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TAWANA RESOURCES NL - Quarterly Activities Report 1 July - 30 September 2012

Release Date: 31/10/2012 12:00:00      Code(s): TAW       PDF(s):  
Quarterly Activities Report 1 July - 30 September 2012

(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”)


Quarterly Activities Report
1 July - 30 September 2012

Tawana Resources NL (ASX: TAW) is pleased to present the report on activities for the period July to
September 2012.


HIGHLIGHTS

Mofe Creek Iron Ore Project

   -   Aeromagnetics survey results received and confirm 48km strike length of iron formation
   -   Hand-auger drilling defines 4km long by 100-360m wide +45% friable itabirite target open to
       the South
   -   Option period extension signed to transfer strike extensions to Tawana
   -   25km from coast, 95km along sealed road to port of Monrovia and adjacent to
       decommissioned rail alignment 65km from deep sea port of Monrovia
   -   10km along strike from historic Bomi Hills mine; minimum 50Mt high-grade DSO magnetite
       lump produced

Sinoe Gold Project

   -   Option period extension signed to transfer license to Tawana
   -   Significant trenching results returned; 12m at 2.3g/t incl. 4m at 6.25g/t Au
   -   High priority high tenor +50ppb up to 1g/t Au soil anomalies defined

Nimba/Lofa Gold Exploration

   -   Lofa soils results received; no significant anomalies defined
   -   Relinquishment documents submitted for Nimba and Lofa licenses

   Corporate
   -   The Company signed an extension to the JV agreement entered into with Konblo Bumi Inc to secure
       strike extensions (pending due diligence) to the Company’s existing 100% owned Mofe Creek Iron Ore
       Project.
   -
   -   The Company signed an extension to the JV agreement entered into with Global Mineral Investments
       LLC (‘GMI’) to extend the Option period whilst renewal and transfer of the license is effectuated.
       The Company funded exploration during the first year and will exercise its right to purchase the
       licence outright.
   
   -   The Company is awaiting a license transfer from a reconnaissance permit to an exploration permit
       for the Mofe Creek iron ore project area. The Company and its joint venture partner are awaiting a
       license renewal notice for the Sinoe license from the Ministry of Lands Mines and Energy.
    Liberia
    -   Results of the Mofe Creek aeromagnetics survey were announced in August 2012. Field mapping,
        rock-chip sampling and hand auger drilling continued through part of the quarter with field work
        stopping through the peak of the wet season experienced during September.
    
    -   Infill soil sampling and trenching results were received during the quarter on the Sinoe project area.
        High priority +50ppb up to 1g/t Au soil anomalies were defined within previous broad +30ppb
        anomalous zones and best trenching results were 12m at 2.3 g/t including 4m at 6.25g/t Au. The
        Company signed an extension to the Option period with Global Mineral Investments LLC (‘GMI’)
        whilst transfer of the license is effectuated. The Company funded exploration during the first year
        and will exercise its right to purchase the licence outright.
    
    -   Results of reconnaissance 400 x 50m spaced soil sampling over high priority stream sediment BLEG
        anomalies identified on the Lofa project were received during the quarter with no significant
        anomalies identified. The Company submitted relinquishment reports for the Nimba and Lofa
        licenses whilst it concentrates work on the Mofe Creek iron and Sinoe Gold projects.
    

[Map showing granted licenses (1880km2), and JV licenses (1024km2) has been removed for SENS purposes]

Mofe Creek Iron Project

The Company announced results of the aeromagnetics survey on 6 th August 2012. The survey was flown by
Aeroquest Airborne of Perth, WA, a member of the Aeroquest International group of companies. The survey
was by PAC-750XL fixed wing aircraft at 200m line spacing and 50m ground clearance. Survey QC was
managed by Southern Geoscience Consultants of Perth and after all checks of data met quality control
requirements specified within the agreement.



Results of the survey clearly identify the extents of the itabirite and its structure. Folding and faulting is
clearly evident within the itabirite enhancing structural preparation for the development of mineralization.
Over 65km strike length of itabirite can be interpreted from the aeromagnetics which is in excess of previous
estimates. Four high priority target areas are evident within the Company’s 100% owned license with
additional targets occurring within the JV strike extension zones. Folding and repetition of the itabirite
within the highest priority targets appears to have caused thickening of the iron formation enhancing
prospectivity.

[The following image has been removed for SENS purposes - Recently acquired aeromagnetics data;
analytical signal above showing structure within iron formation and vertical integral of analytical signal
below showing key target areas in hot colors]

Infill mapping and rock chip sampling continued through the quarter. The Company successfully trialed hand
auger drilling as an alternative to trenching and pitting during the wet season. This allowed for safer, faster,
less invasive and more cost effective access into areas of no outcrop within target areas. Hand auger drilling
effectively penetrates areas of friable itabirite with hole depths averaging 3.8m and reaching up to 5.7m
depth.

[The following images have been removed for SENS purposes-Left: Hand auger drill core and chips in to
friable high-grade itabirite tending towards friable hematite/magnetite. Right: Deeper hand auger drill
core and chips into friable itabirite]

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 ansig image has been
removed for SESN 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% SiO 2 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
(Gruss, 1973). Magnetite mineralisation is in direct contact with gneissic basement and is partially blind.

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.

Subsequent Events

Mapping, rock chip sampling and review of the aeromagnetics survey 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.

[Interpreted geology over license area image has been removed for SENS purposes]

A total of 119 itabirite rock chip samples have been assayed to date across the prospective iron formation.
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 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.

n=9          EOH (m)       Fe%           SiO2%         Al203%        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

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.

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.

[The following images have been removed for SENS purposes –

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

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

Left: outcropping DSO magnetite over the Koehnko target. Right: friable itabirite from the flanks of
Koehnko hill]

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.

[Images has been removed for SENS purposes – Koehnko project exploration target areas and conceptual
cross section location]

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.

[Image of Conceptual stylized cross section A-A’ and target types has been removed for SENS purposes]

Sinoe Gold Project

Tawana previously secured binding exclusivity and exclusive rights to purchase outright the Sinoe license
pending results of the first year field exploration programme. The Company funded exploration during the
first year and intends to exercise its right to purchase the licence outright and an extension to the Option
period has been signed whilst transfer of the license is effectuated. The mineral exploration license covers
400km2 of Birimian aged rocks along arguably the most prospective gold mineralised structure being explored
in Liberia today; the Dugbe Shear.

The project area is 25km along strike from Hummingbird’s (AIM: HUM) 3.8Moz Dugbe discovery and 40km
along strike from Equator Resources (ASX: EQU) Bukon Jedeh Project. Both projects are hosted along
secondary and tertiary structures adjacent to the main Dugbe Shear. Similar structural settings exist over the
Sinoe Project area.

Approximately 2700 infill soil samples were collected on a 400x50m and 200x50m grid during the quarter
within the higher priority soil anomalous areas defined during the first phase 800x100m sampling
programme. To date a total of 5420 soil samples have been collected over the Sinoe license area. 1600m of
trenching was completed during the quarter.

The geology of the Sinoe area is characterised by a package of gently dipping biotite and garnet-biotite
schists, intruded by cm to >10m scale pegmatite dykes and sills, mafics and late granitic intrusives. The
pegmatite sills appear to be intimately associated with areas of enhanced gold anomalism and are composed
of coarsely crystalline quartz, feldspar, mica, accessory minerals and visible sulphide.

Subsequent Events

Infill soil sampling has defined five high priority +50ppb soil anomalies with individual soils of up to 1g/t Au
and consecutive lines of results over 100ppb. Highest priority anomalies range from 1km up to 1.8km in
length and between 200m to 500m widths. All anomalies occur within large footprint, lower tenor +30ppb
envelopes or ‘Gold trends’ defined over the 800x100m grid announced in March 2012.

[Image of Sinoe Project results overview; gridded infill soil sampling results (inverse distance squared; 480m
search radius) showing strong north-easterly trend and trenching results to date; 25km distance to 1.8Moz
Dugbe and 2.05Moz Tuzon (HUM:AIM) has been removed for SENS purposes]

[Image of Gridded soil sampling geochemistry (inverse distance squared, 100m cell size and 480m search
radius) with sample locations and high priority residual soil anomalies defined (+50ppb in red) and medium
priority in green has been removed for SENS purposes]

Trench results were received for initial trenching over the southern +30ppb gold trend defined during phase
one soil sampling. Trenching was designed to test for broad mineralised zones coincident with a large +30ppb
anomaly defined by 800x100m soil sampling. Mineralised trench intervals returned were:

      -      12m at 2.3g/t including 4m at 6.25g/t Au in Trench 1
      -      22.1m at 0.24g/t including 2.1m at 4.9g/t Au in Trench 1
      -      24m at 0.4g/t including 8m at 0.87g/t Au in Trench 2B
      -      16m at 0.24g/t Au in Trench 2B


                                                          Interval
 Trench ID     UTM_E      UTM_N       From (m)   To (m)   (m)        Sample ID   Au ppm    Intersection
 PNTR001       524661     562671.3    257.7      261.7    4          STS1081     0.51
 PNTR001       524661     562667.3    261.7      265.7    4          STS1082     6.25
 PNTR001       524661     562663.3    265.7      269.7    4          STS1083     0.15
 PNTR001       524661     562257.25   673.2      674.3    1.1        STS1234     0.34
 PNTR001       524661     562255.45   674.3      676.8    2.5        STS1235     0.04      12m @ 2.3g/t incl. 4m
 PNTR001       524661     562253.65   676.8      677.9    1.1        STS1236     0.51      @ 6.25g/t Au (0.1g/t Au
 PNTR001       524661     562252.6    677.9      678.9    1          STS1237     0.51      cut-off)
 PNTR001       524661     562251.55   678.9      680      1.1        STS1238     0.14
 PNTR001       524661     562249      680        684      4          STS1093     0.14      22.1m @ 0.24g/t Au
 PNTR001       524661     562245      684        688      4          STS1094     0.21      incl. 2.1m @ 0.49g/t Au
 PNTR001    524661     562241      688      692        4          STS1095    0.16       (0.1g/t cut-off)
 PNTR001    524661     562237.35   692      695.3      3.3        STS1096    0.25
 PNTR002B   528860     565838      0        4          4          STS1322    0.785
 PNTR002B   528860     565834      4        8          4          STS1323    0.95
 PNTR002B   528860     565830      8        12         4          STS1324    0.13       24m @ 0.4g/t incl. 8m
 PNTR002B   528860     565826      12       16         4          STS1325    0.35       @ 0.87g/t Au (0.1 g/t
 PNTR002B   528860     565822      16       20         4          STS1326    0.1        cut-off)
 PNTR002B   528860     565818      20       24         4          STS1327    0.13
 PNTR002B   528860     565658      180      184        4          STS1369    0.26
 PNTR002B   528860     565654      184      188        4          STS1370    0.345      16m @ 0.24g/t Au
 PNTR002B   528860     565650      188      192        4          STS1371    0.131      (0.1g/t cut-off)
 PNTR002B   528860     565646      192      196        4          STS1372    0.22
Mineralised intersections in trenching

[The following images have been removed for SENS purposes –

Trench locations and mineralised intervals relative to soil sampling and residual soil anomalies

Trench 1 during excavation

Left: Sample ID STS1082 (4m @ 6.25g/t) –pegmatitic dykes and quartz-goethite veining (field of view
approx. 2m). Right: Sample ID STS1323 (4m @ 0.95g/t) –biotite-garnet schists with little to no quartz-
goethite veining]

Regional strike is east west dipping gently at around 25 to 30 degrees to the north and swings to the north-
east above the Dugbe Shear. The strong north-easterly striking gold anomalous zones are interpreted to be
associated with north-east splays off the major Dugbe shear. A similar structural trend is noted at the Dugbe
(1.8Moz) and Tuzon (2.05Moz) projects 25km to the east. The splays appear bound to the north by a sub
parallel structure to the Dugbe shear, and both structures appear to wrap around a large, 35km by 14km
circular feature underlying the known resources and Sinoe project areas.

The circular feature has a coincident magnetics low and radiometrics high geophysical anomaly which in
conjunction with the widespread presence of pegmatites is interpreted to represent an underlying intrusive
body of likely granitic affinity. The geological setting and field observations is interpreted to suggest a
possible intrusion related gold (IRG) genetic model which alludes to tonnage and in some instances grade
potential.

[Structural-genetic model showing bounding Dugbe Shear and Northern structure, cross-cutting N-E splays,
interpreted underlying intrusive and advanced projects; soil geochemistry on regional TMI aeromagnetics
background image has been removed for SENS purposes]

Soil samples were collected on a nominal 400x50m and 200x50m grid. Lines were cut and surveyed using
hand held GPS. Approximately 1.5kg of B horizon soil was collected below the surface vegetation and humus
layer; generally around the 30cm depth profile. Sample sites that occurred within close proximity to
transported stream sediments were moved to the nearest available site to avoid sampling stream sediment
and target in-situ weathered soil horizons. Ground conditions, regolith profile, soil composition and slope
direction were recorded at each sample site and the location surveyed using hand held GPS. Alternating field
duplicates and certified standards at various analytical levels were inserted every 25th sample for QA/QC
purposes.

Trench samples were collected by channel sampling to geological intervals to a maximum interval length of
4m. Lithology, alteration, weathering, veining, structure and mineralisation were logged to geological
intervals.
All samples were submitted to SGS Laboratory in Monrovia for sample preparation and gold analysis. All
samples were crushed to a nominal 2mm by jaw crusher then pulverised to a nominal 85% passing75µm and a
200g scoop sub-sample taken for analysis. Laboratory preparation equipment was flushed using barren
material between each sample run. Soil sample gold analysis was by Aqua Regia digest and Solvent
Extraction AAS finish (DL 0.002 ppm). Trench sample gold analysis was by Fire Assay of a 50g sample and AAS
finish (DL 0.01ppm). Results received to date have passed internal QA/QC procedures and are within
reporting error limits (+/-95% CL) of certified standards and duplicates inserted by the Company providing
confidence in the reported results.

Nimba and Lofa Gold Project

Results were received for the Lofa 400x50m reconnaissance soil sampling programme during the quarter.
Lofa soils were designed to target a discrete 6x3km area of hills in the north-west of the license where peak
BLEG anomalies reported at 8.6ppb; 8.5 times higher than background gold levels and clustering of BLEG
anomalies was observed. No significant soil anomalies were defined at Lofa. The Company has submitted
relinquishment documents for the Nimba and Lofa exploration licenses.

Work Plan going forward

A 2500m reverse circulation and diamond coring drill programme is planned at Mofe Creek during the next
quarter pending transfer of the companies 100% owned reconnaissance permit into a mineral exploration
license. Hand auger drilling and mapping will continue through the next quarter at other key target areas in
Mofe Creek.

Infill 200x50m soil sampling and hand auger drilling along strike from reported trench intersections and high
priority soil anomalies is planned during the next quarter or early 2013 at Sinoe pending receipt of license
renewal notices from the Ministry of Lands Mines and Energy, personnel availability with the Mofe Creek
drilling programme and access.

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 and recently re-elected in November 2011 for her second term. 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 (40Moz+) and Tasiast (18Moz+).
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:

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



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.


31 October 2012

Sponsor

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Date: 31/10/2012 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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