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TAW - Tawana - Quarterly Activities and Cash Flow Report
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")
ACN 085 166 721
Quarterly Activities and Cash Flow Report
1 January - 31 March 2009
Key Points
Kareevlei Wes
- Funding delayed for Trial Mining but successful litigation outcome
predicted
Orapa
- Tawana to discontinue Joint Venture and move to speed up assessment
on the highly prospective BK24 kimberlite
Corporate
- $200,000 raised to keep the company working
- Corporate holding costs slashed to preserve funds and surplus
assets will be liquidated to strengthen financial position whilst
not impacting on the ability to commence trial mining at short
notice.
- Large number of potential deals assessed during the
Quarter
South Africa
Kareevlei Wes Project, Kimberley Region, South Africa
(100% owned and operated by Tawana)
As reported during the September quarter, Tawana concluded an agreement with
Risk Free Investments 2 (Proprietary) Limited t/a Agio Diamond Investments
("Agio") for the sale of a 26% interest in Tawana`s Kareevlei Project for
Rand 12 Million (approximately A$1.7million at current exchange rates). The
Agreement required Agio to effect payment of the purchase price within 30
days of signature, ie, by 25 November 2008. Payment was not completed by the
due date and a High Court Summons has been executed. Tawana expects that the
matter will be favourably resolved in the near future which will provide a
capital input to further enhance shareholder value and allow further
assessment of resource opportunities.
St. Augustines Kimberlite Project, Kimberley, South Africa
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)
In late 2007 Tawana acquired a 30% of the issued shares in Vecto Trade
436(Pty) Ltd ("Vecto") which was granted a New Order Prospecting Right over
the St Augustines kimberlite located 600 metres west of the world famous
Kimberley Mine or "Big Hole" in Kimberley, South Africa. The St Augustines
mine is located in the northern half of the Prospecting Right due west of the
Big Hole.
The Kimberley Mine produced 14.5 million carats of diamonds from 22.5 million
tons at a grade of 64 carats per hundred tons. Mining ceased 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 two kimberlite
pipes of the Kimberley Mine 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 removal
of these tailings has recently exposed in-situ kimberlite at St Augustines.
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 non-invasive gravimetric survey conducted by Tawana in November 2007. 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. In addition to confirming the location of the St
Augustine`s mine, two new targets close to St Augustines were identified. 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.
A drilling program to confirm the presence or absence of kimberlite or
related rock types in the two targets was completed during the last Quarter
of 2008 and Tawana is in discussions with several interested parties
concerning further work.
A total of seven 6.5 inch holes were drilled using percussion air flush
drilling. All holes were logged at 1m intervals and a total of 220m was
drilled during the 3 day drilling program. The location of the 7 drill holes
is shown in Figure 1.
Picture available on copy lodged on company website.
Figure 1: Gravity image showing location of 7 drill holes within Prospecting
Right south of the St Augustine road.
Of the 7 holes drilled, 6 were sited to determine the cause of the gravity
low anomalies and one (hole 4) was sited to determine the cause of the
gravity high. The hole that was drilled into the gravity high was
distinctly different to the remaining 6 holes in that it intersected 7m of
weathered to fresh dolerite between 2 to 9m. This is compatible with what
can be observed in the sidewalls of the Kimberley mine. All other holes
drilled were completely devoid of dolerite and intersected weathered shale
below the dump debris.
The gravity low anomalies are therefore attributed to weathered shale and no
kimberlitic material was intersected during the drilling program.
Prospecting activities over the northern portion of the Prospecting Right
will continue in order to evaluate the area associated with the old St
Augustine kimberlite mine area.
Botswana
Orapa Project, Botswana
(Tawana 100%, Nowak Investments Pty Ltd previously earning 51%)
Tawana has been advised by Nowak that the sinking of shafts on the BK2
kimberlite was suspended during the last quarter of 2008 to allow for the
implementation of certain additional safety measures. A small amount of
fresh kimberlite sample was processed and results are pending. Nowak aims to
extract 100 tonnes from the base of each of the 3 shafts. Processing of this
kimberlite is expected to re-commence in Q1 2009.
Nowak has also collected 120 soil samples in the Moshaiwa Prospecting Licence
with the aim to locate the source of the kimberlitic indicator minerals
(including diamonds) found here previously. Processing of these samples has
been completed and results are expected during Q1 2009.
Tawana has moved to cancel the previous Joint Venture with Nowak and is in
discussions with a number of interested parties concerning further evaluation
of this highly prospective tenement.
Australia
South Yarra Office
The South Yarra Office should be leased by late April 2009 which will result
in a major drain on operating overheads being eliminated without any
disruption to corporate activity.
Corporate
Over the past quarter, there has been continued substantial cost reduction in
the corporate overheads of Tawana. Specifically staffing levels within the
company have been reduced substantially and a number of functions outsourced
so that professional services are now engaged on an "as-needed" basis.
Corporate operating expenses have been pruned by approximately 95% and a
continuous watch will be undertaken on costs to ensure that cash is directed
to actual or potential projects to continue to safeguard asset values.
The Executive Chairman continues to undertake a large number of commercial
discussions with potential joint venture partners both in Australia and South
Africa and specific details will be released to the market when documentation
has been put in place.
Funding
During the Quarter $200,000 was raised through a convertible note issue .
Tawana is looking at the sale of all surplus plant assets to strengthen its
financial position whilst not impacting on the ability to commencing trial
mining at short notice.
As detailed, the payment for the sale of 26% interest in Tawana`s Kareevlei
project for Rand 12 million, (approximately AUD$1.7M at current exchange
rates) has been delayed.
Tawana has applied for judgement in the High Court in South Africa and is
confident of a favourable settlement.
The market will be informed of progress on the litigation.
As a potential contingency, the company continues to pursue alternate sources
of funding and is also holding discussions with various groups regarding
possible joint ventures on the company`s projects.
Contact:
Phillip Hains
Tel: +61 (0)3 9824 5254
Technical sections of this report are based on information compiled by Wolf
Marx BSc, BA, FAusIMM, CPGeo. 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". Mr. Marx consents to the inclusion in the report of the
matters based on his information in the form and context in which they
appear.
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.
Rule 5.3
Appendix 5B - 1st Quarter
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 2009
Consolidated statement of cash flows
Current Year to date
Cash flows related to operating quarter (3 months)
activities $A`000 $A`000
1.1 Receipts from product - -
sales and related debtors
1.2 Payments for
a) exploration and (30) (30)
evaluation
(b) development - -
(c) production - -
(d) administration (44) (44)
1.3 Dividends received
1.4 Interest received
1.5 Interest and other costs
of finance paid
1.6 Income taxes paid
1.7 Other (provide details if 6 6
material)
(VAT Refund from SARS)
(68) (68)
Net Operating Cash Flows
Cash flows related to
investing activities
Current Year to date
quarter (3 months)
$A`000 $A`000
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 27 27
1.10 Loans to other entities - -
1.11 Loans repaid by other - -
entities
27 27
Net investing cash flows
1.13 Total operating and
investing cash flows (41) (41)
(carried 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 200 200
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if - -
material)
Net financing cash flows 200 200
Net increase (decrease) in 159 159
cash held
1.20 Cash at beginning of 13 13
quarter/year to date
1.21 Exchange rate adjustments - -
to item 1.20
1.22 Cash at end of quarter 172 172
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 Nil
parties included in item 1.2
1.24 Aggregate amount of loans to the Nil
parties included in item 1.10
1.25 Explanation necessary for an understanding of the
transactions
Director fees
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 0
4.2 Development 0
4.3 Administration 50
Total 50
Reconciliation of cash
Reconciliation of cash at the Current Previous
end of the quarter (as shown in quarter quarter
the consolidated statement of $A`000 $A`000
cash flows) to the related
items in the accounts is as
follows.
5.1 Cash on hand and at bank 172 13
5.2 Deposits at call - -
5.3 Bank overdraft
- -
5.4 Other (provide details) - -
Total: cash at end of 172 13
quarter (item 1.22)
Changes in interests in mining tenements
Tenement Nature of Interest at Interest
reference interest beginning at end
(note (2)) of quarter of
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 Nil Nil
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs,
redemptions
7.3 +Ordinary 107,763,134 107,763,134 Various Various
securities
7.4 Changes during
quarter
(a) Increases
through issues
(b) Increase
through exercise
of options
7.5 +Convertible
debt securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise Expiry
(description and 13,240,053 13,240,053 price date
conversion $0.10 1 April
factor) 2011
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: Neil Barrie Date: 30th April, 2009
(Director)
Print name: Neil Barrie
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.
== == == == ==
30 April 2009
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 30/04/2009 10:16:01 Supplied by www.sharenet.co.za
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