gold swazigold project agreement signed

News...

18 July 2007

Dwyka Resources Limited (‘Dwyka’ or the ‘Company’)


Swazigold Project

Highlights

Formal Shareholders and Earn-in Agreement signed and Dwyka moves to 50% ownership of Swazi Gold Ventures (Pty) Ltd (“SGV”)
On ground work commenced with soil geochemistry, structural mapping, rock chip and channel sampling and assaying


The directors of Dwyka Resources Limited today announce the following updated information in connection with the Swazigold project, located in the highly prospective Archaean Barberton Greenstone Belt straddling the border between Swaziland and Mpumalanga province in South Africa.



Technical update



Soil geochemistry, structural mapping, rock chip and channel sampling and assaying has commenced on the properties. This work will further define the known targets in preparation for the first phase of drilling set to commence in the 4th Quarter 2007.



Final agreement signed

Following the Company’s announcement on 7 March 2007 that it had signed a legally-binding memorandum of understanding with Swazi SGV in relation to the Swazigold project, Dwyka has now completed a formal Shareholders and Earn-in Agreement (“Agreement”) with the vendors and acquired 50% of the issued shares in SGV. The Agreement contains the usual range of provisions found in similar documents, including pre-emptive rights for SGV shareholders in relation to issues of new shares and transfers of existing shares. Dwyka retains the ability under the Agreement to increase its shareholding in SGV to 100% by meeting certain project expenditures and making further payments as more fully described in Dwyka’s announcement dated 7 March 2007.

Previously Announced - Historical Data Review Shows Good Potential for Swazigold Project

Historical work on the Project includes geochemistry, geological mapping, and 13 600 metres of drilling. The majority of this work was carried out by Rio Tinto and JCI between 1991 and 1997.


Gold mineralization in the Barberton Greenstone Belt is closely associated with thrust-sense shear zones that juxtapose strata of different stratigraphic Groups. Following a review of the historical data, Dwyka considers that the following four prospects have immediate ‘step up and drill’ potential:-


Daisy
Wyldsdale/Lomati
Kobolondo
Lufafa