TAW - Tawana Resources NL - Quarterly Activities and Cash Flow Report 1 October Release Date: 25/01/2011 10:20:01 Code(s): TAW
TAW - Tawana Resources NL - Quarterly Activities and Cash Flow Report 1 October
2010 - 31 December 2010
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
Share code on the Australian Stock Exchange Limited: TAW
("Tawana" or "the Company")
Quarterly Activities and Cash Flow Report
1 October 2010 - 31 December 2010
Tawana Resources NL (ASX: TAW) is pleased to present the report on activities
for the period October to December 2010.
- Strategic Alliance with Gryphon Minerals Ltd announced
- Acquisition of two highly prospective permits and three applications
pending in Liberia, West Africa; signifying the benefits of the Alliance
- Resource upgrade to 47.6Mt at Meletse Iron Ore project, a project
incorporated in the Thabazimbi Joint Venture, South Africa
- Addendum to Kareevlei Wes diamond project sale signed with Rolatseng Mining
and second payment received
- Review of mineral opportunities in Africa continuing
- Rationalisation of diamond projects continuing
During the quarter the Company announced a Strategic Alliance with Gryphon
Minerals Ltd (ASX: GRY) and the acquisition of five permit applications in
Liberia, West Africa. Under the terms of the Alliance Gryphon will assist Tawana
with the identification, acquisition and exploration of mineral permits in West
Africa which are outside Gryphon`s core growth strategy. Gryphon will also
assist Tawana establish itself in West Africa and provide high level technical,
operational and logistical advice.
As part of the agreement, subject to shareholder approval, Tawana will issue
Gryphon 100,000,000 fully paid ordinary shares, representing approximately 16%
of the issued capital on an undiluted basis and offer Gryphon the right to
nominate one nominee to the Board of Directors.
The Company continued the review and to prioritize its existing diamond projects
within Africa and Australia as well as a number of complementary opportunities
Two licences were issued to Gryphon in the north east of the country adjacent to
the 5.0Moz Ity Gold Mine and 1.52Moz New Liberty deposit. These, in addition to
the three permits currently under application cover approximately 3800km2 of
underexplored and highly prospective Archean and Birimian greenstone belts
Under the terms of the agreement, field work will commence on these prior to the
onset of the wet season in June 2011 and in parallel to the licences being
transferred from Gryphon to Tawana.
Work will commence on defining a reconnaissance mapping, sampling and remote
sensing data acquisition program. This will be done in conjunction with SEMS
Exploration Services Ltd of Ghana and exploration programs will be designed to
rapidly assess ground holding and advance prospective targets. Field activities
to be undertaken will include:
- Review of available geophysical remote sensing imagery.
- Identification of areas of artisanal activity and nature of mineralisation
- Stream sediment and soil sampling programmes to be designed.
- Reconnaissance mapping of areas of interest.
- Ongoing community liaison.
Kareevlei Wes Project, Kimberley Region (TAW 100%)
During the quarter an Addendum to the Heads of Agreement (HoA) for the sale of
Kareevlei was signed with Rolatseng Mining of South Africa. The Purchase price
was revised from R25,000,000 to R22,000,000 due to an expectation of a lower
grade as announced in the previous quarter. The revised terms of the HoA are as
1. Payment of a R150,000 non-refundable deposit within 14 days of the signing
of the HoA
2. Payment of a R250,000 non-refundable deposit on 30th November
3. Payment of R1,100,000 in five monthly installments commencing 31 January
2011 into trust or escrow and released to the vendor on transfer of the
4. Payment of R20,500,000 within seven days of completion of the Trial Mining
and reporting exercise and to be held in trust or escrow pending transfer
of the Mining Right.
The first two payments of R150,000 and R250,000 have has been received by the
Company and steps are underway to transfer the Mining Right.
Daniels Alluvial Project, Kimberley Region (TAW 100%)
During the quarter license renewals were submitted and accepted by the DMR for
the Daniels Alluvial Project.
Rakana Consolidated Mining Pty Ltd (TAW 26%)
The Company holds a 26% equity in Rakana Consolidated Mining Pty Ltd ("Rakana")
the joint venture partner of Aquila Resources Ltd ("Aquila") in the Thabazimbi
Thabazimbi Iron Ore Project (TAW indirect interest 6.7%)
On 30 November 2010 Aquila released a revised JORC compliant indicated and
inferred resource estimate of 47.6Mt at 62.9% Fe at the Meletse Iron Ore Project
in the Limpopo Province, South Africa. Significant expansion potential exists as
the deposit remains open at depth and along strike. The Meletse Project is
incorporated in the Thabazimbi Joint Venture.
MELETSE ORE RESOURCES
Resource Tonne Fe% SiO2 % Al2O P% S% MnO % MgO % LOl%
Classifi- s Mt 3 %
Indicated 15.9 63.6 6.22 1.07 0.031 0.45 0.783 0.076 1.00
inferred 31.7 62.5 8.89 0.82 0.041 0.041 1.078 0.54 1.19
Total 47.6 62.9 8.00 0.91 0.040 0.43 0.979 0.061 1.13
Avontuur Manganese Project (TAW indirect interest 6.7%)
The Avontuur high-grade Manganese Project in Northern Cape Province, South
Africa has a JORC compliant resource estimate of 66.7 Mt at 39.3% Mn as
announced by Aquila on 10th May 2010. The Avontuur Project is incorporated in
the Thabazimbi Joint Venture.
Moshaiwa-Borolong Projects (100% owned by Seolo Pty Ltd, a wholly owned
Moshaiwa licenses 86-87/2007 and Borolong license 37/2004 were relinquished
during the quarter as part of Tawana`s ongoing project prioritization.
For further information, please contact:
Lennard Kolff van Oosterwijk
Chief Executive Officer
Tel: +61 7 35102115
Competent Persons Statements
The information in this report, insofar as it relates to the Meletse Iron Ore
Resource was prepared under the supervision of Mr Brent E Green who is a member
of the Australian Institute of Geoscientists and Mr Bernhard Siebrits who is a
member of the Australasian Institute of Mining and Metallurgy. Mr Green is full-
time employee of Aquila Resources Ltd and Mr Siebrits is a full-time employee of
Golder Associates Africa Ltd. Mr Green and Mr Siebrits have sufficient
experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which they are undertaking to qualify as
Competent Persons as defined in the 2004 Edition of the `Australasian Code of
Reporting of Exploration Results, Mineral Resources and Ore Reserves`.
The information in this report, insofar as it relates to the Avontuur Manganese
Resource, is based on information compiled by Brent E Green who is a member of
the Australian Institute of Geoscientists, and who has more than five years
experience in the field of activity being reported on. Mr Green is a full-time
employee of Aquila Resources Ltd. Mr Green has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the `Australasian Code of Reporting of
Exploration Results, Mineral Resources and Ore Reserves`. Mr Green consents to
the inclusion in the report of the matters based on the information in the form
and context in which it appears.
Aquila Resources Ltd consents to the information, insofar as it relates to the
Gravenhage Manganese and Meletse Resource to be included in Tawana Resources NL
Oct - Dec 2010 ASX Quarterly Report.
25 January 2011
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 25/01/2011 10:20:00 Supplied by www.sharenet.co.za
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