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TAW - Tawana Resources NL - Soil Anomalies Defined at Sinoe Gold Project

Release Date: 06/02/2012 09:04
Code(s): TAW
Wrap Text

TAW - Tawana Resources NL - Soil Anomalies Defined at Sinoe Gold 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") Eight Kilometre and Six Kilometre Long Soil Anomalies Defined at Sinoe Gold Project, Liberia, West Africa HIGHLIGHTS - Two significant +30 ppb soil anomalies defined with up to 1 g/t gold in soils on a broad reconnaissance grid - Southern anomaly 8 km long by 400 - 1400m wide and Northern anomaly 5.8 km long by 400 - 1000m wide - 25 km along strike from 3.8 Moz Dugbe 1 (AIM: HUM), 40 km along strike from the 10 km long Bukon Jedeh soil anomaly (ASX: EQU) - Northern anomaly open to the west and additional anomalies defined immediately south - Strong potential for additional targets in the southern licence half - Emerging gold province in West Africa - Aggressive infill soil sampling and trenching underway - Results expected and drilling likely to occur in second quarter 2012 Tawana Resources NL (ASX: TAW, the `Company`) is pleased to announce it has identified several high priority soil anomalies from its maiden geological exploration program on the company`s Sinoe project in Liberia, West Africa. Tawana Resource NL, Managing director, Len Kolff said "This is a great result for the Sinoe Gold Project; large, coherent gold in soil anomalies have been identified in our maiden sampling programme that are open in multiple directions and that we expect to grow significantly in size with further sampling programs underway", further adding "infill 200 x 50m soil sampling and trenching is underway to fast track target generation for drilling potentially in second quarter 2012." "The Dugbe Shear is shaping up to become a major new gold province in the West African gold story; it is exciting to be part of this emerging province" he said. Sinoe Soil Anomalies Preliminary results have been received for the maiden soil sampling completed at the Sinoe Gold Project on a 800 x 100m soil sampling grid. Of the total 3300 soil samples collected between September to December 2011, approximately 2000 results have been received. Remaining results are expected imminently to further define known soil anomalies within the north and test southern extensions in the south of the license area. Results to date have defined two large coherent and continuous +30 ppb soil anomalies with results up to 1 g/t Au in soils, providing confidence of significant mineralisation occurring below. The southern +30 ppb soil anomaly is approximately 8 km long and between 400 m to 1.4 km wide. The northern +30 ppb soil anomaly is approximately 5.8 km long and between 400m to 1 km wide and remains open to the south-west. Pending results will infill this area and possibly increase the anomaly strike length. Additional smaller soil anomalies occur between and sub-parallel to the primary anomalies. All soil anomalies strike north-east, in a similar orientation to the Dugbe 1.8 Moz and recently announced Tuzon 2.05 Moz maiden resource (AIM: HUM). The north-easterly strike direction is evident on regional government geophysical data sets and major river drainage orientations and is interpreted to represent north-easterly striking secondary shears off the major Dugbe Shear. The geology of the Sinoe North area is characterised by a package of gently dipping biotite and garnet-biotite schists, intruded by cm to >10m scale pegmatite dykes and sills, mafics and late granitic intrusives. The pegmatite sills appear to be intimately associated with areas of enhanced gold anomalism and are characterised by gently dipping sills of coarsely crystalline quartz, feldspar, mica, accessory minerals and visible sulphide. Regional strike is east west dipping gently at around 25 to 30 degrees to the north and swings to the north-east above the Dugbe Shear. The shallow dip combined with the apparent association between enhanced gold anomalism and greater abundance of mapped pegmatite sills enhances the potential of a low strip ratio, high-tonnage per vertical meter system. (Image removed for SENS purposes:Artisanal alluvial workings encountered within the project area and medium grained gold produced by the local miners) The streams and headwaters draining the anomalous areas are characterised by intensive artisanal alluvial and eluvial mining activity. Fine to medium grained gold won by the artisanals was observed as well as reports of nugget gold within the strongest defined soil anomalies to date. (Image removed for SENS purposes: Overview of Sinoe soil anomalies and project location relative to other advanced projects in the area. Reported +30 ppb soil anomalies highlighted in dashed white and other advanced projects in red polygons. Gridded soil geochemistry by inverse distance squared and NE trending search ellipsoid; image overlay on SRTM grey scale image) (Image removed for SENS purposes: Detail of Sinoe north area soil geochemistry and anomalies defined.) Sampling and Assay Methodology Soil samples were collected on a nominal 800 x 100m grid. Lines were cut and surveyed using hand held GPS. Approximately 1.5kg of B horizon soil was collected below the surface vegetation and humus layer; generally around the 30cm depth profile. Sample sites that occurred within close proximity to transported stream sediments were moved to the nearest available site to avoid sampling stream sediment and target in-situ weathered soil horizons. Ground conditions, regolith profile, soil composition and slope direction were recorded at each sample site and the location surveyed using hand held GPS. Alternating field duplicates and certified standards at various analytical levels were inserted every 25th sample for QA/QC purposes. All samples were submitted to SGS Laboratory in Monrovia for sample preparation and gold analysis. The entire sample was crushed to a nominal 2mm by jaw crusher then pulverised to a nominal 85% passing 75Picam and a 200g scoop sub-sample taken for analysis. Laboratory preparation equipment was flushed using barren material between each sample run. Gold analysis was by Aqua Regia digest and Solvent Extraction AAS finish (DL 0.002 ppm). Results received to date have passed internal QA/QC procedures and are within reporting error limits (+/-95% CL) of certified standards and duplicates inserted by the Company providing confidence in the reported results. Next Steps and Timing Infill 200 x 50m soil sampling has commenced within the Sinoe north project area. Trenching along highest tenor gold intervals from existing soil sampling has commenced on the southern anomaly. Infill soil sampling and trenching is expected to be completed in April 2012. Pending review of results, drilling is planned to commence during the second calendar quarter 2012. (Image removed for SENS purposes:Trenching currently underway on the Southern anomaly at Sinoe) Location and Access (Map removed for SENS purposes: Sinoe license location relative to other Tawana projects and regional road network) The Sinoe mineral exploration license was acquired under the Global Mineral Investments joint venture announced in August 2011. The Sinoe Licence covers 400 km2 and is 25 km along strike from the 1.8 Moz Dugbe gold deposit and 40 km along strike from the Bukon Jedeh gold project. Access is via sealed and laterite road from Monrovia and takes approximately 11 hours to reach the Sinoe Project area. There is an operational airstrip and hospital in Greenville and roads around the project area are in good condition due to the active logging companies. Sinoe Option Agreement The Company and Global Mineral Investments LLC (`GMI`), a private Liberian company signed a binding Heads of Agreement for an option to purchase outright the mineral exploration licence over the Sinoe Project held by GMI. Under the terms of the agreement the Company has the option to purchase outright the mineral exploration licence after meeting the following terms and conditions: 1. US$10,000 Option payment to secure exclusivity - PAID 2. US$40,000 Execution payment on successful due diligence - PAID 3. US$50,000 Execution payment within 6 months of the commencement of exploration or announcing to market a significant exploration target - PAID The Company is to fund exploration during the first year after which it has the right to purchase the licence outright or walk away unencumbered. Should the Company choose to purchase the licence outright it does so at the following terms: 1. US$350,000 payment and 6 million shares in the Company 2. US$1 million payment at announcement of 1 Moz JORC compliant resource 3. Additional US$1 million payments for each additional 500 Koz JORC compliant resource announced to market up to a maximum JORC compliant resource of 2.5 Moz 4. US$5 million payment at pouring first gold from a mining operation within the licence area. 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 for a second term in November 2011. 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 BHPBilliton, 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 06 February 2012 Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 06/02/2012 09:04:01 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.

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