Dwyka Diamonds (See LSE:NYO) Share Discussion Threads

[jonny flame] 24/7/2009 15:53

Thanks investinggarden, if this is true that they are planning to produce 65,000 oz a year in two years time from the Ethiopian assets then that is very exciting news.

24/07/2009 Robert Tyerman

Reduce text size Decrease text size Increase text size Increase text size Print article Print Share this article Share Email article to a friend Email Africa-focused Dwyka Resources has set a one million oz target for new acquisition Minerva Resource's Ethiopian gold project.

Now the West Australia based company's £1.8 million paper bid for Minerva has gone unconditional, chairman and chief executive Melissa Sturgess says Minerva's Tula Kapi gold prospect in Ethiopia should be in production in two years at the rate of 65,000 oz a year from a resource estimated by independent consultants to be in the region of one million oz. Since the offer is in shares, it leaves AIM-quoted Dwyka's £6.3 million cash stash untouched, while giving Minerva sellers 12 per cent of the enlarged Dwyka.

Dwyka, which has already been through several incarnations since its flotation at 40p eight years ago, is retaining Minerva's project team and will now concentrate primarily on the Ethiopian gold prospects, says Sturgess. The company's nickel venture in Burundi is now seen as a five to ten year project.

Dwyka shares have had a rough ride since their original AIM float, trading between 17.5p and 2.5p over the past 12 months. Now 6.38p, valuing the company at £12.2 million, they have speculative appeal for sector fans.

[investinggarden] 24/7/2009 14:34

Dwyka targets 1m oz - news story

[luckyvince] 24/7/2009 10:45

At 10.40 6.35 to buy / 6.25 to sell so surely the 250K was a buy so why the tick down?

[beagrie] 23/7/2009 16:29

Some nice buys at the end there.

[rutty74] 23/7/2009 08:07

looking good this one, remember this has been near 60p, never should be have gotten this low. 20-25p range seems right.

[realcooltrader] 23/7/2009 08:04

rathkum, thanks for that:

"Tiddler to watch

Dwyka Resources rose ½p to 6p as it outlined its plans for the Tulu Kapi and Yubdo gold prospects in Ethiopia after effectively taking control of Minerva Resources. The group plans to expand the Tulu Kapi project through further exploration and investigate the possibility that the asset is part of a new gold province."

[petermoran] 22/7/2009 11:13

Just put them on filter JF.

[jonny flame] 22/7/2009 11:08

I wish people would stop pushing TMC on here.

[fairdeal2008] 22/7/2009 10:54

Perhaps we could have some comparative analysis to help us make that judgement you eejit!!

[debbiegee] 22/7/2009 10:23

I t certainly feels good here,those of us that have ot in at these levels should not regret it !

[fairdeal2008] 22/7/2009 09:19

I spoke to the people at Minvera before eveything blew up. They were extremely excited about Tulu Kapi and the new potential gold province. My own feel was that there was a multi million ounce high grade resource there.

Now Dwyka has it and can push forward development. Am sure they can make it self funding through small scale mining of the higher grade areas and relatively quickly.

Production seems to be the key with the small gold stocks at the moment. If they can become self funding and move awway from institutional dependence then they have a future without excessive dilution.

This has to add substantial value to the DWY offer.

But there are some crazy valuations out there at the moment. Another stock I have is SHG which has £3,5mn cash and 2.6 million ounce gold jorc - comnpany valued at just £4million.

Crazy imho.

[kickstart] 22/7/2009 08:56

There are no flies on Melissa Sturgess, she knew what she was doing when she bought Minerva.Terry McConnachie the MD of Sylvannia (SLV) is also on the board of DWY as a non exec and his Platinum experience will be invaluable.I have met him several times and his record is impressive.

[cagey76] 22/7/2009 08:48

Defintely looks like they have a plan moving forwards. Good news.

[jonny flame] 22/7/2009 07:12

Sounds like a good strategy to me.

[jonny flame] 22/7/2009 07:11

Dwyka Resources Limited 22 July 2009

Work programme commences at Ethiopian Gold Projects

Highlights


* Work programme has commenced, with focus on the Tulu Kapi and Yubdo gold
prospects alongside Dwyka's existing assets

* Results of Minerva's 34 hole drilling programme at Tulu Kapi to be used with the
intention of rapidly establishing a JORC resource and fast tracking the project
to development

* Short term three pronged approach adopted: Venmyn Rand commissioned to undertake
an independent review of the assets to assist the Board in determining its
future work programme; drilling done to date to be converted to a maiden JORC
compliant resource; trench work being undertaken to identify suitable drill
targets for the drilling season which will commence in September 2009

* Plan to expand Tulu Kapi project through further exploration and investigate
possibility that Tulu Kapi is part of a new gold province

* Dwyka to use in-house platinum processing expertise to progress Yubdo platinum
asset from current pilot plant phase. Dwyka will immediately undertake a
detailed review of the mineralogy and plant design and has budgeted for further
exploration

Following the announcement made by the Company last week that its takeover offer
to acquire the entire issued share capital of Minerva Resources Plc ("Minerva")
has been declared unconditional in all respects (following receipt of valid
acceptances representing approximately 80.9% of Minerva's issued share capital),
the Board of Minerva has now been replaced by Dwyka Directors Melissa Sturgess,
Terry McConnachie and Evan Kirby. Dwyka has assumed immediate management
control of the Minerva assets, chief amongst which are two gold exploration
licences and one platinum mining licence, all situated in Ethiopia,
approximately 530km west of Addis Ababa. The Dwyka management team has extensive
experience developing gold and platinum projects and the Company will now use
its cash reserves to fast track these key assets to development, whilst also
progressing its existing portfolio of assets including its Muremera Nickel
project in Burundi.

Speaking today in relation to the acquisition of Minerva, Melissa Sturgess, CEO
of Dwyka commented:

"This acquisition represents a significant transaction for Dwyka, expanding our
existing resource base whilst maintaining our regional focus in Africa.
Considerable exploration and resource definition drilling has already been
completed on a number of targets within the Minerva project areas. Dwyka has
significant cash reserves, allowing us to quickly advance these projects to
development alongside our existing assets. We also believe there is potential to
expand the existing gold resource meaning that subject to ongoing exploration,
there is an opportunity for Dwyka to establish substantial gold, platinum and
nickel resources, delivering significant short, medium and long term revenue
opportunities".

[nicksig] 20/7/2009 16:17

dontyo - just seen your post about TMC. Where will your syndicate find 5% of stock from given its so tightly held? Are you applying for shares in the current placing?

[jonny flame] 20/7/2009 16:14

Another tick up, be nice to see a bit of a rise here now that we know they are focusing on nickel/gold. At 30th June 09 they had 6.3m GBP in the bank, the company has a market cap of just over 10m GBP.

[jonny flame] 17/7/2009 16:54

Yes, David have a look at TMC, I'm sure they will appreciate your detailed research over on that bb.

dontyo - your syndicate is aquiring 5%? Of what? The company? If so that means your syndicate is looking to invest half a million quid in TMC.

[dontyo] 17/7/2009 01:01

DAVID, Have a look at TMC instead of this, our syndicate is aquiring 5%. Potential 6 bagger from current price.

[kickstart] 17/7/2009 00:00

Thanks Jonny for answering sensibly I have been out all day.It is frustrating when people spout nonsense without thinking.

[jonny flame] 16/7/2009 20:38

'Cash balances at 31 March 2009 GBP6.9 million (AUD$14.5 million'



Please can you at least bother to do a tiny amount of research before you slate the company. Honestly, the following did make me laugh,'Won't the BHP 50% need to be matched by DWY's 50%? Where's cash for that?'

Sell the project at a knockdown price to Xstrata, what are you talking about? Absolute rubbish.

[davidhp] 16/7/2009 19:27

Where do you get your 'several million cash' figure from?
Link appreciated.

And to clarify... a major with lower production costs is 'a few miles away' from the proposed nickel operation competing (and by all accounts struggling). Are you holding out in case they sell Xstrata this resource at a knockdown?