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Tawana Resources NL - Reviewed results for the year ended 31 December 2005
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")
31 March 2006
Reviewed Results For The Year Ended 31 December 2005
These abridged results are an extract of the Annual Financial Statements
released in Australia today. These full Annual Financial Statements are
available on the company"s website www.tawana.com.au.
Comment on Company Operations by Wolf Marx, Managing Director
TAWANA GROUP"S DIAMOND PROJECTS
Brief overviews of Tawana"s diamond projects, which are all located in
prospective areas, are as follows.
SOUTH AFRICAN PROJECTS
TAWANA ALLUVIAL PROJECT, LIMEACRE DISTRICT, KIMBERLY REGION, SOUTH AFRICA
(74% owned and operated by Tawana with BHP Billiton participating in a 2.5%
gross revenue royalty; Seven Falls 26%)
The Tawana Alluvial Project (TAP) area encompasses two alluvial deposits, the
Feeder Channel and the Eastern Gravels, which extend from 300 meters from the De
Beers owned Finsch Mine for a distance of approximately 18 kms from the mine.
These deposits resulted from the discovery by Tawana during early exploration of
the Daniel Alluvial Project (DAP).
The key interest in the TAP relates to the discovery by means of Falcon
technology of a large, previously unknown occurrence of diamondiferous alluvial
deposit, immediately down slope of one of the world"s most significant hard rock
diamond mines. In recognition of Tawana"s discovery, and their smaller size
potential relative to the DAP, BHP Billiton agreed in 2003 to the 100% transfer
of ownership of the Feeder Channel and Eastern Gravels, now known as the "Tawana
Alluvials", to Tawana in return for a 2.5% gross royalty revenue participation
and the rights to market diamonds recovered from the TAP. 26% of the TAP was
subsequently sold to Seven Falls as part of Tawana"s BEE initiative.
During the first quarter of 2004, diamonds were recovered from 500 tonnes of
gravel samples of the Tawana Alluvials. The samples extracted by means of a 10,5
inch percussion drill showed diamonds distributed throughout the channel system,
from the northern boundary to the southern extremity of the DAP and the TAP, as
well as laterally and horizontally within the gravel beds provided management
with sufficient encouragement to commit to a large-scale bulk-sampling program,
utilising Bauer drilling.
The aim of the bulk sampling programme was to collect approximately 20,000
tonnes of material from each of the Feeder Channel and the Eastern Gravels. To
achieve this, it was planned to drill 70-80 2.5 m diameter holes in each
location. This would enable the geology, stratigraphy and diamond-bearing
potential of the Feeder Channel and Eastern Gravels to be determined in much
more detail. This drilling was carried out between August 2004 and June 2005.
Holes were sited using existing geophysical data as well as knowledge from
previous drilling. A summary of the drilling statistics is shown in Table 2.
Table 2. Summary of Bauer drilling in the Feeder Channel and Eastern Gravels
(overall SG is estimated at 2.8 in the Feeder Channel, 2.5 in the Eastern
Gravels)
No. of Total depth Total Total
holes drilled (m) volume tonnes
(m3) (Approx)
Feeder Channel 93 1,965.60 8,698.01 24,354.43
Eastern Gravels 69 1,467.50 7,205.43 18,013.56
Totals 162 3,433.10 15,903.44 42,367.99
The depth of the Bauer holes in the Feeder Channel and Eastern Gravels ranged
from a few metres to the maximum drilling depth of the Bauer rig (54m). The
average depth of all holes drilled was 21m. A number of deeper sections or
potholes were intersected with the drilling.
At the end of 2005, 46% of the material drilled from the Feeder Channel and 65%
from the Eastern Gravels had been processed.
A total of 4,027 cubic meters of the Feeder Channel Bauer drill samples was
tested during 2005. Diamonds were recovered from all samples confirming the
wide spread diamondiferous nature of the prospect. 286 diamonds were recovered
from the Feeder Channel, weighing in total 29.76 carats. The average stone size
for the Feeder Channel diamonds is 0.1 carats per stone.
A total of 4,672 cubic meters of the Eastern Gravels Bauer drill samples was
tested during 2005. As with the Feeder Channel, diamonds were recovered from
all samples confirming the wide spread diamondiferous nature of the prospect.
284 diamonds were recovered from the Eastern Gravels, weighing in total 40.57
carats. This includes the largest stone recovered of 4.66 carats. The average
stone size for the Eastern Gravels is 0.14 carats per stone.
Mr Gregory Katz, a valuer based in Johannesburg, South Africa, valued diamonds
recovered from the Bauer drilling samples. Diamonds were split into parcels
from the top 15 metre and bottom 5 metre gravel intersections and were valued as
follows:
Intersection Number of Total Average Value*
meters diamonds carats diamond size US$/carat
Carats/stone
0 to 15 199 30.06 0.15 274
15 to 20 37 3.98 0.11 58
* The diamond values from a deposit may change upon submission for valuation
of larger parcels.
The diamond values from the top section of the deposit exceeded management"s
expectations and are considered highly encouraging. The minimal overburden
allows for potential future operating costs to be at the lower end of South
African alluvial operating cost range.
Operating costs for large-scale alluvial diamond mines in South Africa are
estimated at US$3.60 per cubic metre. At a value of US$274 per carat the
breakeven grade needed is 1.32 cphm3.
The Eastern Gravels deposit is estimated at 80 million tonnes, which gives the
potential for large-scale mining.
After completion of the Bauer drilling, trial mining was conducted during late
2005 in an area which appeared to typify the geology and grade of the Eastern
Gravels. Diamond grades from the regularly spaced Bauer drilling in the top 5
meters of the gravels in this section were 2.27 and 3.07 carats per 100 cubic
meters (cphm3). The Bauer sample grades were significantly greater than the
estimated breakeven grade (1.32 cphm3) of the Eastern Gravels providing strong
encouragement for the economic potential of this deposit.
Excavation during trial mining has shown that there is an overburden of only
1.6m of fine sand and gravel, which contains traces of diamonds. This is
underlain by 4-5m of coarse gravels. Diamonds recovered from the base of these
gravels recorded an average size of 0.4 carats per stone (ct/st).
A grade of 0.48cphm3 grade was reported from the trial mining pit, which is
lower than the grades from the nearby Bauer holes. This grade discrepancy is
considered typical of the erratic distribution of diamonds in alluvial deposits.
Industry experience with Bauer drilling is that the relatively large volumes
extracted and the regular spacing of drill holes provides the most reliable
evidence of grade distribution in an alluvial deposit.
The proposed next stage for the Eastern Gravels Project is a large scale
operating trial. Tawana will seek to secure involvement of an operator having
the plant, mobile equipment and staff to mine at a rate that will confirm the
project economics. Discussions have commenced with several alluvial operators.
It should be noted that the Company considers that any tonnage and grade
estimates reflected do not satisfy the definition of a Mineral Resource as set
out in the JORC Code as insufficient work has been conducted to be able to
determine the grade and tonnage of the deposit with greater accuracy. Further
work may or may not establish a Mineral Resource on the property. Accordingly,
the estimate of grade is made as provided by paragraph 18 of the JORC Code in
relation to an exploration target or exploration potential. The diamonds were
recovered from the minus 19mm plus 1.5mm fractions of gravels sampled by 2.5m
diameter Bauer drill holes. The gravels were processed in the Company"s DMS
plant with diamond recovery by a Flowsort x-ray plant and a grease table.
DANIEL KIMBERLITE PROJECT, LIMEACRES DISTRICT, SOUTH AFRICA
(22.2% owned and operated by Tawana , 51.8% owned by BHP Billiton and 26% owned
by Seven Falls)
The Daniel Kimberlite Project (DKP) is a joint venture between Tawana, BHP
Billiton and Seven Falls and encompasses an area 30kms in radius centred on the
De Beers owned Finsch Mine. Utilisation of Falcon technology has led to the
identification of kimberlitic targets situated in the Limeacres District of
South Africa.
Percussion drilling of some of these targets was conducted during 2004 and 2005
which resulted of in the discovery of three new kimberlites (A1, A2, A95).
The kimberlites are in the form of near vertical dykes or fissures with several
blows or small pipes and can be traced by magnetic data over several kilometres.
The A95 kimberlite dyke can be traced to the Eastern Gravels diamondiferous
alluvial deposit.
The high quality (US$274 per carat) diamonds found in the Eastern Gravels are
different from those found in the drainage channel from the Finsch Mine and are
thought by Tawana geologists to be derived from a different source. The A95
kimberlite may be this source.
Tawana 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. Further drill testing of this kimberlite is
planned.
Following the discovery of kimberlites A1, A2 and A95, the BHP Billiton Falcon
data was reviewed, resulting in a reassessment of all of the previously
identified targets and the selection of several of these for drill testing
during 2006.
The Company"s 30 tph DMS plant will remain at the Tawana Alluvial site to
process the bulk samples collected from A95 and any other kimberlites discovered
in the Daniel Kimberlite Project area.
DANIEL ALLUVIAL PROJECT
(29.6% owned and operated by Tawana 44.4% owned by BHP Billiton and 26% Seven
Falls)
The DAP encompasses the main channel of an ancient river channel that was
initially discovered by BHP Billiton utilising its Falcon technology. Following
a program of drilling and bulk sampling, the Company confirmed the DAP to be a
palaeochannel carrying diamond bearing "ancient" gravels, strikingly large in
area and volume and that in situ diamonds were most likely the erosion product
of the nearby kimberlitic pipe presently mined at Finsch Mine.
During 2004, the Company completed a 500 tonne bulk sample by means of 10,5 inch
diameter percussion drilling from DAP. The gravels were processed through the
Company"s on-site DMS plant and X-ray diamond extraction facilities. Diamonds
were discovered from 8 of the 14 sites sampled. Their disposition along the
length of the channel and at depth is evidence that diamond mineralization is
extensive.
After review of these and earlier results, BHP Billiton confirmed its intention
to participate in the DAP and to this end, agreement was reached between BHP
Billiton and the Company whereby, inter alia, the Company will enjoy a 40%
ownership of DAP and will be the projects operator. Furthermore, any future
diamond production emanating from DAP will be marketed in conjunction with BHP
Billiton. Subsequently 26% of the DAP was sold to Seven Falls as part of
Tawana"s and BHP Billiton"s BEE initiatives.
KAREEVLEI WES PROJECT, KIMBERLEY REGION, SOUTH AFRICA
(74% owned and operated by Tawana; 26% owned by Seven Falls)
The Kareevlei Wes Project (KWP) comprises a cluster of 5 kimberlitic pipes (KV1-
KV5), which vary in surface area from a large 5.8 ha to 0.3 ha. Drilling to a
depth of 100 meters showed that the tonnage of KV3 is 13Mt and that of KV2 is
2Mt. The surface area of KV1 has been determined by shallow drilling to be 1.2
hectares. The key interest in this project relates to the relatively large size
of the pipes in the cluster and, particularly, the exceptional quality of the
diamonds in the kimberlites.
In early 2004, the Company conducted a 10,5 inch diameter grid based percussion
drilling program on 2 of the 5 kimberlite pipes in the KWP cluster with the aim
of establishing the tonnage potential of the pipes as well as to sample diamonds
in the pipes for purposes of preliminary quality valuation. Excellent results
encouraged management to commit to a Bauer drilling program to extract 6,500
tonnes of kimberlite from the 4 largest kimberlites in the cluster. This
drilling was completed in August 2004. During the quarter ending 30 June 2005,
the construction of a DMS plant was completed and processing of the Bauer
drilling bulk samples commenced.
As a result of this processing the grade of KV1 and KV2, was estimated to be
8.57 cpht. Subsequent statistical analyses of the diamonds recovered from these
two kimberlites suggested that the grade could be expected to be 11cpht if
larger parcels of diamonds could be produced.
The grade of KV3 is variable due to several different phases encountered in the
top 30 - 40m as indicated by Bauer drilling. The northern 3ha of the pipe is
composed of an homogenous phase of kimberlite and has an estimated grade of
4.89cpht, based on processing the minus 6mm fraction. Earlier 10.5 inch
percussion drilling in the northern section of KV3 achieved a higher grade of
6.10cpht. This discrepancy could be due to the fact that the percussion drilling
sampled deeper sections of the kimberlite.
The KV5 kimberlite was sampled with two Bauer holes. The estimated grade, based
on the minus 6mm fraction from the two holes was 3.70cpht and 8.06cpht, with an
average grade of 5.70cpht. No valuations of the diamonds recovered from KV5 have
been conducted.
Diamonds from KV1 and KV2 were valued at US$110/ct with the valuers predicting
substantially higher values for larger parcels. This prediction was supported by
subsequent statistical analysis of a parcel from the KV1 and KV2 kimberlites,
which suggested that US$164/ct was a reasonable value estimate for diamonds from
these kimberlites. Subsequently a parcel of 33.24ct of diamonds from KV3 was
valued by Mr Katz of Johannesburg at US$170/ct.
At the estimated operating cost of open pit kimberlite mining and processing in
South Africa of US$7.53/t, the required breakeven grade at a diamond value of
US$170 /ct is 4.43 cpht
Kimberlite Size* Grade Diamond Value*** Value Cost****
ha Cpht US$/carat US$/t US$/t
KV1 1.2 11** 164 18.04 7.53
KV2 1.4 11** 164 18.04 7.53
KV3 5.8 4.89-6.10 170 8.31-10.37 7.53
KV5 2.1 5.70 N/A NA 7.53
* Based on 10.5 inch drilling to 100m for KV2 and KV3, surface percussion
drilling for KV1 and geophysical interpretation for KV5.
** Based on statistical analysis of a parcel of diamonds recovered from the
minus 6mm fraction of material excavated by Bauer drilling. Not JORC/SAMREC
compliant. See note below.
*** Based on best estimate. Larger parcels of diamonds may change the given
values substantially.
**** Estimated mining and operating costs of open cut kimberlite mines in South
Africa by Snowden Mining Consultants. (see Tawana release 7 December 2005)
An application for a Mining Right for Kareevlei is being processed the South
African Department of Minerals and Energy. The Company has been advised that the
Mining Right Application will take at least four months to process. During this
period, the Company will develop the full scale commercial operating plan for
the Kareevlei Wes operation.
Note: The Company considers that any tonnage and grade estimates reflected do
not satisfy the definition of a Mineral Resource as set out in the JORC Code as
insufficient work has been conducted to be able to determine the grade and
tonnage of the deposit with greater accuracy. Further work may or may not
establish a Mineral Resource on the property. Accordingly, the estimate of
grade is made as provided by paragraph 18 of the JORC Code in relation to an
exploration target or exploration potential. The diamonds were recovered from
the minus 19mm plus 1.5mm fractions of kimberlite sampled by 2.5m diameter Bauer
drill holes. The kimberlite material was processed in the Company"s DMS plant
with diamond recovery by a Flowsort x-ray plant and a grease table.
PERDEVLEI KIMBERLITE PROJECT, KIMBERLEY REGION, SOUTH AFRICA
(74% owned and operated by Tawana; 26% owned by Seven Falls)
The Perdevlei Kimberlite Project (PKP) comprises 2 kimberlite pipes having a
surface area of approximately 1,7 Ha and 0,2 Ha, respectively. Both of these
kimberlites, K1 and K2 are known from previous work to be diamondiferous. The
key interest in PKP relates to the fact that K1 contains good quality diamonds
and with proximity to KWP being favourable, possible future economies of scale
exist.
Based on previous drilling and bulk sampling, the grade of K1 has been estimated
to be between 15 and 18cpht. No recent valuations of Perdevlei diamonds have
been conducted but a parcel of diamonds was sold in 1998 for US$95 per carat by
previous owners of this kimberlite.
Currently a 2000t trial mining program is underway at K1. The objective of the
program is to achieve a more accurate estimate of grade, stone size distribution
and average diamond values.
If warranted, the results of this program, together with estimated operating and
capital costs, will form the basis of a mining feasibility study. The study will
also take into account the results of bulk samples from the five Kareevlei Wes
kimberlites, located 25 km north of Perdevlei, which may be mined jointly.
Transhex, a South African based diamond producer, holds an option to acquire 35%
of the project, exercisable 6 months after a decision to mine has been made, for
the payment of 3.5 times the costs incurred by Tawana in establishing the
viability of, and bringing into production, a diamond deposit. Transhex holds a
5% royalty on the sale of diamonds payable up to a limit of Rand 2 million.
SEOLO DIAMOND PROJECT, BOTSWANA
(100% owned by Tawana)
Exploration licenses covering 2009 square kilometers in the prospective northern
part of Botswana, between the city of Francistown and the Orapa kimberlite
province, were granted to Tawana during early 2004. The licences cover areas
which are known to be geologically favourable for kimberlite intrusions and
which were known to include sites where kimberlitic indicator minerals had been
recovered by earlier explorers.
Kimberlitic indicator minerals were recovered from soil samples collected over
identified targets during 2004 and 2005. Such targets were identified from
existing magnetic and previous sampling data. Additional follow up sampling is
planned to take place during 2006.
AUSTRALIAN PROJECTS
PILBARA - BLACKTOP PROJECT
(Operated by Tawana.50% owned by Tawana and 50% by De Beers Australia
Exploration Limited)
In October 2005, the Company entered into a joint venture with De Beers, which
included the Pilbara Blacktop Project in which De Beers had previously
discovered the Blacktop kimberlite fissure.
The only bulk sample (32.85t) taken by De Beers from the Blacktop kimberlite
produced 135 diamonds weighing 5.27 ct.
A 20tph DMS plant has been secured to facilitate the bulk sampling of the
Blacktop kimberlite during the 2006 dry season. It is proposed to process
approximately 14,000 tonnes of kimberlite through this plant and to examine the
resultant concentrate in the Company"s laboratory. If the grade of the
kimberlite is similar to the initial sample, the planned program could produce
sufficient diamonds to support an analysis of the economic viability of mining
the Blacktop kimberlite.
*Note; The Company considers that any tonnage and grade estimates in this report
do not satisfy the definition of a Mineral Resource as set out in the JORC Code
as insufficient work has been conducted to be able to determine the grade and
tonnage of the deposit with greater accuracy. Further work may or may not
establish a Mineral Resource on the property. Accordingly, the estimate of
grade is released as provided by paragraph 18 of the JORC Code of 2004 in
relation to an exploration target or exploration potential. The kimberlite
sample was crushed and concentrated in the -8.0+1.0mm fraction by proprietary De
Beer"s methods and diamonds were recovered in the +11 to -1 standard diamond
sieve sizes.
PILBARA - EXPLORATION PROJECT
(Operated by Tawana.50% owned by Tawana and 50% by De Beers Australia
Exploration Limited)
A helicopter supported sampling program was completed during the fourth quarter
of 2005 during which 304 samples were collected over areas in which previous De
Beers" sampling had identified kimberlitic indicator mineral anomalies during
previous sampling programs. These samples are being processed in the Company"s
laboratory during the first quarter of 2006.
It is proposed to allocate $1.3 million over 2006/2007 for the continued
exploration in the Pilbara region. These funds will also be used to bulk sample
any additional kimberlites discovered during that period.
WHIRLWIND PLAINS PROJECT, NORTHERN TERRITORY
(100% owned by Tawana)
The Whirlwind Plains Project covers 500 square kms and are located in the
Northern Territory some 200km from the Western Australian border. A ground-
based gravity survey was conducted over an area of the project to test the
hypothesis that several ancient river channels exist in this area.
Previously, De Beers had sampled outcrops of gravels on Whirlwind Plains during
the late 1980"s and recovered diamonds from several locations. A recent
examination of these diamonds by Tawana has showed that at least four
populations of diamonds are present and that the diamonds are not solely derived
from the Company"s Timber Creek kimberlites located 20km to the east. In
essence, this means that diamonds have been deposited into the ancient gravels
from several sources, which could increase the chances of locating diamond
deposits in the project area of economic potential.
More detailed gravity surveys will be conducted during 2006 to identify
favourable drill sites.
TIMBER CREEK PROJECT, NORTHERN TERRITORY.
(100% owned by Tawana)
The Timber Creek Project, which was originally acquired from De Beers, comprises
a cluster of 5 kimberlitic intrusions and the surrounding potential for alluvial
diamond placers.
No substantial work was conducted on this project during 2005.
FLINDERS ISLAND PROJECT, SOUTH AUSTRALIA
(80% owned by Tawana and 20% owned by Orogenic Exploration)
Flinders Island is some 39 kms2 in extent situated 28 kms west of the Eyre
Peninsula of South Australia. The island is formed of granite and is covered by
some 10 meters to 30 meters of younger sediments and sands.
Results from earlier soil sampling and drilling has shown an abundance of
kimberlitic minerals from surface to the bedrock contact, at approximately 15m
below surface in a defined area in the northern part of the island.
EYRE PENINSULA PROJECT, SOUTH AUSTRALIA
(80% owned by Tawana and 20% owned by Orogenic Exploration)
Results of chemical analyses of kimberlitic indicator minerals recovered from
samples in this project area show a high percentage of picroilmenites displaying
chemical attributes which are characteristic of minerals associated with diamond
bearing kimberlites.
Follow up sampling was conducted late in 2005 and results are awaited.
Financial Results
INCOME STATEMENT
Year Ended 31 December 2005
Consolidated Parent
2005 2004 2005 2004
$ $ $ $
Continuing
Operations
Revenue 187,040 245,466 187,040 227,792
Expenses
Exploration (2,144,826) (98,770) (2,042,897) (23,794)
expenses written
off
Finance costs (164,152) (27,092) (144,896) (20,501)
Currency (371,329) 452,075 12,012 (4,032)
gains/(losses)
Gain/(Loss) on sale - 235,976 - (914,107)
of controlled
entity
Corporate Costs (513,309) (118,503) (513,309) (118,503)
Employee benefits (928,806) (869,873) (351,984) -
expense
Travel costs (343,456) (216,658) (103,525) (93,907)
Depreciation (656,507) (304,958)) (115,714) (113,636)
Impairment of - - (1,119,897) (848,833)
investments
Administration (762,251) (551,867) (612,517) (436,060)
expenses
Loss from (5,697,596) (1,254,204) (4,805,687) (2,345,581)
continuing
operations before
income tax expense
Income Tax expense - - - -
Loss from (5,697,596) (1,254,204) (4,805,687) (2,345,581)
continuing
operation after
income tax expense
Net Loss / (Gain) - 20,005 - -
attributable to
Outside Equity
Interest
Loss for the year (5,697,596) (1,234,199) (4,805,687) (2,345,581)
attributable to
members of the
parent
Earnings per share
for continuing
operations
Basic earnings per (0.095) (0.029)
share
Diluted earnings (0.095) (0.029)
per share
BALANCE SHEET
As at 31 December 2005
Consolidated Parent
2005 2004 2005 2004
$ $ $ $
Current Assets
Cash and cash 1,340,481 3,040,461 1,152,797 2,933,728
equivalents
Trade and other 706,608 1,080,578 263,837 933,071
receivables
Inventories 54,039 11,974 - -
Total Current 2,101,128 4,133,013 1,416,634 3,866,799
Assets
non-current assets
Receivables 61,324 57,877 - -
Other financial - 263,575 5,592,973 3,914,894
assets
Property, plant and 3,859,985 1,915,494 2,610,779 676,492
equipment
Exploration 9,749,360 9,618,085 7,109,772 7,615,188
expenditure
Total Non-current 13,670,669 11,855,031 15,313,524 12,206,574
Assets
Total Assets 15,771,797 15,988,044 16,730,158 16,073,373
Current Liabilities
Trade and other 158,607 149,174 93,434 111,605
payables
Provisions 13,427 54,847 - -
Total Current 172,034 204,021 93,434 111,605
Liabilities
Non-Current
Liabilities
Interest Bearing 2,577 - 7,692 7,692
Liabilities
Total Non-Current 2,577 - 7,692 7,692
Liabilities
Total Liabilities 174,611 204,021 101,126 119,297
Net Assets 15,597,186 15,784,023 16,629,032 15,954,076
equity
Issued capital 25,880,021 20,361,252 25,880,021 20,361,252
Reserves (156,547) (148,537) 22,884 61,010
Accumulated Losses (10,126,288) (4,428,692) (9,273,873) (4,468,186)
Total Equity 15,597,186 15,784,023 16,629,032 15,954,076
CASH FLOW STATEMENT
Year Ended 31 December 2005
Consolidated Parent
2005 2004 2005 2004
$ $ $ $
Cash Flows from
Operating
Activities
Receipts from - 9,935 - -
customers
Interest received 81,460 201,022 81,460 201,022
Miscellaneous 11,110 33,205 11,110 26,770
income
Interest expense (164,152) (27,092) (144,896) (20,501)
Payments to (2,453,987) (1,946,577) (782,261) (820,978)
suppliers and
employees
Net Cash (2,525,569) (1,729,507) (834,587) (613,687)
Inflow/(Outflow)
from Operating
Activities
Cash Flows from
Investing
Activities
Purchase of fixed (2,600,998) (1,510,868) (2,050,000) (18,298)
assets
Sale/(Purchase) of 319,919 (225,449) 319,919 (225,449)
shares
Payments for (2,276,101) (3,919,702) (1,537,480) (2,577,906)
exploration
Advances to related - - (3,061,551) (3,936,010)
bodies corporate
Sale of fixed - 657 - 657
assets
Net Cash
Inflow/(Outflow) (4,557,180) (5,655,362) (6,329,112) (6,757,006)
from Investing
Activities
Cash Flows from
Financing
Activities
Proceeds from Share 5,382,769 5,729,635 5,382,769 5,729,637
Issues (net)
Net Cash
Inflow/(Outflow) 5,382,769 5,729,635 5,382,769 5,729,637
from Financing
Activities
Net Increase (1,699,980) (1,655,234) (1,780,931) (1,641,056)
(Decrease) in Cash
and cash
equivalents
Cash and cash 3,040,461 4,695,695 2,933,728 4,574,784
equivalents at
beginning of
financial year
Cash and cash 1,340,481 3,040,461 1,152,797 2,933,728
equivalents at end
of financial year
The financial report complies with Australian Accounting Standards, which
include Australian equivalents to International Financial Reporting Standard
(`AIFRS"). Compliance with AIFRS ensures that the financial report, comprising
the financial statements and notes thereto, complies with International
Financial Reporting Standards (`IFRS").
This is the first financial report prepared based on AIFRS and comparatives for
the year ended 31 December 2004 have been restated accordingly.
The financial statements have been audited by Frank Spencer, Chartered
Accountant. The report of the auditors is available for inspection at the
Company"s registered office.
Share Capital
During the year the Company allotted 2,204,545 ordinary shares as a result of
the exercise of options which were exercisable on or before 30 November 2005.
The funds raised of $1,653,377 were applied towards the ongoing exploration
activities of the company and to provide additional working capital.
In addition the Company allotted 2,002,134 ordinary shares at 75 cents each and
3,712,985 ordinary shares at 60 cents each, raising a total of $3,729,392. The
funds raised were applied towards the ongoing exploration activities of the
company and to provide additional working capital.
The number of ordinary fully paid shares on issue at 31 December 2005 was
65,609,529.
Share Options
During the year 170,000 options were issued to employees of the Company. These
options were exercisable at 75 cents each on or before 30 November 2005.
Also during the year, 2,204,545 options which were due to expire on or before 30
November 2005 were exercised at 75 cents each .The exercise of these options
raised a total of $1,653,377. On 30 November 2005 a total of 16,238,205 options
which were exercisable at 75 cents each on 30 November 2005 lapsed.
A further 21,869,843 options were granted to shareholders registered on 15
December 2005. These options are exercisable on or before 30 April 2008 at an
exercise price of $1.00
The number of options on issue at 31 December 2005 the exercise price and the
expiry date of the options are as follows:
* 21,869,843 options exercisable at $1.00 each on or before 30 April
2008.
The number of unissued ordinary shares under these options at the date of this
report is 21,869,843
Corporate Directory
Directors
Brian Phillips (Non- Executive Chairman)
Wolfgang Marx (Managing Director)
Leon Daniels (Executive Director)
Euan Luff (Non-Executive Director)
Company Secretary
Harry Hill
Registered Office
60 Wilson Street
South Yarra
Melbourne Vic 3141
Telephone: (03) 9863 5222
Facsimile: (03) 9863 5288
Email: wolf.marx@tawana.com.au
Web Site www.tawana.com.au
Date: 31/03/2006 11:08:27 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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