15 Mar 2012 08:37
Nyota Minerals Limited ("Nyota" or the "Company")
Half-Year Results to 31 December 2011
Nyota, the gold exploration and development company in East Africa, today announces its half-year results for the six months ended 31 December 2011.
For the full set of results please see the following link:
http://www.rns-pdf.londonstockexchange.com/rns/4062Z_-2012-3-15.pdf
HIGHLIGHTS
·; Negotiations with the Ethiopian Ministry of Mines regarding a Large-Scale Mining Licence have been on-going and are likely to culminate in the second half of 2012;
·; Extensive diamond and reverse circulation drilling covering the main Tulu Kapi ore body, alongside step-out targets, provided positive infill results and identified new areas of mineralisation within Tulu Kapi's extension areas;
·; Updated Resource for Tulu Kapi issued on 9 March 2012 of 17.97Mt at an average grade of 2.9g/t gold for 1.67Moz of contained gold;
·; March 2012 Resource includes an 82% increase in the indicated category resource to a total of 0.8Moz at an average grade of 3.01g/t gold;
·; Significant progress made in respect of the Tulu Kapi Definitive Feasibility Study ("DFS"), with the appointment of a lead engineer and other key consultants in addition to the work undertaken. The DFS remains scheduled for completion in Q3 2012; and
·; Three new discoveries within the Northern Block regional exploration licences, which cover some 3,200sqkm. The discoveries support the Company's belief that these licences contain significant value for future standalone projects.
CORPORATE
Nyota has undergone considerable change during the reporting period, as it commenced the transition from explorer to developer/producer.
The start of the definitive feasibility study resulted in a significant increase in activity in Ethiopia and the Tulu Kapi camp has regularly accommodated in excess of 100 people, with subsistence provided for twice that number on a daily basis. The existing camp has been expanded and improved to cater for these numbers, and longer term a full construction camp will be built. This will be one of the first priorities following the issuance of a mining license, and as part of this the location of facilities will move from their current position sitting over the Tulu Kapi deposit.
Staff changes also took effect. Dyonn Hage moved from a consulting role to Exploration Manager and several of our Ethiopian nationals were promoted to Chief Geologists and project managers for exploration. Additionally a Resource Manager was appointed to oversee DFS activities related to geology and engineering at Tulu Kapi.
As activity has increased, so has the need for community liaison. Led by our manager for Social and Environmental Affairs, Channa Pelpola, six community liaison officers ("CLOs") are now employed at Tulu Kapi and an Ethiopian Resettlement Officer, Kassaye Derseh, was recruited at the end of the period to take responsibility for the eventual implementation of the Resettlement Action Plan. The contribution of this team to the smooth running and future operation of the Tulu Kapi mine is paramount.
In January 2012 Chief Operating Officer, Patrick Goodfellow, joined the Nyota team in Ethiopia. Patrick is an experienced engineer and project manager and will be based in Addis Ababa.
At the corporate level, Anthony Rowland joined as Business Development Manager. Anthony is a qualified accountant and CFA charterholder and was a "Qualified Executive" for the AIM Market, or "NOMAD", for the past five years.
Quarterly management meetings are held in Addis Ababa with a majority of the Board of Directors attending alongside the management teams from Tulu Kapi and Addis Ababa.
As set out in the Chairman's statement to the Annual General Meeting, the Board of Directors is committed to making changes to the Board's composition such that it is more closely aligned with best practice in corporate governance; specifically the introduction of independent non-executive directors. These changes are anticipated in the current financial year.
OPERATIONAL
Tulu Kapi - Ethiopia - 100% owned
Resource updates
In July 2011, the Company announced a Mineral Resource, prepared in accordance with the JORC Code (2004), for Tulu Kapi, estimated independently by Wardell Armstrong International, of 15.96 million tonnes @ 2.84g/t gold containing 1,460,000 ounces of gold; of which 4.67 million tonnes at 3.04g/t were Indicated and the rest Inferred.
Drilling continued at Tulu Kapi throughout the period with up to four diamond rigs and a reverse circulation rig. In August 2011, new Feeder Zone high-grade gold intersections were announced along with drill results for infill holes within the main Tulu Kapi body aimed at upgrading the resource. This included peak assays of 26.02g/t Au over 2.85m, 25.01g/t Au over 3.0m, 15.63g/t Au over 3.0m, 13.81g/t Au over 15.67m and 13.66g/t Au over 8.35m. In October, the Company was able to announce further positive infill results and new areas of mineralisation.
Exploration updates with results were announced on 23 August, 31 October 2011, 16 December 2011 and 20 January 2012. Please refer to these announcements for individual drill hole results and their context.
Subsequent to the half-year period, an updated Resource for Tulu Kapi was announced on 9 March 2012. The new Mineral Resource estimate was increased to 17.97 million tonnes @ 2.90g/t gold containing 1,672,000 ounces gold: comprising an upgrade and increase in the Indicated category of 82% to 831,000 ounces of gold @ 3.01g/t gold and an Inferred Resource of 841,000 ounces of gold @ 2.79g/t gold. This resource includes all the drill holes for which assay results had been received by the end of January 2012 and is summarised in the table below.
Tulu Kapi Resource Estimate - In-Situ Model (WAI, March 2012) (Prepared in accordance with the guidelines of the JORC Code (2004) | |||||
Mineralisation Type | Saprolite | Fresh | Total | ||
Cut Off Grade (g/t) | 0.4 | 0.5 | 0.4 / 0.5 | ||
Indicated | Tonnage (kt) | 425 | 8,157 | 8,583 | |
Au (g/t) | 1.87 | 3.07 | 3.01 | ||
Metal | kg | 796 | 25,056 | 25,852 | |
k.oz | 26 | 806 | 831 | ||
Inferred | Tonnage (kt) | 395 | 8,989 | 9,385 | |
Au (g/t) | 1.57 | 2.84 | 2.79 | ||
Metal | kg | 622 | 25,534 | 26,157 | |
k.oz | 20 | 821 | 841 | ||
NB - 1. Mineral Resources are not reserves until they have demonstrated economic viability based on a feasibility study or pre-feasibility study. 2. Mineral Resources are reported inclusive of any reserves. 3. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. | |||||
Definitive Feasibility Study
In September, the Company announced the appointment of the lead engineer and other key consultants for the Definitive Feasibility Study ("DFS") of the Tulu Kapi Gold Project.
SENET (Pty) Limited has been appointed as Lead Engineer, with Golder Associates appointed to undertake both the Environmental & Social Impact Assessment ("ESIA") and the design of the tailings storage facility. Wardell Armstrong International ("WAI") has been appointed to manage resource estimation and mine design/planning and they have already contributed to the resource updates and revised mining model.
The DFS remains provisionally scheduled for completion by Q3 2012, with a targeted accuracy within +/-10%. Mine and processing plant design will be based on a standard two million tonne per annum ("mtpa") gold plant, a format frequently built across Africa and ideally suited to the environment anticipated in Ethiopia.
During the half-year period the Company made excellent progress, with the following activities undertaken or initiated;
• The overall mine layout has been revised to reduce the surface footprint by approximately 30%;
• The plant site has been locked-in subject to condemnation drilling;
• The preferred tailings storage facility location has been identified subject to condemnation drilling and dam wall geotechnical studies, and has been surveyed;
• The main access road trade-off studies have been completed and the options surveyed;
• The remaining required drilling has been identified, prioritised and co-ordinated;
o comprising nearly 8,000m of drilling including metallurgical samples; geotechnical drilling for the open pit, tailings storage facility etc.;
o condemnation drilling of infrastructure sites to determine the absence of gold mineralisation; hydrogeological drilling and infill drilling of the Tulu Kapi saprolite resource;
• 2.8 tonnes of samples have been collected, dispatched and received in Australia for metallurgical test-work; and
• Baseline studies for the Environmental and Social Impact Assessment ("ESIA") have been completed and in January 2012, a team from the Ministry of Mines visited Tulu Kapi to verify the infrastructure and ESIA results. This team's review included the main, time-sensitive elements of the design and implementation for the Resettlement Action Plan.
Mining Licence Application
On 13 May 2011 an application for a Large‐Scale Mining Licence was lodged with the Ethiopian Government in relation to the Company's flagship Tulu Kapi gold project in Western Ethiopia. The resource estimate announced on 29 July 2011, led to certain revisions to the proposed mine plan and financial model and these were submitted to the Ethiopian Government at the start of October.
Subsequent discussions with the Ministry of Mines have led to refinement of the timetable and work programme that the Board believes will lead to the issuance of a Mining Licence. Further to this, Nyota has been assisting the Ministry in updating the government's model legal agreement to reflect the new Mining Proclamation, (promulgated in August 2010) as a basis for further negotiation.
On 18 January 2012 Nyota was made aware that the Ministry of Mines required an Ore Reserve estimated according to an internationally acceptable standard (eg: JORC) as a pre-condition of issuing a Mining Licence. This cleared-up an ambiguity in the Regulations that pre-dated the new Proclamation. This will occur as part of the normal DFS process for Nyota and gives a sound framework within which Nyota will fulfill its regulatory requirements.
Nyota's decision, following strong encouragement from the Ethiopian government, to apply for an early day mining licence conversion meant that it did so with a Mineral Resource, prepared in accordance with the guidelines of the JORC Code (2004). In order for it to meet this new requirement it is necessary for the on-going studies for the DFS to be ostensibly complete such that the JORC requirement for "Modifying Factors" to be taken in to account can be satisfied.
The Board believes that the negotiations with Ethiopian Ministry of Mines have progressed well and is expectant of a conclusion in the second half of 2012.
Other proximal and regional gold targets - Ethiopia - 100% owned
Guji
A total of 19 diamond drill holes have been completed at Guji since 2007. Holes have been drilled over both gold in soil geochemical anomalies and geophysical targets, with two styles of gold mineralisation being identified. Firstly, near-surface saprolite mineralisation, which Nyota will prioritise, and secondly, gold associated with both sulphide veins - disseminations and quartz veins in fresh rock at depth
A detailed review of all exploration data from the Guji Prospect as part of the on-going process of drill target prioritisation, led to the announcement in October 2011 that Guji, the first prospect in the Tulu Kapi Proximal drill out programme, was "drill-ready". Guji has saprolite ore, offering a low-cost easily accessible additional potential feedstock for the future Tulu Kapi plant.
Subject to final interpretation, a programme of close-spaced vertical reverse circulation drilling will be completed over the Guji Prospect.
Northern Block Exploration
Prior to the commencement of the rainy season in June 2011, seven initial targets, out of the 47 identified from an earlier airborne magnetic survey, were followed-up on the ground by mapping and sampling, including the Boka Sirba, Tsole Mole and Bendokoro targets, approximately 100km north of Tulu Kapi.
All of the results from this follow up work have now been received and analysed and as announced on 12 October, Nyota considers three targets to be "drill ready":
• Bendokoro East anomaly comprises an 800m strike length, 100m wide target and has returned gossan grab samples with peak grades of 10.6g/t Au, 8.89g/t Au, 8.81g/t Au, 5.67g/t Au, 4.29g/t Au and 3.18g/t Au;
• Bendokoro West anomaly extends over a 1km strike length, is 100m to 200m wide and includes continuous gold in soil geochemical results peaking at 1.39g/t Au. Both East and West anomalies are open-ended to the north, south, east and west; and
• Boka-Sirba West shows high Cu, Zn and Ag values associated with grab samples returning peak Au grades of 16.06g/t and 8.84g/t.
Drilling commenced at the first of these in February 2012 and results will be announced as they become available.
Reconnaissance exploration on the balance of 40 targets is now underway and is expected to continue until June, 2012, which is the approximate start of the next rainy season. This includes stream sediment, rock chip, heavy mineral concentrate sampling and trenching; the same techniques that have successfully delineated the current suite of targets being evaluated.
Muremera Nickel - Burundi - 100%
During the half-year period an application was made for the renewal of the Muremera licence based on expenditure and work completed to date. Subsequent to the reporting period, Ministerial confirmation has now been received and the exploration permit extended to 15 July 2013.
SUBSEQUENT EVENTS
On 3 February 2012, the Company announced the conditional placing of 161,000,000 new ordinary shares, 146,720,000 ordinary shares at an issue price of GBP0.06 and 14,280,000 ordinary shares at an issue price of A$0.089, to raise approximately £9.66 million before expenses (the "Placing"). The Placing of these new shares was completed after obtaining shareholder approval at a general meeting held on 7 March 2012.
The Placing was undertaken to fund continued exploration drilling over the Northern Blocks, progress the Tulu Kapi project post completion of the DFS and for general working capital purposes.
The Placing was supported by new and existing shareholders including Centamin plc ("Centamin"). Centamin is an Arabian-Nubian Shield focused gold mining company whose flagship project is the Sukari Gold Mine, located in the eastern desert of Egypt. Following the Placing Centamin owns 90,000,000 Ordinary Shares, being 14.08% of the enlarged share capital of the Company.
In addition and as set out above, the Company announced a new resource statement on 9 March 2012.
There are no other matters or circumstances that have arisen since 31 December 2011 that may significantly affect operations, results or state of affairs of the group in future financial years
The following unaudited financial figures are supplied for comparison purposes and compliance with AIM Rule 18. We refer you to the full set of results, including notes and independent auditor's review report, as per the link above.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Half-year Ended | Half-year Ended | |||
31 Dec 2011 | 31 Dec 2010 | |||
$'000 | $'000 | |||
Revenue from continuing operations | ||||
Other revenue | 83 | 112 | ||
Other expenses from continuing operations | ||||
| Administration | (2,954) | (3,466) | ||
Impairment of assets | (100) | (205) | ||
Provision against loan receivable | (798) | - | ||
Foreign exchange gains / (losses) | 132 | (2,384) | ||
Share based compensation expense | (857) | (775) | ||
Loss before income tax |
|
(4,494) |
(6,717) | |
| Income tax expense |
- |
- | ||
Loss for half year |
(4,494) |
(6,717) | ||
Other comprehensive loss | ||||
Changes in fair value of available for sale financial assets, net of tax |
(125) |
132 | ||
Exchange differences on translation of foreign operations |
775 |
(3,983) | ||
Other comprehensive income / (loss) for the half year |
650 |
(3,851) | ||
Total comprehensive loss for the half year |
(3,844) |
(10,568) | ||
Total comprehensive loss for the half year attributable to members of Nyota Minerals Limited |
(3,844) |
(10,568) | ||
Loss per share attributable to the ordinary equity holders of Nyota Minerals Limited | ||||
Basic loss per share |
|
(1.0) |
(1.9) | |
Diluted loss per share | (1.0) | (1.9) |
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2011
31 Dec 2011 | 30 June 2011 | 31 Dec 2010 | |||||
$'000 | $'000 | $'000 | |||||
| ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | 14,396 | 25,633 | 32,121 | ||||
Trade and other receivables | 595 | 1,522 | 576 | ||||
Total current Assets |
14,991 | 27,155 |
32,697 | ||||
Non-current assets | |||||||
Available-for-sale assets | 116 | 241 | 284 | ||||
Property, plant and equipment | 972 | 750 | 522 | ||||
Exploration and evaluation expenditure | 36,461 | 26,993 | 19,816 | ||||
Total non-Current Assets |
37,549 | 27,984 |
20,622 | ||||
Total assets |
52,540 | 55,139 |
53,319 | ||||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Trade and other payables | 5,559 | 5,185 | 2,619 | ||||
| Total current Liabilities |
5,559 | 5,185 |
2,619 | ||||
Total liabilities |
5,559 | 5,185 |
2,619 | ||||
Net assets |
46,981 | 49,954 |
50,700 | ||||
EQUITY | |||||||
| |||||||
Contributed equity | 163,609 | 163,595 | 157,597 | ||||
Reserves | 1,194 | (313) | (1,270) | ||||
Accumulated losses | (117,822) | (113,328) | (105,627) | ||||
Total equity |
46,981 | 49,954 |
50,700 | ||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR HALF-YEAR ENDED 31 DECEMBER 2011
Consolidated | |||||
Contributed equity | Accumulated losses | Reserves | Total equity | ||
$'000 | $'000 | $'000 | $'000 | ||
Balance 1 July 2011 | 163,595 | (113,328) | (313) | 49,954 | |
Total comprehensive loss for the half year |
- |
(4,494) |
650 |
(3,844) | |
Transactions with equity holders in their capacity as equity holders: | |||||
Share options exercised | 14 | - | - | 14 | |
Share based compensation | - | - | 857 | 857 | |
14 | - | 857 | 871 | ||
Balance at 31 December 2011 | 163,609 | (117,822) | 1,194 | 46,981 | |
Balance at 1 July 2010 | 123,474 | (98,910) | 1,806 | 26,370 | |
Total comprehensive loss for the half year | - |
(6,717) |
(3,851) |
(10,568) | |
Transactions with equity holders in their capacity as equity holders: | |||||
Contributions of equity, after transaction costs |
34,123 |
- |
- |
34,123 | |
Share based compensation | - | - | 775 | 775 | |
34,123 | - | 775 | 34,898 | ||
Balance at 31 December 2010 | 157,597 |
(105,627) | (1,270) | 50,700 | |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR HALF-YEAR ENDED 31 DECEMBER 2011
Half-year Ended | Half-year Ended | |||
31 Dec 2011 | 31 Dec 2010 | |||
$'000 | $'000 | |||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Receipts from customers (inclusive of goods and services tax) | 35 | - | ||
Payments to suppliers and employees (inclusive of goods and services tax) | (3,158) | (1,873) | ||
Interest received | 82 | 94 | ||
Research and development tax credit received | 1 | - | ||
Net cash flow used in operating activities |
(3,040) |
(1,779) | ||
CASH FLOW FROM INVESTING ACTIVITES | ||||
Payments for plant and equipment | (329) | (185) | ||
Proceeds from sale of plant and equipment | - | 18 | ||
Payment for exploration, evaluation and development of mining properties | (8,014) | (4,563) | ||
| Net cash flow used in investing activities |
(8,343) |
(4,730) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments for equity issue costs | - | (1,689) | ||
Proceeds from issue of shares | 14 | 34,824 | ||
| Net cash flow from financing activities |
14 |
33,135 | ||
Net (decrease) /increase in cash and cash equivalents |
(11,369) |
26,626 | ||
Cash and cash equivalents at the beginning of the half year |
25,633 |
11,862 | ||
Effect of exchange rate changes on cash and cash equivalents | 132 | (6,367) | ||
Cash and cash equivalents at the end of the half year |
14,396 |
32,121 |
For further information please visit: http://www.nyotaminerals.com or enquire to:
Richard Chase (CEO)
Nyota Minerals Limited
+44 (0) 20 7400 5740
info@nyotaminerals.com
NOMAD
Richard Morrison / Jen Boorer
Ambrian Partners Limited
+44 (0)20 7634 4858
BROKER
Guy Wilkes
Ocean Equities Limited
(+44) (0) 20 7786 4370
BROKER
Rory Scott
Mirabaud Securities LLP
(+44) (0)20 7878 3360
FINANCIAL PR
Paul Youens / Jos Simson
Tavistock Communications
(+44) (0)20 7920 3150
Competent Persons
The Resource Statement information contained in the Half-Year Report and reproduced in this announcement is the responsibility of Principal Geologist Che Osmond BSc MSc MCSM CGeol FGS EurGeol. Che Osmond is a full‐time employee of Wardell Armstrong International, an independent Consultancy and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration, and to the type of activity which he is undertaking to qualify as a Competent Person as defined in the June 2009 Edition of the AIM Note for Mining and Oil & Gas Companies. Che Osmond consents to the inclusion in this Report of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
The technical exploration and mining information contained in the Half-Year Report and reproduced in this announcement has been reviewed and approved by Mr D Hage Pr.Sci.Nat, Chief Geologist for Nyota Minerals Limited. Mr Hage has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a qualified person under the AIM Note for Mining, Oil and Gas Companies. Mr. Hage is an employee of Nyota Minerals Limited and is a Member of the South African Council for Natural Scientific Professions (SACNASP). Mr Hage consents to the inclusion in this Report of such information in the form and context in which it appears.