Name and Location
Tulu Kapi gold project, Ethiopia.

Client
Nyota Minerals.

Project Description
A definitive feasibility study (DFS) on Tulu Kapi has confirmed a technically feasible and economically robust project.

The project has a maiden Joint Ore Reserves Committee-compliant probable ore reserve of 16.9-million tons, grading 1.82g/t for 986 000 oz of contained gold.

About 170 000 oz of the current inferred mineral resource is located within the designed openpit, which is expected to be converted into an ore reserve, either through additional infill drilling or, more likely, through grade control drilling prior to mining.

The conversion from waste to ore will increase the amount of gold recovered and reduce the waste-to-ore stripping ratio and is expected to increase the life of the project and improve project economics.

The DFS envisages an openpit mine producing an average of 105 000 oz/y of gold at steady state, at an average grade of 1.82g/t, with gold production of 924 000 oz over the proposed project life.

The mine design consists of a single openpit, with estimated dimensions of 1 150 m (north to south) by 730 m (east to west) and a maximum depth of 300 m.

The openpit will be mined using conventional openpit mining methods – drilling and blasting of the ore, as well as waste rock excavation and hauling – using 90 t trucks and matched excavators.

Value
Initial capital costs are estimated at $221-million, excluding contingency, but including working capital and construction contracts.

Duration
A timeframe has not been confirmed.

Latest Developments
In June this year, Nyota announced an update on its programme to enhance and optimise the economic and operational fundamentals of the Tulu Kapi project.

Highlights of the study include:
• A mine development tolerant of a lower gold price.
• A mine design and scheduling using a pit shell, optimal at $1 050/oz and providing a robust case in a changing gold price environment, with negligible loss of financial performance at higher gold prices.
• An increase in the grade of ore delivered to the plant to between 2.1 g/t and 2.4 g/t for the first five years by rescheduling and using a stockpiling strategy.
• The potential to increase average yearly gold production by up to 30% in the first five years to 133 000 oz, peaking at 145 000 oz, compared with 105 000 oz and 111 000 oz stated in the feasibility study.
• The contribution of an additional 325 000 oz of gold to the mine production at the same average grade and at the same gold price ($1 050/oz), if the inferred mineral resource was upgraded to at least the indicated category.
• An underground mine, estimated at $43-million, could contribute 42 000 oz/y, based on 250 000 t/y of ore at an average ore grade of 5.9g/t

The next phase of openpit optimisation will include detailed pit redesign and scheduling and a review of the operating and capital costs for inclusion in the feasibility study cash flow model.

In addition, an update of the resource model will facilitate the progression of the underground scoping study, mine design and integration with the openpit mine.

Key Contracts and Suppliers
Senet (lead engineer); Golder Associates (environmental- and social-impact assessment and design of the tailings storage facility), Wardell Armstrong International (resource estimation and mine design/planning) and the International Finance Corporation (finance).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Nyota Minerals CEO Richard Chase, tel +44 20 7400 5740 or email richard.chase@nyotaminerals.com; or contact Anthony Rowland (business development), tel +44 (0)20 7400 5740 or email anthony.rowland@nyotaminerals.com.
Senet, tel +27 11 409 1300 or fax +27 011 409 1301.
Golder Associates, tel +27 11 254 4800 or fax +27 11 315 0317.
Wardell Armstrong International, tel +44 845 111 7777.
International Finance Corporation, tel +1 202 473 3800 or fax +1 202 974 4384.