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TAWANA RESOURCES NL - Significant High-Grade Friable Itabirite Target Defined at Mofe Creek

Release Date: 25/10/2012 09:35:00      Code(s): TAW       PDF(s):  
Significant High-Grade Friable Itabirite Target Defined at Mofe Creek

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”)



Significant High-Grade Friable Itabirite Target Defined at Mofe Creek

HIGHLIGHTS


    -   Significant +45% Fe friable itabirite target defined at Mofe Creek
    -   Hand auger drilling intersects medium to coarse grained, magnetite friable itabirite
        over a significant area to a minimum depth of 3.8m and average grade of 45% Fe
    -   Target remains open at depth with all mineralized holes ending in friable itabirite
    -   Results represent only 1 of 5 target areas tested by hand auger drilling to date
    -   DSO grade returned in rock chip sampling at surface
    -   RC and diamond drilling planned for fourth quarter 2012

Tawana Resources NL (ASX: TAW) is pleased to announce results of the hand auger and mapping programme
at the Company’s 100% owned Mofe Creek project and JV strike extensions which was completed recently
during the wet season.

The Mofe Creek Project is located within one of Liberia’s historic premier iron ore mining districts. The
project is 10km along strike from the abandoned Bomi Hills iron ore mine. Historic production at Bomi Hills is
estimated by the Government of Liberia at 50Mt of high-grade DSO magnetite lump in addition to high-grade
sinter feed beneficiated from itabirite (recrystallised banded iron formation). Reconnaissance rock-chip
sampling by Tawana has confirmed the presence of DSO magnetite and friable itabirite in outcrop. The
Project is well positioned for possible future infrastructure scenarios; road or rail to the Monrovia deep sea
port or road to coast and transshipment via barge to deeper water for onward shipment.

Len Kolff, MD Tawana Resources ‘The prospectivity of the project continues to increase with a large area of
high-grade friable itabirite discovered and the added bonus of potential blind DSO; this all within easy reach
of the coast, rail alignment and port’.

‘We are pleased with the results of the auger drilling to date; it brings us closer to discovering a significant
mineralized system within an historic iron ore province’ he said.

Mapping and Rock Chip Sampling
Mapping, rock chip sampling and review of the aeromagnetics survey completed earlier this year across the
project area has defined five key target areas; Koehnko, Zaway, Gofolo, Gofolo West and Gofolo North-West.

First pass interpreted geology consists of a strongly folded and faulted itabirite iron formation predominantly
along the northern boundary with a possible second iron unit along the southern boundary. The itabirite sits
within a broader granite-gneiss basement with interspersed smaller iron formations and mafic intrusives. The
itabirite ranges from steeply to shallowly dipping and the license area is characterized by a strong north-
westerly fabric associated with the Todi Shear zone. The most intense shearing occurs between the Koehnko
and Zaway targets in the east and appears to play an important role during the itabirite upgrade process.

[Image of Interpreted geology over license area has been removed for SENS purposes]
A total of 119 itabirite rock chip samples have been assayed to date across the license area. Average iron
formation grades from the 119 samples are detailed in the table below.

  n = 119     Fe %    SiO2 %    Al2O3 %          P%         S%        Mn %     LOI1000 %
   Avg          43.00    34.95   1.09          0.08       0.02       0.06     2.07
  Max           63.69    78.29  11.41          0.94       0.09       2.02    11.10
  Min           11.06     0.78   0.03          0.01       0.00       0.01    0.07
  Mode          47.69    38.24   0.28          0.01       0.01       0.02    1.58
Average grade of all rock chip sampling to date

Due to the apparent thicker package of itabirite, clear fold structures, proximity to the Todi Shear and
strongest magnetic response the Koehnko target was considered the highest priority.

Hand Auger Drilling
Reconnaissance hand auger drilling which commenced in parallel with the aeromagnetics survey was then
focused onto the Koehnko target in the east of the license area. Hand auger holes were drilled on a nominal
500 x 100m grid to an average depth of refusal of 3.8m but also reached depths of up to 5.7m dependent on
water content. One meter of end of hole material was then logged and bagged for assay.

A total of 82 hand auger holes have been drilled to date of which 34 holes terminated in iron formation. To
date assays from 14 holes have been received; of which 9 occur within the Koehnko target. Additional results
are pending and hand auger drilling is ongoing. Average end of hole grades from the 9 holes received over
the Koehnko target to date are detailed below.

  n=9       EOH (m)    Fe %     SiO2 %  Al2O3 %        P%         S%      LOI1000
  Avg         3.8      44.70     23.03    7.40         0.03       0.04      4.73
  Max         5.3      52.97     33.84   12.43         0.05       0.12      9.94
  Min         1.5      36.07      4.75    2.96         0.01       0.02      2.37
Average grades of Koehnko target hand auger drilling to date

From the hand auger intersections, rock chip sampling, mapping and aeromagnetics, a 4km long by 100-360m
wide friable itabirite interpreted footprint has been defined over the Koehnko target. The target remains
open to the south-east and east where rock chip sampling and aeromagnetics suggest a continuation along
the southern magnetics limb, and is open at depth.

[Koehnko target auger and rock chip sampling results by Fe% to date. Background image analytical signal
aeromagnetics. Assays pending for eastern hand auger holes and auger drilling ongoing – This image has been
removed for SENS purposes]

[The following images have been removed for SENS purposes: Left: Auger hole MCADH54; 52.68% Fe, 4.75%
SiO2, 12.43% Al2O3 and 7.47% LOI. Right: Auger hole MCADH74; 43% Fe, 31.19% SiO2, 3.77% Al2O3 and 2.67%
LOI. And, Left: outcropping DSO magnetite over the Koehnko target. Right: friable itabirite from the flanks
of Koehnko hill.]

All samples were assayed by SGS Liberia and were sourced from in-situ outcropping material. Samples were
dried and crushed to a nominal 2 mm using a jaw crusher then the whole sample pulverised in a LM2 to a
nominal 85% passing 75 µm. A 200g sample was then scooped, with iron ore analysis of majors and minors by
borate fusion-XRF.

Discussion and Exploration Potential
Results to date indicate that although DSO magnetite has been mapped in outcrop, occurrences are sporadic
with larger, continuous areas of friable high-grade itabirite mapped and intersected in auger holes. Key
target rationale is now focused towards high-grade friable itabirite averaging +45% Fe with low deleterious
elements, coarse grained and predominantly magnetite. These physical properties and analogies drawn with
historic production at Bomi Hills 25km along strike suggest a simple beneficiation process to a high-grade,
low deleterious sinter feed.

Depth potential of the friable itabirite target defined at Koehnko remains unknown until drill tested;
however a minimum depth of 3.8m has been confirmed in hand auger drilling and analogies drawn with Bomi
Hills suggests potential enrichment weathering depths of up to 25-30m. Greater depths and even blind
friable itabirite targets may be encountered due to structural preparation by the cross-cutting Todi Shear
zone.

[An image reflecting the Koehnko project exploration target areas and conceptual cross section location, has
been removed for SENS purposes]

The potential for blind DSO magnetite mineralization along the footwall contact at depth or other favorable
settings at Koehnko and other untested targets remains a possibility as is seen at Bomi Hills.

[Figure of the “Conceptual stylized cross section A-A’ and target types” has been removed for SENS
purposes.]

Highly Prospective District Geology
The Mofe Creek Project is located within one of Liberia’s historic premier iron ore mining districts. The
project 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 DSO lump magnetite in addition to high-grade beneficiated sinter feed concentrate.

[Historic ‘Western Cluster’ iron ore province and associated deposits over regional aeromagnetics image has
been removed for SENS purposes.]


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 itabirite concentrate averaged 64% Fe, 6% SiO2 and
0.04-0.05% P and was used to produce sinter feed (Gruss, 1973).

[Image of typical cross section through Bomi Hills mine after Gruss (1973). Note DSO magnetite at depth
along footwall contact, has been removed for SENS purposes.]

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
(Gruss, 1973). Magnetite mineralisation is in direct contact with gneissic basement and is partially blind.

Permitting
Tawana is awaiting confirmation from the Ministry of Lands Mines and Energy for the transfer of our 100%
owned Mofe Creek Reconnaissance permit into a Mineral Exploration license. Approval is anticipated shortly.
The Option period with the JV partner to secure strike extensions has been extended to the end of the year
to finalise acquisition of strike extensions.

Infrastructure and Access
The Project is well positioned for possible future infrastructure scenarios; road or rail to the deep water port
of Monrovia or road to coast and transhipment via barge to deeper water for onward shipment. A well-
maintained 100km long sealed road exists from the central licence area to the city of Monrovia. In addition
to this a decommissioned iron ore railway alignment* exists from the Bomi Hills mine to the port of Monrovia;
20km east from the easternmost magnetic anomaly. Rail distance from Mofe Creek to the port of Monrovia is
65km. Alternatively the Project area is approximately 25km from the coast for possible stand-alone haul
road construction, trucking and transhipment via barge to deeper water for on shipment.

[Image of the license area relative to historic Bomi Hills mine, coast, decommissioned rail alignment, roads
and port of Monrovia, has been removed for SENS purposes.]

[The following images have been removed for SENS purposes: Left: Aerial view of Monrovia port looking
south-west. Right: Decommissioned railway bridge next to national highway.]

Next Steps
The company will continue its infill mapping and hand auger drilling programme across key target areas over
the coming months. A drilling contract is currently being finalized with the aim to drill test the Koehnko and
other defined target areas in the fourth quarter 2012.

For further information please contact:

Tawana Resources (ASX: TAW)                  MAGNUS Investor Relations + Corporate Communication
Lennard Kolff van Oosterwijk                 John Gardner / Dudley White
Office: +61 424942589                        Tel: +61 8 9212 0101 / + 61 2 8999 1010


Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

25 October 2012

Date: 25/10/2012 09:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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