Wrap Text
TAW - Tawana Resources NL - Quarterly Activities and Cash Flow 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")
Quarterly Activities and Cash Flow Report
1 January - 31 March 2007
Key Points 27 April 2007
Mining Right for Kareevlei Wes granted
Trial Mining to commence this quarter
Tawana-owned dense media separation plants being moved to site
Kimberlites known to be diamondiferous
Agreement signed for Lexshell alluvial diamond project
Guma joins Tawana in project
Pilbara Exploration samples processing nearing completion
Positive results indicate new kimberlite discovery
South Africa
Kareevlei Wes Project
(74% owned and operated by Tawana; 26% Seven Falls)
A Mining Right has been granted by the South African Department of Minerals and
Energy over the Kareevlei Wes diamond project, which is located 100km west of
Kimberley.
The Kareevlei Wes Project comprises a cluster of 5 kimberlitic pipes (KV1-KV5),
which vary in surface area from 5.5 ha to less than 0.1 ha. Drilling to a depth
of 100 meters showed that KV3 is 13Mt and KV2 is 2Mt.
Background
As a result of processing percussion and Bauer drill bulk samples during
2004/2005 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.
Diamonds from KV1 and KV2 were valued in 2005 at US$110/ct, with the valuer
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 Gregory Katz (a Johannesburg based valuer) at
US$170/ct.
At the estimated operating cost of open pit kimberlite mining and processing in
South Africa of US$7.53/t (2005 costs), the required breakeven grade at a
diamond value of US$170 /ct is 4.43 cpht
Program
A trial mining and treatment operation will commence during this quarter, aimed
at mining up to 20,000 tonnes from kimberlites KV1 and KV2. The Company`s two
dense media separation plants will be used to treat the material mined by
contractors. Key Tawana personnel are already in place to supervise this trial.
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 Flowsort x-ray plant and grease table.
Lexshell Diamond Project
(Tawana 44% and operator /Guma Resources 44%/ Lexshell 12% revenue share)
Tawana has entered into a joint venture with its strategic alliance partner,
Guma Resources Pty Limited, to explore and mine under contract the Lexshell
alluvial diamond project in the Northern Cape Province of South Africa. The
project is located on a palaeo-channel of the Vaal River adjacent to established
alluvial diamond mines.
The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited
("the Holder"). Tawana/Guma have jointly entered into a Contractor`s Agreement
with the Holder which will enable Tawana to assess the economic potential of the
deposit and if warranted mine the diamonds on behalf of the joint venture
partners. Costs will be shared on a 50:50 basis with Guma. The Holder will
retain a 12% share of revenue after State royalties and cost of sales.
The section of the Vaal River alluvials in which this project is located is
noted for the prolific production of large high quality diamonds. Mining has
taken place here for about 100 years and the area still hosts one of the largest
alluvial diamond mines in the world.
Tawana will commence work on the assessment of the deposit once certain
statutory requirements have been completed by the Holder.
Daniel Kimberlite Project
(Tawana 22.2% and operator/ BHP Billiton 51.8% /Seven Falls 26 %)
8 Falcon targets were sampled following the recovery last quarter of kimberlitic
indicator minerals from drill cuttings. Approval is awaited for applications
made to allow access to tenements on which 16 Falcon targets have been
identified within the Daniel prospect area.
Negotiations with a black empowered group holding Prospecting Rights over a
large area within the Daniel Project Area are continuing. This area is not
included within the Tawana/BHP Billiton/Seven Falls joint venture area.
Tawana Alluvials
(Tawana 70% and operator/Seven Falls 30 %)
Eastern Gravels and Feeder Channel
Negotiations with third parties to participate in the continuation of the
economic assessment of the Eastern Gravels and Feeder Channel alluvial diamond
deposits have not reached a concluded position. While several proposals have
been considered, none has provided a satisfactory commercial basis for an
agreement. As every drill hole and test pit within both areas resulted in
diamonds being identified, the Company will continue to seek parties who are
interested in testing the economics of large-scale mining.
Australia
Pilbara Regional Exploration
(Tawana 66.6% and operator /De Beers Australia Exploration 33.3%)
Helicopter-supported regional reconnaissance and follow-up sampling within the
17 granted De Beers tenements was conducted during 2006. This program included
reconnaissance stream sampling and the follow-up of anomalies generated from
aeromagnetic surveys and heavy mineral anomalies from previous De Beers
sampling.
The 266 samples collected during the program are being processed and examined in
the Melbourne Laboratory. Results to date indicate that two new kimberlites are
located in the Blacktop East area some 5km north east of the Blacktop 01
kimberlite.
The kimberlitic indicator minerals recovered from the Blacktop East area display
chemical signatures indicative of diamondiferous kimberlites.
Follow up work on this area will be formulated when all results have been
received.
Melbourne Laboratory
Activity within the Melbourne Laboratory during the quarter was primarily
focused on the examination of the Pilbara exploration samples.
Treatment, examination and reporting of third party exploration samples was also
undertaken.
Corporate
Staff Changes
Craig Bailey has been promoted to General Manager with prime responsibility of
managing the Company`s South African activities. Craig previously was Project
Geologist on the Blacktop, Timber Creek and Daniel projects as well as
supervising the initial drilling and bulk sampling of the Kareevlei kimberlites.
Craig is based in South Africa.
Financial
At the end of March, the Company`s cash reserves were $2.32M
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 edition of the "Australasian Code for the
Reporting of Mineral Resources and Ore Reserves"
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 31 March 2007
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating activities quarter (3 months)
$A`000 $A`000
1.1 Receipts from product sales and related 41 41
debtors
1.2 Payments for (a) exploration and (246) (246)
evaluation
(b) development
(c) production
(d) administration (449) (449)
1.3 Dividends received
1.4 Interest received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material) 437 437
(VAT Refund from SARS)
(217) (217)
Net Operating Cash Flows
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets (3) (3)
1.9 Proceeds from sale of:
(a)prospects
(b)equity investments
1.10 Loans to other entities
1.11 Loans repaid by other entities
Net investing cash flows (3) (3)
1.13 Total operating and investing cash flows (220) (220)
(carried forward)
1.13 Total operating and investing cash flows (220) (220)
(brought forward)
Cash flows related to financing activities
1.14 Proceeds from issues of 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
Net increase (decrease) in cash held (220) (220)
1.20 Cash at beginning of quarter/year to date 2,653 2,653
1.21 Exchange rate adjustments to item 1.20 (116) (116)
1.22 Cash at end of quarter 2,317 2,317
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 parties included in 74
item 1.2
1.24 Aggregate amount of loans to the parties included in Nil
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 540
4.2 Development 60
Total 600
Reconciliation of cash
Reconciliation of cash at the end of the quarter Current Previous
(as shown in the consolidated statement of cash quarter quarter
flows) to the related items in the accounts is as $A`000 $A`000
follows.
5.1 Cash on hand and at bank 411 185
5.2 Deposits at call 1,906 2,468
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 2,317 2,653
Changes in interests in mining tenements
Tenement Nature of Interest Interest
reference interest at 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 price Amount
number quoted per paid up
security per
security
7.1 Preference +securities
(description) Nil Nil
7.2 Changes during quarter
(a) Increases through
issues
(b) Decreases through
returns of capital, buy-
backs, redemptions
7.3 +Ordinary securities 87,097,481 87,097,481 various various
7.4 Changes during quarter Nil Nil
(a) Increases through
issues
(b) Increase through
exercise of options
7.5 +Convertible debt
securities Nil Nil
(description)
7.6 Changes during quarter
(a) Increases through
issues
(b) Decreases through
securities matured,
converted
7.7 Options (description Exercise Expiry
and conversion factor) 23,934,843 22,344,843 price date
$1.00 30 April
2008
7.8 Issued during quarter Nil Nil
7.9 Exercised during Nil Nil
quarter
7.10 Expired during quarter Nil Nil
7.11 Debentures Nil Nil
(totals only)
7.12 Unsecured notes (totals Nil Nil
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: Date: 27 April, 2007
(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: 30/04/2007 08:20:02 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
Sharenet Sites 
