31st Jan 2008 07:20
Dwyka Resources Limited31 January 2008 QUARTERLY REPORT 31 DECEMBER 2007 DWYKA RESOURCES LIMITED (ASX:DWY.AX; AIM:DWY.L) HIGHLIGHTS - Drilling commenced at the Muremera Nickel Project in Burundi - Drilling commenced at the Kobolondo, Daisy and Lufafa gold projects inSwaziland NICKEL Muremera Nickel Project Recent activities Both the drilling and heliborne VTEM surveys have commenced at the Muremeranickel project in Burundi, which is owned by the Company's wholly-ownedsubsidiary Danyland Limited. Drilling Phase 1 drilling was undertaken throughout the quarter with four drillholesbeing completed in January 2008 on the Muremera B anomaly, which is consideredprospective due to a superposition of both strong electromagnetic and magneticanomalies. All four holes were drilled for structural/stratigraphic purposesbut the second hole (D002) also intersected semi-massive sulphides between 220and 235 metres. Phase 2 of the drilling commenced on January 16th 2008 with two additionalgeologists being added to the team. Up to 10,000 metres of drilling is expectedin 2008. Assaying Assaying of the core has been delayed to allow for magnetic core orientationstudies. Assay results are expected in late February/early March 2008. Thecore will be split at site with half the core then being sent to ALS ChemexLaboratory in Mwanza for sample preparation prior to despatch for final assay toALS Chemex in Johannesburg. VTEM Surveying During the quarter all surveying equipment, including the survey helicopter andpersonnel, arrived on site and VTEM surveying commenced. Geotech Ltd iscontracted to fly the 1st B-field VTEM survey in Africa over the Muremeratargets. A total of 5,830 line kilometres is being flown at 100m line spacingand at this stage approximately 42% of the VTEM survey has been undertaken withcompletion expected by early February 2008. This level of detail will enabledirect drilling off the VTEM data. About the project The Muremera licence, owned by the Company's wholly-owned subsidiary DanylandLimited ("Danyland"), is located within 2km of the Kabanga project operated byXstrata/Barrick, the world's largest undeveloped nickel sulphide deposit. The Kabanga deposit, which is located immediately across the border in Tanzania,was discovered by geophysical prospecting, by the United Nations DevelopmentProgramme ("UNDP"), in 1976. Further UNDP surveys in 1978 resulted in thediscovery of the prospective Muremera deposits on the Burundi side of the borderin 1978. The anomalies have identical characteristics and follow-up work by theUNDP has confirmed that massive sulphide bodies, with nickel mineralisation, arethe source of the anomalies. Extensive geophysics and geochemical surveys havedelineated numerous targets, however there has been insufficient drilling todate to establish a JORC compliant resource. Shareholders and Earn-in Agreement with BHP Billiton On 23 February 2007, the Company signed a Shareholders and Earn-in Agreementwith BHP Billiton ("BHPB Agreement"), pursuant to which BHP Billiton has agreedto spend at least US$5,200,000 in undertaking certain activities to develop theMuremera Nickel Project, in order to earn a shareholding of up to 50% inDanyland. Under the BHPB Agreement, the BHP Billiton investment will be realised in 3stages as follows: during the first stage, BHP Billiton will spend a minimum of US$1,200,000 oninitial exploration activities in order to earn a 10% equity in Danyland. Thishurdle is likely to be achieved by the end of Q1, 2008 with total expenditure todate of US$2,600,000. during the second stage, BHP Billiton will spend US$2,000,000 on target testingin order to earn a further 20% equity (total 30%); and during the third stage, BHP Billiton will spend a further US$2,000,000 onresource definition and the completion of a concept study in order to earn theremaining 20% equity (up to a total of 50% interest in Danyland). BHP Billiton may withdraw from the project during or after completion of any ofthe stages, but if it withdraws during a particular stage it retains only theequity earned by virtue of having completed the previous stage. The projectwill be managed by the Danyland board of directors, on which Dwyka and BHPBilliton will have equal representation. Once BHP Billiton has fully satisfied its earn-in obligations, the parties willcontribute to further development of the project in proportion to theirpercentage shareholdings in Danyland. Normal default and dilution provisionsapply where a party fails to meet its share of project funding. GOLD Swazigold Project Recent activities - Commencement of drilling A drilling contract has been signed with Diabor (Pty) Limited of Pretoria, SouthAfrica. Diabor has mobilised its drilling crew and initiated drilling at theKobolondo prospect with a small diamond drilling rig on a 650m shallow-hole (<120m) drilling program. Discussions are currently underway with contractors tomobilize a larger drilling-rig, capable of drilling deeper drill-holes in early2008. Three boreholes have been planned for the Kobolondo prospect to test a 600mstrike length of a mineralised shear zone. Surface sampling of trenchesexcavated by Dwyka on this shear zone have returned stretch intersections of2.82g/t Au over 11m (including 7.70g/t Au over 3m), 2.16g/t Au over 5m(Including 4.84g/t Au over 1m) 4.24g/t Au over 3m (including 7.97g/t Au over1m). Deeper drilling of the Kobolondo prospect will be undertaken in 2008subject to results from the current drill-program. Drilling for the Daisy prospect is targeted to test a shallow portion of the # 1oreshoot that had not been drill-tested by previous investigations. The # 1oreshoot (described in the announcement dated 30 November 2007) is a 65 - 100mwide high-grade oreshoot that has been traced, by diamond drilling, to a depthof 250m. Most of the planned drilling for the Daisy prospect will be undertakenwhen a drill-rig with greater depth-capability is available. At the Lufafa prospect, surface exploration to date suggests that there is thepotential to host 5-25m wide zones of 1-2g/t disseminated Au mineralization overstrike lengths ofRelated Shares:
Nyota Minerals