Quarterly Report
April 30 2008 - 5:33AM
UK Regulatory
RNS Number:4198T
Dwyka Resources Limited
30 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 strong
electromagnetic and magnetic anomalies. All four holes were drilled for
structural/stratigraphic purposes but the second hole (D002) also intersected
semi-massive sulphides between 220 and 235 metres.
The stratigraphic, assay results and petrographic data obtained from the
drilling completed to date indicate that the Muremera bodies have zones of
higher tenor nickel sulphides within them, and that they are part of a
flow-through system similar to that at the Kabanga deposit, currently being
developed by Xtrata and Barrick in neighbouring Tanzania.
The next phase of drilling due to commence in July will concentrate further on
locating the parts of the system where the higher tenor sulphides may have
coalesced and concentrated like they have at Kabanga.
VTEM
Geotech Ltd was contracted to fly the 1st B-field VTEM survey in Africa over the
Muremera. The VTEM survey of the licence area has now successfully been
completed with a total of 5,684 kilometres flown at 100m line spacing. The VTEM
data is currently being interpreted and should produce prospective nickel
sulphide 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, the
Dwyka subsidiary which currently owns 100% of the Muremera Nickel Project. It is
expected that the first earn-in hurdle of 10% will be achieved towards the end
of the June Quarter, 2008 with an approximate expenditure by BHP Billiton of
US$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 project
which 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 results
for the first hole (SG03D) returned significant gold values located between 116
and 126m. The 10m intersection returned an average gold content of 3.39 g/t
which includes a high grade intersection of 16.56 g/t over 1m. The second drill
hole (SG04D) is currently at a depth of 152.63m and is expected to intersect the
mineralized zone approximately 50m deeper than SG03D.
Good core recoveries are being achieved at the Daisy Prospect and the core
drilling will continue as per the planned work programme.
Soil Geochemistry
Infill soil geochemistry on a 100m x 50m grid was completed in the south-western
portion of the Daisy Prospect during the quarter (209 new samples). These
results, together with previous results as reported on 3 December 2007 have
defined a 1250m x 500m >100ppb gold in soil anomaly (peak 1560ppb) to the
south-west of the Daisy mine. The North-Eastern part of this anomaly
corresponds with the old Gordon Mine. The sampling program corresponds with the
old 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 spacing
ranges from 30 - 70m. Mineralisation in the Main Shear Zone has been closed-off
to the south-west but remains open to the north-east. The following table
summarises 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 of
geology. In particular, the ground conditions at Kobolondo are poor, suggesting
that there has been plenty of geological activity. This activity, in the form
of weathering and oxidation, implies significant potential for larger trap sites
and zones prone to preferential mineralisation. After initial core drilling
with Triple Tube Core Barrels at Kobolondo, it has been decided to move to RC
drilling 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, Dwyka
is required to expend US$750,000 on the Project by the end of June 2008 in order
to increase its equity in the Company to 70%. Dwyka is on track to achieve this
hurdle.
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 resources
boom.
Nickel
Dwyka has a major nickel exploration project underway in Burundi. Dwyka acquired
all of the shares in Danyland Limited ('Danyland'), the owner of the Muremera
Nickel project in Burundi, Africa, in January 2007. The Muremera project is
located within one of the world's principal nickel provinces, only 2 kilometres
from, almost adjacent to and in the same geological sequence as, the giant
Xstrata/Barrick Kabanga deposit in Tanzania.
The Kabanga deposit is thought to be the world's largest undeveloped nickel
sulphide
deposit and has similar geophysical anomalies to those at Muremera. An
exploration permit has been granted in relation to Muremera and access for
exploration activities is good. The project's prospectivity has led to a
commitment from BHP Billiton to spend at least US$5.2million as part of sole
funding arrangements to earn up to a 50% interest in Danyland.
Gold
Pursuant to a Shareholders and Earn-in Agreement dated 16 July 2007, Dwyka has
the 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 the
highly prospective Archaean Barberton Greenstone Belt in Swaziland, historically
a producer of 11.5 million ounces of gold.
In the Barberton Greenstone Belt, extensive, shallow, historic workings, plus a
lack of
modern exploration, have presented Dwyka with an ideal opportunity. Previous
owners
drilled some 13,500 metres of the project area, providing the Company with a
drill database that includes numerous gold intersections. These have allowed
Dwyka to establish immediate targets for both infill drilling and the
development of extensions to established zones of mineralization. In the current
favourable resources climate, it is believed that Dwyka's gold exploration
activities 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 above
announcement has been reviewed and approved by Ed Nealon, who has sufficient
experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is qualified as a Competent
Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr. Nealon is a Dwyka
Resources Limited Director and meets the criteria of a qualified person under
the AIM guidance note for mining, oil and gas companies.
Ed Nealon consents to the inclusion in this announcement of such information in
the form and context in which it appears.
Enquiries:
In Australia
Mike Langoulant
Dwyka Resources Limited
(+618) 9324 2955
In the United Kingdom
Richard Brown
Ambrian Partners Limited
(+44) 20 7776 6417
Charlie Geller/Leesa Peters
Conduit 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 entity
DWYKA 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'000
1.1 Receipts from product sales and related 2,646
debtors
1.2 Payments for (a) exploration and (403) (1,169)
evaluation (183)
(b) development (3,035)
(c) production (526) (1,673)
(d) administration
1.3 Dividends received
1.4 Interest and items of a similar nature 26 97
received
1.5 Interest and other costs of finance paid (193)
1.6 Income taxes paid
1.7 Other FOREX (10)
Net Operating Cash Flows (903) (3,620)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) (227)
prospects
(b)equity investments (14) (18)
(c) other fixed assets
1.9 Proceeds from sale of: (a)prospects
(b)equity investments (20) 462
1.10 Loans to other entities
1.11 Loans repaid by other entities 60
1.12 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 activities
1.14 Proceeds from issues of shares, options, etc. 1,446
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings (75)
1.18 Dividends paid
1.19 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 4,265
1.21 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 related
entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 85
1.24 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 available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities Nil Nil
3.2 Credit standby arrangements Nil Nil
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 200
4.2 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 cash
flows) to the related items in the accounts is as $A'000 $A'000
follows.
5.1 Cash on hand and at bank 89 29
5.2 Deposits at call 1,520 2,548
5.3 Bank overdraft
5.4 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 quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 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 rights
together 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
quarter
7.3 +Ordinary 131,344,206 131,344,206 N/A N/A
securities
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs
7.5 +Convertible debt -
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured, converted
7.7 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 30/6/2009
7.8 Issued during
quarter
7.9 Exercised during Exercise price Expiry date
quarter
7.10 Expired
(cancelled) during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Law or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters
disclosed.
Sign here: ............................................................
Date: 30 April 2008
Company Secretary
Print name: Michael Langoulant
Notes
1 This quarterly report provides a basis for informing the market how
the entity's activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information is
encouraged 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 in
respect of interests in mining tenements acquired, exercised or lapsed during
the reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage interest in
a mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is
not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards used
do not address a topic, the Australian standard on that topic (if any) must be
complied with.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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