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TAW - Tawana - Quarterly Activities and Cash Flow Report - 1 October -
31 December 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 October - 31 December 2007
Key Points 31 January 2008
Orapa results
G10 garnets recovered from BK24 kimberlite
St Augustines kimberlite exposed
St Augustines kimberlite sampled at surface
Gravity survey locates two anomalies
Riverton Bulk Sampling completed
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 to determine the grade and
diamond quality of the kimberlites.
Ground-based gravity and magnetic surveys were completed during the September
quarter. Interpretation of the data collected by these surveys indicated that
the kimberlites BK20, BK23 and BK24 are larger in surface area than previously
thought. Drilling to verify this interpretation was completed during the
December quarter. Drill cuttings from the kimberlites were transported to the
Company`s Flowsort x-ray unit in Kimberley in South Africa for analysis and
diamond recovery and selected samples from each of the kimberlites were sent to
the Company`s Melbourne laboratory for mineral analyses.
Kimberlitic minerals were recovered from the samples and analysed by electron
microprobe. 13% of the kimberlitic garnets from BK24 were reported to be "G10"
garnets, which signify that this kimberlite has a high probability of being
economically diamondiferous.
The processing of the drill cuttings in the Company`s Flowsort is continuing.
Several Joint Venture proposals have been received from companies interested in
participating in the Orapa project. The Directors of Tawana are considering
these proposals.
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.
The current mining boom being experienced in South Africa has made locating a
crusher difficult but Management is confident that suitable equipment has been
located and that appropriate terms of supply will be negotiated.
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% indirect
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. 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.
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 and this has exposed the kimberlite at surface. Rock
samples of the kimberlite have been collected and these are being
mineralogically analysed in the Company`s Melbourne laboratory.
A non-invasive gravimetric survey conducted by Tawana in November 2007
identified the location of the original pit of the St Augustine`s mine. Two new
targets close to St Augustines have also been identified. The gravimetric survey
was undertaken to confirm the exact position of the known kimberlite and to
determine whether other kimberlites occurred in the Prospecting Right. The two
new targets are in the southern half of the Prospecting Right and display
similar gravity responses to that of the known St Augustines kimberlite.
In January 2008, the Company was advised that De Beers Consolidated Mines
Limited (the surface owners of the land constituting the southern half of the St
Augustines Mine Prospecting Right) has applied for a Judicial Review and setting
aside of the Minister of Minerals and Energy`s administrative act in granting
the Prospecting Right, or alternatively, that portion of the Prospecting Right
in so far as it affects the southern half of the Prospecting Right.
Tawana`s South African legal advisors have advised that it is too early to
express an opinion as to the merits of the application or its prospects of
success. The Department of Minerals and Energy, which is opposing the
application on behalf of the Minister, has not yet replied to the allegations in
the founding papers nor made discovery of the documentation upon which the
decision to grant the Prospecting Right was made.
Pending determination thereof, however, South African legal advisers have
advised that the Prospecting Right remains registered and valid. They have
further pointed out that the original pit of the St Augustine`s mine is not
located in the southern half of the Prospecting Right.
Riverton Kimberlite Project, Kimberley Region, South Africa
(Tawana earning 70% and operator, Taormina Mining (Pty) Ltd ("Taormina")
diluting to 30%)
Bulk sampling of the Riverton kimberlite was completed during the quarter with
the processing of 2,300 tonnes of material collected from 6 sites in the
kimberlite pipe.
It is the opinion of Tawana that the results of the bulk sampling indicate that
the Riverton kimberlite is uneconomic.
Tawana, in conjunction with Taormina, is currently considering options for the
future of the project.
Australia
Melbourne Laboratory
Activity within the Melbourne Laboratory during the quarter was focused on the
examination of the Orapa exploration samples and samples from the St Augustines
kimberlite.
Treatment, examination and reporting of third party exploration samples from
South Africa and Australia was also undertaken.
Corporate
The Directors of Tawana are reviewing the Company`s funding requirements for
2008 and are in active discussions with various parties regarding funding
options.
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 31 December 2007
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating quarter (12 months)
activities $A`000 $A`000
1.1 Receipts from product sales and 8 39
related debtors
1.2 Payments for (a) exploration (592) (2,205)
and evaluation
(b) development
(c) production
(d) administration (272) (1,394)
1.3 Dividends received
1.4 Interest received 4 7
1.5 Interest and other costs of
finance paid
1.6 Income taxes paid
1.7 Other (provide details if 12 428
material)
(VAT Refund from SARS)
(840) (3,125)
Net Operating Cash Flows
Cash flows related to investing
activities
1.8 Payment for purchases of:
(a)prospects - (16)
(b)equity investments
(c) other fixed assets - (20)
1.9 Proceeds from sale of:
(a)prospects
(b)equity investments
(c) other fixed assets 29 29
1.10 Loans to other entities
1.11 Loans repaid by other entities
Net investing cash flows 29 (7)
1.13 Total operating and investing cash
flows (carried forward) (811) (3,132)
1.13 Total operating and investing cash (811) (3,132)
flows (brought forward)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, - 795
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 - 795
Net increase (decrease) in cash (811) (2,337)
held
1.20 Cash at beginning of quarter/year 922 2,653
to date
1.21 Exchange rate adjustments to item 55 (150)
1.20
1.22 Cash at end of quarter 166 166
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 54
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 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 50
4.2 Development 0
Total
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 166 719
5.2 Deposits at call - 203
5.3 Bank overdraft
- -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 166 922
Changes in interests in mining tenements
Tenement Nature of Interest at Interest at
reference interest beginning end of
(note (2)) of quarter quarter
6.1 Interests in
mining tenements
relinquished,
reduced or
lapsed
6.2 Interests in
mining tenements
acquired or
increased
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
number quoted price 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 92,397,481 92,397,481 Various Various
7.4 Changes during quarter
(a) Increases through
issues
(b) Increase through
exercise of options
7.5 +Convertible debt
securities (description) Nil Nil
7.6 Changes during quarter
(a) Increases through
issues
(b) Decreases through
securities matured,
converted
7.7 Options (description and Exercise Expiry
conversion factor) 29,234,843 22,344,843 price date
$1.00 30 April
2008
7.8 Issued during quarter Nil Nil
7.9 Exercised during quarter Nil Nil
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: 31 January 2008
(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.
31 January 2008
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 31/01/2008 11:27:01 Supplied by www.sharenet.co.za
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