Wrap Text
TAW - Tawana Resources NL - Quarterly Activities Report
1 October - 31 December 2011
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 Report
1 October - 31 December 2011
Tawana Resources NL (ASX: TAW) is pleased to present the report on activities
for the period October to December 2011.
( All images have been remove from this announcement for sens purposes and can
be found on the Company`s website)
HIGHLIGHTS
Sinoe Gold Exploration
* Soil sampling programme completed; over 3300 samples collected
* Highly encouraging extensive artisanal alluvial and eluvial workings noted
in north of license area
* Extensive outcropping pegmatites mapped within more prospective areas
* Full assay results expected end February
Mofe Creek Iron Ore Project Acquisition
* 285 km2 Mineral Reconnaissance License granted (100% TAW)
* 10 km along strike from historic Bomi Hills mine; minimum 50
Mt high-grade DSO magnetite lump produced
* 25 km from coast, adjacent to abandoned heavy-haul railway and 65 km from
deep sea port of Monrovia
* Potential for rapid development of low capital intensity DSO Fe ore project
generating significant cash flow
Nimba/Lofa Gold Exploration
* High-priority BLEG stream sediment anomalies defined
* 10 km strike length target generated at Nimba; 6 km strike length target at
Lofa
* Soil sampling commenced
Thabazimbi JV
* Positive DFS completed over Gravenhage Manganese resource
Corporate
* Second execution payment to secure Sinoe Project option(100%) paid
Corporate
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 approximately 100 km north-west of the
capital city of Monrovia.
Under the terms of the Sinoe Project Joint Venture, the Company paid Global
Mineral Investments LLC (`GMI`) a US$50,000 execution payment during the
quarter. This represents the third payment under the agreement terms. The
Company will continue to fund exploration during the first year after which it
has the right to purchase the licence outright or walk away unencumbered.
Liberia
Grid soil sampling and geological mapping was completed over the Sinoe Gold
Project. Significant and prolific artisanal gold workings; both alluvial and
eluvial were discovered in the central northern portion of the license area.
Approximately 2360 soil samples were collected during the quarter on an 800x100m
grid over the target areas and all samples submitted to SGS laboratory in
Monrovia for gold analysis. Full results are expected end February 2012.
The Company secured and commenced field exploration activities on the Mofe Creek
Iron ore Project in Western Liberia. Geological mapping and rock chip sampling
has defined a broad iron bearing unit along a 35 km strike length within the
reconnaissance permit. The License is 10 km along strike from the historic Bomi
Hills Fe ore mine with historic production of 50 Mt high-grade DSO magnetite at
64-66% Fe, 4-6% SiO2, 0.75-1.50% Al2O3 and 0.09-1.00% P. The License is
prospective for high-grade magnetite Direct Shipping Ore (DSO) lump and
weathered soft magnetite iron formation for beneficiation. Potential exists
for rapid development of low capital intensity DSO Fe ore project generating
significant cash flow.
Several high priority stream sediment BLEG anomalies were identified on the
companies Nimba and Lofa projects; two mineral permits issued in December 2010
and formally approved to Gryphon Minerals Ltd (ASX: GRY) on 23rd February 2011.
A large scale robust 10 km strike length target was identified at Nimba and a
6 km strike length target at Lofa. Anomalous target areas were enhanced by
coincident artisanal workings, favourable geology and major structures that
host the 5 Moz Ity mine and 1.52 Moz New Liberty resource.
(IMAGE REMOVED FOR SENS PURPORSES)
Map showing granted licenses (1880 km2) and JV license (400 km2)
Sinoe Gold Project
Tawana has secured binding exclusivity and exclusive rights to purchase outright
the Sinoe license pending results of the first year field exploration programme.
Access is via paved and laterite road from Monrovia to Greenville and laterite
road from Greenville to the project area. Under the terms of the agreement, the
Company has secured the services of the vendor`s expatriate site manager to
build access tracks, additional camp facilities and maintain logistical supplies
to facilitate exploration activities.
The mineral exploration license covers 400 km2 of Birimian aged rocks along
arguably the most prospective gold mineralised structure being explored in
Liberia today; the Dugbe Shear.
The project area is 25 km along strike from Hummingbird`s (AIM: HUM) 1.8 Moz
Dugbe Project and 40 km along strike from Equator Resources (ASX: EQU) Bukon
Jedeh Project. Both projects are hosted along secondary and tertiary structures
adjacent to the main Dugbe Shear. Similar structural targets have been defined
in the government regional aeromagnetics data over the Sinoe Project area.
The area is characterised by numerous artisanal alluvial and eluvial gold
workings. The area is also characterised by numerous quartzite, graphite and
manganese occurrences on the USGS Geological map of Liberia; all favourable
indications for gold prospectivity.
(IMAGE REMOVED FOR SENS PURPORSES)
Artisanal workings observed within the Sinoe project area
(IMAGE REMOVED FOR SENS PURPORSES)
Sinoe Project area on regional total aeromagnetic imagery showing approximate
locations of advanced projectsalong strike to the east and access.
Since field work commenced in late August 2011, field teams have completed soil
sampling over the target area for a total of 3300 samples on an 800x100 m
sampling grid of which 2360 were collected this quarter. All samples have been
submitted to SGS Laboratory Liberia and full results expected end February 2012.
Field mapping of access, artisanal workings and geology has continued in
parallel with sampling activities. Mapping has highlighted an interpreted fold
closure within biotite and biotite-garnet schists and increased pegmatite
intrusive sills and dykes in the central-northern portion of the license. This
area coincides with increased artisanal activity over several kilometres in
both alluvial and eluvial settings. This area is considered highly prospective
with reconnaissance sampling returning up 1g/t gold in soil samples.
Mofe Creek Iron Project
The mineral reconnaissance license covers 285 km2 over Grand Cape Mount and Bomi
Counties in Western Liberia and 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.
(IMAGE REMOVED FOR SENS PURPORSES)
Left: Well-maintained sealed main road from Monrovia through license area.
Right: Laterite road, topography and vegetation within license area.
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 lump
in addition to magnetite concentrate beneficiated from itabirite
(metamorphosed and re-crystallised banded iron formation).DSO magnetite
lump 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.
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. Similar settings are noted at Mofe Creek.
(IMAGE REMOVED FOR SENS PURPORSES)
License area and sampling results relative to Bomi Hills mine and
infrastructure; underlay aeromagnetics analytical signal base map.
The iron formation is medium to coarse grained, sugary laminated quartz-
magnetite +/- hematite with an average grain size of 2-5mm at varying degrees
of weathering. Where strongly weathered, the material is less magnetic and
easily crumbled by hand to liberate iron oxides from quartz gangue. From
approximately 70 rock chips sampled to date, the iron formation averages 35-50%
Fe, 45-20% SiO2, 0.7% Al2O3, <0.01% P2O5, 1.32% LOI and has been mapped over 35
km of strike. No sulphur and below detection or at detection limit Ti, V or Cr
was recorded within the samples.
Metre scale outcrops of massive magnetite were also observed within the license
area further enhancing the exploration model for hypogene, massive magnetite
bodies like Bomi Hills. High-grade weathered friable hematite/magnetite and
massive magnetite sampled in outcrop within the license area returned on average
63.8% Fe, 3% SiO2, 2.4% Al2O3, 0.08% P and 2.6% LOI in 2 samples. This
demonstrates the hypogene magnetite potential similar to Bomi Hills and further
enhancing prospectivity.
(IMAGE REMOVED FOR SENS PURPORSES)
Left: Medium-coarse grained, laminated quartz-magnetite iron formation. Right:
weathered variety of similar rock type crushed by hand forming soft, friable
quartz-magnetite sands easily beneficiated by magnet pen.
(IMAGE REMOVED FOR SENS PURPORSES)
Left: Outcropping iron formation with larger 10`s cm scale magnetite
segregations. Right: Weathered, softened magnetite from outcrop forming high-
grade, clean magnetite/hematite fines.
All samples were assayed by SGS Liberia and were sourced from in-situ
outcropping material, were dried and crushed to a nominal 2 mm using a jaw
crusher then the whole sample pulverised in a LM2 to a nominal 85% passing 75
Nm. A 200g sample was then scooped, with iron ore analysis of majors and minors
by borate fusion-XRF.
On the basis of preliminary reconnaissance mapping and analogies drawn with Bomi
Hills 10 km along strike, the company is targeting both massive, high-grade DSO
magnetite lump mineralisation and weathered, easily beneficiated `soft` iron
formation for high-grade beneficiated fines.
Both styles of mineralisation have been confirmed in the license area.
On the basis of initial mapping and sampling results, the Company plans to fly a
detailed aeromagnetics survey to better define mineralisation distribution,
structure 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.
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.
Nimba and Lofa Gold Project
Results for the stream sediment BLEG sampling programmes over Nimba and Lofa
were received during the quarter. Clustering of gold anomalies was observed in
the south of the Nimba tenement area. In addition gold anomalies were
scrutinised and ranked by evaluating their multi-element geochemical signatures
based on relative metal concentrations. Clear multi-element geochemical
signatures (Au+Ba+Ga/La+Pb and Au+Cu+Fe+Pb+Ti+V) were observed with peak gold
anomalism, providing confidence that the stream sediments substantially sampled
bedrock and that the gold anomalies are genuine. Peak anomalies were recorded at
16 ppb; 16 times higher than background gold levels of around 1ppb. These
factors combined provide confidence that results are robust and defining
anomalism associated with upstream gold mineralisation.
The strongest gold response in the SW corner of Nimba is defining a +10 km
strike length ridge and two smaller sub-parallel ridges on either side of the
main trend. These target areas are further enhanced by increased artisanal
mining activity downstream, coincident topographic and magnetic highs and
favourable structural and lithological settings.
(IMAGE REMOVED)
Close up view of SW corner of Nimba license looking SW, along primary central
10 km target ridge (white dashed line) and area for soils follow-up (pink
highlighted area). Secondary target area shown on western flank. Catchments
coloured by Au anomalism (pink, red, yellow, green, light blue, dark blue,
highest to lowest), sample point (floating ball) and Au assay (in ppb). Note
clustered anomalism in streams draining the southern and central portions of
the ridge line with dominant anomalism along the eastern flank. Image draped
over Google Earth imagery.
At Lofa peak gold anomalism was reported at 8.6 ppb; 8.5 times higher than
background gold levels of around 1ppb. Clustering of anomalies was observed
within streams draining a discrete 6x3 km area of hills in the north-west of the
tenement area. Anomalies were scrutinised further and multi-element geochemical
signatures defined, with the strongest gold response associated with a
Au+Ba+Ga/La+Pb signature as per Nimba in addition to a Cu-Ni-Cr-V-Ti-Fe metal
association suggesting a mafic/ultramafic lithological host.
Ultramafics have not been recorded on the government USGS regional geological
map; however, native Cu mineral occurrences are recorded on the northern licence
boundary immediately adjacent, further supporting and enhancing the anomalous
area.
(IMAGE REMOVED)
Lofa license overview looking SW draped over Google Earth imagery with anomalous
catchments circled (in white) and associated discrete 6x3 km area of hills.
License boundary in black, catchments coloured by Au anomalism (red-orange-
yellow-green-light blue-dark blue; highest to lowest), sample point (floating
ball) and Au assay (in ppb).
Stream sediment samples were collected using a Bulk Leach Extractable Gold
(BLEG) methodology which is designed to minimise "nugget effect" sampling issues
and increase repeatability. The BLEG methodology used is specifically designed
to highlight mineralisation signatures from large hydrothermal gold systems
whilst filtering out the effects of small, high-grade systems that can generate
costly and time consuming false anomalies. It is effective in tropical
environments where there has been long lived deep weathering and erosion
creating significant dispersion trains.
All samples were submitted to OMAC Stewart Group laboratory for gold and
multi-element geochemical analysis. Gold analysis was by low level BLEG using
accelerated active leach with leach aid (DL 0.1ppb) and multi-element
geochemical analysis was by Aqua Regia digest and combined Inductively Coupled
Plasma with Atomic Emission Spectrometry or Mass Spectrometry (ICPAES/MS)
finish.
Results received have passed internal and external QA/QC procedures and are
within reporting error limits of certified standards providing confidence in
reported results.
Work Plan going forward
Pending results infill soil sampling on a 400x50 and 200x50 m grid in
conjunction with trenching is planned at Sinoe over the following quarter.
Pending results drilling of subsequent target areas is planned.
Field mapping will be completed at Mofe Creek along the western portion of the
license area. Pending results of mapping and rock chip sampling, an aeromagnetic
survey is planned over the license area to define iron formation limits,
lithology, structure and degree of weathering. Both the geological mapping and
airborne survey will be used to plan pitting and trenching and pending results
drilling of subsequent target areas is planned.
A soil sampling programme has been planned to cover the newly identified target
areas. Field teams are currently being mobilized. Pending results, infill soil
sampling and trenching followed by drilling of subsequent target areas is
planned.
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 and recently
re-elected in November 2011 for her second term. 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 will be 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.
South Africa
Rakana Consolidated Mining Pty Ltd (TAW 26%)
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 (`TJV`). The Avontuur Manganese project which includes
the Gravenhage manganese resource and the Meletse iron ore resource are
incorporated under the TJV.
(IMAGE REMOVED)
Ownership structure of Rakana assets
Avontuur Manganese Project (TAW indirect interest 6.7%)
The Avontuur high-grade Manganese Project is located in the Northern Cape
Province, South Africa and approximately 30 km north of the Kalahari Manganese
Field, South Africa`s premier manganese producing area.
Aquila Resources Ltd completed a Definitive Feasibility Study for the Gravenhage
Manganese Project during the quarter. In addition to this, Aquila announced a
resource upgrade for Gravenhage from 107 Mt to 117.9 Mt at 38.3% Mn. For further
technical detail please refer to Aquila`s Gravenhage DFS completion announcement
of 30th November 2011.
The Avontuur Project is incorporated in the Thabazimbi Joint Venture.
(IMAGE REMOVED)
Avontuur Resource Statement (>34 wt% Mn, AQA 30 Nov 2011)
Aquila announced on 28th July 2011 in its June 2011 Quarterly Report that a
process has commenced to dispose of its interest in the Gravenhage Manganese
Project and that indicative bids are expected during the July-September 2011
Quarter. No subsequent announcements have been made; results of the process are
awaited.
Thabazimbi Iron Ore Project (TAW indirect interest 6.7%)
The Meletse Iron Ore Project has a JORC compliant indicated and inferred
resource estimate of 47.6 Mt 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.
(IMAGE REMOVED)
Meletse Iron Ore Project Resource Estimate (AQA 30th Nov 2010)
Kareevlei Wes Project, Kimberley Region (TAW 100%)
The Kareevlei Project Area is comprised of a cluster of five kimberlites located
approximately 100 km northwest of Kimberley.
Daniel Alluvial Project, Kimberley Region (TAW 100%)
The Daniel Alluvial Project is a large buried palaeo alluvial diamond project 2
km south of the Finsch kimberlite diamond mine. It was discovered in 2003
following a FALCOMTM survey by BHPB targeting satellite kimberlite pipes around
Finsch. The project consists of three diamondiferous palaeo gravel channels;
Feeder Channel, Main Channel and Eastern Gravels. The Daniel diamonds are
interpreted to be derived from eroded diamondiferous Finsch kimberlite material.
Perdevlei Kimberlite Project, Kimberley Region (TAW 100%) Closure was applied
for over the Perdevlei kimberlite project during the quarter as the license term
expired in December 2011.
St Augustine (TAW 30%) and Lexshell Projects, Kimberley Region
The St Augustine kimberlite project is located approximately 600 m west of the
Big Hole in Kimberley. It is a historic surface and underground mine reportedly
mined to a depth of 800 ft (242 m). The conceptual target is primary kimberlite
at depth below historic workings and remains untested.
The Lexshell alluvial project is located 50 km north-east of Kimberley, at the
confluence of the Vaal and Harts rivers. The project has targeted and confirmed
the presence of diamondiferous palaeo alluvial channels.
The Company is seeking divestment opportunities for its South African diamond
projects as part of its ongoing rationalisation.
Botswana
Orapa Project (100% 0wned by Seolo Pty Ltd, a wholly owned subsidiary and
Firestone Diamonds Ltd (AIM: FDI) having the right to initially earn 70%
interest in the Project)
The Orapa project consists of the BK24 kimberlite 22 km north-north-east of
Lelthalkane and under joint venture with Firestone Diamonds (AIM: FDI). Under
the JVA Firestone has the right to initially earn 70% in the Project through
funding and execution of exploration activities including the collection and
processing of a bulk sample of kimberlite.
Australia
Flinders Island & Venus Bay Projects, South Australia (TAW 80%, 20% Orogenic
Exploration with Flinders Mines earning in)
The Flinders Island and Venus Bay Projects are located along the western Eyre
Peninsula coast line, South Australia. Licenses are held by Tawana Resources NL
(80%) and Orogenic Exploration Pty Ltd (20%) with Flinders Mines Ltd earning
equity under a farm in JV. For further information, please contact:
Lennard Kolff van Oosterwijk
Chief Executive Officer
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.
The information in this report, insofar as it relates to the Meletse Iron Ore
Resource and the Gravenhage Manganese 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.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
27 January 2012
Date: 27/01/2012 15:29:01 Supplied by www.sharenet.co.za
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