30th Jul 2007 07:27
Dwyka Resources Limited30 July 2007 Dwyka Resources Limited ('Dwyka' or the 'Company') MUREMERA NICKEL PROJECT UPDATE Highlights - Detailed logging and sampling of UNDP core confirms presence of both nickeland copper mineralization - Petrographic analysis found that pentlandite and chalcopyrite (the minerals ofNi and Cu respectively) are present in most cases - Signing of 5,000 metre diamond drilling contract - VTEM geophysical survey commencing shortly The directors of Dwyka Resources Limited ("Dwyka or the 'Company'") are pleasedto provide an update of progress at the Company's Muremera Nickel Project ("theProject") in Burundi. Dwyka holds a 100% interest in the Muremera NickelProject through its wholly owned subsidiary, Danyland Limited ("Danyland"). The Muremera Exploration Permit is located in north-eastern Burundi and is onthe border with Tanzania where it lies adjacent to the Kabanga Nickel Project ("Kabanga") currently being developed by Xstrata Plc and Barrick Gold Limited.Kabanga currently has an inferred resource of 36mt @2.8% Ni (Xstrata NewsRelease: Toronto, February 15, 2007). The Muremera project area was previouslyexplored by the United Nations Development Programme ("UNDP") which foundseveral geophysical anomalies in Burundi along strike from Kabanga. Detailed logging and sampling of the UNDP core has now been undertaken. Twelvedrillholes were logged, sampled and petrographically analysed. Geostatisticalanalyses revealed a high correlation coefficient between the UNDP results andthe new results allowing for the combined use of the two data sets ingeochemical studies of the deposit. The petrographic analysis has found thatpentlandite and chalcopyrite (the minerals of Ni and Cu respectively) arepresent in most cases, though often fine grained. The directors of Dwykabelieve that based on these early observations there exist similarities betweenKabanga and Muremera. A 5,000 metre diamond drilling contract has been signed with Major DrillingTanzania for the Muremera Nickel project. The drilling is aimed at furtherdefining anomalies identified through previous core drilling and geophysicalwork and the analysis outlined above, and is expected to start mid August 2007. Construction of a 20 man camp at Muremera has begun and will be completed before drilling commences. The initial 5,000 metres of diamond drilling will becompleted with an UDR 200D drill rig with hole depths ranging from 500 to 1,000metres. An estimated 1,000 samples will be sent to Johannesburg, South Africafor assaying. The diamond drilling forms part of Phase 1 of the Muremera exploration programmewhich also includes an extensive VTEM geophysical survey expected to commenceSeptember 2007. Phase 1 includes airborne geophysical survey, follow up groundgeophysical survey and drilling of selected targets. The Geotech VTEM surveywill be the first VTEM with B-field survey flown in Africa. Background As previously announced, an agreement was signed between Dwyka and BHP BillitonWorld Exploration Inc "BHP Billiton" on 26th February, whereby BHP Billiton willfund up to US$5.2 million of future exploration on the Muremera project for notmore than 50% of the equity in Danyland. The first hurdle is for BHP Billiton tospend US$1.2 million to acquire a 10% equity interest in Danyland. The technical exploration and mining information contained in the aboveannouncement has been reviewed and approved by Ed Nealon, who has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is qualified as a CompetentPerson as defined in the 2004 Edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves'. Mr Nealon is a DwykaResources Limited Director and meets the criteria of a qualified person underthe AIM guidance note for mining, oil and gas companies. Ed Nealon consents to the inclusion in this announcement of such information inthe form and context in which it appears. For further information please contact: In South AfricaTerry McConnachieDwyka Resources Limited(+27 11) 803 721 In AustraliaMelissa SturgessDwyka Resources Limited(+618) 9324 2955 In United KingdomRichard BrownAmbrian Partners Limited(+44) 20 7776 6417 Charlie Geller/Leesa PetersConduit PR(+44) 20 7429 6604 or (+44) 7970 067 320 or visit http://www.dwyresources.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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