TAW - Tawana Resources NL - Chairman`s Address - AGM 2007 Release Date: 31/05/2007 07:39:01 Code(s): TAW
TAW - Tawana Resources NL - Chairman`s Address - AGM 2007
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")
31 May 2007
Chairman`s Address - AGM 2007
I would like to welcome you here at the Company`s Melbourne laboratory to our
10th annual general meeting. While the 2006 year`s activities are well
summarized in the annual report, there have been some pleasing developments
during the early part of 2007.
The mining right for the Kareevlei Wes project was granted at the end of the
March quarter, marking the successful outcome of many years of preliminary
exploration and assessment, followed by lodging the formal application for the
mining right some two years ago. During the application period, Wolf and our
South Africa based people (including Craig Bailey, Leon Daniels, Adrian Horwitz
and our Seven Falls partner, Thabo Makweya) remained in touch with the
Department of Minerals and Energy, clarifying the terms of the application as
Tawana is now constructing its 30 tonnes per hour dense media separation plant
at Kareevlei Wes, and has called tenders for undertaking the trial mining
program. If the results of this trial confirm the economics indicated during the
exploration phase, Tawana could be a diamond producer by year`s end.
In May this year Tawana announced that it had been granted a prospecting licence
over a cluster of eight kimberlites in north-east Botswana. This project is in
the Orapa kimberlite field, some 25 km from the DeBeers Orapa diamond mine.
While these kimberlites were identified some 30-40 years ago, only one has so
far been tested for diamonds. Our immediate program is to confirm the
dimensions of each kimberlite using modern ground based geophysics, followed by
drilling and trenching to establish diamond grade and tenor. We expect drilling
will commence in the September quarter.
Back in South Africa, we expect to commence a sampling program at the Riverton
Kimberlite in the September quarter.
We have continued to try to identify an experienced mining group to joint
venture a major trial mining program on Tawana`s Eastern Gravels and Feeder
Channel alluvials near the Finsch mine, some 150 km west of Kimberley. These
diamondiferous alluvials comprise approximately 200 million tonnes, including
shallow overburden. It is a project that will require significant initial
capital to establish the plant and equipment.
Tawana has formed an alliance with Guma Resources (a subsidiary of a major South
African company) to identify and explore mineral opportunities in southern
Africa. The first alliance project is expected to commence in the September
quarter on the Lexshell prospect. This is an alluvial target based within an old
tributary of the Vaal/Harts River system, located approximately 50km to the West
In Australia, we completed the bulk test of the Black Top kimberlite dyke in the
Pilbara, with inconclusive results. While we did recover diamonds, they were not
of the quantity recovered in the original De Beers` program. We are continuing
with the Pilbara exploration program, and have earned over 60% interest in the
joint venture with De Beers.
Our Melbourne laboratory has continued to treat Tawana and third party samples.
The flow of samples from the new programs in southern Africa will increase in
the coming months.
Last year we raised funds to support the Black Top and Kareevlei Wes programs.
The latter has only just been approved for development. Your board is now
looking at the level of additional funding that will be required to support the
ongoing and new projects. We continue to investigate both corporate and organic
opportunities that may lead to Tawana becoming a diamond producer.
On behalf of shareholders, I thank Wolf and his team for another year of solid
endeavour. Securing the approval to trial mine Kareevlei Wes, and the right to
explore the BK19-BK26 kimberlites in Botswana, provide for a good start to the
31 May 2007
South African Sponsor to Tawana:
PricewaterhouseCoopers Corporate Finance (Pty) Limited
All press releases and announcements may be inspected on the Company"s web site:
Date: 31/05/2007 07:39:01 Supplied by www.sharenet.co.za
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