22nd Mar 2007 07:03
Dwyka Resources Limited22 March 2007 Dwyka Resources Limited HISTORICAL DATA REVIEW SHOWS GOOD POTENTIAL FOR SWAZIGOLD PROJECT The Directors of Dwyka Resources Limited ("Dwyka" or "the Company") are pleasedto announce the following review of historical information in relation to itsrecently acquired interest in the SwaziGold gold project in Swaziland. Swaziland Gold (Pty) Limited EPL Area (Please refer to the ASX announcement onthe website www.dwyresources.com for diagram) Historical work on the Project includes geochemistry, geological mapping, and 13 600 metres of drilling. The majority of this work was carried out by Rio Tinto and 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 Swaziland Gold (Pty) Limited Prospects (Please refer to the ASX announcement onthe website www.dwyresources.com for diagram) 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. For further information please contact: Melissa Sturgess (Chairman, Dwyka Resources Limited): +618 9324 2955 Adrian Griffin(CEO, Dwyka Resources Limited): +618 9324 2955 Richard Brown(Ambrian Partners): +44 207 776 6417 Richard Chase (Ambrian Partners): +44 207 776 6461 Laurence Read/Leesa Peters (Conduit PR): +44 207 429 6605 or +44 7979 955 923 Background information regarding Swazigold Project The Project is located in Swaziland, in the highly prospective ArchaeanBarberton Greenstone Belt that straddles the border between Mpumalanga Province,South Africa and Swaziland. Such Greenstone Belts host many major gold depositsin South Africa, Canada, and Australia, including the giant Kalgoorliegoldfield. The Barberton Greenstone Belt was the location of the first golddiscovery in South Africa, and subsequent gold rush in 1884. Since that time,the belt has produced 11.5 million ounces of gold. Current underground minesinclude the Fairview, Sheba and Consort mines of Barberton Mines Limited,controlled by Metorex Limited. Swazigold's project area is a large 425km2 'greenfields' exploration play withmany targets ranging from 'walk up' advanced drilling targets to promisinggeochemical anomalies. The prospective licence area comprises more than 40km ofstrike length containing multiple mineralised structures and more than 40 goldshowings. Historic detailed drilling has been restricted to the Wyldsdale,Lomati and Daisy prospects where cumulate drilling by previous owners is inexcess of 13,000 metres. Dwyka's initial conclusion from a review of the geology and of this historicwork is that the potential exists for several million tonnes of high grade goldmineralisation. Under the terms of the MOU, Dwyka has the right to acquire the followingpercentage shareholding in SGV on the following basis: Payment of US$200,000 plus Dwyka shares to the value of US$1,500,000 (at marketprice) - Dwyka earns a 50% interest; US$750,000 worth of Project expenditure by 30 June 2008; payment of US$200,000plus Dwyka shares to the value of US$1,000,000 (at 80% of market price) - Dwykaearns a further 20% interest (total 70%); Payment of US$400,000 plus Dwyka shares to the value of US$1,000,000 (at 80% ofmarket price) by 30 June 2009; Project expenditure to reach bankable feasibilitystage by 30 June 2011 - Dwyka earns a further 15% interest (total 85%); and Issue of Dwyka shares to the value of US$3,000,000 (at 80% of market price)pursuant to the exercise of an option exercisable at any time between 30 June2009 and 30 June 2011 - Dwyka acquires remaining 15% interest (total 100%). Under the terms of the MOU, Dwyka will be the manager of the Project, which willbe overseen by a management committee in which the vendor shareholder and Dwykawill each have equal representation. Voting will be in accordance with theparties' shareholding percentages in SGV, provided that the manager will have acasting vote in the event of a deadlock. Dwyka may withdraw from the Project at any time, in which case it will dilute toa 49.9% shareholding in SGV and will relinquish management control. In addition,if such withdrawal occurs after the bankable feasibility stage, Dwyka will havea 2% royalty with respect to all minerals produced from the Project area. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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