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TAW - Tawana Resources NL - St Augustines to be drilled

Release Date: 25/11/2008 09:20
Code(s): TAW
Wrap Text

TAW - Tawana Resources NL - St Augustines to be drilled 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") 25 November 2008 Tawana to drill two highly prospective targets at St Augustine`s 600 metres from the famous "Big Hole" in Kimberley, South Africa On 28 November 2007 Tawana announced it had identified two new targets south of the St Augustines kimberlite which displayed similar gravity responses to that of St Augustines. Tawana acquired a 30% interest in the St Augustines diamond project in September 2007. The St Augustines kimberlite is located 600 metres due west of the world famous Kimberley Mine ("the Big Hole") in Kimberley, South Africa. Tawana has not, until now, been able to conduct any exploration on this site due to an application by De Beers Consolidated Mines Limited ("De Beers") for the review and setting aside of the Prospecting Right over St Augustines. De Beers is the owner of the surface rights to the land under which the targets were identified, and the Prospecting Right is held by Kimberley Diamond Mining and Exploration (Pty) Limited ("KDME"), in which Tawana holds a 30% equity interest. The Directors of Tawana are now pleased to announce that an interim agreement has been reached with De Beers which will allow a drilling program to commence on the targets. The targets will be drilled during the current quarter. 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 until 1902 to a depth of approximately 240 metres as compared to the Big Hole which was mined to a depth of 1097 metres. Records show that the diamond quality was considered identical and the grade similar to that of the Big Hole. 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. Commenting on the agreement, Tawana`s Executive Chairman, Neil Barrie said: "The agreement represents a great stride forward in the emergence of our company as a significant mining house and I am confident that if the targets are revealed to be new kimberlite discoveries, a resolution of the dispute between KDME and De Beers can be found. To finally be able to drill these targets represents yet another success for our company in rapidly pursuing class assets which will ultimately transcribe to the enhancement of shareholder value. It also presents Tawana with a significant opportunity to demonstrate its technical abilities a stone`s throw away from the nursery of modern industrial mining of diamonds. We look forward to providing shareholders with project updates as they come to hand". 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" Tawana Resources- a world class diamond and mineral exploration company listed on the Australian and Johannesburg Stock Exchanges committed to the principles of enhancing shareholder value through being ethically, socially and environmentally conscious corporate citizens. Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 25/11/2008 09:20:23 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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