this is being done on the Environmental and Social Impact assessment by a South Africa based company; Golder Associates Consulting firm while the Engineering study of the feasibility study is being done by another South Africa based firm, Senet Engineering Consulting.
Nyota Minerals (Ethiopia) Limited also has Gold Exploration licenses in Yubdo area and Billa Guliso area both in Oromia regional state and Mendia exploration area in Benishangul Gumuz regional state.
Nyota Minerals Limited is an Australian registered company listed on the Australian stock exchange and the AIM market of London stock exchange. It has in total land holdings of 3400sqm mostly in western Ethiopia.