Work programme commences at Ethiopian Gold Project

 

TIDMDWY 
 
RNS Number : 0671W 
Dwyka Resources Limited 
22 July 2009 
 

Dwyka Resources Limited ("Dwyka or the "Company") 
 
 
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the Board of Minerva has now been replaced by Dwyka Directors Melissa Sturgess, 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". 
 
 
Minerva's Key Projects 
 
 
To view a map showing Minerva's Key Projects, please click on the following web 
link: 
 
 
Tulu Kapi Exploration Licence 
 
 
The Tulu Kapi Project is an advanced exploration prospect where a 34 drill hole 
programme has recently been completed by Minerva. Drilling has to date 
intersected five gold bearing veins, reporting significant gold values. 
 
 
Peak gold assay intersections made during the 34 hole drill programme include 
the following: 
 
 
+--------+--------+--------+--------+----------+ 
|        | Depth  |Depth   |        |          | 
+--------+--------+--------+--------+----------+ 
|  Hole  |  From  |  To    |Metres  |  Grade   | 
|  No    |        |        |        |          | 
+--------+--------+--------+--------+----------+ 
|        |  (m)   |  (m)   |  (m)   |  (g/t    | 
|        |        |        |        |   Au)    | 
+--------+--------+--------+--------+----------+ 
|TKBH04  | 46.41  | 84.33  | 37.92  |4.61 (1)  | 
+--------+--------+--------+--------+----------+ 
|TKBH09  |  28    |  36.3  |  8.3   |  8.55    | 
+--------+--------+--------+--------+----------+ 
|TKBH12  |  0.5   |  19    |  18.5  |  4.34    | 
+--------+--------+--------+--------+----------+ 
|        | 56.63  |  68.4  | 11.77  |  4.62    | 
+--------+--------+--------+--------+----------+ 
|TKBH14  |  59    |  63    |   4    |  10.24   | 
+--------+--------+--------+--------+----------+ 
|TKBH26  |  161   | 167.6  |  6.6   |   5.1    | 
+--------+--------+--------+--------+----------+ 
|TKBH29  |  9.68  |  14    |  4.32  |    20    | 
+--------+--------+--------+--------+----------+ 
|TKBH20  |  200   |  205   |   5    |  9.04    | 
+--------+--------+--------+--------+----------+ 
|TKBH21  |   0    | 31.26  | 31.26  |  4 (2)   | 
+--------+--------+--------+--------+----------+ 
|TKBH33  |  202   |209.64  |  7.64  |    8     | 
+--------+--------+--------+--------+----------+ 
 
 
Notes: 
 
 
(1) Previously reported by Minerva as a grade of 1.61g/t in error 
 
(2) Represents an alternative interpretation of this drill hole which was 
previously reported as an intersection of 15.3m within this package of 31.26m 
 
 
Work has now commenced to define a maiden JORC compliant resource from the 
completed drill data. Preliminary metallurgical test work undertaken by Wardell 
Armstrong International has been completed on representative core samples from 
the recent drill programme. These tests indicate that the gold recovery rate 
will be in excess of 94%. 
 
 
Trench excavation and sampling has commenced at the Tulu Kapi Project with a 
series of excavations planned to extend from the limit of the existing drill 
grid in an easterly direction with a view to intersecting the expected up dip 
extensions of gold mineralisation previously intersected in the recent diamond 
drilling programme. 
 
 
Dwyka believes the Tulu Kapi prospect has to date been underexplored and that 
potential upside exists to establish a sizeable gold resource. As a result, 
Dwyka plans to extend the drill programme beyond its current focus. The Company 
considers that this a low risk exploration strategy with a strong possibility of 
intersecting further gold mineralisation and increasing the resource base. 
 
 
Yubdo Exploration Licence 
 
 
Three priority targets have been identified within the Yubdo Licence; Guji, 
Gudeya Guji and Dina. 
 
 
Soil geochemistry, trenching and scout drilling by Minerva at the Guji Prospect 
has indicated a prominent mineralised structure 1,200m in length with a peak 
trench intersection of 9.6g/t Au over 68m and a drill intercept of 3g/t Au over 
17m. Subject to the interpretation of planned geophysical surveys, the target is 
considered drill ready. Located only 3km from Tulu Kapi, the Guji Prospect could 
potentially represent a satellite mining operation providing feedstock to any 
future processing plant at Tulu Kapi. 
 
 
Scout drilling at the Gudeya Guji Prospect located 7km from Tulu Kapi has 
intersected two mineralised quartz veins with a strike length of 200m. At 
surface, rock sampling has returned peak values of 8.7g/t Au and trenching has 
returned a peak intersection of 2.8g/t Au over 6m. 
 
 
Scout drilling at the Dina Prospect returned peak values of 9.4g/t Au over 7.1m 
from a depth of 69.6m to 76.7m and 2.4g/t au over 3.8m from a depth of 136.2m to 
140m. 
 
 
Dwyka plans to continue with exploration and resource definition of these 
prospects. 
 
 
Yubdo Platinum Mining Licence 
 
 
The Yubdo Platinum Licence is held by Yubdo Platinum & Gold Development plc 
("YPGD"), an Ethiopian registered subsidiary of Minerva. Minerva holds a 51% 
interest in YPGD, the balance being held by Ethiopian investors. 
 
 
The Yubdo platinum deposit has been known for its laterite platinum 
mineralisation since the beginning of the 19th century. Several foreign and 
government owned companies have successfully mined platinum and gold from the 
deposit. 
 
 
Minerva has operated a pilot plant scale operation, however only low platinum 
recoveries have been made to date. Dr Evan Kirby, who has joined the Minerva 
Board along with other Dwyka appointees, is a metallurgist with over 30 years' 
experience, and has worked for Impala Platinum, Rand Mines, Rustenburg Platinum 
Mines, Aquarius Platinum Limited and Sylvania Resources Limited.  Dwyka will use 
Dr Kirby's experience and its further in-house platinum processing expertise to 
undertake a detailed review of the mineralogy and plant design.  In addition, 
the Company has budgeted for exploration to evaluate potential alluvial and hard 
rock mineralisation that may be associated with the prospect. 
 
 
Doing Business in Ethiopia 
Ethiopia's economy has seen significant growth in recent years, driven by the 
second largest population in Africa, the development of a free market oriented 
economy and the collapse of the former military regime in the 1990s.  Government 
is actively privatising businesses across all sectors with many positive 
initiatives including guarantees for foreign direct investment and full 
repatriation of capital and profits. 
 
 
Takeover of Minerva 
Dwyka's takeover offer for Minerva remains open for acceptance until 1.00 p.m. 
(London time) on 28 July 2009.  The Company announced on 15 July 2009 that it 
had received valid acceptances in respect of 80.9% of the issued shares in 
Minerva. Should valid acceptances be received for 90% or more of Minerva's 
shares, Dwyka will be entitled to compulsorily acquire the remaining Minerva 
shares and thereby become the 100% owner of Minerva. In the meantime, 
application has been made for the cancellation of the admission of Minerva's 
shares to trading on AIM with effect from 23 July 2009. 
 
 
For further information please contact: 
 
 
 
 
Melissa Sturgess 
Dwyka Resources Limited 
(+44) (0)78 2555 1397 or [e-mail] 
 
 
In United Kingdom 
Richard Brown 
Richard Greenfield 
Ambrian Partners Limited 
(+44) (0)20 7634 4700 
 
 
Press enquiries 
Charlie Geller or Leesa Peters 
Conduit PR 
[phone]/ [phone] 
 
 
Or visit: http://www.dwyresources.com 
 
 
 
 
Qualified Person 
The information in this release which relates to exploration results is based on 
information compiled by Tim 
Craske, BSc(Hons), MAIG, AFAIM. Mr. Craske has over 25 years experience in gold 
and base metals exploration and resource estimation and is the Exploration 
Manager for Minerva Resources Plc. Mr. Craske is a Competent Person as defined 
in the Australian Code for Reporting of Exploration Results, Mineral Resources 
and Ore Reserves and has reviewed and approved this release 
 
 
Wardell Armstrong International has consented to the inclusion of its name in 
this announcement in the form and context in which it appears. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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