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TAW - Tawana Resources NL - ASX announcement - Geological Setting
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")
(Please note all maps and imagess have been removed and can be found on the
Tawana website)
FAST FACTS
Issued Shares: 856m
Market Cap: $19m
Cash (Sep-11 Qtly): $4.3m
ASX CODE: TAW
COMPANY HIGHLIGHTS
New West African Gold Frontier
Alliance with Gryphon Minerals
Experienced Board and Management
Sinoe Gold Project, Liberia
Highly prospective Birimian gold structures on Dugbe shear
Along strike from Dugbe gold deposit (1.8Moz)
Mofe Creek Iron Ore Project, Liberia
+40% Fe along 30km strike
25km to coast, adjacent to rail, port and 50 Mt Bomi Hills DSO historic
mine
Nimba/Lofa Gold Projects, Liberia
Close proximity to Ity Gold Mine (5Moz)
Located on known gold hosting structures
Thabazimbi JV (6.7%), South Africa
Avontuur Manganese and Meletse Iron Ore JV managed by Aquila Resources
Geological Setting
The Mofe Creek license is 10 km along strike from the abandoned Bomi Hills
iron ore mine. Historic production at Bomi Hills is poorly documented;
however estimated historic production by the Government of Liberia is 50 Mt
of high-grade magnetite (Elenilto Minerals and Mining website).
Bomi Hills produced high-grade direct shipping ore (DSO) magnetite in
addition to magnetite concentrate beneficiated from itabirite
(metamorphosed and re-crystalised banded iron formation). DSO magnetite
averaged 64.5% Fe, 4.5% SiO2, 1.5% Al2O3 and 0.13% P, of which 53% formed
lump material (average 11-37mm) and 47% formed fines (<11mm). The
beneficiated low grade itabirite concentrate averaged 64% Fe, 6% SiO2 and
0.04-0.05% P and was used to produce sinter feed (Gruss, 1973).
The genesis of the Bomi Hills magnetite deposit is not clearly understood,
however, general consensus is that it is hypogene and represents an
itabirite that has come into direct contact with rising gneissic fronts and
deep seated intrusions causing enrichment to coarse massive magnetite by
metamorphic differentiation. Magnetite mineralisation is in direct contact
with gneissic basement and is partially blind.
Regional mapping by the USGS in the Mofe Creek area defines a composite
gneiss basement; the same footwall unit observed at Bomi Hills. Magnetic
anomalies similar to Bomi Hills were observed within this area and a
reconnaissance license applied for.
% MC1001 MC1002 MC1003
Fe 40.43 49.18 42.68
SiO2 39.99 27.28 36.96
Al2O3 1.49 1.06 0.61
P 0.008 0.008 <0.004
LOI 1000 0.60 1.70 1.63
MgO 0.04 0.08 0.02
MnO 0.07 0.11 0.07
CaO 0.05 0.02 0.03
K2O <0.01 <0.01 <0.01
Na2O 0.11 0.13 0.10
TiO2 0.06 0.06 <0.01
V2O5 0.01 0.01 0.01
Cr2O3 0.01 0.01 0.01
(License and sampling locations relative to Bomi Hills mine and
infrastructure over airmag analytical signal base map has been removed)
Field Observations
A one day field reconnaissance site visit was undertaken during mid-
November 2011 with highly encouraging results. Access to the licence area
was via existing road network only, with numerous target anomalies unable
to be assessed due to access and time constraints.
A medium to coarse grained, laminated quartz-magnetite iron formation was
discovered at varying degrees of weathering. Where strongly weathered, the
material could be easily crumbled by hand and medium to coarse grained
magnetite/hematite grains (average grain size 2-5mm) easily liberated.
Where sampled in three locations, the iron formation averaged 40-50% Fe, 30-
40% SiO2, 0.6-1.5% Al2O3, 0.004-0.008% P, and 0.6-1.7% LOI1000.
Outcrops of iron formation and massive magnetite concentrations were also
observed in the field with individual massive magnetite accumulations up to
meter scale further enhancing the exploration model for hypogene, massive
magnetite bodies.
High-grade weathered friable magnetite/hematite sampled in outcrop and in
close proximity to the license area returned 64.8% Fe, 0.02% SiO2, 2.3%
Al2O3, 0.004% P and 1.75% LOI. This clearly demonstrates the hypogene
magnetite model similar to Bomi Hills further enhancing prospectivity.
(Medium-coarse grained, laminated quartz-magnetite iron formation (sample
MC1001), and weathered variety of similar rock type crushed by hand forming
soft, friable quartz-magnetite sands easily beneficiated by magnet pen
(sample MC1003)- images removed)
(Outcropping iron formation with larger 10`s cm scale magnetite
segregations (sample MC1002) and
Weathered, softened magnetite from outcrop forming high-grade, clean
magnetite/hematite fines - images removed)
All samples were assayed by SGS Liberia and were sourced from in-situ
outcropping material, were dried and crushed to a nominal 2mm using a jaw
crusher then the whole sample pulverised in a LM2 to a nominal 85% passing
75Picam. A 200g sample was then scooped, with iron ore analysis of majors
and minors by borate fusion-XRF.
Conceptual target
On the basis of preliminary reconnaissance mapping and analogies drawn with
Bomi Hills 10km along strike, the company is targeting both massive, high-
grade DSO magnetite mineralisation and weathered, easily beneficiated
`soft` iron formation for high-grade beneficiated fines.
Both styles of mineralisation have been confirmed in the license area and
Tawana has already commenced detailed field mapping and rock chip sampling
to better define contacts and distribution of mineralisation types. Tawana
aims to update the market by January 2011 with results of this follow up
work.
On the basis of initial mapping and sampling results, the Company will
review flying a detailed aeromagnetics survey to better define
mineralisation distribution and continuity below areas of thick vegetation
and/or weathering.
There is significant potential for this project to provide a rapid
development timeframe, with low capital intensity utilising the extensive
existing infrastructure and close proximity to major deep water ports
and/or transhipment solutions.
Subject to further detailed geological confirmation, a conceptual target is
to quickly develop a high margin, low tonnage operation that could generate
significant cash flows for the Company.
Tenure
The Mofe Creek Mineral Reconnaissance license was awarded to Tawana Liberia
Inc., a locally incorporated company 100% owned by Tawana Resources NL. The
license covers a total area of 285 km2.
Location and Access
The mineral reconnaissance license covers 285 km2 over Grand Cape Mount and
Bomi Counties in Western Liberia.
The license area is approximately 100 km drive from Monrovia on well-
maintained sealed roads, 20 km from an historic heavy-haul iron ore railway
and deep sea port and 25 km from the coast.
Access to the project area is excellent with both sealed and laterite roads
traversing the license area which is characterised by low, undulating
topography and widespread shrub.
(Well-maintained sealed main road from Monrovia through license area.
Right: Laterite road, topography and vegetation within license area image
removed)
Infrastructure
The license area is well positioned for possible future infrastructure
scenarios; road or rail to the Monrovia deep sea port or road to coast and
transhipment via barge to deeper water for onward shipment.
A well-maintained 100 km long sealed road exists from the central licence
area to the city of Monrovia. In addition to this an historic heavy-haul
iron ore railway* exists from the Bomi Hills mine to the port of Monrovia;
20 km east from the easternmost magnetic anomaly. Rail distance from Mofe
Creek to the port of Monrovia is 65 km.
About Liberia
Liberia is a democratic country run by Her Excellency President Ellen
Johnson-Sirleaf; Africa`s first elected female head of state in 2005. The
country is hugely prospective and hosts several world class iron ore
deposits but yet is completely underexplored for gold and non-ferrous
metals. Liberia has a modern and transparent mining code and the
government is supportive of foreign investment especially in the
exploration and mining industry to help unlock the value of its potential
mineral wealth. Tawana is one of the first ASX listed junior companies into
Liberia following in the footsteps of mining majors BHP Billiton, Arcelor-
Mittal and Severstal.
Liberia is located in West Africa dominantly within the Archean aged Kenema
Man Domain and lesser Birimian sediments to the east. There are a large
number of world class mineral deposits located in the Archean and Birimian
rock types throughout West Africa including Obuasi (+40 Moz) and Tasiast
(+18 Moz). West Africa is one of the fastest growing mineral provinces in
the world and Liberia currently hosts several world class iron ore deposits
and is underexplored for gold.
For further information, please contact:
Lennard Kolff van Oosterwijk
Managing Director
Competent Persons Statements
The information in this report in so far that it relates to Liberian
Project Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Lennard Kolff van Oosterwijk, who is a Member of
the Australian Institute of Geoscientists included in a list promulgated by
the ASX from time to time. Lennard Kolff van Oosterwijk is a full-time
employee of the company and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the `Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves`. Lennard Kolff van
Oosterwijk consents to the inclusion in the report of the matters based on
his information in the form and context in which it appears
Reference: Gruss, H, 1973. Itabirite iron ores of the Liberia and Guyana
Shields. In: Genesis of Precambrian iron and manganese deposits; Proc.
Kiev. Symp., 1970 (Earth Sciences 9).
*Footnote: the railway line falls under the Western Cluster project
currently owned by Elenilto Minerals and Mining and subject to a Joint
Venture with India`s largest producer and exporter of iron ore in the
private sector; Sesa Goa.
CORPORATE DIRECTORY
Warwick Grigor
Non-Executive Chairman
Len Kolff
Managing Director
Julian Babarczy
Non-Executive Director
Euan Luff
Non-Executive Director
Matthew Bowles
Non-Executive Director
Winton Willesee /Aaron Finlay
Joint Company Secretary
CONTACT DETAILS
Principal & Registered Office:
Suite 25, 145 Stirling Highway
Nedlands, Western Australia
Email: admin@tawana.com.au
Website: www.tawana.com.au
Phone: +61 8 9389 3140
Facsimile: +61 8 9389 3199
29 November 2011
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 29/11/2011 09:07:18 Supplied by www.sharenet.co.za
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