Wrap Text
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
('the Company' or 'Tawana')
Quarterly Activities Report For the quarter to 31 December 2016 and appendix 5B
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES.
PLEASE REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Highlights
Bald Hill Lithium Project
- Tawana Resources NL ('Tawana' or 'the Company') acquired Lithco No.2 Pty Ltd
(Lithco), giving it the right to earn a 50% interest in all minerals (including lithium and
tantalum), processing plant and infrastructure.
- The Project is currently owned by Alliance Mineral Assets Limited (AMAL) and is
adjacent to Tawana's Cowan Project.
- A conceptual engineering study was completed which highlighted a potentially highly
profitable operation, rapid payback and a low capital cost by retrofitting a spodumene
circuit.
- Experienced lithium plant engineering company Primero Group was engaged to
conduct a Feasibility Study. Primero was involved with the latter stages of construction
and is currently involved with the commissioning of Galaxy Resources Limited's Mt
Cattlin Project.
- Tawana well-positioned to potentially become an Australian spodumene producer in the
second half of 2017.
Cowan Lithium Project
- Spodumene, tantalum and tin pegmatites were intercepted at Cotters North located
10km NNW of the Bald Hill Mine in first pass drilling.
Uis Lithium Project
- Resource drilling of large stockpile is complete and results confirm to contain
significant lithium and tin mineralisation.
Corporate
- A placement to raise $7.2 million completed to advance lithium projects.
Plans for March quarter
Bald Hill
- Maiden Lithium Resource estimate;
- Metallurgical test-work with optimised flow sheet;
- Feasibility Study - detailed design and order of key capital components;
- Award EPC contract; and
- Narrow down potential off-takers
Other Projects
- Further drilling on Cowan Project and Resource estimate and metallurgical test work on
Uis Project.
Bald Hill Project (TAW earning 50%)
Acquisition During the quarter, Tawana acquired 100% of Lithco No.2 Pty Ltd (Lithco),
which has rights to earn into the Bald Hill Mine. The Bald Hill Project area is located 50km
south east of Kambalda in the Eastern Goldfields, approximately 75km south east of the Mt
Marion Lithium project, and is adjacent to the Company's Cowan Lithium Project. The
Project comprises four mining leases, eight exploration licences, eight prospecting licences
and five tenement applications totalling 791.3km2 .
It is owned by Australian-incorporated, Singapore Exchange-listed Alliance Mineral Assets
Limited (AMAL). Lithco entered a Farm-In and Joint Venture arrangement with AMAL to
jointly explore lithium and other minerals at the Project.
Spodumene-rich pegmatites have been discovered at the project and partially mined for
tantalum. Spodumene was not recovered during prior mining, however recently AMAL
produced spodumene-rich by-product concentrates up to 6.73% Li2O during
recommissioning of its refurbished tantalum plant.
By acquiring Lithco, the commercial terms under the agreement with AMAL require
Tawana:
1. to spend, by 31 December 2017 (or such later date as may be agreed between the
parties), a minimum of $7.5 million on exploration, evaluation and feasibility
(including administrative and other overhead costs in relation thereto) (Expenditure
Commitment); and
2. . to spend, $12.5 million in capital expenditure required for upgrading and converting
the plant for processing ore derived from the Project, infrastructure costs, pre-stripping
activities and other expenditures including operating costs (Capital Expenditure).
Upon completion of the Expenditure Commitment, Tawana shall be entitled to 50% of all
rights to lithium minerals from the tenements comprising the Project (Tenements).
Upon completion of the Expenditure Commitment and Capital Expenditure, Tawana will be
entitled to a 50% interest in the Project (being all minerals from the Tenements and the
processing plant and infrastructure at Bald Hill).
Upon completion of the Expenditure Commitment and Capital Expenditure and subject to
binding definitive farm-in and joint venture agreements, a Joint Venture between Tawana
and AMAL will be formed and funded 50:50 by Tawana and AMAL.
Exploration conducted December quarter
During the quarter a total of 91 exploration, resource, metallurgical and sterilization drill
holes were completed totalling 8521m RC and 952.3m of core.
The drilling intercepted significant spodumene mineralisation south of the largest pit (South
Pit) within pegmatites that are interpreted as those previously mined and newly discovered
larger pegmatite/s located in the footwall. (Refer ASX Announcement 17 November 2016
for full results).
There are strong indications that the pegmatites in the Bald Hill mine grade from narrow
and tantalum-rich in the north to north-east to wider and lithium-rich in the south to south-
west. Where there are multiple sub-horizontal pegmatites, the shallow ones tend to be richer
in tantalum and deeper ones richer in lithium.
Metallurgical Testwork and Flowsheet Metallurgical test work results (Refer ASX
Announcement 24 October 2016) showed potential to produce high grade DMS
concentrates. Subsequently sighter floatation test-work on combined 1mm DMS gravity
concentrates (middlings) has been undertaken. The resulting floatation recovery was
favourable with returning a recovery of 74.7% at a grind size of P80 0.18mm, with a
combined concentrate grade of 6.42% Li2O.
The combined DMS and Flotation concentrates accounted for 83% of the calculated
contained lithium at an average grade of 6.1% Li2O with very low mica content. Further
work will be undertaken to optimise recovery and concentrate grade.
Although Tawana is still undertaking confirmatory metallurgical testwork, it is proposed to
approach the project in two phases to reduce time and cost to initial production. This will
also allow a fast track approach from study to detailed design, construction, commissioning
and lithium concentrate production.
The very coarse spodumene at Bald Hill is noted for its unusually high recovery in DMS
testwork and the ability to produce high grade spodumene concentrates.
The Phase 1 flowsheet will consist of a 1Mtpa spodumene concentrator circuit using dense
medium separation (DMS) with fines (representing 20-30% of the feed) either temporarily
stockpiled or passed through the existing spiral circuit to remove tantalum and potentially
produce a rougher spodumene concentrate.
The Phase 2 flowsheet, which may not be required, takes fines, spiral concentrates and the
DMS mid-floats product and re-processes by flotation after milling to produce a high grade
fine lithium product.
Feasibility Study
A conceptual engineering study at the Bald Hill Mine highlighted a potentially highly
profitable operation, rapid payback and a low capital cost by retrofitting a spodumene
circuit.
As a result, Tawana has commenced a Feasibility Study for the Bald Hill Lithium and
Tantalum Mine which will include capital costs to an accuracy of +/- 15% and operating
costs to an accuracy of +/-25%.
The study, which is expected to be completed by the end of March 2017 is being conducted
by lithium plant engineering company Primero Group who was the project manager for the
final stages of construction, commissioning and ramp-up of Galaxy Resource Limited's Mt
Cattlin Lithium Project.
Detailed Design
A proposal and a scope of work including deliverables has also been received from Primero
which should allow a seamless flow on from the Study to detailed design. This is important
to allow long lead items to be procured during the early stages of detailed design to meet
construction completion in late October 2017.
Marketing and Off-Take
Tawana and AMAL have been approached by several significant entities within the lithium
supply chain with strong demand to obtain near-term spodumene concentrate and received
written proposals. There appears to be a significant shortage of uncommitted spodumene in
2017-2018 to feed new Chinese convertors, which thereby places Tawana in an enviable
position.
Table 1| 2017 Milestones
Bald Hill Project Commissioning Timeline Q1 Q2 Q3 Q4
Conceptual Engineering Study -
Resource Q1
Completion of metallurgical test work with Q1
optimised flow sheet
Conditional offtake agreement Q1
Feasibility study Q1
Place orders for long lead items Q1
Place orders for other capital requirements Q2
EPC process plant contract award Q1
Construction commence Q2
Commissioning commence Q4
Cowan Lithium Project (Option to Purchase 100%)
The Cowan Lithium Project is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is 75km south-east of the Mt Marion Lithium project
and is adjacent to the more advanced Bald Hill Mine Project (see Figure 1).
Tawana commenced first pass exploratory drilling on Cowan in September 2016,
completing 189 holes totalling 14,419m to date, in five areas based on geochemical,
geophysical and outcrop information. Due to shallow weathering, RC drilling was adopted
over RAB drilling.
Spodumene pegmatites were intercepted in four areas with the Cotters North prospect
appearing the most promising, where a total of 43 holes were drilled over an area 1.4km by
0.8km. Pegmatites were intercepted in 16 of the drill holes of which 10 contained
spodumene, and seven contained elevated tantalum and tin. Significant intercepts are
contained within Tables 2 and 3.
Though pegmatites intercepted to date at Cotters North are generally narrow, some are sub-
horizontal, which provide the best targets for resource tonnage. The northern limit of the
current footprint of the prospect is the most prospective and open to the north and west
under soil cover. Pegmatite fractionation appears to be generally increasing towards the
north.
Based on successful early results from the St John pegmatites on the adjoining Bald Hill
tenements, a prime drill target within the Cowan Project area south of St John awaits
testing.
Table 2| Drill Summary, Cotters North Pegmatite Intercepts
Hole ID Easting Northing RL Depth Azm Dec. From To Width Pegmatite
TRC0046 416633 6521854 300 40 90 -60 0 2 2.0 Li,Ta
TRC0047 416680 6521880 300 79 90 -60 16.8 18 1.2 Li
TRC0048 416720 6521880 300 80 90 -60 0.8 3.6 2.8 barren
TRC0050 416620 6522000 300 80 90 -60 5.2 8 2.8 barren
TRC0055 416640 6521999 300 42 90 -60 0 4.9 4.9 Ta, Be
TRC0058 416500 6522400 300 80 90 -60 20.6 27.9 7.3 Li, Ta
TRC0067 415820 6522800 300 80 90 -60 22.5 24.1 1.6 Ta
TRC0070 416220 6522800 300 80 90 -60 19.4 20.9 1.5 Sn, Ta
TRC0071 416260 6522800 300 80 90 -60 22 24 2.0 Li, Ta
TRC0072 416300 6522800 300 80 90 -60 35 38 3.0 Li, Ta
TRC0073 416340 6522800 300 80 90 -60 61.1 66.5 5.4 Li, Ta
TRC0075 416420 6522800 300 80 90 -60 35.4 38.5 3.1 Li, Ta, Sn
76.7 77.7 1.0 Li
TRC0078 416400 6522600 300 80 90 -60 10.1 11.9 1.8 Li
13 16 3.0 Li
TRC0079 416600 6522600 300 80 90 -60 37.1 43 5.9 Li
44.4 47 2.6 Li
Notes
1) The true width of pegmatites are generally considered 70-95% of the intercept
width except for TRC0027 where the true width is likely less that 30% of the
intercept width.
2) Holes remain to be surveyed therefore elvations are nominal
Table 3| Significant Intercepts, Cotters North
From To Interval Li2O Ta2O5 Nb2O5 SnO2
Hole ID m m m % ppm ppm ppm
TRC0026 40 42 2 0.46 77 79 50
45 50 5 0.83 57 63 63
incl. 47 49 2 1.16 67 11 63
TRC0027 35 51 16 0.54 93 79 55
incl. 44 48 4 0.91 114 80 58
TRC0038 0 1 1 1.69 175 72 364
26 36 10 0.18 37 57 50
39 49 10 0.22 27 39 71
TRC0043 19 26 7 0.30 72 92 67
33 35 2 0.70 35 50 55
44 48 4 0.31 9 13 63
TRC0046 0 3 3 0.65 129 69 353
TRC0047 22 23 1 0.31 11 7 17
TRC0058 18 21 3 0.24 63 39 230
21 28 7 1.23 132 109 121
From To Interval Li2O Ta2O5 Nb2O5 SnO2
Hole ID m m m % ppm ppm ppm
incl. 22 27 5 1.40 126 107 119
TRC0067 23 24 1 0.01 735 64 142
TRC0070 20 21 1 0.10 258 93 1,351
TRC0072 36 38 2 0.49 194 93 184
TRC0073 62 67 5 1.09 172 103 132
incl. 64 66 2 1.72 192 90 151
TRC0075 36 39 3 0.19 230 67 592
incl. 37 38 1 0.42 208 57 1,125
77 78 1 0.32 57 36 184
TRC0078 10 16 6 0.88 71 63 132
incl. 14 15 1 2.37 68 64 95
TRC0079 36 48 12 0.83 93 72 154
Notes
1) Intercepts of 0.3% Li2O or 150ppm Ta2O5 considered significant.
2) Intercepts of 0.1-0.3% Li2O are considered anomalous in early staged exploratory drilling.
Uis Project, Namibia (Option to Purchase 100%)
In September 2016, Tawana entered an agreement to acquire mining rights to the giant Uis
pegmatite tailings stockpile in Namibia. The Uis Project located in Namibia comprises large
coarse and fine tailings stockpiles from the Uis tin mine which operated between 1924 and
1990. The Project is located close to the former mining town of Uis some 165km NNE of
the coast city of Swakopmund, 270km NW of the capital Windhoek.
The stockpile hosts an estimated 20Mt of tailings stockpile derived from one of the largest
pegmatite tin mines in the world and limited sampling to date has indicated potentially
attractive lithium grades present.
Tawana completed its initial resource drilling of the stockpile during the quarter using an
air core rig. A 1,531m program consisting of 20 deeper holes and 43 shallow holes was
completed and results consist of significant lithium and tin grades. 23 intercepts within the
sands up to 72m deep ranged in grade from 0.35% Li2O in the northern dumps to 0.41%
Li2O in the southern dumps with 473ppm and 431ppm SnO2 respectively, drill results are
contained in Tables 4 and 5. Though intercepts were more extensive, the shallower fines
dumps averaged 0.57% Li20 and 762ppm SnO2. Tantalum grades were consistent with Uis
cassiterite which is known to contain up to 9% Tantalum. The grade range of 0.35-0.57%
Li2O in the large dumps is considered potentially economic subject to mettalurigical
recoveries. Based on current market indicator concentrate pricing, the contained lithum
value per tonne of stockppile is expected to be in the range of US$50-US$90/t before tin
credits and potential concentrate penalties and recoveries. Metallurgical testwork will
commence and a Resource estimate will be completed in the March Quarter.
Table 4| Sands Dump Intercepts (Uis Project)
Hole Depth East North RL Dec. Azi from to Intercept Li2O SnO2 Ta205
m
UAC001 74 487225 7652827 741.09 -90 0 0 72 72 0.39 448 61
UAC002 78 487302 7652867 740.17 -90 0 0 70 70 0.35 447 60
UAC003 67 487385 7652911 727.36 -90 0 0 60 60 0.31 391 55
UAC004 62 487467 7652956 720.32 -90 0 0 60 60 0.32 492 55
UAC005 65 487510 7652981 720.97 -90 0 0 60 60 0.33 466 51
UAC006 62 487579 7652975 721.04 -90 0 0 61 61 0.38 486 48
UAC007 58 487622 7652931 716.59 -90 0 0 56 56 0.41 527 49
UAC008 62 487538 7652933 719.97 -90 0 0 60 60 0.33 514 45
UAC009 39 487507 7652876 718.70 -90 0 0 38 38 0.27 509 51
UAC010 47 487465 7652794 717.68 -90 0 0 38 38 0.34 389 46
UAC011 50 487423 7652727 718.68 -90 0 0 38 38 0.43 368 53
UAC012 49 487400 7652668 719.56 -90 0 0 44 44 0.41 352 52
UAC013 61 487360 7652817 721.33 -90 0 0 50 50 0.40 391 55
UAC014 57 487326 7652777 721.17 -90 0 0 50 50 0.44 396 61
UAC015 56 487263 7652692 721.43 -90 0 0 50 50 0.43 421 61
UAC016 56 487229 7652636 722.00 -90 0 0 50 50 0.37 385 46
UAC017 57 487257 7652741 720.75 -90 0 0 50 50 0.38 347 50
UAC018 52 487185 7652746 720.68 -90 0 0 51 51 0.41 455 52
UAC019 45 487096 7652754 720.12 -90 0 0 44 44 0.46 416 69
UAC020 44 487030 7652755 722.00 -90 0 0 42 42 0.40 418 53
UAC021 23 487604 7652810 683.36 -90 0 10 22 12 0.47 638 69
UAC022 21 487569 7652801 682.59 -90 0 12 21 9 0.44 686 69
Table 5| Fines Dump Intercepts (Uis Project)
Intercept
Hole Depth East North RL Dec. Azi from to m Li2O SnO2 Ta205
UAC002 78 487302 7652867 740.17 -90.00 0.00 70 76 6 0.55 667 61
UAC003 67 487385 7652911 727.36 -90.00 0.00 60 67 7 0.48 738 68
UAC010 47 487465 7652794 717.68 -90.00 0.00 38 47 9 0.53 877 47
UAC011 50 487423 7652727 718.68 -90.00 0.00 38 50 12 0.52 857 61
UAC012 49 487400 7652668 719.56 -90.00 0.00 44 49 5 0.51 815 52
UAC013 61 487360 7652817 721.33 -90.00 0.00 50 60 10 0.48 817 63
UAC014 57 487326 7652777 721.17 -90.00 0.00 50 56 6 0.52 910 70
UAC015 56 487263 7652692 721.43 -90.00 0.00 50 56 6 0.51 882 61
UAC016 56 487229 7652636 722.00 -90.00 0.00 50 54 4 0.59 749 64
UAC017 57 487257 7652741 720.75 -90.00 0.00 50 56 6 0.50 825 70
UAC021 23 487604 7652810 683.36 -90 0.00 0 10 10 0.50 1023 59
UAC022 21 487569 7652801 682.59 -90 0.00 0 12 12 0.54 853 58
UAC023 18 487603 7652731 682.76 -90 0.00 0 18 18 0.49 907 62
UAC024 18 487520 7652723 682.48 -90 0.00 0 16 16 0.60 770 50
UAC025 18 487504 7652667 681.77 -90 0.00 0 9 9 0.54 901 60
UAC026 13 486960 7652244 675.15 -90 0.00 0 11 11 0.55 740 66
UAC027 8 486962 7652172 674.48 -90 0.00 0 8 8 0.63 695 65
UAC028 7 486952 7652094 674.11 -90 0.00 0 7 7 0.65 635 64
UAC029 6 487034 7652091 674.90 -90 0.00 0 4 4 0.60 686 68
UAC030 8 486810 7652160 671.84 -90 0.00 0 8 8 0.60 741 63
UAC031 9 486805 7652091 671.39 -90 0.00 0 8 8 0.61 654 58
UAC032 7 486796 7652009 671.69 -90 0.00 0 6 6 0.64 698 64
UAC033 7 486888 7652003 672.23 -90 0.00 0 2 2 0.62 711 69
UAC034 6 486647 7652176 672.90 -90 0.00 0 5 5 0.61 866 73
UAC035 3 486582 7652175 672.67 -90 0.00 0 2 2 0.62 609 66
UAC036 9 486565 7652082 671.49 -90 0.00 0 8 8 0.61 733 67
UAC037 12 486643 7652084 671.71 -90 0.00 0 10 10 0.62 711 60
UAC038 12 486642 7652020 671.07 -90 0.00 0 11 11 0.60 645 57
UAC039 9 486656 7651929 671.62 -90 0.00 0 8 8 0.65 711 60
UAC040 2 486728 7651847 672.66 -90 0.00 NSI
UAC041 5 486659 7651846 672.23 -90 0.00 0 3 3 0.66 639 57
UAC042 7 486638 7651861 672.12 -90 0.00 0 6 6 0.60 746 63
UAC044 6 486571 7651924 672.02 -90 0.00 0 6 6 0.61 738 63
UAC045 12 486567 7652026 670.95 -90 0.00 0 12 12 0.56 710 61
UAC046 7 486730 7651930 672.69 -90 0.00 0 7 7 0.60 822 65
UAC047 10 486695 7652004 671.94 -90 0.00 0 9 9 0.60 738 63
UAC048 11 486710 7652113 672.60 -90 0.00 0 10 10 0.58 785 72
UAC049 12 486693 7652168 673.17 -90 0.00 0 9 9 0.54 819 73
UAC050 3 486673 7652276 673.67 -90 0.00 0 3 3 0.49 614 49
UAC051 6 486713 7652290 673.17 -90 0.00 0 4 4 0.53 717 55
UAC052 5 486713 7652324 673.11 -90 0.00 0 3 3 0.57 707 57
UAC053 3 486745 7652374 672.50 -90 0.00 0 2 2 0.56 787 49
UAC054 3 486825 7652473 672.62 -90 0.00 0 3 3 0.55 592 53
UAC055 9 486963 7652378 673.22 -90 0.00 0 6 6 0.54 851 71
UAC056 8 486911 7652324 672.61 -90 0.00 0 6 6 0.60 639 60
UAC057 9 486869 7652298 672.24 -90 0.00 0 9 9 0.57 735 66
UAC058 10 486806 7652252 672.32 -90 0.00 0 10 10 0.56 701 58
UAC059 9 486732 7652245 672.90 -90 0.00 0 9 9 0.55 655 57
UAC060 9 486775 7652128 671.71 -90 0.00 0 8 8 0.59 707 61
UAC061 9 486784 7652090 671.57 -90 0.00 0 8 8 0.61 686 63
UAC062 9 486919 7652207 674.51 -90 0.00 0 8 8 0.59 698 63
UAC063 8 486996 7652173 674.61 -90 0.00 0 8 8 0.60 650 59
UAC064 9 486986 7652085 674.48 -90 0.00 0 6 6 0.52 715 66
Corporate
Cash
As at 31 December 2016, Tawana Resources held $7.0 million in cash.
In October 2016, Tawana announced it had received commitments for a placement to raise
$7.2 million before costs via the issue of 60 million shares at an issue price of $0.12 per
share.
The Company issued 29,628,825 shares under its 15% placement capacity (Tranche 1) and
30,371,175 shares after receiving shareholder approval in December (Tranche 2). Note that
3,171,000 shares were issued after 31 December 2016.
1,000,000 options were also exercised at $0.06 per option.
Results of Meeting
A general meeting of Tawana shareholders was held on 23 December 2016 with all
resolutions put to the meeting passed on a show of hands. These were:
1. The Acquisition of Lithco No. 2 Pty Ltd
2. The Acquisition of Lithco No. 2 Pty Ltd ' Related Party
3. Ratification of Prior Issue of Shares ' Tranche 1 of Capital
4. Issue of Shares ' Tranche 2 of Capital Raising
5. Issue of Shares in Consideration of Milestone Payments for the UIS Tailings Project
6. Ratification of Prior Issue of Shares ' Purchase of Lithium Africa No 1 Pty Ltd.
Board Changes
Michael Bohm stepped down on 21 October 2016 as a Director due to increased other work
commitments. Mr Bohm was replaced in the role of Chairman by Mr. Rob Benussi who is
an existing non-executive Director of the Company. Mark Calderwood, the Company's
Chief Executive Officer was appointed Managing Director also effective 21 October 2016.
Tawana Resources NL Tenements
Tenement Location Registered Owner Structure and Ownership
Mofe Creek Iron
Ore Project
MEL-12029
Liberia Tawana Liberia Inc 100%
Mofe Creek
MEL-1223/14
Liberia Tawana Liberia Inc 100%
Mofe Creek Sth
Cowan Lithium
Project
Western Maxwell Peter
E15/1205 0%, Option agreement
Australia Strindberg
Western ABEH Pty Ltd
E15/1377 0%, Option agreement
Australia
Western Brooke Louise Strindberg
E15/1446 0%, Option agreement
Australia
Yallari Project
Western ABEH Pty Ltd Pending and 0%, Option
E15/1401
Australia agreement
Western Mt Belches Pty Ltd
E15/1526 Pending, 100%
Australia
Bald Hill Mine
Western Alliance Mineral Assets
M15/400 0%, Earning in 50%
Australia Limited
Western Alliance Mineral Assets
M15/1470 0%, Earning in 50%
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1811
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1305
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1308
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M59/714
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
G15/17
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/265
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/266
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/267
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/268
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/269
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/270
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5465
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5466
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5467
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5862
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5863
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5864
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5865
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5866
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
R15/1
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1058
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1212
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1161
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1162
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1166
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1353
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1066
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1067
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1811
Australia Limited
Beneficial percentage interests in farm-in agreements acquired
Tenement Location Registered Owner Structure and Ownership
Bald Hill Mine
Western Alliance Mineral Assets
M15/400 0%, Earning in 50%
Australia Limited
Western Alliance Mineral Assets
M15/1470 0%, Earning in 50%
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1811
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1305
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1308
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
G15/17
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/265
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/266
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/267
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/268
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/269
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
L15/270
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5465
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5466
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5467
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5862
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5863
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5864
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5865
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
P15/5866
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
R15/1
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1058
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1212
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1161
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1162
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1166
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1353
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1066
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
E15/1067
Australia Limited
Western Alliance Mineral Assets 0%, Earning in 50%
M15/1811
Australia Limited
Mining Tenements disposed: Nil
Mining Tenements acquired: Nil
Beneficial percentage interests held in farm in or farm-out agreements: Refer above.
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed:
Refer above.
Appendix 1
Section 1 Sampling Techniques and Data ' Cowan Lithium Project
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. cut channels, ' Reverse Circulation Drilling
techniques random chips, or specific specialised industry
standard measurement tools appropriate to the ' 1m samples collect
minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc.). ' Samples jaw crushed and riffle split
These examples should not be taken as limiting the to 2-2.5kg for pulverizing to 80%
broad meaning of sampling. passing 75 microns.
Include reference to measures taken to ensure
' Prepared samples are fused with
sample representivity and the appropriate
Criteria JORC Code Explanation Commentary
calibration of any measurement tools or systems sodium peroxide and digested in
used. dilute hydrochloric acid. The
resultant solution is analysed by ICP,
Aspects of the determination of mineralisation that
by Nagrom.
are Material to the Public Report. In cases where
'industry standard' work has been done this would
' Certified standards or blanks. Field
be relatively simple (e.g. 'reverse circulation
drilling was used to obtain 1 m samples from which duplicates submitted at irregular
3 kg was pulverised to produce a 30 g charge for intervals at the rate of approximately
fire assay'). In other cases more explanation may 1:25.
be required, such as where there is coarse gold
that has inherent sampling problems. Unusual ' Limited re-sampling and re-assay of
commodities or mineralisation types (e.g. pegmatite samples was undertaken.
submarine nodules) may warrant disclosure of
detailed information.
Drilling Drill type (e.g. core, reverse circulation, open-hole RC drilling conducted in line with general
techniques hammer, rotary air blast, auger, Bangka, sonic, industry standards.
etc.) and details (e.g. core diameter, triple or
standard tube, depth of diamond tails, face- All drill holes are angled
sampling bit or other type, whether core is
oriented and if so, by what method, etc.).
Drill sample Method of recording and assessing core and chip Chip recovery or weights for RC were not
recovery sample recoveries and results assessed. conducted.
Measures taken to maximise sample recovery and Each metre of drill sample recovery and
ensure representative nature of the samples. moisture content is visually estimated and
recorded.
Whether a relationship exists between sample
recovery and grade and whether sample bias may
have occurred due to preferential loss/gain of Opportunity for sample bias is considered
fine/coarse material. negligible for dry samples.
Logging Whether core and chip samples have been Geological logs exist for all drill holes
geologically and geotechnically logged to a level of with lithological codes via an established
detail to support appropriate Mineral Resource reference legend.
estimation, mining studies and metallurgical
studies. Drillholes have been geologically logged in
Whether logging is qualitative or quantitative in their entirety. Where logging was
nature. Core (or costean, channel, etc.) detailed the subjective indications of
photography spodumene content
The total length and percentage of the relevant
intersections logged. Assays have generally only been
submitted through and adjacent to the
pegmatites.
Criteria JORC Code Explanation Commentary
Sub-sampling If core, whether cut or sawn and whether quarter, RC samples were collected at 1m intervals
techniques half or all core taken. and riffle split on-site to produce a
and sample If non-core, whether riffled, tube sampled, rotary subsample less than 5kg.
preparation split, etc. and whether sampled wet or dry.
For all sample types, the nature, quality and The RC drilling samples are considered
appropriateness of the sample preparation robust for sampling the spodumene and
technique. tantalite mineralisation.
Quality control procedures adopted for all sub-
sampling stages to maximise representivity of Most samples were dry.
samples.
Measures taken to ensure that the sampling is Sampling is in line with general sampling
representative of the in situ material collected, practices.
including for instance results for field
duplicate/second-half sampling. Field duplicates, laboratory standards and
Whether sample sizes are appropriate to the grain laboratory repeats are used to monitor
size of the material being sampled. analyses.
Sample size for RC drilling is considered
appropriate.
Quality of The nature, quality and appropriateness of the The assay technique is considered to be
assay data assaying and laboratory procedures used and robust as the method used (see above)
and whether the technique is considered partial or offers total dissolution of the sample and
laboratory total. is useful for mineral matrices that may
tests For geophysical tools, spectrometers, handheld XRF resist acid digestions.
instruments, etc., the parameters used in
determining the analysis including instrument make Standards and duplicates were submitted
and model, reading times, calibrations factors in varying frequency throughout the
applied and their derivation, etc. exploration campaign and internal
Nature of quality control procedures adopted (e.g. laboratory standards, duplicates and
standards, blanks, duplicates, external laboratory replicates are used for verification
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established.
Verification The verification of significant intersections by No twinning of holes was undertaken
of sampling either independent or alternative company
and assaying personnel. The Ta and Li assays show a marked
correlation with the pegmatite
The use of twinned holes. intersections via elevated downhole
grades.
Documentation of primary data, data entry
procedures, data verification, data storage Drill logs exist for all holes as both
(physical and electronic) protocols. electronic files and hardcopy.
Discuss any adjustment to assay data. All drilling data has been loaded to a
database and validated prior to use.
Criteria JORC Code Explanation Commentary
Location of Accuracy and quality of surveys used to locate drill Collar coordinates are currently only
data points holes (collar and down-hole surveys), trenches, approximate and considered accurate to
mine workings and other locations used in Mineral within 4m measured using hand held GPS.
Resource estimation. Accurate surveying will be undertaken at
a later time. Hole collars have been
Specification of the grid system used. preserved until completion of survey.
Quality and adequacy of topographic control.
Data spacing Data spacing for reporting of Exploration Results. The spacing of holes is considered not
and currently adequate for the Mineral
distribution Whether the data spacing and distribution is Resource estimation and classification.
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral There has been no sample compositing.
Resource and Ore Reserve estimation procedure(s)
and classifications applied.
Whether sample compositing has been applied.
Orientation Whether the orientation of sampling achieves The drilling is angled.
of data in unbiased sampling of possible structures and the
relation to extent to which this is known, considering the The lithium tantalite-bearing pegmatites
geological deposit type. are generally flat to shallowly dipping in
structure If the relationship between the drilling orientation nature. The true width of pegmatites are
and the orientation of key mineralised structures is generally considered 60-95% of the
considered to have introduced a sampling bias, this intercept width, with minimal opportunity
should be assessed and reported if material. for sample bias.
Sample The measures taken to ensure sample security. The RC samples are taken from the rig by
security experienced personal and stored securely
and transport to the laboratory by a
registered courier and handed over by
signature.
Audits or The results of any audits or reviews of sampling No audits have been undertaken to date.
reviews techniques and data.
Section 2 Reporting of Exploration Results ' Cowan Lithium Project
Criteria Explanation Commentary
Mineral Type, reference name/number, location and The portfolio of mineral tenements,
tenement and ownership including agreements or material comprising mining leases, exploration
land tenure issues with third parties such as joint ventures, licences, prospecting licences, miscellaneous
status partnerships, overriding royalties, native title licences, a general-purpose lease, and a
interests, historical sites, wilderness or national retention lease are in good standing.
park and environmental settings.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
Exploration Acknowledgment and appraisal of exploration Alluvial tantalite has been mined periodically
done by other by other parties. from the early 1970s.
parties
Criteria Explanation Commentary
Gwalia Consolidated Limited undertook
exploration for tantalite-bearing pegmatites
from 1983-1998.
Work included mapping, costeaning, and
several phases of drilling using RAB, RC, and
diamond methods. The work identified
mineral resources that were considered
uneconomic at the time.
Haddington entered agreement to develop
the resource and mining
' commenced in 2001 and continued
until 2005.
' Haddington continued with
exploration until 2009.
Geology Deposit type, geological setting and style of The Bald Hill area is underlain by generally
mineralisation. north-striking, steeply dipping Archaean
metasediments (schists and greywackes) and
granitoids.
Felsic porphyries and pegmatite sheets and
veins have intruded the Archaean rocks.
Generally, the pegmatites parallel the
regional foliation, occurring as gently dipping
sheets and as steeply dipping veins.
The pegmatites vary in width and are
generally comprised quartz-albite- muscovite-
spodumene in varying amounts. Late-stage
albitisation in the central part of the main
outcrop area has resulted in fine- grained,
banded, sugary pegmatites with visible fine-
grained, disseminated tantalite. A thin
hornfels characterised by needle hornblende
crystals is often observed in adjacent country
rocks to the pegmatite.
Intrusives. Tantalite generally occurs as fine
disseminated crystals commonly associated
with fine-grained albite zones, or as coarse
crystals associated with cleavelandite.
Weathering of the pegmatites yields
secondary mineralised accumulations in
alluvial/eluvial deposits.
Criteria Explanation Commentary
Drill hole A summary of all information material to the Only results for drill holes that have
Information understanding of the exploration results intercepted lithium and or tantalum
including a tabulation of the following pegmatites of 1m or more in width that have
information for all Material drill holes: been assayed for lithium have been included
' easting and northing of the drill hole in the release.
collar
' elevation or RL (Reduced Level ' All drill hole details are contained in Tables 2
elevation above sea level in metres) of and 3 of the release.
the drill hole collar
' dip and azimuth of the hole
' down hole length and interception
depth
' hole length.
If the exclusion of this information is justified
on the basis that the information is not Material
and this exclusion does not detract from the
understanding of the report, the Competent
Person should clearly explain why this is the
case.
Data In reporting Exploration Results, weighting No cutting to intercept grades has been
aggregation averaging techniques, maximum and/or undertaken.
methods minimum grade truncations (e.g. cutting of
high grades) and cut-off grades are usually Assays are report as pure elements such as Li,
Material and should be stated. Ta, Nb, Sn and converted to oxides using
Where aggregate intercepts incorporate short atomic formulas.
lengths of high grade results and longer lengths
of low grade results, the procedure used for Reported intervals in Table 1 and 4 represent
such aggregation should be stated and some the aggregation of the intercepts containing
typical examples of such aggregations should be samples of at least 0.3% Li2O and/or 150ppm
shown in detail. Ta2O5, lower grade zones are included
The assumptions used for any reporting of adjacent to higher grade zones where the
metal equivalent values should be clearly grade varies significantly from the average of
stated. the entire width of the mineralised
pegmatite. Only lithium, tin and niobium
tantalum oxide results are tabled, other
potential by-products are currently
considered to be insignificant in economic
importance.
Relationship These relationships are particularly important All recent drilling is angled.
between in the reporting of Exploration Results.
mineralisation The lithium tantalite-bearing pegmatites are
widths and If the geometry of the mineralisation with generally flat to shallowly dipping in nature.
intercept respect to the drill hole angle is known, its The true width of pegmatites are generally
lengths nature should be reported considered 60-95% of the intercept width,
If it is not known and only the down hole with minimal opportunity for sample bias
lengths are reported, there should be a clear
statement to this effect (e.g. 'down hole
length, true width not known').
Diagrams Appropriate maps and sections (with scales) N/A
and tabulations of intercepts should be
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced Where comprehensive reporting of all Results for all drill holes that have
Criteria Explanation Commentary
reporting Exploration Results is not practicable, intercepted lithium pegmatites that have
representative reporting of both low and high been assayed for lithium have been included
grades and/or widths should be practiced to in the release.
avoid misleading reporting of Exploration
Results.
Other Other exploration data, if meaningful and N/A
substantive material, should be reported including (but not
exploration data limited to): geological observations;
geophysical survey results; geochemical survey
results; bulk samples ' size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further work The nature and scale of planned further work Further RC and diamond drilling is warranted
(e.g. tests for lateral extensions or depth at the various deposits to explore for
extensions or large-scale step-out drilling). additional resources and improve the
understanding of the current resources prior
Diagrams clearly highlighting the areas of to mining.
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
Appendix 2
Section 1 Sampling Techniques and Data ' Uis Project
Criteria JORC Code Explanation Commentary
Sampling Nature and quality of sampling (e.g. ' Air Core drilling
techniques cut channels, random chips, or
specific specialised industry standard ' 1m samples collected
measurement tools appropriate to the
minerals under investigation, such as ' Samples jaw crushed and riffle split to 1kg for
down hole gamma sondes, or pulverizing to 80% passing 75 microns. by
handheld XRF instruments, etc.). Bureau Veritas Namibia Pty Ltd in
These examples should not be taken
Swakopmund.
as limiting the broad meaning of
sampling.
' Prepared samples are fused with sodium
peroxide and digested in dilute hydrochloric
acid. The resultant solution is analysed by
ICP, by Bureau Veritas Namibia Pty Ltd in
Perth.
' Certified standards or blanks. Field duplicates
submitted at irregular intervals at the rate of
approximately 1:25.
Include reference to measures taken Based on available data, there is nothing to
to ensure sample representivity and indicate that drilling practices were not to normal
the appropriate calibration of any industry standards for the type of drilling. Air
measurement tools or systems used. core drilling is a type of reverse circulation method
using inner tubes for sample return from the bit
face. All drilling was dry and hole stability was
good.
Aspects of the determination of Ssampling practices were normal industry standard
mineralisation that are Material to the and appropriate.
Public Report. In cases where
'industry standard' work has been None of the drilling sampling is appropriate or was
done this would be relatively simple or is intended to be used for Resource estimates.
(e.g. 'reverse circulation drilling was
used to obtain 1 m samples from
which 3 kg was pulverised to produce
a 30 g charge for fire assay'). In other
cases more explanation may be
required, such as where there is
coarse gold that has inherent sampling
problems. Unusual commodities or
mineralisation types (e.g. submarine
nodules) may warrant disclosure of
detailed information.
Drilling Drill type (e.g. core, reverse Air Core drilling, all holes were vertical.
techniques circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc.) No drill holes have been surveyed, they have been
and details (e.g. core diameter, triple located using hand held GPS
or standard tube, depth of diamond
Criteria JORC Code Explanation Commentary
tails, face-sampling bit or other type,
whether core is oriented and if so, by
what method, etc.).
Drill sample Method of recording and assessing There are no records of sample recovery.
recovery core and chip sample recoveries and
results assessed.
Measures taken to maximise sample Drill sample quality was to industry standard
recovery and ensure representative
nature of the samples.
Whether a relationship exists between Due to the fine dry fine nature of material there is
sample recovery and grade and unlikely to be any bias in sampling.
whether sample bias may have
occurred due to preferential loss/gain
of fine/coarse material.
Logging Whether core and chip samples have Logging was undertaken from stockpile material
been geologically and geotechnically type
logged to a level of detail to support
appropriate Mineral Resource No resources estimates were calculated
estimation, mining studies and
metallurgical studies.
Whether logging is qualitative or Logging is qualitative
quantitative in nature. Core (or
costean, channel, etc.) photography
The total length and percentage of Entire holes were logged
the relevant intersections logged.
Sub-sampling If core, whether cut or sawn and No core drilling has been undertaken.
techniques and whether quarter, half or all core
sample taken.
preparation
If non-core, whether riffled, tube Sampling was by riffle splitting of drill cuttings at
sampled, rotary split, etc. and 1m or 2m (or part thereof) intervals
whether sampled wet or dry.
For all sample types, the nature, Air Core samples were bagged. The sampling
quality and appropriateness of the technique were appropriate
sample preparation technique.
Quality control procedures adopted no QAQC procedures were adopted.
for all sub-sampling stages to
maximise representivity of samples.
Measures taken to ensure that the No duplicate sampling was undertaken
sampling is representative of the in
situ material collected, including for
instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate The sampling method was likely appropriate for
to the grain size of the material being the material being sampled given the purpose of
sampled. sampling.
Quality of The nature, quality and All samples were prepared by Bureau Veritas
assay data and appropriateness of the assaying and Namibia Pty Ltd in Swakopmund and assayed by
laboratory laboratory procedures used and the same company in Perth.
tests whether the technique is considered
partial or total. The samples have been fused with Sodium
Peroxide and subsequently the melt has been
dissolved in dilute Hydrochloric acid for analysis.
Because of the high furnace temperatures, volatile
Criteria JORC Code Explanation Commentary
elements are lost.
This procedure is particularly efficient for
determination of major element composition
(including Silica) in the samples or for the
determination of refactory mineral species.
Fe
have been determined by Inductively Coupled
Plasma (ICP) Optical Emission Spectrometry.
Cs,Li,Nb,Sn,Ta,U
have been determined by Inductively Coupled
Plasma (ICP) Mass Spectrometry.
For geophysical tools, spectrometers, Not applicable
handheld XRF instruments, etc., the
parameters used in determining the
analysis including instrument make
and model, reading times, calibrations
factors applied and their derivation,
etc.
Nature of quality control procedures QAQC procedures were adopted apart from 'in-
adopted (e.g. standards, blanks, house' laboratory repeats and standards
duplicates, external laboratory
checks) and whether acceptable
levels of accuracy (i.e. lack of bias)
and precision have been established.
Verification of The verification of significant No verification exploration work has been
sampling and intersections by either independent or undertaken.
assaying alternative company personnel.
The use of twinned holes. No twin holes were drilled
Documentation of primary data, data The assay data from the drilling was presented in
entry procedures, data verification, digital and hard copy formats.
data storage (physical and electronic)
protocols.
Discuss any adjustment to assay data. No data has been adjusted
Location of Accuracy and quality of surveys used Drill hole locations were surveyed by a licenced
data points to locate drill holes surveyor.
(collar and down-hole surveys),
trenches, mine workings and
other locations used in Mineral
Resource estimation.
Specification of the grid system used. WGS 84/ Zone 33 south.
Quality and adequacy of topographic In addition to drill hole collar surveys, the
control. stockpiles have been surveyed.
Data spacing Data spacing for reporting of The drill density is appropriate given no selectivity
and Exploration Results. of drill results are being adopted, entire intervals
distribution of sands and fines are being reported.
Whether the data spacing and Not applicable
distribution is sufficient to establish
the degree of geological and grade
continuity appropriate for the Mineral
Resource and Ore Reserve estimation
procedure(s) and classifications
applied.
Criteria JORC Code Explanation Commentary
Whether sample compositing has been 2m composite were used for deeper holes.
applied.
Orientation of Whether the orientation of sampling Not applicable
data in relation achieves unbiased sampling of
to geological possible structures and the extent to
structure which this is known, considering the
deposit type.
If the relationship between the There is no apparent bias in the drilling orientation
drilling orientation and the used.
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material.
Sample The measures taken to ensure sample Not applicable.
security security.
Audits or The results of any audits or reviews of Not applicable
reviews sampling techniques and data.
Section 2 Reporting of Exploration Results ' UIS
Criteria Explanation Commentary
Mineral Type, reference name/number, The tailings stockpile is no covered by a specific
tenement and location and ownership including licence. The right to process the stockpiles is
land tenure agreements or material issues with covered by various contractual agreements.
status third parties such as joint ventures,
partnerships, overriding royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
The security of the tenure held at See above, no other known impediments to
the time of reporting along with any undertaking exploration work
known impediments to obtaining a
licence to operate in the area.
Exploration Acknowledgment and appraisal of There is no available sample data available from the
done by other exploration by other parties. stockpile.
parties
A detailed survey of the stockpiles was undertaken
by Strydom & Associates, licenced land surveyors in
February 2010. A total of 4,250 spot survey shots
were taken to create a detailed topographical survey
over about 90 hectares. Volume calculations were
undertaken using ReGIS software to produce sections
at a 30m interval. Several assumptions were applied
to estimate the base of the stockpile. Until drilling
is completed the volume estimate is considered
preliminary. Density of the stockpiles were assumed
to be 1,800kg/m3 for sands and 2,296kg/m3 for fines
stockpiles.
Geology Deposit type, geological setting and The Project comprises a large +/- 20Mt crushed
style of mineralisation. tailings stockpile comprising pegmatite material
containing minerals of lithium, tin and tantalum.
Drill hole A summary of all information Location of Aircore Drill holes a tabled in the body of
Information material to the understanding of the text
exploration results including a
tabulation of the following
information for all Material drill
holes:
' easting and northing of the
drill hole collar
' elevation or RL (Reduced
Level ' elevation above sea
level in metres) of the drill
hole collar
' dip and azimuth of the hole
' down hole length and
interception depth
' hole length.
If the exclusion of this information is No material information was excluded.
justified on the basis that the
information is not Material and this
Criteria Explanation Commentary
exclusion does not detract from the
understanding of the report, the
Competent Person should clearly
explain why this is the case.
Data In reporting Exploration Results, Not applicable
aggregation weighting averaging techniques,
methods maximum and/or minimum grade
truncations (e.g. cutting of high
grades) and cut-off grades are
usually Material and should be
stated.
Where aggregate intercepts Not applicable
incorporate short lengths of high
grade results and longer lengths of
low grade results, the procedure
used for such aggregation should be
stated and some typical examples of
such aggregations should be shown in
detail.
The assumptions used for any Not applicable
reporting of metal equivalent values
should be clearly stated.
Relationship These relationships are particularly A number of holes may have failed to reach the
between important in the reporting of bottom of the stockpile.
mineralisation Exploration Results.
widths and
intercept If the geometry of the mineralisation
lengths with respect to the drill hole angle is
known, its nature should be reported
If it is not known and only the down Not applicable
hole lengths are reported, there
should be a clear statement to this
effect (e.g. 'down hole length, true
width not known').
Diagrams Appropriate maps and sections (with Figure 5 shows the locations of the air core holes
scales) and tabulations of intercepts and an air photo of the stockpiles.
should be included for any significant
discovery being reported These
should include, but not be limited to
a plan view of drill hole collar
locations and appropriate sectional
views.
Balanced Where comprehensive reporting of All results have been included.
reporting all Exploration Results is not
practicable, representative reporting
of both low and high grades and/or
widths should be practiced to avoid
misleading reporting of Exploration
Results.
Other Other exploration data, if meaningful There is no other exploration data which is
substantive and material, should be reported considered material to the results or statements
exploration data including (but not limited to): reported in this announcement.
geological observations; geophysical
survey results; geochemical survey
results; bulk samples ' size and
method of treatment; metallurgical
test results; bulk density,
Criteria Explanation Commentary
groundwater, geotechnical and rock
characteristics; potential deleterious
or contaminating substances.
Further work The nature and scale of planned Further work will include resource estimation of the
further work (e.g. tests for lateral stockpiles and metallurgical test-work.
extensions or depth extensions or
large-scale step-out drilling).
Diagrams clearly highlighting the Not applicable
areas of possible extensions,
including the main geological
interpretations and future drilling
areas, provided this information is
not commercially sensitive.
31 January 2017
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration
entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13,
01/09/16
Name of entity
Tawana Resources NL
ABN Quarter ended ('current quarter')
69 085 166 721 31 December 2016
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for (1,371) (1,741)
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (192) (802)
(e) administration and corporate costs (318) (758)
1.3 Dividends received (see note 3) - -
1.4 Interest received 5 14
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Research and development refunds - -
1.8 Other (provide details if material) - -
1.9 Net cash from / (used in) operating (1,876) (3,287)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (26) (26)
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.2 Proceeds from the disposal of:
(a) property, plant and equipment - -
(b) tenements (see item 10) - -
(c) investments - 71
(d) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing (26) 45
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 7,015 9,843
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options 60 60
3.4 Transaction costs related to issues of (432) (489)
shares, convertible notes or options
Consolidated statement of cash flows Current quarter Year to date
$A'000
(12 months)
$A'000
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and - -
borrowings
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing 6,643 9,414
activities
4. Net increase / (decrease) in cash
and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 2,219 788
4.2 Net cash from / (used in) operating (1,876) (3,287)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities (26) 45
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 6,643 9,414
(item 3.10 above)
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 6,960 6,960
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A'000 $A'000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 4,960 2,219
5.2 Call deposits 2,000 -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 6,960 2,219
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 97
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Directors' salaries, directors' fees and superannuation
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
N/A
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A'000 $A'000
8.1 Loan facilities - -
8.2 Credit standby arrangements - -
8.3 Other (please specify) - -
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
N/A
9. Estimated cash outflows for next quarter $A'000
9.1 Exploration and evaluation 4,516
9.2 Development -
9.3 Production -
9.4 Staff costs 265
9.5 Administration and corporate costs 146
9.6 Other (provide details if material) -
9.7 Total estimated cash outflows 4,927
10. Changes in Tenement Nature of interest Interest at Interest at
tenements reference beginning end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and
policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Date 31 January 2017
(Director/Company secretary)
Print name: Michael Naylor
Notes
1. The quarterly report provides a basis for informing the market how the entity's
activities have been financed for the past quarter and the effect on its cash position.
An entity that wishes to disclose additional information is encouraged to do so, in a
note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting
Standards, the definitions in, and provisions of, AASB 6: Exploration for and
Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to
this report. If this quarterly report has been prepared in accordance with other
accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the
corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or
cash flows from investing activities, depending on the accounting policy of the entity.
Date: 31/01/2017 10:30:00 Supplied by www.sharenet.co.za
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