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. “It can generate a significant amount of foreign currency.” This week Nyota Minerals, a British gold exploration and development company engaged in gold exploration projects in western Ethiopia, announced that it is seeking a permit from the Ethiopian Ministry of Mines to mine alluvial gold deposit adjacent to the Blue Nile River. In an operational update released on Thursday Nyota said discussions with the Ministry of Mines are continuing regarding the potential for Nyota's wholly-owned subsidiary, Towchester, to mine and treat the alluvial river gravel deposits adjacent to the Abay River (Blue Nile) that bisects the Northern Block licenses. Nyota said these gravels are known to be gold-bearing and are being hand-dug and panned for gold by local people at a number of localities within the licenses. “The areas will, within a few years, be flooded by the Grand Ethiopian Renaissance Dam, a new hydroelectric power dam being constructed on the Blue Nile,” the company said. 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. Nyota Minerals has submitted to the Ethiopian Ministry of Mines renewal applications for both of its 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.
