18th Jul 2007 16:04
Dwyka Resources Limited18 July 2007 DWYKA RESOURCES LIMITED ('DWYKA' OR THE 'COMPANY') SWAZIGOLD PROJECT HIGHLIGHTS - Formal Shareholders and Earn-in Agreement signed and Dwyka moves to 50% ownership of Swazi Gold Ventures (Pty) Ltd ("SGV") - On ground work commenced with soil geochemistry, structural mapping, rock chip and channel sampling and assaying The directors of Dwyka Resources Limited today announce the following updatedinformation in connection with the Swazigold project, located in the highlyprospective Archaean Barberton Greenstone Belt straddling the border betweenSwaziland and Mpumalanga province in South Africa. TECHNICAL UPDATE Soil geochemistry, structural mapping, rock chip and channel sampling andassaying has commenced on the properties. This work will further define theknown targets in preparation for the first phase of drilling set to commence inthe 4th Quarter 2007. FINAL AGREEMENT SIGNED Following the Company's announcement on 7 March 2007 that it had signed alegally-binding memorandum of understanding with Swazi SGV in relation to theSwazigold project, Dwyka has now completed a formal Shareholders and Earn-inAgreement ("Agreement") with the vendors and acquired 50% of the issued sharesin SGV. The Agreement contains the usual range of provisions found in similardocuments, including pre-emptive rights for SGV shareholders in relation toissues of new shares and transfers of existing shares. Dwyka retains theability under the Agreement to increase its shareholding in SGV to 100% bymeeting certain project expenditures and making further payments as more fullydescribed in Dwyka's announcement dated 7 March 2007. PREVIOUSLY ANNOUNCED - HISTORICAL DATA REVIEW SHOWS GOOD POTENTIAL FOR SWAZIGOLDPROJECT Historical work on the Project includes geochemistry, geological mapping, and 13600 metres of drilling. The majority of this work was carried out by Rio Tintoand JCI between 1991 and 1997. Gold mineralization in the Barberton Greenstone Belt is closely associated withthrust-sense shear zones that juxtapose strata of different stratigraphicGroups. Following a review of the historical data, Dwyka considers that thefollowing four prospects have immediate 'step up and drill' potential:- DaisyWyldsdale/LomatiKobolondoLufafa TO VIEW THE DIAGRAM REGARDING THE SWAZILAND GOLD (PTY) LIMITED PROSPECTS, PASTETHE FOLLOWING LINK INTO YOUR WEB BROWSER http://www.rns-pdf.londonstockexchange.com/rns/4797a_-2007-7-18.pdf DAISY The Daisy deposit is hosted by a steeply dipping shear at the contact betweenamphibolite and talc schists. Gold occurs in a 1 to 3 m widequartz-carbonate-sulphide schist with a strike length of at least 700 m. Three target areas termed Zone 1, Zone 2, and Zone 3, have been identified here. Promising gold grades have been returned from JCI and Rio Tinto's drilling onall zones as follows:- Zone 1 25.8g/t over 1.6m 19.1g/t over 1.3m 8.9g/t over 1.5m 5.3g/t over 0.8m 7.8g/ t over 1.2m Zone 2 7.2g/t over 1.5m 5.1g/t over 2.0m Zone 3 5.0g/t over 0.9m 4.5g/t over 0.9m The Board believes that the Daisy project has immediate potential to prove up asmall to medium tonnage high grade underground gold mine and will be a primetarget for immediate drilling by Dwyka. WYLDSDALE/LOMATI Previous drilling by Rio Tinto and JCI returned some encouraging results asfollows:- BH-80/1 6.9g/t over 1m 39.7g/t over 1m 10.5g/t over 1m 3.1g/t over 1m 38.4g/t over 1m BH-80/3 4.8g/t over 2m 3.5g/t over 2m 13.6g/t over 2m BH-WP/27 9.6g/t over 1m Mineralisation at Wylsdale/Lomati is associated with a steeply dipping, highlysheared contact, between Barberton Supergroup supracrustals and a granitoidintrusion. Gold mineralization is typically hosted by black quartz veins whichoccur throughout the granite intrusion. The gold is characterised by thepresence of course gold (50um - 1500um). The previous drilling indicates severalhigh grade intersections that might be amenable to underground mining. This isa step up drill target and Dwyka will carry out follow up drilling as apriority. KOBOLONDO Two targets have been identified by Dwyka here, simply termed the southern andnorthern targets. Three holes drilled by Rio Tinto in the southern targetreturned the following grades:- BH-11 4.3g/t over 4m 17.4g/t over 2m BH-2 2.3g/t over 3m BH-3 10.9g/t over 2m The southern target comprises a series of steeply dipping and sub-parallelquartz-sericite alteration zones (shear zones) with coincident anomalous soilgeochemistry. The Board considers that the southern target has immediate drillpotential and this will be carried out by Dwyka as a priority. The northern target has had little work performed on it to date but one holereturned 0.5g/t over 13m indicating good potential for gold mineralization.Dwyka will drill test this following work at the southern target. LUFAFA Three target areas have been identified here following work by Rio Tinto andJCI. The target areas are again simply termed Lufafa North, Lufafa Cental, andLufafa South. Of immediate interest to Dwyka is Lufafa Central, where trenchingby Rio Tinto returned gold grades of 4.3g/t over 4m, 1.7g/t over 14m, and 2.7g/tover 8m. These results coincide with an area that geometrically andkinematically represents a region of relative dilation, allowing greater volumesof mineralizing fluids to pass through the rock mass. The bedrock geology at Lufafa Central comprises inter layered banded ironstone,phyllite and chert, and is considered by Dwyka to have the potential to hostseveral small to medium scale, low grade open pittable deposits as well as wide,moderate grade, steeply plunging ore shoots that may be suitable forunderground, mechanized mining. It is also noted that the level of oxidation atLufafa suggests to Dwyka that heap leaching may be an appropriate technique forlow cost extractive metallurgy, particularly for the porous banded ironformation that contains the higher grade gold mineralization. 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 Australia:Melissa Sturgess/Mark BurchnallDwyka Resources Limited(+61 8) 9324 2955 In the United Kingdom:Richard 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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