TAW - Tawana Resources NL - Quarterly activities report 1 July to 30 Release Date: 28/10/2011 10:53:02 Code(s): TAW
TAW - Tawana Resources NL - Quarterly activities report 1 July to 30
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 Report 1 July - 30 September 2011
(Please note all maps and pictures have been removed and can be found on
the Tawana website).
Tawana Resources NL (ASX: TAW) is pleased to present the report on
activities for the period July to September 2011.
Sinoe Gold Project Acquisition
* Due diligence successfully completed and field exploration
* 1000 soil samples collected from a planned initial 3000 sample
* Extensive artisanal workings defined within a high priority
target area; sampling to focus in this area during the next
* Dugbe F resource (AIM: HUM), 25 km along strike from the Sinoe
Project, upgraded from 0.8 Moz to 1.8 Moz; Dugbe Shear
developing into a new gold province
Nimba/Lofa Gold Exploration
* Initial sampling programmes completed; 575 samples collected
* 1/3 of assay results received to date; anomalous catchments
* Awaiting additional results
* Major JV partner planning to dispose of its interest in the
Gravenhage Manganese Project
* Execution payment to secure Sinoe Project option agreement
paid; fieldwork commences
The Company and Global Mineral Investments LLC (`GMI`), a private
Liberian company signed a binding Heads of Agreement for an option to
purchase outright the mineral exploration licence over the Sinoe Project
held by GMI. Under the terms of the agreement the Company has the option
to purchase outright the mineral exploration licence after meeting the
following terms and conditions:
1. US$10,000 Option payment to secure exclusivity - PAID
2. US$40,000 Execution payment on successful due diligence - PAID
3. US$50,000 Execution payment within 6 months of the commencement of
exploration or announcing to market a significant exploration
The Company is to fund exploration during the first year after which it
has the right to purchase the licence outright or walk away
unencumbered. Should the Company choose to purchase the licence outright
it does so at the following terms:
1. US$350,000 payment and 6 million shares in the Company
2. US$1 million payment at announcement of 1 Moz JORC compliant
3. Additional US$1 million payments for each additional 500 Koz JORC
compliant resource announced to market up to a maximum JORC
compliant resource of 2.5 Moz
4. US$5 million payment at pouring first gold from a mining operation
within the licence area.
The Company secured exclusive rights on a significant, highly
prospective Birimian land package in Sinoe County, South-Eastern Liberia
referred to as the Sinoe Project. Due diligence was successfully
completed and the Execution payment fulfilled on 18th August 2011. Field
exploration activities commenced shortly thereafter and have been
ongoing through the wet season. The Sinoe Project area covers 400 Km2
within arguably one of the most prospective Birimian gold structures
currently being explored in Liberia; the Dugbe Shear.
Exploration activities continued on the Nimba and Lofa licenses; two
mineral permits issued in December 2010 and formally approved to Gryphon
Minerals Ltd (ASX: GRY) on 23rd February 2011. Stream sediment sampling
was completed during the quarter with a total of 575 samples collected
over both licences. The Lofa License covers 596 Km2 and is along strike
from the 1.52 Moz New Liberty gold deposit and the Nimba License covers
995 Km2 and is adjacent to the 5.0 Moz Ity gold mine.
Laboratory turnaround and quality assurance/quality control delays have
resulted in slower than expected assay turnaround at Nimba and Lofa. We
are in regular contact with the laboratories and results will be
announced to the market as soon as they are received. Full results are
expected early December. Both licenses host highly prospective Archean
greenstone belts that have had no modern day exploration and have
confirmed artisanal workings.
The additional applications submitted under the Gryphon Strategic
Alliance and pending approval were unsuccessful.
(Map showing granted licenses (1591 Km2) and GMI JV license (400 Km2)
The Company moved quickly to commence field exploration programmes and
secured the services of SEMS Exploration Services Ltd of Ghana. Field
work commenced end March with the mobilisation of four sampling teams,
securing of field base houses, completion of community liaison meetings,
identification of alluvial gold workings, mapping of road and track
network and collection of stream sediment and soil samples.
After successful completion of due diligence, Tawana Resources has paid
an execution fee to Global Mineral Investment Incorporated, the tenement
holder of the Sinoe Project area, securing binding exclusivity and
exclusive rights to purchase outright the Sinoe license pending results
of the first year field exploration programme.
Access is via paved and laterite road from Monrovia to Greenville and
laterite road from Greenville to the project area. Under the terms of
the agreement, the Company has secured the services of the vendor`s
expatriate site manager to build access tracks, additional camp
facilities and maintain logistical supplies to facilitate exploration
The mineral exploration license covers 400 Km2 of Birimian aged rocks
along arguably the most prospective gold mineralised structure being
explored in Liberia today; the Dugbe Shear.
(Graphic depicting Project location in SE Liberia showing road access
(black lines; sealed and laterite) on topography (hot colors higher
elevation, cool colors lower elevation) on left and regional tectonic
setting with major shear zones marked on right removed.)
The project area is 25 Km along strike from Hummingbird`s (AIM: HUM) 0.8
Moz Dugbe Project which was recently upgraded to 1.8 Moz (HUM, 26th
September 2011) and 40 Km along strike from Equator Resources (ASX: EQU)
Bukon Jedeh Project. Both projects are hosted along secondary and
tertiary order structures adjacent to the main Dugbe Shear. Similar
structural targets have been defined in the government regional
aeromagnetics data over the Sinoe Project area.
The area is characterised by numerous artisanal alluvial and eluvial
gold workings. The area is also characterised by numerous quartzite,
graphite and manganese occurrences on the USGS Geological map of
Liberia; all favourable indications for gold prospectivity.
(Graphics depicting artisanal workings observed within the Sinoe project
(Graphics depicting Sinoe Project area on regional total aeromagnetic
imagery showing approximate locations of advanced projects along strike
to the east and access removed.)
Since field work commenced in late August 2011, field teams have
collected over 500 soil samples on a targeted 800x100m grid within the
reporting period. Samples to date have been submitted to the lab in
Monrovia for preparation and onward shipping for assay. Field sampling
is expected to be completed by the end 2011.
Field mapping of access, artisanal workings and geology has continued in
parallel with sampling activities. Mapping has highlighted an
interpreted fold closure within biotite schists with foliation dipping
gently to the South in the southern portion and more steeply to the
north-west in the northern portion. The fold axis coincides with an area
of diffuse magnetic response in the government aeromagnetic Total
Magnetic Intensity image, a greater density of narrow pegmatite dykes
and sills and increased artisanal mining activity. This area is
considered a highly prospective target area.
Nimba and Lofa Licenses
Stream sediment sampling of the Nimba and Lofa project areas was
completed during the quarter with a total of 575 stream sediment and
soil samples collected. To date 230 assay results have been received
with the remainder pending. Anomalous catchments have been defined
within results received to date; however, results of the full programme
are awaited prior to prioritising follow-up target areas. Full assay
results are expected early December.
Access roads, tracks and paths have been mapped, and additional
artisanal gold workings located and sampled within the license areas.
Numerous artisanal alluvial gold workings have been located and
confirmed within streams draining coincident topographic, aeromagnetic
high anomalies and favourable greenstone lithological and structural
settings in the south, central and northern zones of the Nimba license.
The southern area of the Nimba license defines a 30 Km strike length
ridge that represents a high priority target area.
(Maps showing Nimba license area over USGS geology (left) and government
aeromagnetic survey total magnetic intensity (right). Additional
artisanal workings found to date denoted by red hammer and pick symbols
The Nimba license area is considered highly prospective for multi Moz
gold deposits due to:
i. Proximity to and on splays off the Cestos Shear; a major scale
crustal structure which hosts known gold deposits and projects
ii. Proximity to the Ity Gold Mine (5 Moz)
iii. Structurally complex zone at contact between the Archean Craton to
the west and Birimian complex to the east with inferred in-folding
of Birimian aged rocks into Archean Craton and emplacement of
Palaeoproterozoic granitoids into the folded rock package along
major splay structures of the Cestos Shear.
At Lofa artisanal alluvial workings have been confirmed along the
southern boundary of the license area. Workings occur in streams
draining the northern extension of the Kpo Range greenstone belt in the
south-west of the licence area. This represents a similar geological
setting to where a hard-rock artisanal gold workings (hammer and pick
symbol on figure below) occurs within a competitors license area within
strike continuations of the greenstone belt. Additional workings appear
to occur within streams draining a leucogranite-gneiss and amphibolite
unit in the south-east of the license area. Both target areas are
highlighted in the figure below and pending assay results of the stream-
sediments survey will be followed up with additional sampling and
mapping to define possible drill targets.
(Map showing Lofa license on geology (left) and on government total
magnetic intensity aeromagnetic data (right) removed. Competitors
license occurs within central area with hard rock gold artisanal gold
working shown by red hammer and pick symbol. High priority target areas
along similar magnetic ridge in SW and NE corners of Lofa license.)
Work Plan going forward
Blanket 800x100m soil sampling will continue over the Sinoe license and
focus within the central-northern area of the project area during the
following quarter. Assessment of access, artisanal workings in the area
and geological mapping will also be undertaken. The full soil sampling
programme is expected to be completed by the end of the year.
Full stream sediment assay results from the Nimba and Lofa licenses are
expected early December 2011. Pending results, target areas will be
defined for follow-up field work in conjunction with possible air
Liberia is a democratic country run by Her Excellency President Ellen
Johnson Sirleaf; Africa`s first elected female head of state in 2005.
The country is hugely prospective and hosts several world class iron ore
deposits but yet is completely underexplored for gold and non-ferrous
metals. Liberia has a modern and transparent mining code and the
government is supportive of foreign investment especially in the
exploration and mining industry to help unlock the value of its
potential mineral wealth. Tawana will be one of the first ASX listed
junior companies into Liberia following in the footsteps of mining
majors BHP Billiton, Arcelor-Mittal and Severstal.
Liberia is located in West Africa dominantly within the Archean aged
Kenema Man Domain and lesser Birimian sediments to the east. There are
a large number of world class mineral deposits located in the Archean
and Birimian rock types throughout West Africa including Obuasi (40
Moz+) and Tasiast (18 Moz+). West Africa is one of the fastest growing
mineral provinces in the world and Liberia currently hosts several world
class iron ore deposits and is underexplored for gold.
Rakana Consolidated Mining Pty Ltd (TAW 26%)
The Company holds a 26% equity stake in Rakana Consolidated Mining Pty
Ltd ("Rakana") the joint venture partner of Aquila Resources Ltd
("Aquila") in the Thabazimbi Joint Venture. The Avontuur Manganese
Project and Meletse Iron Ore Project are incorporated in the Thabazimbi
Avontuur Manganese Project (TAW indirect interest 6.7%)
The Avontuur high-grade Manganese Project is located in the Northern
Cape Province, South Africa. Aquila Resources (ASX: AQA) announced a
JORC compliant resource upgrade of 108.9Mt at 38.6% Mn on 4th February
The Avontuur Project is incorporated in the Thabazimbi Joint Venture.
Avontuur Resource Estimate (AQA, 4th Feb 2011) table removed. Can be
found on the Tawana website.
Aquila Resources (ASX: AQA) is working on an expanded Feasibility Study
from a base case of 1Mtpa to target an operation with an annual
production of 2Mtpa to initially mine the Gravenhage Deposit as an open
pit, with subsequent underground mining from an open pit access. Strong
exploration potential exists within the 10 Km long Avontuur Basin, which
is wholly contained within the 370 Km2 Avontuur Prospecting Right.
The Avontuur Project area is located approximately 30 Km north of the
Kalahari Manganese Field, South Africa`s premier manganese producing
area (see map below).
AQA announced on 28th July 2011 in its June 2011 Quarterly Report that a
process has commenced to dispose of its interest in the Gravenhage
Manganese Project and that indicative bids are expected during the July-
September 2011 Quarter. No subsequent announcements have been made;
results of process are awaited.
(Graphic depicting Avontuur Project location (AQA, 11th May
Thabazimbi Iron Ore Project (TAW indirect interest 6.7%)
The Meletse Iron Ore Project has a JORC compliant indicated and inferred
resource estimate of 47.6Mt at 62.9% Fe in the Limpopo Province, South
Africa. The Meletse Project is incorporated in the Thabazimbi Joint
Venture. Significant expansion potential exists as the deposit remains
open at depth and along strike.
(Table depicting Meletse Iron Ore Project Resource Estimate (AQA 30th
Nov 2010)and Meletse Iron Ore Project location plan (AQA, 15th April
Kareevlei Wes Project, Kimberley Region (TAW 100%)
The Kareevlei Project Area is comprised of a cluster of five kimberlites
located approximately 100 Km northwest of Kimberley.
Daniel Alluvial Project, Kimberley Region (TAW 100%)
The Daniel Alluvial Project is a large buried palaeo alluvial diamond
project 2 Km south of the Finsch kimberlite diamond mine. It was
discovered in 2003 following a FALCOMTM survey by BHPB targeting
satellite kimberlite pipes around Finsch. The project consists of three
diamondiferous palaeo gravel channels; Feeder Channel, Main Channel and
Eastern Gravels. The Daniel diamonds are interpreted to be derived from
eroded diamondiferous Finsch kimberlite material.
Perdevlei Kimberlite Project, Kimberley Region (TAW 100%)
The Perdevlei kimberlite project is located approximately 50 Km east of
the Finsch diamond mine in the Kimberley Region of the Northern Cape
Province. The kimberlite pipe is approximately 1.7Ha in size, drill
confirmed to 150m depth and the project area is also prospective for
St Augustine (TAW 30%) and Lexshell Projects, Kimberley Region
The St Augustine kimberlite project is located approximately 600m west
of the Big Hole in Kimberley. It is a historic surface and underground
mine reportedly mined to a depth of 800ft (242m). The conceptual target
is primary kimberlite at depth below historic workings and remains
The Lexshell alluvial project is located 50 Km north-east of Kimberley,
at the confluence of the Vaal and Harts rivers. The project has targeted
and confirmed the presence of diamondiferous palaeo alluvial channels.
The Company is seeking divestment opportunities for its South African
diamond projects as part of its ongoing rationalisation.
Orapa Project (100% 0wned by Seolo Pty Ltd, a wholly owned subsidiary
and Firestone Diamonds Ltd (AIM: FDI) having the right to initially earn
70% interest in the Project)
The Orapa project consists of the BK24 kimberlite 22 Km north-north-east
of Lelthalkane and under joint venture with Firestone Diamonds (AIM:
FDI). Under the JVA Firestone has the right to initially earn 70% in the
Project through funding and execution of exploration activities
including the collection and processing of a bulk sample of kimberlite.
Large diameter drilling has been further delayed due to delays in the
start-up of Firestone`s BK11 mine. Drilling is expected to commence
during the third or fourth quarter of 2011.
Flinders Island & Venus Bay Projects, South Australia (TAW 80%, 20%
Orogenic Exploration with Flinders Mines earning in)
The Flinders Island and Venus Bay Projects are located along the western
Eyre Peninsula coast line, South Australia. Licenses are held by Tawana
Resources NL (80%) and Orogenic Exploration Pty Ltd (20%) with Flinders
Mines Ltd earning equity under a farm in JV.
For further information, please contact:
Lennard Kolff van Oosterwijk
Competent Persons Statements
The information in this report in so far that it relates to Liberian
Project Exploration Results, Mineral Resources or Ore Reserves is based
on information compiled by Lennard Kolff van Oosterwijk, who is a Member
of the Australian Institute of Geoscientists included in a list
promulgated by the ASX from time to time. Lennard Kolff van Oosterwijk
is a full-time employee of the company and 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 for Reporting of Exploration Results, Mineral
Resources and Ore Reserves`. Lennard Kolff van Oosterwijk consents to
the inclusion in the report of the matters based on his information in
the form and context in which it appears.
The information in this report, insofar as it relates to the Meletse
Iron Ore Resource and the Gravenhage Manganese 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`. Both Mr Green
and Mr Siebrits consent to the inclusion in the announcement of the
above matters based on the information in the form and context in which
28 October 2011
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 28/10/2011 10:53:01 Supplied by www.sharenet.co.za
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