Nyota Minerals Regulatory News (NYO)

30 Aug 2005 10:00

Dwyka Diamonds Limited30 August 2005 30 August 2005 DWYKA FINALISES ACQUISITION OF HARD ROCK MINES Acquisition The Directors of Dwyka Diamonds Limited ("Dwyka" or the "Company") announce thatthe Company has finalised the purchase of the three hard rock diamond mines,Blaauwbosch, New Elands and Newlands located near Kimberley in South Africa. Dwyka's production/development portfolio in South Africa now comprises 1. Supermix Industrial Division2. Nooitgedacht Alluvial Mine3. De Beers Joint Venture Tailings Retreatment Project (in construction)4. Blaauwbosch (being refurbished for recommencement of production)5. Newlands (being refurbished for recommencement of production) Mine refurbishment and expected production All development work at Blaauwbosch and Newlands is being funded from Dwyka'scurrent cash reserves. Significant progress has been made at the Blaauwbosch mine in deepening theshaft from the 145 metre level. The shaft has now been extended and fullyequipped to a depth of 185 metres. The new mine plan requires this shaft to beextended to 220 metres before underground mining is scheduled to re-commence.Upgrading of the recovery plant is expected to be completed by October 2005whereupon processing of tailings dumps will commence. The first undergroundproduction from this mine is scheduled for April 2006. By the end of the 2006financial year Dwyka is targeting monthly production of an estimated 1,800carats potentially worth USD$135,000 per month. By the end of 2006 total monthlydiamond production is targeted at 3,600 carats. Upgrading of the recovery plant at the Newlands mine should be complete beforethe end of September 2005 and Dwyka will begin to process previously stockpiledgrease room tailings to provide an initial source of diamond production.Underground mining here is scheduled to re-commence during October 2005 and byJune 2006 total production from both underground mining and tailingsre-processing is targeted to produce an estimated 1,800 carats potentially worthUSD$135,000 per month. Both Blaauwbosch and Newlands have excellent potential to increase productionfrom other unmined resources located on these properties. Dwyka will undertake adetailed investigation of this extra production potential in the coming months. The New Elands mine will be brought into production once the first two mines areoperating at target levels. Purchase Consideration The three mines are owned by Bellsbank Number One (Pty) Ltd and Kophia Diamonds(Pty) Ltd. As part of the purchase consideration the Company has issued and allotted2,747,802 fully paid ordinary shares to the vendors of these mines. These sharesare subject to an agreed 12 month escrow period. Application will be made forthese shares to be admitted to trading on AIM with admission expected to beeffective at 8.00 a.m. on Tuesday 6th September 2005. For further information please contact: In Australia: In United Kingdom:-------------------------- -------------------------Melissa Sturgess Laurence Read/ Leesa Peters-------------------------- -------------------------Dwyka Diamonds Limited Conduit PR-------------------------- -------------------------(+618) 9324 2955 (+44) 20 7618 8707/ (+44) 7979 955-------------------------- 923 -------------------------Or visit: http://www.dwykadiamonds.com --------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange