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TAW - Tawana Resources NL - Announcement

Release Date: 23/10/2007 08:27:40      Code(s): TAW
TAW - Tawana Resources NL - Announcement                                        
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")                                                     
Date of lodgement:  23-Oct-2007                                                 
Title:    Open Briefing . Tawana. Progress on Trial Mining & Bulk Sampling      
Record of interview:                                                            
corporatefile.com.au                                                            
Tawana Resources NL (ASX code - TAW) is exploring for diamonds in South Africa, 
Botswana and Australia.  You recently announced that larger than expected       
diamonds have been recovered during the first week of processing of the initial 
bulk sample collected at the Riverton kimberlite project in South Africa.  How  
much kimberlite has been processed so far?  What is the quality of the diamonds 
recovered?                                                                      
MD Wolf Marx                                                                    
So far we`ve processed approximately 1500 tonnes, but the important thing is    
that it`s only partially processed.  We`re processing the kimberlite in phases  
with the minus 6 mm free milling material processed first.  The oversize        
material, plus 6 mm to minus 16 mm is stockpiled for processing later.          
So we currently don`t have the complete results for the material excavated and  
we simply don`t know the final grade and diamond quality yet.  However, the     
diamonds recovered so far from the minus 6 mm fractions from certain areas of   
the kimberlite are, on average, larger than one would expect from a kimberlite. 
corporatefile.com.au                                                            
How successful are these first results?  How do the results compare with        
expectations?                                                                   
MD Wolf Marx                                                                    
The first results were way beyond expectations.  The average stone size from    
diamonds from kimberlites in that Northern Cape, Kimberley region is around 0.2-
0.25 carat per stone.  However, the average size for the stones we`ve recovered 
so far from the main portion of the kimberlite exceeds this.                    
It really came as a surprise even though we`ve been told anecdotally by people  
associated with past diggings there - there are no proper records of previous   
diggings on that kimberlite - that the diamonds from Riverton were, in their    
words, of `good` size.  Of good size normally in the Kimberley region means that
they are similar to the diamonds from the alluvials in the Vaal River, which are
known to be very big stones.                                                    
corporatefile.com.au                                                            
What is the remainder of the program in terms of number of samples and tonnes?  
When do you expect the next results?                                            
MD Wolf Marx                                                                    
The total program is to fully process in excess of 2,000 tonnes including the   
oversize and we`re on track to complete that by the end of November.  All the   
diamonds will then be valued.                                                   
corporatefile.com.au                                                            
How accurately do results from bulk sampling of kimberlite projects predict the 
commercial viability of a project?                                              
MD Wolf Marx                                                                    
The program we`re undertaking at the moment will only give a preliminary        
indication of the commercial viability of the project.  To define a Resource for
diamonds under the JORC Code guidelines, one needs to recover at least 2,000    
carats to get an accurate valuation of the diamonds from the pipe.              
This program is designed to get an understanding of what the diamonds look like,
an indication of the grade and the diamond distribution in the pipe. We know    
there are at least three different types of kimberlites in the pipe, which is   
quite common for these sorts of structures.  We need to understand whether they 
are all diamondiferous and whether there is any difference in the diamonds      
between each kimberlite type.                                                   
corporatefile.com.au                                                            
What is required for Tawana to progress the project past this bulk sampling     
stage?                                                                          
MD Wolf Marx                                                                    
It will depend on the grade and value mix.  We will progress past this bulk     
sampling stage if the grade and value combination indicate that the project     
could be viable when taking into account current mining costs in South Africa.  
We`ve been advised by Snowden that our Kareevlei Wes project (TAW 74%), which is
in the same region as Riverton, is likely to have mining costs of around US$7.50
per tonne.  The next stage of the Riverton project would be to do bulk sampling 
of at least 8,000 tonnes.                                                       
corporatefile.com.au                                                            
Trial mining is soon to commence at Kareevlei Wes (TAW 74%).  Can you describe  
the current state of the project?  How valuable is the project potentially?     
What are the objectives of the trial mining program at Kareevlei Wes?           
MD Wolf Marx                                                                    
The 25 tonne per hour DMS plant has been constructed on site.  The construction,
apart from the scrubbing circuit, is complete including the infrastructure and  
tailings dam.  We`re hoping to get the scrubbing circuit into place in the next 
month or so.                                                                    
Kareevlei is a valuable project for Tawana as it is clearly our most advanced.  
We`ve done a lot of drilling and bulk sampling there in the past and the        
indications are that the in-situ value is US$12-15 per tonne, or at least double
the mining costs per tonne estimated for that region by Snowden.  The trial     
mining program is designed to firm up those numbers by getting a definitive     
number for the grade and value of the stones.                                   
corporatefile.com.au                                                            
When will you know whether you will proceed to a commercial development?        
MD Wolf Marx                                                                    
The decision on whether we proceed with a commercial development should be made 
in the first half of 2008.                                                      
corporatefile.com.au                                                            
Tawana has a Prospecting Licence over BK19-BK26 kimberlite field in Botswana.   
Why do you think you might be able to advance this project when De Beers passed 
it over?  What are the next steps?                                              
MD Wolf Marx                                                                    
It`s an important question.  We were only granted the prospecting license there 
in April, but our understanding of this project has progressed rapidly.  It is  
located in an area near the Orapa field with a rich history of diamond mining.  
De Beers discovered the Orapa pipe in 1967 and in fact my brother was the       
geologist on site.  The Orapa pipe is a monster, covering about 100 hectares.   
They started mining it in 1974 and the open cut phase of the mine is expected to
go until 2060.                                                                  
They`ve subsequently found about 70 kimberlites in that province of which five  
are currently being mined.  The AK6 kimberlite is currently in the pre-         
feasibility phase.  This pipe was discovered by De Beers and then relinquished  
because they thought it was too small and too low grade.  African Diamonds,     
which is listed on AIM, proved it to be about three times the size and double   
the grade De Beers thought it was.  De Beers joint ventured back into the       
project and judging by the numbers that have been publicly released, it`s       
definitely going to be the next mine in that province.                          
The understanding of the geological structures in the province has improved, as 
have the modern exploration techniques.  So that has given us additional        
encouragement to take on the project.  There are 8 kimberlites within our       
prospecting license and our geophysical work indicates that some of those       
kimberlites certainly look bigger than De Beers reported them.  There is some   
indication that there might also be additional kimberlites.                     
We started drilling recently on the known kimberlites and the new targets.  That
program will test a number of those new targets and also do some initial        
delineation drilling on the known kimberlites. The material extracted from the  
kimberlites will be transported to our Flowsort x-ray unit in Kimberley, South  
Africa, for diamond recovery.                                                   
corporatefile.com.au                                                            
Can you summarise the activities on your main projects over the next few months 
and the importance for the growth ambitions of Tawana?                          
MD Wolf Marx                                                                    
We will continue trial mining at Kareevlei Wes, the first phase of the bulk     
sampling program at Riverton and drilling on our licences in Botswana. We have  
also recently bought 30% of a company holding a Prospecting Right over the St.  
Augustines kimberlite located just 600 metres from the famous Big Hole in       
Kimberley. This is a development which has attracted a lot of attention.        
I think that these will bring a lot more investor attention to Tawana and, in   
particular, our activities in Botswana because there has been a distinct shift  
in the attention of global diamond investors towards Botswana and away from     
places like Canada and Australia.  Botswana is one of the lowest risk countries 
for exploration and mining and foreign investment in Africa, even worldwide.    
The success rate in finding commercially viable diamond deposits is second to   
none and that includes junior explorers who have had quite spectacular          
successes. So I think there will be renewed attention on Tawana and certainly   
we`ll be pursuing the Orapa project and our other Southern African projects very
vigorously.                                                                     
corporatefile.com.au                                                            
Thank you Wolf.                                                                 
For further information on Tawana Resources visit www.tawana.com.au or call Wolf
Marx on +61 (3) 9863 5235.                                                      
To read other Open Briefings, or to receive future Open Briefings by email,     
please visit www.corporatefile.com.au                                           
DISCLAIMER: Corporate File Pty Ltd has taken reasonable care in publishing the  
information contained in this Open Briefing. It is information given in a       
summary form and does not purport to be complete. The information contained is  
not intended to be used as the basis for making any investment decision and you 
are solely responsible for any use you choose to make of the information. We    
strongly advise that you seek independent professional advice before making any 
investment decisions. Corporate File Pty Ltd is not responsible for any         
consequences of the use you make of the information, including any loss or      
damage you or a third party might suffer as a result of that use.               
South African Sponsor to Tawana                                                 
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
All press releases and announcements may be inspected on the Company`s web site,
namely: www.tawana.com.au                                                       
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disseminated through SENS.                                                      
Date: 23/10/2007 08:27:39 Supplied by www.sharenet.co.za                     
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