A senior geologist at the Ministry of Mines told The Reporter that there are alluvial (placer) gold deposits around the Grand Ethiopian Renaissance Dam. Artisanal miners have been panning placer gold in the region for the past many years.
The expert said it would be wise for the government to extract the gold before finalizing the construction of the dam and start holding water.
“Once the dam is built and water is stored in the reservoir this it will cover the placer gold deposits,” the expert said.
“Once it is covered by water recovering the gold will not be economically feasible.”
(Extracts pulled the most significant bits out.)
The expert went on to say that since there are placer gold deposits in the area it is wise to allow small-scale gold producers extract the deposits as soon as possible. Alluvial gold deposits in Ethiopia are usually reserved for exploitation by artisanal miners. However, the company said as the deposits will be flooded, large-scale mechanized mining to maximize potential gold recovery is receiving favorable consideration. The flooding caused by the dam will not affect the highest priority hard rock gold exploration targets in the company’s Northern Block licenses. The Reporter can confirm that officials of the Ethiopian Ministry of Mines and Nyota are discussing the matter.
The Minister of Mines, Tolossa Shagi Moti, told The Reporter that Nyota asked the ministry to be given a small-scale alluvial gold production license. “They have asked us and we are reviewing their request. We are holding talks with them. It has not been decided yet,” Tolossa said. “We are looking on the possibility that they can produce alluvial gold. There are many things that we consider. It can be done with simple technology. But we have to see the country’s mining law, impact on the environment and other related issues, ” the minister said.
Nyota also holds exploration licenses covering regional gold targets in the Northern Blocks (approximately 100km north of Tulu Kapi), which the company believes have the potential to become future standalone projects.
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Think there is a chance Nyota will get the go ahead for its alluvial gold operaton reading this, as the minister of mines is quoted directly and the expert from the ministry is recommending an alluvial gold operation.
Odd timing if it had come out a day or two earlier you would have had more buying what with the kefi shares distribution. If the company can make a success of the alluvial gold operation it would be able to regain some credibility and maybe have a better chance with its remaining areas.
NYO Price at posting:
0.2¢ Sentiment: Hold Disclosure: Not Held
