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TAW - Tawana/ Kimberley Consolidated Mining Limited - Company Announcement

Release Date: 13/07/2007 08:20
Code(s): TAW
Wrap Text

TAW - Tawana/ Kimberley Consolidated Mining Limited - Company Announcement 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") Kimberley Consolidated Mining Limited (Incorporated in the Republic of South Africa) (Registration number 2007/010470/06) ("KCM") 13 July 2007 New Joint Venture between Tawana Resources NL and Kimberley Consolidated Mining Limited - Carter Block, South Africa The Directors of Tawana are pleased to announce a joint venture (the Carter Block Joint Venture) with Kimberley Consolidated Mining Limited (KCM), a currently unlisted South African company which has advanced plans to list shortly on the JSE Limited and is also considering listing on the Alternative Investment Market of the London Stock Exchange in due course. The Carter Block Joint Venture has been formed to prospect and evaluate kimberlites situated on a 266 square kilometer new order Prospecting Right surrounding the De Beers owned Finsch Mine, South Africa (The Carter Block). The granted tenement incorporates three known kimberlites, fourteen BHP Billiton- generated Falcon targets, and four aero-magnetic survey targets. The Joint Venture`s initial focus is the BHP Billiton - generated Falcon Targets and the aero-magnetic survey targets. Tawana has access to the Falcon data by virtue of the separate Daniel Joint Venture with BHP Billiton. BHP Billiton is not participating in the Carter Block Joint Venture but has consented to Tawana using the Falcon data in return for a 2.5% royalty on any future diamond revenue generated by Tawana from the use of the data in the Carter Block. Tawana is able to earn 40% equity in each individual Falcon and aero-magnetic target by identifying kimberlites through drilling and conducting a bulk sampling program. Expenditure on further evaluation work will be contributed by KCM and Tawana on a pro-rata basis. Tawana will manage the project. The three known kimberlites are currently being prospected by KCM and early indicator mineral sampling has been positive. Several G10 pyrope garnets were recovered from the Shoan kimberlite, indicating that this kimberlite is likely to be diamondiferous. The agreement provides that should Tawana wish to participate in the exploration of these known kimberlites, Tawana would be entitled, subject to contract, to take up an agreed participating interest therein. The Carter Block also incorporates known diamondiferous alluvial deposits which while they will remain wholly-owned and operated by KCM are adjacent to the Tawana alluvials in the area and an opportunity for future co-operation between Tawana and KCM with respect to parallel development in this regard therefore exists. Wolf Marx, Managing Director of Tawana commented today: "The Carter Block Joint Venture is an exciting development for Tawana. We have been keen to enter into this agreement to get access to some of the best targets in the vicinity of the Finsch diamond mine. Our new partners are expert alluvial diamond miners and have an established diamond mining and marketing track record. This is another example of Tawana`s ability to add critical mass to its portfolio in creative and capital efficient ways." Contact: Wolf Marx Tel: +61 (0)3 98635222 Mob: +61 (0)428 398446 Email:wolf.marx@tawana.com.au Corporate advisor to KCM: T-Corporate Independent expert to KCM: Venmyn Rand Sponsor to Tawana: PricewaterhouseCoopers Corporate Finance (Pty) Limited 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" All press releases and announcements may be inspected on the Company`s web site, namely: www.tawana.com.au Date: 13/07/2007 08:20:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.

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