Introduction
In January 2007 Dwyka acquired the Muremera nickel project in
Burundi, Africa.
The Company controls the Muremera Project through its wholly
owned subsidiary, Danyland Limited, which holds the exploration
rights for nickel and associated minerals in the project area.
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Potential
Muremera 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 Kabanga deposit in Tanzania
(
view
diagram).
The Kabanga project, which is controlled by Xstrata/Barrick,
is thought to be the world's largest undeveloped nickel sulphide
deposit. As at December 2006, the Kabanga resource was as follows.
| Category |
Tonnes |
Ni
(%) |
Cu
(%) |
Co
(%) |
Au
(g/t) |
Pt
(g/t) |
Pd
(g/t) |
Ag
(g/t) |
| Indicated |
9,700,000 |
2.37 |
0.32 |
0.19 |
0.04 |
0.07 |
0.09 |
1.04 |
| Inferred |
36,300,000 |
2.8 |
0.4 |
0.2 |
0.1 |
0.3 |
0.3 |
1.5 |
Ni = nickel; Cu = copper; Co = cobalt; Au = gold; Pt = platinum;
Pd = palladium; Ag = silver; g/t = grams per tonne
Geophysical anomalies at Muremera are similar to those at Kabanga,
with sulphides identified within target zones and nickel identified
in the sulphide occurrences. Mining permits have been granted
and access for exploration activities is good.
Partner
The project's prospectivity has led to a commitment from BHP Billiton
to spend US$5.2 million (A$6.5 million) on the project, to earn
up to a 50% interest in Dwyka subsidiary Danyland.
Danyland's agreement with BHP allows Danyland to fast-track
its exploration program. Further, the partnership provides Dwyka
with access to BHP's technical and other expertise.
Under the terms of BHP's agreement with Danyland, BHP's investment
at Muremera will occur in three stages.
- Stage 1 - the commitment of $1.2 million to initial
exploration to earn 10% equity in Danyland.
- Stage 2 - investment of $2 million on target testing
to earn a further 20% equity.
- Stage 3 - the investment of a further $2 million
on resource definition and completion of a concept study to
take BHP's aggregate interest to 50%.
BHP can withdraw from the project during or after the completion
of any of the stages. However, in doing so it would retain only
the equity earned from completion of the previous stage.
Once BHP fully satisfies its earn-in obligations, Danyland
and BHP will contribute to further development of Muremera in
proportion to their percentage shareholdings in Danyland.
Please go to announcements
for the most up-to-date information on Dwyka's nickel operation.