Nyota Minerals Regulatory News (NYO)

28 Apr 2005 08:52

Dwyka Diamonds Limited28 April 2005 Dwyka Diamonds Limited Third quarter results to 31 March 2005 Highlights • US$200,000 received for single diamond parcel averaging US$347 per carat • 54 carat diamond from Nooitgedacht sold for US$360,000 (US$6,666 per carat) • Evaluation of four kimberlite mines successfully completed and purchase terms agreed • Continued sampling and ground assessment within the Indian Alliance area with BHP Billiton India • Group cash at the end of the quarter of approximately A$12.7 million South African operation Acquisition of four kimberlite diamond mines During the quarter the evaluation of the four kimberlite diamond mines wascompleted and on 18 April 2005, the Company announced it had signed a heads ofagreement with the vendors. Dwyka will pay the vendors R4 million in cash and2.75 million Dwyka shares. Subject to certain performance hurdles being met thetransaction allows for an additional consideration of R1 million of cash and R11million worth of Dwyka shares. Dwyka believes that production for Blaauwbosch,Newlands and West End can be ramped up to in excess of 8,000 carats of gemquality diamonds per month. Significant further growth will be possible with there-opening of the New Elands Mine. The acquisition of the four mines completes Dwyka's transition to a hard rockdiamond miner. Nooitgedacht Alluvial Mine During the quarter a 54 carat Nooitgedacht stone was sold at tender in Kimberley(RSA) for US$360,000 (US$6,666 per carat). This followed a sale of a 576 caratparcel of diamonds worth US$200,000 to Diamdel, the rough diamond tradingsubsidiary of De Beers. During the quarter, 330 carats were recovered from 25,173 tonnes of graveltreated at an average grade of 1.31 cpht. A new wet screening mobile plant is at the design and costing phase. It isbelieved that this will further improve grades and reduce costs further. The new flowsort machine is working well and diamonds from the old greasetailing dumps continue being recovered. Industrial Division The Industrial Division has again experienced strong demand during the quarter.The brick plant is now running a double shift and production is at fullcapacity. Dwyka remains confident that demand will strengthen when new fundingfor government housing projects is released. Revenue for the quarter was R4.5million. Bosele (Dwyka 70%) Bosele South Drill core samples from the two volcanoclastic bodies were sent to Perth andprocessed for kimberlite indicator minerals as well as for micro diamonds. Eachof a number of 2 kg samples from both bodies contain between 500 and 10,000chromite grains. A report is currently awaited on the mineral chemistry of thechromites. Due to the siliceous nature of the re-sedimented volcanoclastic rocks,acidisation could not be applied successfully to the drill core for the recoveryof micro diamonds. Nearly 200 kg of drill core was crushed to 0.5 mm and treatedby a DMS plant. No diamonds were recovered. Mineral Services from Cape Town (RSA) describe a sample recovered from thesecond volcanic body as having a magmatic origin. The sample showed highlyaltered phenocrysts set in a fine-grained matrix. The phenocrysts potentiallyrepresent a Fe-Mg mafic mineral which has been altered to chlorite. A 500 m percussion drilling programme is planned for April 2005, targeting an 8ha geophysical target. It is thought that this target could represent a volcanicvent filled with the magmatic phase of the re-sedimented volcanoclasticsediments. The Bosele volcanoclastic bodies appear to be comparable with some of theAustralian lamproites. Indian diamond exploration programme Sampling commenced on two newly granted Permits in Madhya Pradesh and Karnatakacovering over 4000 km(2) late in the quarter and is now also complete. Resultsfrom this program of 82 samples are pending. Advanced land titles have beenrecommended for grant by the state government in the vicinity of the Chigicherlacluster of kimberlites, held by Dwyka, and the site of several untested drilltargets. Further regulatory approvals, expected during the upcoming quarter,will permit intensive geophysical exploration and drill testing. Final results from the sampling of four of the fourteen granted ReconnaissancePermits throughout the India Alliance area were returned during the quarter.Limited numbers of samples from these licences in Karnataka and Andhra Pradeshcontained indicator minerals derived from kimberlite that required follow-up.Follow up work is complete and limited potential remains for these Permits tohost a sizeable, economic kimberlite and therefore the permits have beenrelinquished. MELISSA STURGESSChief Executive Officer The technical exploration and mining information contained in this report wascompiled by Ed Nealon, a Dwyka Diamonds Ltd director, and Mrs Catherine Telfer,a director and employee of Venmyn Rand (Pty) Ltd. Mr Nealon provides consultingservices via his company Athlone International Pty Ltd while Venmyn Rand (Pty)Ltd are consultants to Dwyka Diamonds in South Africa. Both Mr Nealon and MrsTelfer are members of the Australasian Institute of Mining and Metallurgy andare each considered to be a Competent Person in their respective areas ofexpertise pursuant to the Australasian Code for Reporting of Mineral Resourcesand Ore Reserves. Further information please contact: In Australia: In United Kingdom:-------------------------- --------------------Mike Langoulant, Melissa Sturgess Joe Nally-------------------------- --------------------Dwyka Diamonds Limited Williams de Broe Plc-------------------------- --------------------(+618) 9324 2955 (+44) 20 7588 7511-------------------------- -------------------- Laurence Read/ Leesa Peters Conduit PR (+44) 20 7936 9095 / (+44) 7979 955 923 Mining exploration entity quarterly report Consolidated statement of cash flows ------------ ------------Cash flows related to operating Current quarter Year to dateactivities $A'000 (9 months) $A'000 ------------ ------------ 1.1 Receipts from product sales and 1,805 4,476 related debtors 1.2 Payments for (a) exploration and (795) (2,576) evaluation (b) development (1,072) (3,999) (c) production (396) (1,490) (d) administration 1.3 Dividends received 1.4 Interest and other items of a 154 423 similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other FOREX variance (13) (5) ------------ ------------ Net Operating Cash Flows (317) (3,171) ----- ----------------------- ------------ ------------ Cash flows related to investing activities 1.8 Payment for purchases of: (a) (75) (782) prospects (b)equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) 27 prospects (b)equity investments (c)other fixed assets1.10 Loans to other entities (250)1.11 Loans repaid by other entities 17 171.12 Other (provide details if material) ------------ ------------ Net investing cash flows (58) (988) ------------ ------------1.13 Total operating and investing cash (375) (4,159) ----- flows (carried forward) ------------ ------------ ----------------------- ------------1.13 Total operating and investing cash flows (375) (4,159) ----- (brought forward) ------------ ------------ ----------------------- Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc. 10,8561.15 Proceeds from sale of forfeited shares1.16 Proceeds from borrowings1.17 Repayment of borrowings (9) (9)1.18 Dividends paid1.19 Other - capital raising costs (543) ------------ ------------ Net financing cash flows (9) 10,304 ----- ----------------------- ------------ ------------ Net increase (decrease) in cash held (384) 6,1451.20 Cash at beginning of quarter/year to date 13,187 6,6321.21 Exchange rate adjustments to item 1.20 (106) (80) ------------ ------------1.22 Cash at end of quarter 12,697 12,697 ----- ----------------------- ------------ ------------ Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities ------------- Current quarter $A'000 ------------- -------------1.23 Aggregate amount of payments to the parties included in 153 item 1.2 -------------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 5004.2 Development ------ ----------------------------- ------------------ Total 500----- ----------------------------- ------------------ Reconciliation of cash------------------------- ------------ -------------Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidatedstatement of cash flows) to the relateditems in the accounts is as follows. $A'000 $A'000 ------------------------- ------------ ------------- -------------5.1 Cash on hand and at bank 2,502 2,8295.2 Deposits at call 10,195 10,3585.3 Bank overdraft5.4 Other (provide details)----- ---------------------- ------------ ------------- Total: cash at end of quarter (item 12,697 13,187----- 1.22) ------------ ------------- ---------------------- Changes in interests in mining tenements ----------- --------------- -------- -------- Tenement Nature of Interest at Interest reference interest beginning of at end of quarter quarter (note (2)) ----------- --------------- -------- --------6.1 Interests in mining tenements ----------- --------------- -------- -------- relinquished, reduced or lapsed6.2 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 rightstogether with prices and dates. ---------- Total Number Issue price per Amount paid -------------- number quoted security (see up per ---------- ---------- note 3) security (see ---------- note 3) ------------ ------------ 7.1 Preference - - ----- +securities ---------- ---------- ---------- ------------ (description) ----------- 7.2 Changes during quarter (a) Increases through issues (b) Decreases ----- through returns of ---------- ---------- ---------- ------------ capital, buy-backs, redemptions ----------- 7.3 +Ordinary 80,440,196 77,706,862 N/A N/A securities ---------- ---------- ---------- ------------ 7.4 Changes during 116,666 116,666 $0.52 $0.52 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 2,000,000 - Exercise price Expiry date (description and conversion factor) 1,100,000 - $1.47 30/6/2006 $0.52 30/6/2007 ---------- ---------- ---------- ------------ 7.8 Issued during quarter ---------- ---------- ---------- ------------ 7.9 Exercised during 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 withaccounting standards as defined in the Corporations Law or other standardsacceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Date: 31 March 2005 1 This quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged 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 ofinterests in mining tenements acquired, exercised or lapsed during the reportingperiod. If the entity is involved in a joint venture agreement and there areconditions precedent which will change its percentage interest in a miningtenement, it should disclose the change of percentage interest and conditionsprecedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is notrequired in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa 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