9th Jul 2008 10:32
DWYKA RESOURCES LIMITED ('DWYKA' OR THE 'COMPANY')
EXTENSION OF STAGE 1 OF THE SWAZIGOLD SHAREHOLDERS AND EARN-IN AGREEMENT
Dwyka is pleased to announce that it has successfully negotiated a three month extension to the current phase of the Shareholders and Earn-In Agreement ("Agreement") relating to the SwaziGold project ("Project"). Dwyka (through its wholly-owned subsidiary Karrinyup Holdings Limited) currently owns 50% of Swazi Gold Ventures (Pty) Ltd ("SGV"), which in turn holds a 90% interest in the Project company. As a result of the extension, Dwyka now has until 30 September 2008 in which to complete the Stage 1 exploration and expenditure requirements set out in the Agreement and move to a 70% interest in SGV.
As at 30 June 2008, Dwyka had spent US$667,137 under the current phase of the Agreement. It now has approximately 3 months in which to spend a further US$82,863, bringing the total expenditure to the required level of US$750,000.
The extension will also allow Dwyka to complete an additional diamond drill hole currently being drilled at the Daisy prospect and will enable the completion of the 3D modelling and associated resource estimations of the main Project prospects.
The highlight achievements to date from the Stage 1 exploration include:
- Gold values of 3.39g/t over 10m returned from core drilling at the Daisy prospect ;
- High grade intersections of up to 16.5g/t made over 1m at the Daisy prospect; and
- Several significant gold intersections made at the Kobolondo prospect, including 2.59 g/t over 11m, 6.59 g/t over 4m and 5.08 g/t over 3m.
For further information please contact:
Melissa Sturgess
Dwyka Resources Limited
(+44) (0)78 2555 1397 or [email protected]
In United Kingdom
Richard Brown
Richard Greenfield
Ambrian Partners Limited
(+44) (0)20 7634 4700
Press enquiries
Charlie Geller or Leesa Peters
Conduit PR
+44 (0)20 7429 6604/ +44 (0)79 7006 7320
Or visit: http://www.dwyresources.com
Notes to editors:
Dwyka is focusing on the diversified minerals sector in order to achieve maximum value for shareholders during the ongoing resource boom.
Coal
Dwyka has the ability to acquire an indirect interest of up to 100% in each of two Filipino companies which own the Daguma and Bonanza coal deposits, located in southern Mindanao, The Philippines ("Daguma Coal Project"). The Daguma Coal Project comprises 10 coal Blocks, each having an area of approximately 10 square kilometres (giving a total project area of approximately 100 square kilometres). Two of the Blocks have been the subject of significant historical drilling (32 holes) and other work, including the completion of a scoping study. The remaining 8 Blocks are also located within the same geological coal basin, termed the Cotabato Basin, and have recently been proven to be coal bearing through a combination of drilling, pitting and trenching. Dwyka considers these Blocks to be highly prospective, with the potential to be of similar size or even exceeding the two main Blocks. The Company is also planning to initiate an extensive grid drilling programme on the remaining 8 Blocks, which will enable resource estimation and classification to occur within the next 12 months.
Analysis of the coal located at the Daguma Coal Project suggests that it is of medium calorific value, approximately 5,300 Kcal/kg, making it suitable for both the export market to India and China and for in-country power stations and industrial (cement) purposes. The Philippines has ready demand for coal for power stations and other coal miners in The Philippines are already exporting similar calorific value coal to India, China and Hong Kong.
Nickel
Dwyka has a major nickel exploration project underway in Burundi. Dwyka acquired all of the shares in Danyland Limited ('Danyland'), the owner of the Muremera Nickel Project in Burundi, Africa, in January 2007. The Muremera project is located within one of the world's principal nickel provinces, only 2 kilometres from, almost adjacent to and in the same geological sequence as, the giant Xstrata/Barrick Kabanga deposit in Tanzania.
The Kabanga deposit is thought to be the world's largest undeveloped nickel sulphide deposit and has similar geophysical anomalies to those at Muremera. An exploration permit has been granted in relation to Muremera and access for exploration activities is good. The project's prospectivity has led to a commitment from BHP Billiton to spend at least US$5.2 million as part of sole funding arrangements to earn up to a 50% interest in Danyland.
Gold
Pursuant to a Shareholders and Earn-in Agreement dated 16 July 2007, Dwyka has the right to earn up to a 90% interest in Swaziland Gold (Pty) Ltd ('SwaziGold'), which in turn owns the Swazigold Project in Swaziland, Africa. The project is a large (435 square kilometre) gold exploration play in the highly prospective Archaean Barberton Greenstone Belt in Swaziland, historically a producer of 11.5 million ounces of gold.
In the Barberton Greenstone Belt, extensive, shallow, historic workings, plus a lack of modern exploration, have presented Dwyka with an ideal opportunity. Previous owners drilled some 13,500 metres of the project area, providing the Company with a drill database that includes numerous gold intersections. These have allowed Dwyka to establish immediate targets for both infill drilling and the development of extensions to established zones of mineralization. In the current favourable resources climate, it is believed that Dwyka's gold exploration activities will accelerate.
Diamonds
Dwyka has a shareholding of 48.2% in KimCor Diamonds Plc, an AIM-listed diamond explorer and producer with a portfolio of projects in Southern Africa.
The technical exploration and mining information contained in the above announcement has been reviewed and approved by Bernard Olivier, who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is qualified as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Olivier meets the criteria of a qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. Bernard Olivier consents to the inclusion in this announcement of such information in the form and context in which it appears.
Related Shares:
Nyota Minerals