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TAW - Tawana - Aquila Resources Announcement regarding Iron Ore Tenements in SA

Release Date: 12/04/2007 10:34
Code(s): TAW
Wrap Text

TAW - Tawana - Aquila Resources Announcement regarding Iron Ore Tenements in SA 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") Aquila Resources Announcement regarding Iron Ore Tenements in South Africa The attached announcement has been released by Aquila Resources Limited (ASX code: AQA) regarding the acquisition of iron ore tenements in South Africa. Aquila Resources Limited ("Aquila") holds interests in iron ore and coal assets in the Bowen Basin region of Queensland, the Pilbara region of Western Australia and in Southern Africa. Tawana holds a 26% shareholding in Aquila`s black economic empowerment partner, Rakana Consolidated Mining (Pty) Limited. Tawana`s association with Aquila and Rakana marks a diversification into minerals other than diamonds. Contact: Wolf Marx Tel: +61 (0)3 98635222 Mob: +61 (0)428 398446 Email: wolf.marx@tawana.com.au All press releases and announcements may be inspected on the Company`s web site, namely: www.tawana.com.au Aquila Acquires Strategic Iron Ore Tenements in South Africa Aquila Resources Limited ("Aquila" or the "Company") is pleased to announce that it has been granted a suite of iron ore exploration tenements, comprising the Northern Cape and Thabazimbi Projects, strategically positioned adjacent to existing iron ore mines and associated infrastructure. Aquila and Rakana Consolidated Mining (Proprietary) Limited ("Rakana") have formed the Thabazimbi Joint Venture to develop iron ore projects in South Africa. A total of seven prospecting rights, covering some 3,400sq km have been granted in the Limpopo and Northern Cape Provinces over highly prospective iron ore settings. Rakana, holding a 26% interest in the tenements, is a mineral prospecting company that is owned and operated in accordance with the Broad-Based Socio- Economic Empowerment Charter of the Mineral and Petroleum Resources Act in South Africa. The principal high-grade hematite iron ore deposits in South Africa occur within the banded iron formations of the Palaeoproterozoic Transvaal Supergroup in the Northern Cape and Limpopo Provinces of South Africa. The Company`s exploration tenements in these provinces are situated in close proximity to existing iron ore mines and established road and rail infrastructure within a relatively open access regime. Work currently in progress Recruitment of experienced iron ore geologists to manage the projects; Literature research, compilation of previous exploration data and acquisition of geological information on each of the licence areas; Geological mapping and geochemical sampling of targets in areas of outcrop; High resolution airborne geophysical surveys over prospective ground to aid in identifying occurrences of mineralisation; and Ground geophysical surveys to test identified anomalies and to define drill targets under cover. The Company intends to apply its financial capacity, technical expertise and mining capability in order to rapidly advance these exciting exploration projects and to ultimately develop mining activities in South Africa. Limpopo Province (Thabazimbi) The Company has secured the dominant property holding in the Thabazimbi iron ore field, which lies along the northern rim of the Bushveld Complex. The area is located 180km north of Pretoria and is well serviced by infrastructure. The iron ore deposits at Thabazimbi occur within the Penge Iron Formation of the Transvaal Supergroup. It crops out in three easterly trending belts reflecting thrust-related duplication of units by a series of low angle east-west thrust faults. The rock units strike east-west and dip steeply south towards the Bushveld Complex. The high-grade hematite ore occurs as discontinuous strata bound bodies, on average 18-25m thick, within the basal portions of the iron formation. Two of the Company`s tenement holdings cover strike extensions of the Penge Iron Formation, immediately east and west, from the Thabazimbi mining operations of Kumba Iron Ore Limited ("Kumba"). The third tenement covers the segment of Penge Iron Formation that extends north of the Thabazimbi Mine. Iron ore targets, some of which coincide with outcropping hematite mineralisation, have been identified on the tenements from remote sensing studies and field investigations. Northern Cape Province The Transvaal Supergroup in the Northern Cape Province comprises a basal carbonate sequence (Campbellrand Subgroup) overlain by banded iron formations of the Asbestos Hills Subgroup. The iron formations can be traced for some 400km from Prieska in the south northwards to the Botswana border. The producing iron ore mines are concentrated on the Maremane dome, where iron ore and manganese mineralisation in the Transvaal and Olifantshoek Supergroups occurs along an arcuate belt for 60km. The Sishen iron ore mine (Kumba) is situated at the northern extremity of the dome, the Beeshoek iron ore mine (African Rainbow Minerals Limited) lies at the southern end. The Sishen South Project (Kumba) is situated at an extension to the southwest, off a separate domal structure. The ore deposits consist of supergene-enriched iron formation of the Asbestos Hills Subgroup (Manganore Iron Formation) overlying a ferruginous chert breccia (Wolhaarkop Breccia), which is developed on dolomites of the Campbellrand Subgroup. The enriched iron formation is truncated by an erosion surface upon which conglomerate ores and sedimentary units of the Gamagara Subgroup (Olifantshoek Supergroup) have been deposited. The Blackridge thrust marks the boundary between two contrasting structural domains along the western margin of the Maremane dome. The tenement holdings in the Northern Cape were acquired after field validation of a number of targets selected from remote sensing studies and interpretation of geological and geophysical data. Two of the holdings lie to the north of Sishen and follow the strike trend of the thrust belt and the Olifantshoek unconformity. Here despite the cover of calcrete and Kalahari sand, anomalous iron signatures have been identified. Both tenements also cover prospective manganese mineralisation. The two largest tenements cover strike extensions of the Asbestos Hills Iron Formation along the Blackridge thrust southwards from Kumba`s Sishen South Project. The tenements incorporate historic iron ore and manganese mines as well as newly identified anomalies in prospective settings. The grant of these tenements is the culmination of nearly two years of exploration by the Company using a number of the exploration techniques that it has used so successfully in the Pilbara. Aquila is optimistic that the South African projects, coupled with its Pilbara iron ore projects, will see it established as a significant international iron ore producer in the medium term. Tony Poli Executive Chairman For further information regarding this announcement, please contact Tony Poli. TELEPHONE: (08) 9423 0111 FACSIMILE: (08) 9423 0133 EMAIL ADDRESS: MAIL@AQUILARESOURCES.COM.AU VISIT US AT: WWW.AQUILARESOURCES.COM.AU The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Geoffrey F Pigott who is a member of the Australian Institute of Geoscientists, and who has more than five years experience in the field of activity being reported on. Mr Pigott is a full-time employee of the Company. Mr Pigott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the `Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves`. Mr Pigott consents to the inclusion in the report of the matters based on their information in the form and context in which it appears. 12 April 2007 South African Sponsor to Tawana PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 12/04/2007 10:34:48 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.

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