30th Apr 2008 09:33
Dwyka Resources Limited30 April 2008 DWYKA RESOURCES LIMITED (ASX:DWY.AX; AIM:DWY.L) QUARTERLY REPORT 31 MARCH 2008 Highlights during and since the end of the Quarter Muremera Nickel Project in Burundi - Mineralisation recovered from drill programme confirms that the Muremera model resembles that of the Kabanga deposit - Assay and petrographic results returned for two of the four stratigraphic holes - Nickel bearing sulphide mineralisation intersected in both holes - Pentlandite observed in the majority of mineralised samples - Successful completion of helicopter borne VTEM surveying, covering a total of 5,684 km SwaziGold Project in Swaziland - Core drilling at Daisy Prospect returns gold values of 3.39 g/t over 10m - High grade intersection of 16.56 g/t over 1m - Trenching at Kobolondo Prospect returns several significant gold intersections MUREMERA PROJECT DRILLING During the quarter, four drillholes were completed on the Muremera B anomaly,which is considered prospective due to a superposition of both strongelectromagnetic and magnetic anomalies. All four holes were drilled forstructural/stratigraphic purposes but the second hole (D002) also intersectedsemi-massive sulphides between 220 and 235 metres. The stratigraphic, assay results and petrographic data obtained from thedrilling completed to date indicate that the Muremera bodies have zones ofhigher tenor nickel sulphides within them, and that they are part of aflow-through system similar to that at the Kabanga deposit, currently beingdeveloped by Xtrata and Barrick in neighbouring Tanzania. The next phase of drilling due to commence in July will concentrate further onlocating the parts of the system where the higher tenor sulphides may havecoalesced and concentrated like they have at Kabanga. VTEM Geotech Ltd was contracted to fly the 1st B-field VTEM survey in Africa over theMuremera. The VTEM survey of the licence area has now successfully beencompleted with a total of 5,684 kilometres flown at 100m line spacing. The VTEMdata is currently being interpreted and should produce prospective nickelsulphide targets to be drilled directly from the VTEM data. BHPB EARN-IN BHP Billiton has the right to earn 50% of the ownership of Danyland Limited, theDwyka subsidiary which currently owns 100% of the Muremera Nickel Project. It isexpected that the first earn-in hurdle of 10% will be achieved towards the endof the June Quarter, 2008 with an approximate expenditure by BHP Billiton ofUS$3.16m, which is US$1.96m more than the minimum requirement of US$1.2m. BHPB has also assigned an additional two geologists to the Muremera projectwhich will lead to an increase in the pace of the work programme. SWAZIGOLD PROJECT Daisy Prospect Drilling Core drilling is currently underway at the Daisy Prospect and the assay resultsfor the first hole (SG03D) returned significant gold values located between 116and 126m. The 10m intersection returned an average gold content of 3.39 g/twhich includes a high grade intersection of 16.56 g/t over 1m. The second drillhole (SG04D) is currently at a depth of 152.63m and is expected to intersect themineralized zone approximately 50m deeper than SG03D. Good core recoveries are being achieved at the Daisy Prospect and the coredrilling will continue as per the planned work programme. Soil Geochemistry Infill soil geochemistry on a 100m x 50m grid was completed in the south-westernportion of the Daisy Prospect during the quarter (209 new samples). Theseresults, together with previous results as reported on 3 December 2007 havedefined a 1250m x 500m >100ppb gold in soil anomaly (peak 1560ppb) to thesouth-west of the Daisy mine. The North-Eastern part of this anomalycorresponds with the old Gordon Mine. The sampling program corresponds with theold Gordon workings, plant area and some of the historical pits and trenches.The soil geochemistry also identified additional reverse circulation ("RC")drilling targets located to the north of the known Daisy Prospect. Kobolondo Prospect Trenching To date, a total of eight trenches have been excavated on the Main Shear Zone(the main gold bearing structure) in the 450m strike length. Trench spacingranges from 30 - 70m. Mineralisation in the Main Shear Zone has been closed-offto the south-west but remains open to the north-east. The following tablesummarises the intersections >1g/t Au: Trench 1: 2.59g/t Au over 11m (including 6.30g/t Au over 4m) Trench 2: 1.09g/t Au over 3m Trench 3: No intersections >1g/t Au Trench 4: 1.38g/t Au over 2m Trench 5: 6.59g/t Au over 4m; 1.56g/t Au over 2m; 2.72g/t Au over 2m Trench 6: 1.12g/t Au over 1m; 1.06g/t Au over 2m; 1.64g/t Au over 1m Trench 7: 2.60g/t Au over 2m ; 4.84g/t Au over 1m Trench 8: 5.08g/t Au over 3m ; 1.27g/t Au over 1m Drilling Ground conditions at the SwaziGold Project are typical of the Barberton style ofgeology. In particular, the ground conditions at Kobolondo are poor, suggestingthat there has been plenty of geological activity. This activity, in the formof weathering and oxidation, implies significant potential for larger trap sitesand zones prone to preferential mineralisation. After initial core drillingwith Triple Tube Core Barrels at Kobolondo, it has been decided to move to RCdrilling to obtain better results, as Kobolondo remains an important target.This RC drill programme will commence as soon as a rig is available. Equity Earn-in Under the terms of the Agreement with Swazi Gold Ventures (Pty) Limited, Dwykais required to expend US$750,000 on the Project by the end of June 2008 in orderto increase its equity in the Company to 70%. Dwyka is on track to achieve thishurdle. Notes to editors: Dwyka is focusing on the diversified minerals sector, primarily nickel and gold,in order to achieve maximum value for shareholders during the ongoing resourcesboom. Nickel Dwyka has a major nickel exploration project underway in Burundi. Dwyka acquiredall of the shares in Danyland Limited ('Danyland'), the owner of the MuremeraNickel project in Burundi, Africa, in January 2007. The Muremera project islocated within one of the world's principal nickel provinces, only 2 kilometresfrom, almost adjacent to and in the same geological sequence as, the giantXstrata/Barrick Kabanga deposit in Tanzania. The Kabanga deposit is thought to be the world's largest undeveloped nickelsulphide deposit and has similar geophysical anomalies to those at Muremera. Anexploration permit has been granted in relation to Muremera and access forexploration activities is good. The project's prospectivity has led to acommitment from BHP Billiton to spend at least US$5.2million as part of solefunding arrangements to earn up to a 50% interest in Danyland. Gold Pursuant to a Shareholders and Earn-in Agreement dated 16 July 2007, Dwyka hasthe right to earn up to a 90% interest in Swaziland Gold (Pty) Ltd('SwaziGold'), which in turn owns the SwazigGold Project in Swaziland, Africa.The project is a large (435 square kilometre) gold exploration play in thehighly prospective Archaean Barberton Greenstone Belt in Swaziland, historicallya producer of 11.5 million ounces of gold. In the Barberton Greenstone Belt, extensive, shallow, historic workings, plus alack of modern exploration, have presented Dwyka with an ideal opportunity. Previousowners drilled some 13,500 metres of the project area, providing the Company with adrill database that includes numerous gold intersections. These have allowedDwyka to establish immediate targets for both infill drilling and thedevelopment of extensions to established zones of mineralization. In the currentfavourable resources climate, it is believed that Dwyka's gold explorationactivities 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. MELISSA STURGESS Chief Executive Officer 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. Enquiries: In AustraliaMike LangoulantDwyka Resources Limited(+618) 9324 2955 In the 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 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98. Name of entityDWYKA RESOURCES LIMITED ACN or ARBN Quarter ended ("current quarter")098 060 938 552 31 March 2008 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities $A'000 (9 months) $A'0001.1 Receipts from product sales and related 2,646 debtors1.2 Payments for (a) exploration and (403) (1,169) evaluation (183) (b) development (3,035) (c) production (526) (1,673) (d) administration1.3 Dividends received1.4 Interest and items of a similar nature 26 97 received1.5 Interest and other costs of finance paid (193)1.6 Income taxes paid1.7 Other FOREX (10) Net Operating Cash Flows (903) (3,620) Cash flows related to investing activities1.8 Payment for purchases of: (a) (227) prospects (b)equity investments (14) (18) (c) other fixed assets1.9 Proceeds from sale of: (a)prospects (b)equity investments (20) 4621.10 Loans to other entities1.11 Loans repaid by other entities 601.12 a) Other cash held in associates accounted for (8,284) on an equity basis - previously held by subsidiaries and included in consolidated cash balances b) Other cash acquired upon subsidiary 7,662 acquisition Net investing cash flows (34) (345)1.13 Total operating and investing cash flows (937) (3,965) (carried forward)1.13 Total operating and investing cash flows (brought (937) (3,965) forward) Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. 1,4461.15 Proceeds from sale of forfeited shares1.16 Proceeds from borrowings1.17 Repayment of borrowings (75)1.18 Dividends paid1.19 Other - capital raising costs Net financing cash flows 1,371 Net increase (decrease) in cash held (937) (2,594) 1.20 Cash at beginning of quarter/year to date 2,577 4,2651.21 Exchange rate adjustments to item 1.20 (31) (62)1.22 Cash at end of quarter 1,609 1,609 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 851.24 Aggregate amount of loans to the parties included in item 1.10 -1.25 Explanation necessary for an understanding of the transactions Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest - Financing facilities availableAdd notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'0003.1 Loan facilities Nil Nil3.2 Credit standby arrangements Nil Nil Estimated cash outflows for next quarter $A'0004.1 Exploration and evaluation 2004.2 Development Total 200 Reconciliation of cash Reconciliation of cash at the end of the quarter Current quarter Previous quarter(as shown in the consolidated statement of cashflows) to the related items in the accounts is as $A'000 $A'000follows. 5.1 Cash on hand and at bank 89 295.2 Deposits at call 1,520 2,5485.3 Bank overdraft5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 1,609 2,577 Changes in interests in mining tenements Tenement reference Nature of interest Interest at Interest at beginning of end of (note (2)) quarter quarter6.1 Interests in mining tenements relinquished, reduced or lapsed6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total number Number quoted Issue price per Amount paid up per security (see note 3) security (see note 3)7.1 Preference - - +securities (description)7.2 Changes during quarter7.3 +Ordinary 131,344,206 131,344,206 N/A N/A securities7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs7.5 +Convertible debt - securities (description)7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted7.7 Options Exercise price Expiry date (description and conversion factor) 125,000 - $0.52 30/6/2010 500,000 - $0.31 30/6/2010 450,000 - $0.95 30/6/20097.8 Issued during quarter7.9 Exercised during Exercise price Expiry date quarter7.10 Expired (cancelled) during quarter7.11 Debentures (totals only)7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies whichcomply with accounting standards as defined in the Corporations Law or otherstandards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the mattersdisclosed. Sign here: ............................................................ Date: 30 April 2008 Company Secretary Print name: Michael Langoulant Notes 1 This quarterly report provides a basis for informing the market howthe entity's activities have been financed for the past quarter and the effecton its cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2 The "Nature of interest" (items 6.1 and 6.2) includes options inrespect of interests in mining tenements acquired, exercised or lapsed duringthe reporting period. If the entity is involved in a joint venture agreementand there are conditions precedent which will change its percentage interest ina mining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up isnot required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting forExtractive Industries and AASB 1026: Statement of Cash Flows apply to thisreport. 5 Accounting Standards ASX will accept, for example, the use ofInternational Accounting Standards for foreign entities. If the standards useddo not address a topic, the Australian standard on that topic (if any) must becomplied with. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Nyota Minerals