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TAW - Tawana Resources NL - ASX announcement - Geological Setting

Release Date: 29/11/2011 09:07:18      Code(s): TAW
TAW - Tawana Resources NL - ASX announcement - Geological Setting               
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")                                                     
(Please note all maps and imagess have been removed and can be found on the     
Tawana website)                                                                 
FAST FACTS                                                                      
Issued Shares:      856m                                                        
Market Cap:         $19m                                                        
Cash (Sep-11 Qtly): $4.3m                                                       
ASX CODE: TAW                                                                   
COMPANY HIGHLIGHTS                                                              
New West African Gold Frontier                                                  
Alliance with Gryphon Minerals                                                  
Experienced Board and Management                                                
Sinoe Gold Project, Liberia                                                     
Highly prospective Birimian gold structures on Dugbe shear                      
Along strike from Dugbe gold deposit  (1.8Moz)                                  
Mofe Creek Iron Ore Project, Liberia                                            
+40% Fe along 30km strike                                                       
25km to coast, adjacent to rail, port and 50 Mt Bomi Hills DSO historic         
mine                                                                            
Nimba/Lofa Gold Projects, Liberia                                               
Close proximity to Ity Gold Mine (5Moz)                                         
Located on known gold hosting structures                                        
Thabazimbi JV (6.7%), South Africa                                              
Avontuur Manganese and Meletse Iron Ore JV managed by Aquila Resources          
Geological Setting                                                              
The Mofe Creek license is 10 km along strike from the abandoned Bomi Hills      
iron ore mine. Historic production at Bomi Hills is poorly documented;          
however estimated historic production by the Government of Liberia is 50 Mt     
of high-grade magnetite (Elenilto Minerals and Mining website).                 
Bomi Hills produced high-grade direct shipping ore (DSO) magnetite in           
addition to magnetite concentrate beneficiated from itabirite                   
(metamorphosed and re-crystalised banded iron formation). DSO magnetite         
averaged 64.5% Fe, 4.5% SiO2, 1.5% Al2O3 and 0.13% P, of which 53% formed       
lump material (average 11-37mm) and 47% formed fines (<11mm). The               
beneficiated low grade itabirite concentrate averaged 64% Fe, 6% SiO2 and       
0.04-0.05% P and was used to produce sinter feed (Gruss, 1973).                 
The genesis of the Bomi Hills magnetite deposit is not clearly understood,      
however, general consensus is that it is hypogene and represents an             
itabirite that has come into direct contact with rising gneissic fronts and     
deep seated intrusions causing enrichment to coarse massive magnetite by        
metamorphic differentiation. Magnetite mineralisation is in direct contact      
with gneissic basement and is partially blind.                                  
Regional mapping by the USGS in the Mofe Creek area defines a composite         
gneiss basement; the same footwall unit observed at Bomi Hills. Magnetic        
anomalies similar to Bomi Hills were observed within this area and a            
reconnaissance license applied for.                                             
                                                                                
%                  MC1001                 MC1002           MC1003               
                                                                                
Fe                 40.43                  49.18            42.68                
                                                                                
SiO2               39.99                  27.28            36.96                
                                                                                
Al2O3              1.49                   1.06             0.61                 
                                                                                
P                  0.008                  0.008            <0.004               
                                                                                
LOI 1000           0.60                   1.70             1.63                 
                                                                                
MgO                0.04                   0.08             0.02                 
                                                                                
MnO                0.07                   0.11             0.07                 
                                                                                
CaO                0.05                   0.02             0.03                 
                                                                                
K2O                <0.01                  <0.01            <0.01                
                                                                                
Na2O               0.11                   0.13             0.10                 
                                                                                
TiO2               0.06                   0.06             <0.01                
                                                                                
V2O5               0.01                   0.01             0.01                 
                                                                                
Cr2O3              0.01                   0.01             0.01                 
(License and sampling locations relative to Bomi Hills mine and                 
infrastructure over airmag analytical signal base map has been removed)         
Field Observations                                                              
A one day field reconnaissance site visit was undertaken during mid-            
November 2011 with highly encouraging results. Access to the licence area       
was via existing road network only, with numerous target anomalies unable       
to be assessed due to access and time constraints.                              
A medium to coarse grained, laminated quartz-magnetite iron formation was       
discovered at varying degrees of weathering. Where strongly weathered, the      
material could be easily crumbled by hand and medium to coarse grained          
magnetite/hematite grains (average grain size 2-5mm) easily liberated.          
Where sampled in three locations, the iron formation averaged 40-50% Fe, 30-    
40% SiO2, 0.6-1.5% Al2O3, 0.004-0.008% P, and 0.6-1.7% LOI1000.                 
Outcrops of iron formation and massive magnetite concentrations were also       
observed in the field with individual massive magnetite accumulations up to     
meter scale further enhancing the exploration model for hypogene, massive       
magnetite bodies.                                                               
High-grade weathered friable magnetite/hematite sampled in outcrop and in       
close proximity to the license area returned 64.8% Fe, 0.02% SiO2, 2.3%         
Al2O3, 0.004% P and 1.75% LOI. This clearly demonstrates the hypogene           
magnetite model similar to Bomi Hills further enhancing prospectivity.          
(Medium-coarse grained, laminated quartz-magnetite iron formation (sample       
MC1001), and weathered variety of similar rock type crushed by hand forming     
soft, friable quartz-magnetite sands easily beneficiated by magnet pen          
(sample MC1003)- images removed)                                                
(Outcropping iron formation with larger 10`s cm scale magnetite                 
segregations (sample MC1002) and                                                
Weathered, softened magnetite from outcrop forming high-grade, clean            
magnetite/hematite fines - images removed)                                      
All samples were assayed by SGS Liberia and were sourced from in-situ           
outcropping material, were dried and crushed to a nominal 2mm using a jaw       
crusher then the whole sample pulverised in a LM2 to a nominal 85% passing      
75Picam. A 200g sample was then scooped, with iron ore analysis of majors       
and minors by borate fusion-XRF.                                                
Conceptual target                                                               
On the basis of preliminary reconnaissance mapping and analogies drawn with     
Bomi Hills 10km along strike, the company is targeting both massive, high-      
grade DSO magnetite mineralisation and weathered, easily beneficiated           
`soft` iron formation for high-grade beneficiated fines.                        
Both styles of mineralisation have been confirmed in the license area and       
Tawana has already commenced detailed field mapping and rock chip sampling      
to better define contacts and distribution of mineralisation types. Tawana      
aims to update the market by January 2011 with results of this follow up        
work.                                                                           
On the basis of initial mapping and sampling results, the Company will          
review flying a detailed aeromagnetics survey to better define                  
mineralisation distribution and continuity below areas of thick vegetation      
and/or weathering.                                                              
There is significant potential for this project to provide a rapid              
development timeframe, with low capital intensity utilising the extensive       
existing infrastructure and close proximity to major deep water ports           
and/or transhipment solutions.                                                  
Subject to further detailed geological confirmation, a conceptual target is     
to quickly develop a high margin, low tonnage operation that could generate     
significant cash flows for the Company.                                         
Tenure                                                                          
The Mofe Creek Mineral Reconnaissance license was awarded to Tawana Liberia     
Inc., a locally incorporated company 100% owned by Tawana Resources NL. The     
license covers a total area of 285 km2.                                         
Location and Access                                                             
The mineral reconnaissance license covers 285 km2 over Grand Cape Mount and     
Bomi Counties in Western Liberia.                                               
The license area is approximately 100 km drive from Monrovia on well-           
maintained sealed roads, 20 km from an historic heavy-haul iron ore railway     
and deep sea port and 25 km from the coast.                                     
Access to the project area is excellent with both sealed and laterite roads     
traversing the license area which is characterised by low, undulating           
topography and widespread shrub.                                                
(Well-maintained sealed main road from Monrovia through license area.           
Right: Laterite road, topography and vegetation within license area image       
removed)                                                                        
Infrastructure                                                                  
The license area is well positioned for possible future infrastructure          
scenarios; road or rail to the Monrovia deep sea port or road to coast and      
transhipment via barge to deeper water for onward shipment.                     
A well-maintained 100 km long sealed road exists from the central licence       
area to the city of Monrovia. In addition to this an historic heavy-haul        
iron ore railway* exists from the Bomi Hills mine to the port of Monrovia;      
20 km east from the easternmost magnetic anomaly. Rail distance from Mofe       
Creek to the port of Monrovia is 65 km.                                         
About Liberia                                                                   
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 is 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.                                                  
For further information, please contact:                                        
Lennard Kolff van Oosterwijk                                                    
Managing Director                                                               
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                     
Reference: Gruss, H, 1973. Itabirite iron ores of the Liberia and Guyana        
Shields. In: Genesis of Precambrian iron and manganese deposits; Proc.          
Kiev. Symp., 1970 (Earth Sciences 9).                                           
*Footnote: the railway line falls under the Western Cluster project             
currently owned by Elenilto Minerals and Mining and subject to a Joint          
Venture with India`s largest producer and exporter of iron ore in the           
private sector; Sesa Goa.                                                       
CORPORATE DIRECTORY                                                             
Warwick Grigor                                                                  
Non-Executive Chairman                                                          
Len Kolff                                                                       
Managing Director                                                               
Julian Babarczy                                                                 
Non-Executive Director                                                          
Euan Luff                                                                       
Non-Executive Director                                                          
Matthew Bowles                                                                  
Non-Executive Director                                                          
Winton Willesee /Aaron Finlay                                                   
Joint Company Secretary                                                         
CONTACT DETAILS                                                                 
Principal & Registered Office:                                                  
Suite 25, 145 Stirling Highway                                                  
Nedlands, Western Australia                                                     
Email:         admin@tawana.com.au                                              
Website:       www.tawana.com.au                                                
Phone:         +61 8 9389 3140                                                  
Facsimile:     +61 8 9389 3199                                                  
29 November 2011                                                                
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 29/11/2011 09:07:18 Supplied by www.sharenet.co.za                     
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