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TAW - Tawana - Quarterly Activities and Cash Flow Report,
1 January - 31 March 2008
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 2008
Key Points 30 April 2008
Orapa
Joint Venture with Nowak Investments
Bulk Sampling commenced
Kareevlei Wes
Crushing circuit upgrade commenced
Rakana
Aquila Joint Venture manganese discovery
Flinders Island
Joint Venture identifies new kimberlite targets
Rights Issue
Funds raised for projects
Botswana
Orapa Project, Botswana
(Tawana 100%, Nowak Investments Pty Ltd earning 51%)
Tawana agreed to the terms of a joint venture with Nowak Investments (Pty)
Limited (Nowak) to continue the exploration and evaluation of Tawana`s Orapa
Diamond Project in Botswana. While the agreement is subject to Ministerial
approval, Nowak has commenced the agreed program.
Under the terms of the agreement Nowak will be required to conduct and sole
fund evaluation work to earn a 51% interest in the project, including:
1. Review all the results from the work completed by Tawana.
2. Select kimberlites for mini-bulk sampling at the 30 metres below
surface. For this purpose, the Management Committee, comprising members
of Tawana and Nowak, will determine the selected kimberlites.
3. Excavate at least one shaft per selected kimberlite to a depth of 30
metres.
4. Excavate from horizontal drives at 30m below surface no less than 100
tonnes of kimberlite for processing from the selected kimberlites less
than 1 hectare in surface area, and no less than 200 tonnes of
kimberlite from the selected kimberlites greater than 1 hectare in
surface area. A maximum of 1100 tonnes of kimberlite will be excavated
for processing during this initial phase. If warranted, additional bulk
samples of up to 3000 tonnes per kimberlite could be excavated and
processed in subsequent phases.
Nowak has also undertaken to conduct exploration on the Borolong and
Moshaiwa kimberlite projects.
At the completion of the above program Tawana will have the option to
contribute 49% of ongoing expenditure or allow Nowak to continue sole
funding to earn 70% interest in the projects by completing a bankable
feasibility study. Thereafter both parties will contribute pro-rata to
expenditures.
Tawana has been advised by Nowak that excavations on the Orapa Project
kimberlite BK24 have commenced.
Nowak is excavating three shafts into the kimberlite to access fresh
kimberlite at approximately 30m below surface. The shafts in early April
were at 12.5m, 11m and 2.7m depth.
Once fresh kimberlite is intersected in the shafts, mini-bulk samples will
be excavated and processed on site for diamond recovery and assessment.
Schedule
Shaft 1 is scheduled for completion at the end of the first week of June,
Shaft 2 at the end of June and Shaft 3 at the end of July.
These dates are dependent on a number of items, including water seepage
management and penetration rates of the surface calcrete and the kimberlite
itself.
Nowak has acquired a Dense Media Separation (DMS) plant which is due to be
erected on site with commissioning to be completed by the end of May. It is
expected that a realistic estimation for the completion of processing of the
excavated kimberlite will be possible once the DMS is commissioned.
Background
Nowak is a Botswana registered unlisted company. The Managing Director of
Nowak is Roy Spencer, formerly CEO of European Diamonds plc. Technical
consultant to Nowak is Dr. Leon Daniels, formerly a director of Tawana. Dr.
Daniels and Mr. Spencer have a wealth of experience in diamond exploration,
evaluation and mining. Dr Daniels was instrumental in acquiring the AK6
kimberlite for AIM listed African Diamonds Plc and Roy Spencer discovered
the world class Grib Diamond Deposit in Russia and recently brought the
Liqhobong Diamond Mine in Lesotho into production.
The probable development by De Beers and African Diamonds plc (AFD-L) of a
new diamond mine in the Orapa area on the AK6 kimberlite (located 25km to
the south of the Tawana licence), which was originally discovered and
evaluated in the 1970`s and considered at that time to be a small, low-grade
kimberlite, provides an indication of the potential that still remains in
Botswana. It is also noteworthy that Firestone Diamond plc (FDI-L) has also
reported encouraging results from its work in the Orapa field and elsewhere
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 kimberlite field
is one of the largest diamondiferous kimberlite fields in the world,
containing 79 known kimberlites, of which the majority has been proven to be
diamondiferous. The Orapa mine is one of the largest producing kimberlites
in the world and is 113 hectares in surface area.
The Orapa mine is located 20 km to the west, Letlhakane is 30km to the
south, and Damtshaa is 6km to the south of the Tawana licence.
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. Work has
commenced on upgrading the crushing circuit.
Contracts for the trial mining earthmoving will be let when the placement of
the Right Issue shortfall has been completed.
Rakana /Aquila Joint Venture
(74% owned and operated Aquila Resources Limited; 26% Rakana Consolidated
Mines Pty Ltd; 6.8% indirect Tawana)
In April Carbon steel resources producer and developer, Aquila Resources
Limited (ASX:AQA Aquila) announced promising manganese assay results from
its Avontuur Projects located 75km north west of Kuruman, in the Northern
Cape Province of South Africa.
Tawana holds an indirect interest of 6.8% (previously incorrectly stated as
5.2%) in the Joint Venture through its 26% holding in Rakana.
Highlights of intersected manganese mineralisation include:
6.69m at 46.13% Manganese
6.09m at 48.60% Manganese
3.70m at 40.81% Manganese
The results are from the first three holes assayed from the 74% owned
Avontuur Projects, which comprise a permit area of 370sq km. The manganese
discoveries were identified on two mineralised prospects some 20km apart and
adjoining the northern-most farms of the main Kalahari Manganese Field.
Australia
Flinders Island Joint Venture
(80% Tawana; 20% Orogenic Exploration Pty Ltd; Flinders Diamonds Limited
operator and earning 70%)
Tawana`s joint venture partner and operator, Flinders Diamonds Limited
("Flinders") has reported that it has flown REPTEM (a form of high
resolution electro-magnetic survey) over the northern part of Flinders
Island. A gravity survey was also completed, with a regional 200 x 200m grid
over the entire island and more detailed infill to 100 x 100m over REPTEM
targets. These include the "Gem Valley" and "Flinders Valley" in the north
and five other promising EM "Conductive Sinkhole" targets. Assessment and
interpretation of the datasets is continuing.
Flinders has also reported that it has completed a helicopter-borne magnetic
survey over the Venus Bay project area and has identified interesting
targets over indicator mineral anomalies which resulted from previous
exploration.
Flinders is able to earn 70% in the Flinders Island and Venus Bay project
areas by sole funding $2million of exploration.
Melbourne Laboratory
Activity within the Melbourne Laboratory during the quarter was focused on
the examination of the Orapa exploration samples.
Treatment, examination and reporting of third party exploration samples from
South Africa and Australia were also undertaken.
Corporate
Tawana completed a renounceable rights issue during the quarter, raising
$538,650 before costs. The proceeds of the Rights Issue provides additional
working capital to fund the Company`s projects which include trial mining at
Kareevlei Wes and an assessment of the Tawana Alluvials and St Augustines
Projects in South Africa.
Tawana announced a one for four renounceable rights issue to shareholders on
20 February 2008. The Rights Issue, which closed on 28 March 2008, entitled
shareholders to subscribe for one new share, at a price of $0.08 per share,
plus one option exercisable at $0.10 on or before 1 April 2011.
The rights issue resulted in a 29% take up by its shareholders. The
Directors reserve the right to place the 71% shortfall within the next three
months in accordance with ASX listing rules.
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 March 2008
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating activities quarter (12 months)
$A`000 $A`000
1.1 Receipts from product sales and 32 32
related debtors
1.2 Payments for
(a) exploration and evaluation (87) (87)
(b) development - -
(c) production - -
(d) administration (176) (176)
1.3 Dividends received
1.4 Interest received 2 2
1.5 Interest and other costs of finance
paid
1.6 Income taxes paid
1.7 Other (provide details if material) 8 8
(VAT Refund from SARS)
Net Operating Cash Flows (221) (221)
Cash flows related to investing
activities
1.8 Payment for purchases of:
(a)prospects - -
(b)equity investments - -
(c) other fixed assets - -
1.9 Proceeds from sale of:
(a)prospects - -
(b)equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
Net investing cash flows - -
1.13 Total operating and investing cash
flows (carried forward) (221) (221)
1.13 Total operating and investing cash (221) (221)
flows (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 88 88
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if material) - -
Net financing cash flows 88 88
Net increase (decrease) in cash held (133) (133)
1.20 Cash at beginning of quarter/year to 150 150
date
1.21 Exchange rate adjustments to item 1.20 (1) (1)
1.22 Cash at end of quarter (Note 1) 16 16
Note 1: Tawana completed a renounceable rights issue during the quarter,
raising A$538,650 before costs. These funds were cleared and paid into the
Company`s account on 4 April 2008
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 item 1.2 Nil
1.24 Aggregate amount of loans to the parties included in
item 1.10 Nil
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 100
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 $A`000 $A`000
as follows.
5.1 Cash on hand and at bank (Note 1) 16 150
5.2 Deposits at call - -
5.3 Bank overdraft
- -
5.4 Other (provide details) - -
Total: cash at end of quarter (item 1.22) 16 150
Note 1: Tawana completed a renounceable rights issue during the quarter,
raising A$538,650 before costs. These funds were cleared and paid into the
Company`s account on 4 April 2008
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 price Amount paid
number quoted per up per
security security
7.1 Preference
+securities Nil Nil
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs,
redemptions
7.3 +Ordinary 92,397,481 92,397,481 various Various
securities
7.4 Changes during
quarter
(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 Exercise Expiry date
(description and 29,234,843 22,344,843 price 30 April
conversion factor) $1.00 2008
7.8 Issued during Nil Nil
quarter
7.9 Exercised during Nil Nil
quarter
7.10 Expired during Nil Nil
quarter
7.11 Debentures Nil Nil
(totals only)
7.12 Unsecured notes Nil Nil
(totals 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 April 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.
Sponsor:
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 30/04/2008 12:27:01 Supplied by www.sharenet.co.za
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