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Tawana Resources NL - Daniel Kimberlite Project - Update

Release Date: 20/03/2006 10:33
Code(s): TAW
Wrap Text

Tawana Resources NL - Daniel Kimberlite Project - Update Tawana Resources NL (Incorporated in Australia) (Registration number ACN 085 166 721) Share code on the JSE Limited: TAW & ISIN: AU000000TAW7 Share code on the Australian Stock Exchange Limited: TAW & ISIN: AU000000TAW7 ("Tawana" or "the Company") 20 March 2006 Daniel Kimberlite Project - Update Highlights - BHP Billiton confirms commitment to contribute its share of expenditure to drilling program over additional Falcon targets in the Daniel Kimberlite Project area. - Drilling of new Falcon targets commenced. - First phase program entails drilling approximately 20 Falcon targets. - Bulk sample taken of kimberlite A95. - Diamonds recovered. Daniel Kimberlite Project (Tawana 22.2% and operator/ BHP Billiton 51.8% /Seven Falls 26%/) Falcon Targets Following the discovery of kimberlites A1, A2 and A95 during the Q4 2005, the BHP Billiton Falcon data was reviewed resulting in a reassessment of all of the previously identified targets. This led BHP Billiton to confirm its intention of contributing its share of expenditure on the ongoing drilling of the Falcon targets. A program for this exploration has been agreed by the joint venture partners with the first phase entailing drilling approximately 20 Falcon targets identified by BHP Billiton. Tawana will continue as operator of the program. Drilling will be conducted in several phases during 2006 as access becomes available. The first phase of this program has commenced on currently accessible targets. A95 Kimberlite Tawana has completed a small bulk sampling program designed to determine whether the kimberlite A95 is diamondiferous. 500 tonnes of calcretised kimberlite were excavated from the top 2 metres of two sections of A95 and processed in the Company"s Dense Media Separation plant. Four small diamonds were recovered weighing a total 0.14cts, proving that the kimberlite is diamondiferous but giving no indication of the grade. (See Comment) Further drill testing on the kimberlite is planned. As was previously reported, the high quality (US$274 per carat) diamonds found in the Eastern Gravels are different from those found draining the Finsch Mine and are thought by Tawana geologists to be derived from a different source. The A95 kimberlite may be this source. Comment: Shareholders should be aware that kimberlites in the Limeacres region of South Africa, such as Perdevlei, Kareevlei and A95, are characterized by a surface alteration known as "calcretisation". This occurs when the exposed portions of the kimberlite are indurated by calcium carbonates deposited by circulating ground waters. This has the effect of coating any diamonds in the surficial, calcretised part of the kimberlite with carbonates, which may have an adverse affect on the recovery of diamonds by conventional methods. Bulk sampling of exposed calcretised kimberlite, therefore, only provides information as to whether the kimberlite is diamondiferous or not. Samples of deeper sections of the kimberlite can then be collected, if warranted, to determine the grade of the deposit. Contact: Wolf Marx Tel: +61 3 98635222 Mob: 0428 398446 Email:wolf.marx@tawana.com.au Andrew Smith Tel: 08 82768794 Mob: 0428 265205 Email: andrew.smith@tawana.com.au This report is based on information compiled by Wolf Marx BSc, BA, FAusIMM, CPGeo, Managing Director of Tawana Resources NL. He has sufficient experience relevant to the style of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2004 addition of the "Australasian Code for the Reporting of Mineral Resources and Ore Reserves" All press releases and announcements may be inspected on the Company"s web site, namely: www.tawana.com.au Date: 20/03/2006 10:33:04 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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