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TAW - Tawana Resources NL - Quarterly activities and cash flow report 1 July -
30 September 2007
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 July - 30 September 2007
Key Points 31 October 2007
Orapa Drilling in progress
Drilling on BK24 kimberlite commenced
Trial Mining of Kareevlei Wes ready to commence
25 tph DMS plant commissioned
Equity purchased in St Augustines kimberlite
Prospecting Right over kimberlite granted
Kimberlite located 600 metres from Big Hole
Riverton Bulk Sampling in progress
10tph DMS plant commissioned
Diamonds recovered from bulk sampling of kimberlite
Botswana
Orapa Project, Botswana
(Tawana 100%)
In April 2007 the Company was granted a new prospecting licence over an area of
approximately 57 square kilometres, covering 8 kimberlites in the Orapa
kimberlite field in Botswana.
The Orapa kimberlite field is located in north eastern Botswana, and includes
the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in excess of 13
million carats of diamonds per year. The Orapa diamond mine, some 15km from
Tawana`s project area, is one of the largest producing kimberlites in the world
and is 113 hectares in surface area.
The Company has commenced a program of evaluation which will entail detailed
geophysics, trenching and drilling to establish the size and nature of the
kimberlites, followed by bulk sampling to determine the grade and diamond
quality of the kimberlites.
Ground-based gravity and magnetic surveys were completed during the quarter.
Preliminary interpretation of the data collected by these surveys indicates that
the kimberlites BK20, BK23 and BK24 are larger in surface area than previously
thought. Drilling to verify this interpretation has commenced with BK24 being
targeted first. Drill cuttings from the kimberlites will be transported to the
Company`s Flowsort x-ray unit in Kimberley in South Africa for analysis and
diamond recovery.
South Africa
Kareevlei Wes Project, Kimberley Region, South Africa
(74% owned and operated by Tawana; 26% Seven Falls)
The Kareevlei Wes Project comprises a cluster of 5 diamondiferous kimberlite
pipes (KV1-KV5). Previous drilling and bulk sampling by Tawana has shown that
KV1 and KV2 are potentially economic.
The Company`s 25 tph processing plant has been constructed on site and the Dense
Media Separation (DMS) section has been commissioned. The completion of the
crushing circuit is awaiting the acquisition of a suitable secondary crusher.
Tawana has received expressions of interest from companies wanting to
participate in the Project, but no commitment has been made.
St Augustines Kimberlite Project, Kimberley, South Africa
(Tawana 30% equity in Vecto Trade 436(Pty) Ltd (Vecto))
In September 2007 the Company announced that it had acquired a 30% interest in
the St Augustines kimberlite located 600 metres west of the famous Kimberley
Mine, "the Big Hole", in Kimberley, South Africa.
"The Big Hole" produced 14.5 million carats of diamonds from 22.5 million tonnes
at a grade of 64 carats per hundred tonnes. Mining ceased at the Big Hole in
1914.
The St Augustines kimberlite was mined in the late 1890`s and records show that
the diamond quality was considered identical and the grade similar to that of
the nearby Kimberley Mine. Geological records indicate that the kimberlite pipes
of "the Big Hole" and St Augustines are located on the same structure and are
connected by a kimberlite fissure.
Mining at St Augustines ceased in 1902. Subsequently the tailings of the
Kimberley Mine were deposited over the St Augustines kimberlite. The tailings
have since been removed. Records show that St Augustines was only partially
mined to a depth of approximately 240 metres as compared to the Kimberley Mine
which was mined to a depth of 1097 metres.
A new order Prospecting Right was granted to Vecto in August 2007. Tawana has
agreed to purchase 30% of the issued shares in Vecto from the current major
shareholder, Galeshewe Mining Resources (Pty) Limited (Galeshewe). The
consideration for these shares is an initial payment of R100,000
(approx.A$17,000), sole funding an agreed work program valued at R1,530,000
(approx A$255,000), and paying Galeshewe R2 900 000,00 (approx. A$487,000),
should a decision to mine be taken, not later than the last day of the
eighth month following commencement of full scale mining operations.
Riverton Kimberlite Project, Kimberley Region, South Africa
(Tawana earning 70% and operator, Taormina Mining (Pty) Ltd ("Taormina")
diluting to 30%)
Tawana entered into a joint venture with Taormina, an unlisted South African
company, to prospect and evaluate a kimberlite situated 25 kilometers north of
Kimberley, South Africa.
The Company`s 10 tph DMS plant was constructed and commissioned on site during
the quarter. A total of approximately 2300 tonnes of kimberlite was excavated
from 6 separate locations on the kimberlite. These separate bulk sample
locations were chosen as representative of the different kimberlite phases or
types in the pipe. The bulk sampling program is designed to determine the
diamond distribution in the pipe and to gain an understanding of the grade and
diamond quality at Riverton.
The kimberlite samples vary in hardness and the degree of country rock
inclusions. Processing is being conducted in stages with the free milling
kimberlitic material, which breaks down autogenously to minus 6mm in the
scrubber section of the plant, being completed first. The plus 6mm material
needing crushing is stockpiled to be processed later. Comprehensive results will
be known when all of the material has been processed. This is expected in late
Q4 2007.
Initial results from the main, eastern lobe, of the pipe indicate that this
section contains diamonds that are on average larger than diamonds recovered
from other kimberlites in this region. Results from the smaller middle section
of the pipe show that this section is diamondiferous but contains smaller
diamonds. These variations are common in kimberlites.
Tawana is able to earn 51% equity in the project by conducting a 2000 tonnes
bulk sampling program followed by an 8000 tonnes evaluation program if
warranted. Thereafter Tawana has the option to increase its equity to 70% by
paying Taormina Rand1.5million (approx. A$260,000.)
Carter Block Project, Lime Acres, South Africa
(Tawana earning 40% and operator/Kimberley Consolidated Mining Limited diluting
to 60%)
Drilling was conducted during the quarter on a number of FalconRegistered
targets in the Carter Block Prospecting Right. Kimberlitic indicators were
recovered from some of the drill cuttings but no kimberlite has as yet been
positively identified.
Mineral chemistry and petrographic data from the known kimberlites in the
Prospecting Right indicate that these kimberlites are likely to be
diamondiferous. Discussions with Kimberley Consolidated Mining Limited on the
future program on these kimberlites are continuing.
Australia
Pilbara Exploration, Western Australia
(Tawana 66.6% and operator/De Beers Australia Exploration Limited 33.3%)
Tawana has withdrawn from all but one Exploration Licence comprising the Pilbara
Joint Venture. The remaining licence covers the Black Top East kimberlite
fissures. A small airborne electromagnetic survey was conducted over the
kimberlites in an attempt to locate any "blows" or larger portions of the
kimberlites which may warrant further work. The survey tied into a much larger
survey being conducted over the general area by an iron ore exploration company.
Results of the survey will be known during Q4 2007.
Flinders Island
(Flinders Diamonds Limited earning 70% and operator/Tawana 80% diluting,
Orogenic Exploration Pty Ltd 20% diluting)
Flinders Diamonds Limited (FDL) has conducted a high resolution electromagnetic
survey over Flinders Island with the aim to locate buried diamondiferous
kimberlites.
Melbourne Laboratory
Activity within the Melbourne Laboratory during the quarter was focused on the
examination of the Carter Block exploration samples and samples from the
Riverton and Orapa kimberlites.
Treatment, examination and reporting of third party exploration samples from
South Africa was also undertaken. Since there are numerous laboratories in South
Africa, Management views this development as positive and it is anticipated that
more business of this nature will be forthcoming.
Corporate
The Company placed 5,300,000 shares to institutional and sophisticated investors
to raise $795,000
At the end of September, the Company`s cash reserves were $0.92M.
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"
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 September 2007
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating activities quarter ( 9 months)
$A`000 $A`000
1.1 Receipts from product sales and related 2 31
debtors
1.2 Payments for (a) exploration and (786) (1,613)
evaluation
(b) development
(c) production
(d) administration (251) (1,122)
1.3 Dividends received
1.4 Interest received 1 3
1.5 Interest and other costs of finance
paid
1.6 Income taxes paid
1.7 Other (provide details if material) 4 416
(VAT Refund from SARS)
(1,030) (2,285)
Net Operating Cash Flows
Cash flows related to investing
activities
1.8 Payment for purchases of: (16) (16)
(a)prospects
(b)equity investments (16) (20)
(c) other fixed assets
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 (32) (36)
1.13 Total operating and investing cash flows (brought (1,062) (2,321)
forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 795 795
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 795 795
Net increase (decrease) in cash held (267) (1,526)
1.20 Cash at beginning of quarter/year to date 1,227 2,653
1.21 Exchange rate adjustments to item 1.20 (38) (205)
1.22 Cash at end of quarter 922 922
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 item Nil
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 available Amount used
$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 250
4.2 Development 0
Total
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current Previous
shown in the consolidated statement of cash flows) to quarter quarter
the related items in the accounts is as follows. $A`000 $A`000
5.1 Cash on hand and at bank 719 211
5.2 Deposits at call 203 1,016
5.3 Bank overdraft
- -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 922 1,227
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 Pilbara JV
tenements E47/1121 interest 66% 0
relinquished, reduced E47/1122 66% 0
or lapsed E47/1123 66% 0
E47/1124 66% 0
E47/1126 66% 0
E47/1127 66% 0
E47/1128 66% 0
E47/1129 66% 0
E47/1107 66% 0
E47/1108 66% 0
E47/1110 66% 0
E47/1256 66% 0
E47/1262 66% 0
E47/1263 66% 0
E47/1264 66% 0
E47/1265 66% 0
6.2 Interests in mining St Equity 0 30%
tenements acquired or Augustines
increased MPT
808/2007
(PR)
Carter Joint 0 30%
Block venture
MPT Interest
306/2006
(PR)
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.
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 paid
number quoted price per up per
security 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 92,397,481 92,397,481 various Various
7.4 Changes during quarter
(a) Increases through
issues 5,300,000 5,300,000 15 cents 15cents
(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 date
and conversion factor) 29,234,843 22,344,843 price 30 April
$1.00 2008
7.8 Issued during quarter 5,300,000 Nil Exercise Expiry date
price 11
$0.15 September
2009
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: W.T Marx Date: 30 October 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: 31/10/2007 07:35:11 Supplied by www.sharenet.co.za
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