JOHANNESBURG (miningweekly.com) – ASX-listed gold and nickel explorer Dwyka Resources said on Wednesday that it had replaced the board of Minerva Resources with Dwyka directors.

Dwyka recently gained control of Minerva, after its shareholding increased to 80,9%.

The company also said that it had assumed immediate management control of Minerva’s assets, chief among which were two gold exploration licences and one platinum mining licence, all in Ethiopia.

Dwyka noted in a statement that it would now use its cash reserves to fast-track the development of these assets, while also progressing its existing portfolio asset, the Muremera nickel project, in Burundi.

Dwyka CEO Melissa Sturgess said that the company had significant cash reserves, which would allow it to advance Minerva’s  projects.

“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."

Dwyka stated that work has now started to define a maiden joint ore reserve committee compliant resource at the Tulu Kapi exploration license, from the data collected during a recently completed 34-drill hole programme.

Preliminary test work undertaken has been completed on representative core samples from the recent drill programme, and Dwyaka noted that these tests indicated that the gold recovery rate would be in excess of 94%.

Trench excavation and sampling has also started 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 believed that the Tulu Kapi prospect had 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,” the company said in a statement.

At the Yubdo exploration licence, three priority targets have been identified, namely 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 9,6 g/t gold over 68 m and a drill intercept of 3 g/t gold over 17 m. Subject to the interpretation of planned geophysical surveys, the target was considered drill ready.

Located only 3 km from Tulu Kapi, the Guji prospect could potentially represent a satellite mining operation providing feedstock to any future processing plant at Tulu Kapi, Dwyka noted.

Meanwhile, Dwyka stated that its takeover offer for Minerva would remain open for acceptance until July 28. 

The company had previously 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 trading on Aim with effect from July 23.