Go Back Email this Link to a friend


TAW - Tawana Resources NL - Quarterly Activities and Cash Flow Report

Release Date: 30/04/2007 08:20:02      Code(s): TAW
TAW - Tawana Resources NL - Quarterly Activities and Cash Flow Report           
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 and Cash Flow Report                                       
1 January - 31 March 2007                                                       
Key Points                              27 April 2007                           
Mining Right for Kareevlei Wes granted                                          
Trial Mining to commence this quarter                                           
Tawana-owned dense media separation plants being moved to site                  
Kimberlites known to be diamondiferous                                          
Agreement signed for Lexshell alluvial diamond project                          
Guma joins Tawana in project                                                    
Pilbara Exploration samples processing nearing completion                       
Positive results indicate new kimberlite discovery                              
South Africa                                                                    
Kareevlei Wes Project                                                           
(74% owned and operated by Tawana; 26% Seven Falls)                             
A Mining Right has been granted by the South African Department of Minerals and 
Energy over the Kareevlei Wes diamond project, which is located 100km west of   
Kimberley.                                                                      
The Kareevlei Wes Project comprises a cluster of 5 kimberlitic pipes (KV1-KV5), 
which vary in surface area from 5.5 ha to less than 0.1 ha. Drilling to a depth 
of 100 meters showed that KV3 is 13Mt and KV2 is 2Mt.                           
Background                                                                      
As a result of processing percussion and Bauer drill bulk samples during        
2004/2005 the grade of KV1 and KV2 was estimated to be 8.57 cpht. Subsequent    
statistical analyses of the diamonds recovered from these two kimberlites       
suggested that the grade could be expected to be 11cpht if larger parcels of    
diamonds could be produced.                                                     
Diamonds from KV1 and KV2 were valued in 2005 at US$110/ct, with the valuer     
predicting substantially higher values for larger parcels. This prediction was  
supported by subsequent statistical analysis of a parcel from the KV1 and KV2   
kimberlites, which suggested that US$164/ct was a reasonable value estimate for 
diamonds from these kimberlites. Subsequently a parcel of 33.24ct of diamonds   
from KV3 was valued by Mr Gregory Katz (a Johannesburg based valuer) at         
US$170/ct.                                                                      
At the estimated operating cost of open pit kimberlite mining and processing in 
South Africa of US$7.53/t (2005 costs), the required breakeven grade at a       
diamond value of US$170 /ct is 4.43 cpht                                        
Program                                                                         
A trial mining and treatment operation will commence during this quarter, aimed 
at mining up to 20,000 tonnes from kimberlites KV1 and KV2. The Company`s two   
dense media separation plants will be used to treat the material mined by       
contractors. Key Tawana personnel are already in place to supervise this trial. 
Note: The Company considers that any tonnage and grade estimates reflected do   
not satisfy the definition of a Mineral Resource as set out in the JORC Code as 
insufficient work has been conducted to be able to determine the grade and      
tonnage of the deposit with greater accuracy. Further work may or may not       
establish a Mineral Resource on the property.  Accordingly, the estimate of     
grade is made as provided by paragraph 18 of the JORC Code in relation to an    
exploration target or exploration potential. The diamonds were recovered from   
the minus 19mm plus 1.5mm fractions of kimberlite sampled by 2.5m diameter Bauer
drill holes. The kimberlite material was processed in the Company`s DMS plant   
with diamond recovery by Flowsort x-ray plant and grease table.                 
Lexshell Diamond Project                                                        
(Tawana 44% and operator /Guma Resources 44%/ Lexshell 12% revenue share)       
Tawana has entered into a joint venture with its strategic alliance partner,    
Guma Resources Pty Limited, to explore and mine under contract the Lexshell     
alluvial diamond project in the Northern Cape Province of South Africa. The     
project is located on a palaeo-channel of the Vaal River adjacent to established
alluvial diamond mines.                                                         
The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited   
("the Holder"). Tawana/Guma have jointly entered into a Contractor`s Agreement  
with the Holder which will enable Tawana to assess the economic potential of the
deposit and if warranted mine the diamonds on behalf of the joint venture       
partners. Costs will be shared on a 50:50 basis with Guma. The Holder will      
retain a 12% share of revenue after State royalties and cost of sales.          
The section of the Vaal River alluvials in which this project is located is     
noted for the prolific production of large high quality diamonds. Mining has    
taken place here for about 100 years and the area still hosts one of the largest
alluvial diamond mines in the world.                                            
Tawana will commence work on the assessment of the deposit once certain         
statutory requirements have been completed by the Holder.                       
Daniel Kimberlite Project                                                       
(Tawana 22.2% and operator/ BHP Billiton 51.8% /Seven Falls 26 %)               
8 Falcon targets were sampled following the recovery last quarter of kimberlitic
indicator minerals from drill cuttings. Approval is awaited for applications    
made to allow access to tenements on which 16 Falcon targets have been          
identified within the Daniel prospect area.                                     
Negotiations with a black empowered group holding Prospecting Rights over a     
large area within the Daniel Project Area are continuing. This area is not      
included within the Tawana/BHP Billiton/Seven Falls joint venture area.         
Tawana Alluvials                                                                
(Tawana 70% and operator/Seven Falls 30 %)                                      
Eastern Gravels and Feeder Channel                                              
Negotiations with third parties to participate in the continuation of the       
economic assessment of the Eastern Gravels and Feeder Channel alluvial diamond  
deposits have not reached a concluded position. While several proposals have    
been considered, none has provided a satisfactory commercial basis for an       
agreement.  As every drill hole and test pit within both areas resulted in      
diamonds being identified, the Company will continue to seek parties who are    
interested in testing the economics of large-scale mining.                      
Australia                                                                       
Pilbara Regional Exploration                                                    
(Tawana 66.6% and operator /De Beers Australia Exploration 33.3%)               
Helicopter-supported regional reconnaissance and follow-up sampling within the  
17 granted De Beers tenements was conducted during 2006.  This program included 
reconnaissance stream sampling and the follow-up of anomalies generated from    
aeromagnetic surveys and heavy mineral anomalies from previous De Beers         
sampling.                                                                       
The 266 samples collected during the program are being processed and examined in
the Melbourne Laboratory. Results to date indicate that two new kimberlites are 
located in the Blacktop East area some 5km north east of the Blacktop 01        
kimberlite.                                                                     
The kimberlitic indicator minerals recovered from the Blacktop East area display
chemical signatures indicative of diamondiferous kimberlites.                   
Follow up work on this area will be formulated when all results have been       
received.                                                                       
Melbourne Laboratory                                                            
Activity within the Melbourne Laboratory during the quarter was primarily       
focused on the examination of the Pilbara exploration samples.                  
Treatment, examination and reporting of third party exploration samples was also
undertaken.                                                                     
Corporate                                                                       
Staff Changes                                                                   
Craig Bailey has been promoted to General Manager with prime responsibility of  
managing the Company`s South African activities. Craig previously was Project   
Geologist on the Blacktop, Timber Creek and Daniel projects as well as          
supervising the initial drilling and bulk sampling of the Kareevlei kimberlites.
Craig is based in South Africa.                                                 
Financial                                                                       
At the end of March, the Company`s cash reserves were $2.32M                    
Contact:                                                                        
Wolf Marx                                                                       
Tel: +61 (0)3 98635222                                                          
Mob: + 61 (0)428 398446                                                         
Email:wolf.marx@tawana.com.au                                                   
This report is based on information compiled by Wolf Marx BSc, BA, FAusIMM,     
CPGeo, Managing Director of Tawana Resources NL. He has sufficient experience   
relevant to the style of mineralisation and types of deposits under             
consideration, and to the activities undertaken, to qualify as a competent      
person as defined in the 2004 edition of the "Australasian Code for the         
Reporting of Mineral Resources and Ore Reserves"                                
Appendix 5B                                                                     
Mining exploration entity quarterly report                                      
Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98, 30/9/2001.    
Name of entity                                                                  
Tawana Resources N.L.                                                           
ABN                                   Quarter ended ("current quarter")         
69 085 166 721                        31 March 2007                             
Consolidated statement of cash flows                                            
                                                  Current      Year to date     
Cash flows related to operating activities         quarter      (3 months)      
$A`000       $A`000           
1.1   Receipts from product sales and related      41           41              
     debtors                                                                    
                                                                                
1.2   Payments for   (a)  exploration and          (246)        (246)           
     evaluation                                                                 
                    (b)  development                                            
                    (c)  production                                             
(d)  administration           (449)        (449)            
1.3   Dividends received                                                        
1.4   Interest  received                                                        
1.5   Interest and other costs of finance paid                                  
1.6   Income taxes paid                                                         
1.7   Other (provide details if material)          437          437             
     (VAT Refund from SARS)                                                     
                                                  (217)        (217)            
Net Operating Cash Flows                                                   
                                                                                
     Cash flows related to investing activities                                 
1.8   Payment for purchases of:     (a)prospects                                
(b)equity investments                                                      
     (c) other fixed assets                       (3)          (3)              
1.9   Proceeds from sale of:                                                    
     (a)prospects                                                               
(b)equity investments                                                      
1.10  Loans to other entities                                                   
1.11  Loans repaid by other entities                                            
                                                                                

     Net investing cash flows                     (3)          (3)              
1.13  Total operating and investing cash flows     (220)        (220)           
     (carried forward)                                                          
1.13  Total operating and investing cash flows     (220)        (220)           
     (brought  forward)                                                         
                                                                                
     Cash flows related to financing activities                                 
1.14  Proceeds from issues of shares, options,                  -               
     etc.                                                                       
1.15  Proceeds from sale of forfeited shares       -            -               
1.16  Proceeds from borrowings                     -            -               
1.17  Repayment of borrowings                      -            -               
1.18  Dividends paid                               -            -               
1.19  Other (provide details if material)          -            -               
     Net financing cash flows                                                   

     Net increase (decrease) in cash held         (220)        (220)            
                                                                                
1.20  Cash at beginning of quarter/year to date    2,653        2,653           
1.21  Exchange rate adjustments to item 1.20       (116)        (116)           
1.22  Cash at end of quarter                       2,317        2,317           
Payments to directors of the entity and associates of the directors             
Payments to related entities of the entity and associates of the related        
entities                                                                        
                                                               Current          
                                                               quarter          
                                                               $A`000           

1.23  Aggregate amount of payments to the parties included in   74              
     item 1.2                                                                   
                                                                                
1.24  Aggregate amount of loans to the parties included in      Nil             
     item 1.10                                                                  
                                                                                
1.25  Explanation necessary for an understanding of the transactions            

Non-cash financing and investing activities                                     
2.1  Details of financing and investing transactions which have had a           
    material effect on consolidated assets and liabilities but did not          
involve cash flows                                                          
                                                                                
    Nil                                                                         
                                                                                

2.2  Details of outlays made by other entities to establish or increase         
    their share in projects in which the reporting entity has an interest       
                                                                                
Nil                                                                         
                                                                                
                                                                                
Financing facilities available                                                  
Add notes as necessary for an understanding of the position.                    
                                                  Amount       Amount used      
                                                  available    $A`000           
                                                  $A`000                        
3.1  Loan facilities                               Nil          Nil             
                                                                                
3.2  Credit standby arrangements                   Nil          Nil             
                                                                                
Estimated cash outflows for next quarter                                        
                                                               $A`000           
4.1  Exploration and evaluation                                 540             
                                                                                
4.2  Development                                                60              
                                                                                
    Total                                                      600              
Reconciliation of cash                                                          
Reconciliation of cash at the end of the quarter   Current      Previous        
(as shown in the consolidated statement of cash    quarter      quarter         
flows) to the related items in the accounts is as  $A`000       $A`000          
follows.                                                                        
5.1  Cash on hand and at bank                      411          185             
5.2  Deposits at call                              1,906        2,468           
5.3  Bank overdraft                                -            -               
5.4  Other (provide details)                       -            -               
Total: cash at end of quarter (item 1.22)     2,317        2,653            
Changes in interests in mining tenements                                        
                              Tenement     Nature of   Interest     Interest    
                              reference    interest    at           at end of   
(note (2))  beginning    quarter     
                                                       of quarter               
6.1  Interests in mining                                                        
    tenements relinquished,                                                     
reduced or lapsed                                                           
                                                                                
6.2  Interests in mining                                                        
    tenements acquired or                                                       
increased                                                                   
                                                                                
Issued and quoted securities at end of current quarter                          
Description includes rate of interest and any redemption or conversion rights   
together with prices and dates.                                                 
                              Total        Number      Issue price  Amount      
                              number       quoted      per          paid up     
                                                       security     per         
security    
7.1   Preference +securities                                                    
     (description)            Nil          Nil                                  
7.2   Changes during quarter                                                    
(a)  Increases through                                                     
     issues                                                                     
     (b)  Decreases through                                                     
     returns of capital, buy-                                                   
backs, redemptions                                                         
7.3   +Ordinary securities     87,097,481   87,097,481  various      various    
                                                                                
7.4   Changes during quarter   Nil          Nil                                 
(a)  Increases through                                                     
     issues                                                                     
     (b)  Increase through                                                      
     exercise of options                                                        
7.5   +Convertible debt                                                         
     securities               Nil          Nil                                  
     (description)                                                              
7.6   Changes during quarter                                                    
(a)  Increases through                                                     
     issues                                                                     
     (b)  Decreases through                                                     
     securities matured,                                                        
converted                                                                  
7.7   Options  (description                             Exercise     Expiry     
     and conversion factor)   23,934,843   22,344,843  price        date        
                                                       $1.00        30 April    
2008        
7.8   Issued during quarter    Nil          Nil                                 
7.9   Exercised during         Nil          Nil                                 
     quarter                                                                    
7.10  Expired during quarter   Nil          Nil                                 
7.11  Debentures               Nil          Nil                                 
     (totals only)                                                              
7.12  Unsecured notes (totals  Nil          Nil                                 
only)                                                                      
Compliance statement                                                            
1    This statement has been prepared under accounting policies which comply    
    with accounting standards as defined in the Corporations Act or other       
standards acceptable to ASX (see note 4).                                   
2    This statement does give a true and fair view of the matters disclosed.    
Sign here:            Date: 27 April, 2007                                      
(Director)                                                                      
Print name:    W.T.Marx                                                         
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 wanting to disclose additional information 
    is encouraged to do so, in a note or notes attached to this report.         
2    The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
    interests in mining tenements acquired, exercised or lapsed during the      
reporting period.  If the entity is involved in a joint venture agreement   
    and there are conditions precedent which will change its percentage         
    interest in a mining tenement, it should disclose the change of percentage  
    interest and conditions precedent in the list required for items 6.1 and    
6.2.                                                                        
3    Issued and quoted securities - The issue price and amount paid up is not   
    required in items 7.1 and 7.3 for fully paid securities.                    
4    The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.     
5    Accounting Standards ASX will accept, for example, the use of International
    Accounting Standards for foreign entities.  If the standards used do not    
    address a topic, the Australian standard on that topic (if any) must be     
complied with.                                                              
Date: 30/04/2007 08:20:02 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.