Wrap Text
TAW - Tawana Resources NL - Binding heads of agreement, Cape Mount 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")
BINDING HEADS OF AGREEMENT, CAPE MOUNT GOLD PROJECT
Note: All figures have been removed from this announcement for SENS
purposes, and can be found on the company`s website.
HIGHLIGHTS
Tawana to acquire the Gold Rights to the Cape Mount Gold Project covering
1,996 km2 of highly prospective Archean geology
Cape Mount Gold Project hosts numerous target areas including Soso Hill/Fula
Camp, Butter Hill and Gondoja
Historical drilling results at the Soso Hill/Fula Camp include:
- 9.9m at 5.4 g/t of gold from 20m
- 12.5m at 3.1 g/t of gold from 20m
- 21.4m at 2.4 g/t of gold from 16m
Drill ready targets identified 35km along strike from Aureus Mining Inc`s
(TSX, AIM: AUE) 1.57 Moz New Liberty Gold deposit
Priority targets defined along strike extensions of Aureus` Gondoja Project
(previous drilling by Aureus includes 36m at 3.3 g/t gold)
Reconnaissance rock chip sampling from Soso Hill/Fula Camp returns 6m at
23.6 g/t of gold, including 2m at 53.8g/t of gold, on a previously untested
target
Soil sampling target defined at Butter Hill artisanal mining site
Direct and easy access from Monrovia via sealed and laterite roads
Strong local Liberian partner
Tawana Resources NL (ASX: TAW) is pleased to announce it has entered into a
binding Heads of Agreement with a private Liberian company, to acquire the
Gold Rights to 1,996 km2 of highly prospective Archean geology in Grand Cape
Mount County, north-west Liberia, West Africa.
Managing Director, Len Kolff said "This is a fantastic result for Tawana to
secure the gold rights to such a large, contiguous and highly prospective
Archean land package right next door to Aureus Mining's 1.57 Moz New Liberty
Gold Project".
"We have drill-ready targets on our ground with reconnaissance rock chips
returning up to 53.8 g/t gold, we have high-priority soil sampling targets
along strike from known mineralisation with coincident artisanal workings
and we have an excellent opportunity to blanket BLEG sample the entire 1,996
km2 to rapidly assess for additional targets".
"Tawana has now secured strategic land positions on the two most gold
prolific structures and arguably the newest gold provinces in Liberia" he
said.
"Add to this our recently announced Mofe Creek high grade DSO magnetite
project and Tawana is in a strong position with projects in two high value
and highly sought after minerals".
(Figure 1: Cape Mount Gold Project Licenses (in yellow) on SRTM topography
and Aureus Mining Inc`s Licence (in red) which host the 1.57 Moz New Liberty
deposit- Figure removed for SENS purposes)
Cape Mount Gold Project comprises two exploration licenses (the ,licenses')
cover 1,996 km2 of highly prospective Archean geology in north-west Liberia.
The southern license covers 1,000 km2 and is directly adjacent to Aureus
Mining's Bea Mountain Mining License and along strike from the 1.57 Moz New
Liberty gold deposit. The northern license covers 996 km2.
Previous exploration including soil sampling, trenching and drilling was
carried out within the license areas by Mano River Resources, now Aureus
Mining Inc.
Geological setting and prospectively
The licenses are located within the Archean Man Craton of West Africa; a
high potential yet underexplored gold district. The 1.57 Moz New Liberty
gold deposit and Leopard Rock-Ndablama-Gondoja gold corridor sit directly
adjacent to and along strike from the licenses. Mineralisation in these
geological settings is often characterised by high-grade intersections over
variable widths.
Soso Hill - Fula Camp Target
Drill ready targets have been identified at the Soso Hill - Fula Camp trend
where recent artisanal mining has uncovered a high-grade amphibolite schist
structure similar to the New Liberty setting, returning rock chip samples of
23.6 g/t of gold over 6m, including 2m at 53.8 g/t of gold. Previous
drilling by Mano River further south along the same trend but not within
this newly identified zone returned intersections of 9.9m at 5.4 g/t, 12.5m
at 3.1 g/t and 21.4m at 2.4 g/t gold providing high encouragement for future
exploration success along an already defined >4 km strike length.
(Figure 2: Soso Hill artisanal hard rock working with rock chip channel
samples up to 53.8 g/t gold over 2m and 23.6 g/t over a 6m composite.
Visible gold observed from panned weathered amphibolite taken within the
artisanal pit- Figure removed for SENS purposes)
Gondoja Target
At the Gondoja target within the south-east of the license area,
reconnaissance drilling by Aureus directly adjacent to the target area has
returned intersections including 36m at 3.3 g/t gold. Gold in soil anomalies
appear open along the license boundary to the east into the target area, in
addition to continuation of favorable lithologies and structural settings
further enhancing the prospectivity and supporting commencement of soil
sampling.
Butter Hill prospect
The Butter Hill prospect is an historic alluvial and eluvial gold mining
area characterized by a discrete 5 x 2 km hill occurring along a major north-
easterly trending fault on the regional geological map. Extensive active
alluvial and eluvial workings were visited during a reconnaissance trip and
observed to occur within several streams draining this hill. A road cutting
with sheared mafic lithologies within gneiss basement was observed on the
south-west flank of the hill. No previous modern day exploration has been
carried out in this area and in combination with extensive artisanal
workings and sheared mafic lithologies further enhances the prospectivity of
this target supporting commencement of soil sampling.
Areas for immediate soil sampling follow-up have been defined in the Gondoja
and Butter Hill areas on the basis of extensive artisanal workings,
favorable geological settings and directly adjacent to and along strike from
known gold mineralized corridors.
(Figure 3: Southern License target areas; Soso Hill - Fula Camp trend,
Butter Hill target and Gondoja target along strike from Ndablama - Gondoja
gold corridor defined by Aureus. Note location of Soso Hill artisanal site-
Figure removed for SENS purposes)
(Figures 4 & 5: Artisanal workings within the Butter Hill area showing
removal of overburden and gravels down to saprolite (grey clay) on the left
and large scale of workings on the right- Figure removed for SENS purposes)
(Figures 6 & 7: Large scale hard rock artisanal gold workings in the Fula
Camp area. Pit faces up to 15m vertical were observed (right) and adits into
rock faces (left) - Figure removed for SENS purposes)
(Figure 8 (left): Soso Hill hard rock artisanal gold workings. Figure 9
(centre): Washing area using sieve to wash material and sluice box with
carpet to trap gold. Figure 10 (right): Gold material panned from an
approximately 1 kg sample of weathered mafic rock within the Soso Hill
working - Figure removed for SENS purposes)
Work Programme and Timing
Following the success of our BLEG sampling methodology employed under the
Gryphon Strategic Alliance to rapidly assess large license areas, this
acquisition presents the ideal opportunity to utilize this methodology to
rapidly assess the entire 1,996 km2 to identify additional target areas.
This will be completed in parallel with the soil sampling and drilling
projects to define the most prospective areas within the broader license
area.
Field work including trenching will immediately commence on the Soso Hill -
Fula Camp trend to plan initial drilling. Separate field teams will in
parallel commence 400 x 50m soil sampling programmes over the Butter Hill
and Gondoja target areas. Stream sediment BLEG sampling will be carried out
by a dedicated team over the entire license area. Drilling is expected to
commence during the second or third quarter of 2012 whilst results of the
soil sampling programmes are expected to be available in May 2012. BLEG
sampling will remain ongoing through the 2012 field season and expected to
be completed prior to the onset of the wet season in August / September
2012.
Location and Access
The two licenses cover 1,996 km2 and are located in Grand Cape Mount County
in the north-west of Liberia, approximately 125 km north-north-west of
Monrovia Access is via a well maintained, sealed road from Monrovia to
Tubmanburg and laterite and unsealed roads into the license areas. Access
into the Northern license is more challenging; however, the majority of
field work is currently planned for the Southern license. Dependent on
project area, drive time varies between 3 to 5 hours from Monrovia.
(Figure 11: Cape Mount Gold Project license location relative to other
Tawana projects and regional road network - Figure removed for SENS
purposes)
Binding Heads of Agreement
The Company has signed a binding Heads of Agreement with a private Liberian
company to acquire the gold rights over the Cape Mount Gold Project
licenses.
Under the terms of the agreement Tawana will acquire the gold rights to the
Cape Mount Gold Project exploration licenses under the following terms and
conditions:
1. US$500,000 payable on signing of the Definitive Agreement; plus
2. US$500,000 payable 12 months after the signing of the Definitive
Agreement
3. Tawana grants the Vendor a 2.5% NSR Gold Royalty;
4. The Vendor grants Tawana a first right of refusal to acquire the Gold
Royalty and base metal rights to the licences; and
5. The Vendor is permitted to continue alluvial mining for gold and diamonds
on its Class B Mining licenses and eluvial gold mining to a maximum depth of
15 meters from the natural surface exclusively within the Soso Camp License
only (0.64 km2). Any gold extracted under this clause is excluded from the
Gold Rights.
The terms of this agreement are subject to the completion of an exclusive
due diligence period and execution of a Definitive Agreement within 45 days.
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 visit www.tawana.com.au or contact:
This announcement effectively lifts the trading halt that the Company
requested on Monday 13 February 2012. The Company is not aware of any reason
why the ASX would not allow trading to recommence immediately.
Lennard Kolff van Oosterwijk John Gardner
Managing Director Magnus Investor Relations & Corporate Communications
Office: +61 7 3510 2115 Managing Director
Mobile: +61 413 355 997
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.
15 February 2012
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 15/02/2012 09:35:51 Supplied by www.sharenet.co.za
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