(MENAFN- ProactiveInvestors - Australia) Nyota Minerals' (ASX:NYO) definitive feasibility report has confirmed its flagship Tulu Kupi gold project in Ethiopia is technically feasible and economically robust with estiamnted gross revenue of $1.4 billion, and net undiscounted pre tax, post royalty cash flow of US$421 million.
This is achieved based on a gold price of US$1,500 per ounce.
A maiden JORC Probable Reserve of 16.9 million tonnes of gold grading at 1.82 grams per tonne for 986,000 ounces of contained gold was also defined.
Average annual gold production of 105,000 ounce steady state at an average grade of 1.82 grams per tonne with gold production of 924,000 ounces over the proposed miner's life has also been identified.
Life of Mine operating cash costs will average $600 per ounce, assuming owner-operated mining fleet without silver credits, government royalty and gold marketing and transport.
Initial capex cost estimate is of US$221 million that does not include working capital and construction contracts.
Based on a discounted flow rate of 5%, the DFS shows a base case pre tax NPV Of $253 million and an IRR of 24% based on prevailing fiscal regime.
The DFS is based on the open pit tale component of the main Tulu Kapi ore body, while significant additional resource potential is present in adjacent areas.
The fiscal terms of the proposed mine development are subject to the Mining Licence agreement that is in the final stages of negotiation with the Government of Ethiopia.
The receipt of the mining licence will initiate project finance, that subject to obtaining the necessary operating permits, would trigger a two year mine development plan that could result in first gold production in early 2015.
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