Tulu Kapi Nyota Min Ltd '09 Technical
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- Key Features - Exploration - Introduction - Mineralisation - Project Description, General Infrastructure and - Distribution of Mineralistation Accessibility - Deposit Type - Topography, Climate and Vegetation - Sampling Method and Approach - Legal Aspects and Tenure - Sample Preparation, Analysis and Security - Environmental Requirements - Mineralogical Studies and Mineral Processing - Country History - Data Verification and QA/QC - Country Profile and Economy - Adjacent Properties and Competitor Companies - Mining Sector of the Economy - Modelling and Mineral Resource Estimation IN THIS DOCUMENT - Historical Exploration and Operations in the Tulu - Conclusions Investors Report on the Kapi Area - References Tulu Kapi Gold Project, Ethiopia - Regional Geological Setting th - Local Geology as at 30 September 2009 KEY FEATURES Compliance: Venmyn utilises a comprehensive checklist incorporating all internationally required compliance requirements, in particular the Canadian National Instrument 43-101 and SAMREC/SAMVAL Codes for public reporting of mineral assets. The information quoted in this Prospectivity Review has been scrutinised in terms of this checklist and prepared for investors according to the principles of open and transparent disclosure embodied in the underlying codes for mineral resources reporting. Qualified Persons: Mr.Andy Clay, M.Sc. (Geol), M.Sc. (Min. Eng.), Dip.Bus.M., Pr.Sci.Nat., MSAIMM, FAusIMM, FGSSA,AAPG, M.Inst.D. Mr. Neil Mc Kenna, M.Sc. (Geol), Pr.Sci.Nat., MSAIMM, MGSSA, MIASSA, M.Inst.D. Mr. Richard Tayelor, B.Sc. Hons (Geol). MGSSA. Effective Date: 30th September 2009. Prepared For: Nyota Minerals Limeted (Nyota), previously Dwyka Resources Limited (Dwyka). Purpose: Review of the prospectivity and technical merits of the Tulu Kapi Gold Project in Ethiopia. Sources of Information: Public domain information as listed in the reference list, Nyota, Dwyka and Minerva Resources PLC internal reports and, presentations and Hellman & Schofield (Pty) Ltd. Personal Inspection: Mr. Andy Clay and Mr Neil Mc Kenna visited the Tulu Kapi Gold Project in July 2009. All operating areas and infrastructure were inspected. Deposit Types: Sulphide and gold mineralisation in albitised syenite. LOCALITY OF GPMC ADVANCED EXPLORATION ACTIVITIES 770 000 780 000 790 000 800 000 Muklemi ETHIOPIA 1 030 000 Dobe Kobi Kobera To Assosa To Addis Ababa 1 020 000 Soyoma Ingango REGIONAL LOCALITY Gulliso Dina Keley Saudi Arabia Chago Gudeya-Guji 1 010 000 Guji Ayra ERITREA Tulu Kapi Khartoum Red Sea Homa Asmara Sanaa SUDAN YEMEN Genji Mek'ele 1 000 000 GONDER TIGRAY Gonder 12° Welo DJIBOUTI Gulf of Aden Djibouti GOJAM Dese Debre Mark'os Yubdo Yubdo TULU-KAPI SHEWA 990 000 Hamus G. WELEGA Harer Addis Ababa SOMALIA Nek'emte Gore SCALE: Arsi 0 5km ILUBABOR te Jima u HARERGE p is in D d Goba n a KEFA Yirga 'Alem d e LEGEND: fin e d BALE LEGEND: t Arba Minch' o ryn GAMO GOFA a d n u Location of GPMC advanced exploration activities Main RoadBo Tulu Kapi & Ankori Exploration Licence Area River SIDAMO Yubdo Exploration Licence Area 4° Lake Provincial Boundary Turkana Billa-Gulliso Exploration Licence Area UGANDA National Capital SCALE: Town 0 200m KENYA Provincial Capital Indian Ocean Road 36° 44° Mogadishu Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1.cdr Annual Reports, Graphics PAGE 1 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009 INTRODUCTION Venmyn was requested to provide an independent opinion on the prospectivity of the Tulu Kapi Gold Project (Tulu Kapi) and surrounding gold exploration occurrences for which Tulu Kapi is the most significant mineral asset of Minerva Resources Plc (Minerva) which was acquired by Nyota Minerals Limited (Nyota) in July 2009. PROJECT DESCRIPTION, GENERAL INFRASTRUCTURE AND ACCESSIBILITY LOCATION, AREA AND OTHER PROPERTIES The route fromAddisAbaba (12-hours away by road) includes an asphalt road, Tulu Kapi is located in western Ethiopia, in Oromia Regional State, Ghimbi an all-weather gravel road and a dirt/gravel trail. A 4x4 vehicle is required on zone and in the Ganji Wereda. Together with the Ankore area, the project area the dirt/gravel trail to get to site. An airstrip is located 20km from the project measures ~15km2 and is located between 9°4'10"N and 9°6'51"N and site. 35°32'32"E and 35°34'45"E. The project is located 28km east of the town of Ayra-Gulliso and 510km from Addis Ababa, Ethiopia's capital. The journey MATERIAL AGREEMENTS from Addis Ababa to Tulu Kapi takes approximately 12 hours on mostly good Minerva management confirmed with Venmyn that no material agreements roads until the last 20km which is dirt road. have been entered into with contractors or land owners at this stage. Compensation payments are routinely made to subsistence farmers whose POPULATION crops are disturbed by prospecting activities. Exploration licenses that have A small population of subsistence farmers are resident within the project area. been inspected by Venmyn for the various project areas have been presented. The nearest towns are Keley, Gulliso and Ganji. The greater area has a population density of 25 persons/km2 , according to World Trade Press. CORPORATE STRUCTURE Minerva holds a number of exploration licences in the Tulu Kapi area through EXISTING INFRASTRUCTURE its subsidiary Golden Prospect Mining Company Limited (GPMC). In July The infrastructure in the immediate surroundings is adequate for prospecting, 2009, Dwyka (now Nyota) aquired Minerva making it a wholly owned but may have to be upgraded in later phases of the project's life. At present, subsidiary of Nyota. The acquisition has given Dwyka control of a number of water is pumped from a local river or trucked in from a nearby supply, and additional prospective gold and platinum exploration assets in Ethiopia, electricity is generated at the project site by a diesel generator. Comfortable including Tulu Kapi. accommodation, basic offices, sheds and stores are located on site. Cellular phone telecommunication is available on site. TOPOGRAPHY, CLIMATE AND VEGETATION The exploration site is hilly with incised valleys. The maximum altitude varies CORPORATE STRUCTURE between 1,600m and 1,765m above sea level. LOCAL TOPOGRAPHY 100% Ethiopian Gold Ltd 100% 100% Ethiopian Resources Ltd Golden Prospect Mining 100% Company Ltd Golden Prospect Mining Company Ltd ?a small scale mining licence for 10 years, renewable for 5 years. 100% Resources Securities Ltd Golden Prospect Mining 100% Company Ltd LICENCES York Platinum GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the Tulu Kapi, Yubdo licence was granted in May 2005 (Licence Number: 127-128/97). This is valid Billa Guliso for three years with two successive one year extensions (as stipulated in the legislation). The original exploration licence was valid until May 2008 and was Yubdo Platinum and Gold 51-73% 100% Golden Prospect Mining extended to May 2010. Development Plc Company Ltd Yubdo Platinum Mine Lake Sonfon Graphics By: Information in this statement is to be used for marketing and illustrative purposes only. The diagrams and the information InterAction herein may not be edited or transmitted in any form or by any means without prior written permission. Corporate Reporting & Identity Specialists, Tulu Kapi_Nyota Min Ltd_'09_Technical Statement_Investors_V1.cdr Annual Reports, Graphics PAGE 2 of 12 Investors Report on the Tulu Kapi Gold Project, Ethiopia as at 30th September 2009 LEGAL ASPECTS AND TENURE LEGISLATIVE FRAMEWORK ?provides for a 2% to 5% royalty at production site; The Mining Proclamation and Mining Tax Proclamation of 1993 makes ?a 35% income tax on taxable income. Taxable income is computed by provision for the granting of the following:- subtracting from gross income for any accounting year all allowable ?a prospecting licence for one year, permitting only surface exploration; revenue expenditure, a four years straight line depreciation, ?an exploration licence for an initial period of three years, renewable twice reinvestment deduction and permitted loses; and for one year each; ?guarantees the opening and operation of a foreign currency account in ?a large scale (>75,000tpa) mining licence for 20 years, renewable for 10 banks in Ethiopia, retention of portion of foreign currency earning and years unlimitedly; and remittances of profits, dividends, principal and interest on a foreign ?a small scale mining licence for 10 years, renewable for 5 years. loan etc. out of Ethiopia. LICENCES CLAIMS, SERVITUDES, PERMITS AND LICENCES GPMC applied for an exploration licence for Tulu Kapi in January 2005 and the The Ethiopian Constitution (1994) states that the right to ownership of all land licence was granted in May 2005 (Licence Number: 127-128/97). This is valid and natural resources is vested in the State, which can ensure the right of for three years with two successive one year extensions (as stipulated in the private investors to the use of the land. legislation). The original exploration licence was valid until May 2008 and was extended to May 2010. Ethiopia is attempting a land tenure reform process in many areas, since there has been a long history of forced displacements and an SCHEDULE OF EXPLORATION