Sharenet Sites 
Sharenet Sites
TAW - Tawana Resources NL - Positive Scoping Study for the Meletse Iron Ore Project 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") HIGHLIGHTS Through Tawana`s 6.76% indirect equity interest in the Meletse Iron Ore project, the Company highlights the results announced by Aquila Resources Ltd on 13th May 2011. The Scoping Study: * Confirms the technical and financial viability of a development of the Meletse Iron Ore Deposit * Identified two preferred viable options at a production rate of 2 million tonnes per annum with "direct shipped" product sold either into the export market or domestically * Confirmed that a larger Resource could support a 4 million tonne per annum Project with improved economic results * Recognised that the Meletse ore body remains open along strike and at depth * Estimated capital expenditure in the range of USD150 million to USD190 million * Estimated operating costs of USD55 per tonne FOB * Considered export of ore using existing infrastructure from Thabazimbi to the port of Maputo in Mozambique at benchmark pricing * Considered domestic ore sold at a rail siding at Thabazimbi at a benchmark related price * Tawana Resources NL (ASX: TAW) is pleased to announce that Aquila Resources Ltd (ASX: AQA) has completed a Scoping Study for the development of the Meletse Iron Ore Deposit; a project incorporated in the Thabazimbi Joint Venture (`TJV`). The Meletse Iron Ore Deposit has a JORC compliant indicated and inferred resource estimate of 47.6Mt at 62.9% Fe in the Limpopo Province, South Africa. The Meletse Project is incorporated in the Thabazimbi Joint Venture. Significant expansion potential exists as the deposit remains open at depth and along strike. MELETSE IRON ORE RESOURCES Resources Tonnes Mt Fe % SiO2% AlO3% Classicication Indicated 15.9 63.6 6.22 1.07 Inferred 31.7 62.5 8.89 0.82 Total 47.6 62.9 8 0.91 MELETSE IRON ORE RESOURCES Resources P% S% MnO% MgO% LOI% Classicication Indicated 0.031 0.05 0.783 0.076 1 Inferred 0.044 0.04 1.078 0.054 1.19 Total 0.04 0.04 0.979 0.061 1.13 Meletse Iron Ore Project Resource Estimate (AQA 30th Nov 2010) Development (Details below are from Aquila`s ASX Release on 13th May 2011) The Scoping Study has evaluated an open pit mining operation with options for both direct shipping product and beneficiation of lower grade ores. Several modes of transport of ore from the deposit to the crushing and screening plant have been evaluated. These modes include truck haulage, conveyor and ore passes, all of which will be analysed in detail in subsequent studies. Options were considered for the transport of the product from the mine to a siding located at Thabazimbi, the nearest point on Transnet Freight Rail`s ("TFR`s") rail network. These included rail, conveyor and truck haulage solutions, with truck haulage proving to be the most economic at 2 million tonnes per annum. Opportunities were identified for both the supply of ore to domestic steel mills and the export of iron ore from the eastern ports of Maputo and Richards Bay. An initial production rate of 2 million tonnes per annum has been considered, with the potential to increase this to 4 million tonnes per annum in the expectation of a larger final ore body. TFR is reviewing the infrastructure needs of the Project within the context of the broader expansion needs of the area, including the Waterberg Coal Field. The results of this review will provide input for further development studies. The Scoping Study has also canvassed the opportunity to beneficiate more marginal ore to increase the saleable product from the ore body. Further metallurgical test work will be required to establish the viability of such a beneficiation process and to establish the lump to fines ratio of the "direct shipped" product. Based on similar Thabazimbi ore bodies, lump ratios in excess of 60% are expected. Thabazimbi Joint Venture The Company holds a 26% equity stake in Rakana Consolidated Mining Pty Ltd ("Rakana") the joint venture partner of Aquila Resources Ltd ("Aquila") in the Thabazimbi Joint Venture. The Avontuur Project is also incorporated in the Thabazimbi Joint Venture. The Avontuur high-grade Managanese Project is located in the Northern Cape Province, South Africa. Aquila announced a JORC compliant resource upgrade of 108.9Mt at 38.6% Mn on 4th February 2011. For further information, please contact: Lennard Kolff van Oosterwijk Chief Executive Officer Competent Persons Statements The information in this release that relates to the Meletse Iron Ore Resource was prepared under the supervision of Mr Brent E Green who is a member of the Australian Institute of Geoscientists and Mr Bernhard Siebrits who is a member of the Australasian Institute of Mining and Metallurgy. Mr Green is full-time employee of Aquila Resources Ltd and Mr Siebrits is a full-time employee of Golder Associates Africa Ltd. Mr Green and Mr Siebrits have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the `Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves`. Both Mr Green and Mr Siebrits consent to the inclusion in the announcement of the above matters based on the information in the form and context in which it appears. 17 May 2011 Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 17/05/2011 09:31:01 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.
