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Nyota’s Ethiopian flagship project comes up golden

Posted by Ethio Tribune on December 6, 2012

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into dual-listed Nyota Minerals’ flagship Tulu Kapi project, in western Ethiopia, has shown that the project could deliver some 105 000 oz/y of gold.

The DFS confirmed the technical and economic viability of the project, with gross revenue estimated at $14-billion and net cash flow estimated at $421-million, based on a gold price of $1 500/oz.

Initial capital costs were estimated at $221-million, excluding contingency, with gold production totalling 924 000 oz over the life of the mine.

“This is a very significant step forward for Nyota as we advance towards our goal of becoming a gold producer,” said CEO Richard Chase on Thursday.

“The definitive feasibility study clearly demonstrates the strong economic fundamentals of the Tulu Kapi project, based on study parameters. With low cash costs, net undisclosed pretax, post-royalty cash flow of $421-million and a pretax net present value of $253-million, investors will appreciate the value potential of this project in comparison to Nyota’s current market capitalisation.”

Chase added that the DFS did not include the deeper, high-grade Feeder zone or the multiple gold targets identified in the proximity of Tulu Kapi, all of which had the capacity to markedly improve the project economics.

“The project can now be fast-tracked towards commercial production in 2015, pending the receipt of our mining licence and securing the required project finance. Hence our focus is on completing negotiations with the government of Ethiopia to enable this to happen.”

Chase said that the receipt of a mining licence would initiate project financing that, subject to obtaining the necessary operating permits, would trigger a two-year mine development plan.

He added that the company had received strong interest from various internationally recognised banks and financial institutions to debt finance the project. Indicative financing terms have been received from a number of these, providing the company with significant options in debt financing.

 

 

2 Responses to “Nyota’s Ethiopian flagship project comes up golden”

  1. […] Nyota’s Ethiopian flagship project comes up golden (ethiotribune.net) […]

  2. This news has been up for debate quite a lot of times but none of the posts were as detailed as yours. Hope with this project delivers some more commercial production. Could you please produce some more attachments regarding the pros and cons of this flagship project? Thanks in advance.

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