Dwyka Diamonds (See LSE:NYO) Share Discussion Threads

[wdurham] 01/6/2009 20:38

6kenny -

Dwyka have two choices.

Sit on their cash and do nothing. Then you'd moan like hell.

Or they can do something with their cash like invest it in project development, which means they will then need to raise more. You'll still moan like hell.

Rock and a hard place.

debbie -

How do you think "JORC certificates" are come by? They don't jump fully fledged out of the ground. You have to put the drill bit in first.

[debbiegee] 01/6/2009 19:58

It seems to me they have made a wise investment.
Even before going into production a jorc certificate could make them/us rich.
Who knows they may even attract a farm in partner in the future .
For now when the market is at rock bottom they have probably picked up some dirt cheap assets.

[6kenny] 01/6/2009 19:30

I think this deal will sap all of DWY'S money, why don't they just conserve cash and focus on their nickel project?

[wdurham] 01/6/2009 18:01

Jonny -

As they don't yet have a JORC-compliant resource, we're probably looking at 3-4 years to production at Tulu Kapi. Perhaps less, perhaps longer - all will depend on what the drilling finds. Consistent and contiguous mineralisation will need less drilling, so it could be quicker. Faulted and inconsistent mineralisation will need more drilling, so it could be longer.

[jonny flame] 01/6/2009 17:49

This is the last detailed update I haven't posted the full report.

17th December 2008

Minerva Resources Plc (AIM:MVA)
('Minerva Resources' or 'the Company')
Exploration Update - Tulu Kapi Gold Project, Ethiopia

Highlights

* Assay results from the last 4 holes of the previous diamond
drilling programme have been received
* A number of significant intersections in drill hole TKBH 25
include: 2.2m @ 2.2g/t Au, 3m @ 5.4g/t Au, 9m @ 2.1g/t Au and
2.9m @ 15.2g/t Au
* Final stage of Inferred Resource drilling programme (Phase Four)
at Tulu Kapi has commenced with 4 new drill holes completed (TKBH
26 to 28)
* Initial assay results from Phase Four drilling are expected to be
announced January 2009

Terry Ward, Managing Director, commented today, 'The gold assay
results from the third phase of the Tulu Kapi drilling programme
continue to prove up thick intersections of good grade gold
mineralisation at the south end of the exploration grid.'

'The ongoing Phase Four drilling is currently focussing on expanding
this zone that is open both down dip and along strike. The remaining
holes from Phase Four will focus on increasing the drilling density
to facilitate resource modelling to a JORC compliant Inferred
Resource level.'

'These results together with continuing work at nearby prospects of
Dina, Gudeya-Guji and Guji, continue to establish this area as a
developing regional gold province.'

Tulu Kapi Prospect (100% Minerva Resources)

The directors of Minerva Resources are pleased to announce additional
significant gold intersections from Tulu Kapi project in western
Ethiopia. The deposit is located on the flanks and centre of a large
hill, rising from an elevation of 1,640m at its base to 1,770m at its
peak. A UNDP borehole, drilled in the 1970's, intersected 0.7m @
27.0g/t Au, 650m to the north east of the most northern fence line
drilled by Minerva to-date, demonstrating the project's continued
strike potential. The style of mineralisation at Tulu Kapi has
similar characteristics to other bulk tonnage deposits hosted within
the Arabian Nubian shield.

Minerva Resources has completed 28 diamond drill holes on 80 metre
spaced sections, over a 600m strike length. These holes have
delineated several sub-parallel zones of gold mineralisation that can
be correlated from section to section. The thickness and grade
continuity confirms AC Howe's assessment that Tulu Kapi has
'significant potential for a large gold resource'.

All gold intersections are associated with highly bleached, albite
and quartz veined sulphide altered zones in syenite, with the deepest
intersection in TKBH 25 also being associated with shearing and
pyrite, chalcopyrite and galena bearing quartz veins.

The work continues to rank Tulu Kapi as one of the most promising
gold projects in Ethiopia.

Notes to Editors

Minerva Resources plc is a UK based mineral exploration and
development company quoted on London's Alternative Investment Market
(AIM:MVA). The Company is intent on delivering shareholder value by
increasing and developing its mineral resources in a socially and
environmentally responsible manner.

The main focus is resource development in Ethiopia where the Company
has first-mover advantage on prospective ground on the Arabian-Nubian
shield. Key projects include the gold resources at the Tulu Kapi
Project, the Gudeya-Guji, Guji and Dina Prospects and the Yubdo
Platinum Mine, located in western Ethiopia, some 560km west of Addis
Ababa.

Tulu Kapi was mined in the 1930s by an Italian company. In the 1970s,
the United Nations Development Programme (UNDP) mapped and drilled
Tulu Kapi. Tan Range Exploration carried out soil sampling and
further mapping and drilling in the 1990s. These two phases of work
confirmed mineralisation extending over a strike length of 1.5km. The
project is undergoing resource drilling on a 600m section at present,
after encouraging Minerva Resources ground mapping, data
reinterpretation and excellent scout drilling results.

Scout drilling programmes have been undertaken at the Gudeya-Guji and
Guji gold prospects and one is underway at the Dina gold prospect,
that are all located in close proximity to Tulu Kapi. The drilling
has shown mineralised intersections on all three prospects.

The results from the drilling on Tulu Kapi and the satellite
prospects and their close proximity point towards a new gold province
with the potential for the establishment of a 'one treatment plant -
multiple feed scenario'.

The Company is examining the potential to expand the small scale
platinum production operations at Yubdo, some 25km from the Tulu Kapi
Project. A pilot gravity recovery plant has been installed, a
metallurgical research programme has been initiated and further
exploration activities have commenced on the 9km by 1.5km surface
expression of the orebody.

Minerva Resources also has a presence in Central Asia, operating a
Technical Services Division undertaking contract drilling and the
provision of geological services from the Kyrgyz Republic.

In Sierra Leone, the Company holds gold, platinum and diamond
exploration licences, which will for the most part continue to be
developed by existing Joint Venture partners.

[jonny flame] 01/6/2009 17:23

Question - how long would it take to get Tulu Kapi into production?

[wdurham] 01/6/2009 16:02

kenny -

It's a fact of life that ALL exploration juniors need to raise money regularly - most do it every year. They have no other source of funds, and proving up a resource takes money - lots of it. With diamond drilling running at an average of $100 per metre, and hundreds of holes required to get a resource to the confidence level needed by a bankable feasibility study (usually measured/indicated) just the drilling bills run into millions a year.

Dwyka will have two choices - (1) husband their cash or (2) carry out resource development at existing projects, buy Minerva, and develop Tulu Kapi. The £7 mill they had at the end of March won't go far.

[cagey76] 01/6/2009 15:35

Ambrian has a speculstive buy rating for Dwyka Resources (LSE: DWY.L - news)

[gconvery] 01/6/2009 15:24

Still falling....but looks like support at the 200MA and potential golden cross coming up I believe.

[buzzzzzzzz] 01/6/2009 15:18

Kenny

Totally agree.

DWY can't seem to make their mind up what they are going to do.

Nickel?
Coal?
Gold?

They need to prioritise!!!

[buzzzzzzzz] 01/6/2009 15:17

Wendy

Thank you.

[6kenny] 01/6/2009 13:25

the only danger is how many tiddler exploration stocks actually become producer? Most keep needing more cash every 3-5 years and then eventually go under.

DWY will have to spend it's cash wisely after this acquisition.

[wdurham] 01/6/2009 12:55

Buzzzz -

Seeing as how you asked so nicely!

I haven't kept much of an eye on Minerva (which I used to like) or Dwyka (which I didn't). Dwyka seem too fond of changing horses every year according to fashion - last time I looked they were making bricks and selling concrete? LOL.

Just had a very quick look at current Tulu Kapi drilling results and it looks like a good 'un. ACA Howe seem to agree? If Dwyka can pick that up for a penny per Minerva share, then they have a bargain.

[debbiegee] 01/6/2009 11:54

Not that it means a lot but did anybody notice that asx:dwy was up 7.7%?

I should think the analysts will soon be all over this 1 ,or maybe they will w8 untill definate.
It seems pretty stitched up to me.

[gconvery] 01/6/2009 11:53

Actually there are 154.6m shares in issue according to the Minerva website, therefore cost is £1.54m for a gold resource probably worth a lot more than that! Hopefully, give it a couple of days and the market might wake up....

[buzzzzzzzz] 01/6/2009 11:48

Thats about it.

It's not what I expected.

[gconvery] 01/6/2009 11:42

Well this is not what I expected. Is this because we are the ones having to fork out the money. The deal seems a good one...or does anyone disagree?

Feel free to disagree with my maths, but if 65m shares = 42% of share capital then 100% = approx 175m and therefore at a penny a share we are paying £1.75m for this company??

[6kenny] 01/6/2009 09:01

good post debbie,
Surely it would make sense for Minerva holders to purchase shares in DWY?

[debbiegee] 01/6/2009 07:30

This is some info on the tula kapi project thet seems to be where the value is that minerva could unfortunately not rais the funds for.

[debbiegee] 01/6/2009 07:16

THE MVA THREAD.

Just a quick look at the chart looks like there could be huge value there but research obviously needed.
In my experience suspended shares usually lose a huge %age just before suspension as word gets out beforehand.

[rebel] 01/6/2009 07:13

Dwyka Resources Limited
('Dwyka')


Statement re: Possible Offer for Minerva Resources plc


The board of Dwyka is pleased to announce that it is in discussions with Minerva
Resources plc ('Minerva') which may or may not lead to an offer for the entire
issued and to be issued share capital of Minerva by Dwyka. These discussions are
at an advanced stage but remain subject to the satisfactory conclusion of
ongoing due diligence.

[jonny flame] 29/5/2009 17:27

Hi 6Kenny - yes especially if the acquistion is for a gold asset that could quickly be brought into production. Remember this is not just a Nickel play, the company also reckon that come 2010 they could have a producing gold asset in Swaziland;

"The acqusition will be in Africa and is likely to be in the commodities Dwyka is already working in, namely nickel and gold, she told Miningmx, declining to give any further details".

"By June we will have developed our strategy on gold. We'll have defined whether we'll put this into production ourselves or put a few other projects together," Sturgess said, adding the Swazi assets could be in production by mid-2010.

"Dwyka has a right to increase its stake from 50% to 70% in the SwaziGold project but has yet to commit to that stake because it is developing a gold strategy around the asset. It has pushed back the earn-in schedule with Swazi Gold Ventures to end-June this year to give it space".

"Our objective is to drill up one million ounces by the end of the year, which we can then put together with other gold projects in the region and Africa, where we are looking at other projects," Sturgess said.

[6kenny] 29/5/2009 16:39

next week we see some action I reckon, especially if they make the eagerly anticipated announcement re an acquisition.

hopefully all the traders have moved off to pastures browner!

nice few buys late afternoon?