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Tawana Resources NL - June 2006 Quarterly Report
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")
June 2006 Quarterly Report
25 July, 2006
Highlights
Drilling of Daniel Kimberlite targets re-commenced
Bulk sampling of Daniel Kimberlites commenced
Trial mining of Perdevlei completed
Application for Mining Right over Kareevlei Wes progressing
Access to Blacktop kimberlite established
Underwritten 1:3 non-renounceable Rights Issue completed raising $7.5 million
South African Projects
Daniel Kimberlite Project
(Tawana 22.2% and operator/ BHP Billiton 51.8% /Seven Falls 26%)
Falcon Targets
The drilling of Falcon targets has re-commenced after a short break during
May. The number of targets identified for drilling has increased after
additional reviews of data. The first phase now entails drilling
approximately 31 Falcon targets located on granted Prospecting Rights.
Eighteen of these targets have now been drilled. Some of the remaining
accessible targets are located in close proximity to known kimberlites.
Drilling will be conducted in several phases during 2006 as access becomes
available. Tawana is contributing 30% of the costs of this drilling, while
BHP Billiton is contributing 70%.
A9/10 and A25 Kimberlites
Falcon targets A9/10 and A25 were recommended by BHP Billiton for ground
inspection, which revealed that they were kimberlites on which previous
explorers had conducted limited exploration. The A9/10 kimberlite has an
exposed surface area of approximately 3 hectares, while A25 is about 1
hectare.
Tawana has bulk samples from A9/10 and A25 which are being processed in the
Company"s dense media separation (DMS) plant. The results of this work are
expected to be available at the end of the third quarter.
Under the joint venture agreement with BHP Billiton, Tawana is conducting the
bulk sampling on A9/10 and A25 at its own cost, which will enable Tawana to
increase its equity in a kimberlite to 29.6% on producing 400 carats of
diamonds.
Perdevlei
(Tawana 74% and operator, Seven Falls 26 %.)
The Company-owned 10 tonne per hour DMS plant has completed the processing of
2,000 tonnes of kimberlite excavated from the K1 pipe. Results show that the
material processed has a grade of approximately 5 carats per hundred tonnes.
Previous results from drilling into the deeper (150m below surface) sections
of the kimberlite indicated that the grade of the pipe could be substantially
higher. The trial mining demonstrates that the upper portions of the
kimberlite appear to be uneconomic. The Company will review the potential for
the project.
Kareevlei Wes
(Tawana 74% and operator, Seven Falls 26%.)
The application for a Mining Right for Kareevlei has been accepted by the
South African Department of Minerals and Energy. No objections to the grant
of the Mining Right have been received. The Company has been advised that the
Mining Right can be expected to be granted during 3Q 2006.
In anticipation of the granting of this Mining Right the Company has
continued preparation of a commercial operating plan for the Kareevlei Wes
project.
Tawana Alluvials
(Tawana 74% and operator, Seven Falls 26%.)
Tawana has been approached by five companies interested in participating in
the ongoing evaluation of the diamondiferous alluvials of the Feeder Channel
and Eastern Gravels. Negotiations with the preferred bidders will be
conducted during the third quarter.
Australian Projects
Pilbara Project
(Tawana 50%, De Beers Australia 50%)
A helicopter supported sampling program was completed during Q4 2005 during
which 304 samples were collected over areas in which previous De Beers
sampling had identified kimberlitic indicator mineral anomalies. These
samples were processed and examined in the Company"s Melbourne Laboratory.
Results have been very encouraging. Kimberlitic indicator minerals have been
recovered from several discrete areas.
The results which indicate probable extensions to the Blacktop kimberlite
will be followed up as a matter of priority.
Clearances for the DMS plant and camp sites and for the bulk sampling of the
Blacktop kimberlite have been completed by the Aboriginal Traditional Owners.
Road access to these sites has been improved and bulk sampling will commence
once formal approval from the Department of Industry and Resources has been
received. This is expected early in the third quarter.
Melbourne Laboratory
All samples generated by the Company continue to be treated in the Melbourne
Laboratory. In addition samples from non-associated clients are now also
being treated in this facility.
The laboratory and office have active management systems in both Occupational
Health and Safety and Environment and are certified to AS/NZS ISO 14001:2004
(Environmental Management System), AS/NZS 4801: 2001 and OHSAS 18001:1999
(Occupational Health and Safety Management System), having successfully
completed a recent external transfer audit with SAI Global.
Corporate
1:3 Underwritten Non-renounceable Rights Issue
A rights issue underwritten by ABN AMRO Morgans Corporate Limited was
successfully completed during the quarter. The rights issue raised
$7.5million before costs.
Directors of Tawana are particularly pleased to note that approximately 55%
of the shortfall shares were allocated to South African institutions. Since
its listing on the Johannesburg Stock Exchange (JSE) in November 2005, it has
been the aim of the Company to increase its shareholder spread in South
Africa and to increase the liquidity of Tawana shares on the JSE.
For further information please contact:
Wolf Marx
Tel: +61 (0)3 98635222
Mob: +61 (0)428 398446
Email: wolf.marx@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
Images relating to this report can be viewed on the Company"s website:
www.tawana.com.au
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
Tawana Resources N.L.
ABN Quarter ended
("current quarter")
69 085 166 721 30 June 2006
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating quarter ( 6 months)
activities $A"000 $A"000
1.1 Receipts from product sales -
and related debtors
1.2 Payments for (a) (1,260 ) (1,747)
exploration and evaluation
(b) development
(c) production
(d) (705) (859)
administration
1.3 Dividends received - -
1.4 Interest received 10 11
1.5 Interest and other costs of
finance paid
1.6 Income taxes paid
1.7 Other (provide details if
material)
(1,955) (2,595)
Net Operating Cash Flows
Cash flows related to
investing activities
1.8 Payment for purchases of:
(a)prospects -
(b)equity investments (95)
(c) other fixed assets
1.9 Proceeds from sale of:
(a)prospects
(b)South Yarra Building 1,870 1,870
1.10 Loans to other entities
1.11 Loans repaid by other
entities
Net investing cash flows 1,870 (1,775)
1.13 Total operating and (85) (820)
investing cash flows
(carried forward)
1.13 Total operating and (85) (820)
investing cash flows
(brought forward)
Cash flows related to
financing activities
1.14 Proceeds from issues of 6,806 6,806
shares, options, etc.
1.15 Proceeds from sale of - -
forfeited shares
1.16 Proceeds from borrowings - -
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if - -
material)
Net financing cash flows 6,806 6,806
Net increase (decrease) in 6,721 5,986
cash held
1.20 Cash at beginning of 605 1,340
quarter/year to date
1.21 Exchange rate adjustments - -
to item 1.20
1.22 Cash at end of quarter 7,326 7,326
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current
quarter
$A"000
1.23 Aggregate amount of payments to the 110
parties included in item 1.2
1.24 Aggregate amount of loans to the parties Nil
included in item 1.10
1.25 Explanation necessary for an understanding of the
transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which
have had a material effect on consolidated assets and
liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish
or increase their share in projects in which the
reporting entity has an interest
Nil
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount Amount used
available $A"000
$A"000
3.1 Loan facilities Nil Nil
3.2 Credit standby arrangements Nil Nil
Estimated cash outflows for next quarter
$A"000
4.1 Exploration and evaluation 2,298
4.2 Development Nil
Total 2,298
Reconciliation of cash
Reconciliation of cash at the Current Previous
end of the quarter (as shown in quarter quarter
the consolidated statement of $A"000 $A"000
cash flows) to the related items
in the accounts is as follows.
5.1 Cash on hand and at bank 209 214
5.2 Deposits at call 7,117 391
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of 7,326 605
quarter (item 1.22)
Changes in interests in mining tenements
Tenement Nature of Interest Interest at
reference interest at end of
(note (2)) beginning quarter
of
quarter
6.1 Interests in
mining
tenements
relinquished,
reduced or
lapsed
6.2 Interests in
mining
tenements
acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total Number Issue Amount
number quoted price per paid up
security per
security
7.1 Preference
+securities Nil Nil
(description)
7.2 Changes
during
quarter
(a)
Increases
through
issues
(b)
Decreases
through
returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary 87,097,481 87,097,481 Various various
securities
7.4 Changes
during
quarter 21,487,952 21,487,952
(a)
Increases
through
issues
(b) Increase
through
exercise of
options
7.5 +Convertible
debt Nil Nil
securities
(description)
7.6 Changes
during
quarter
(a)
Increases
through
issues
(b)
Decreases
through
securities
matured,
converted
7.7 Options Exercise Expiry
(description 21,869,843 21,869,843 price date
and $1.00 30 April
conversion 2008
factor)
7.8 Issued during Nil Nil
quarter
7.9 Exercised Nil Nil
during
quarter
7.10 Expired Nil Nil
during
quarter
7.11 Debentures Nil Nil
(totals only)
7.12 Unsecured Nil Nil
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply
with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: W.T.Marx.............. Date: July, 2006
(Director)
Print name: W.T.Marx
Notes
1 The quarterly report provides a basis for informing the market how the
entity"s activities have been financed for the past quarter and the
effect on its cash position. An entity wanting to disclose additional
information is encouraged to do so, in a note or notes attached to this
report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect
of interests in mining tenements acquired, exercised or lapsed during
the reporting period. If the entity is involved in a joint venture
agreement and there are conditions precedent which will change its
percentage interest in a mining tenement, it should disclose the change
of percentage interest and conditions precedent in the list required for
items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to
this report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the
standards used do not address a topic, the Australian standard on that
topic (if any) must be complied with.
Date: 25/07/2006 09:05:17 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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