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TAWANA RESOURCES NL - Quarterly Activities Report - 1 October - 31 December 2012

Release Date: 30/01/2013 11:28:00      Code(s): TAW       PDF(s):  
Quarterly Activities Report - 1 October - 31 December 2012

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”)



Quarterly Activities Report
1 October - 31 December 2012

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

HIGHLIGHTS
Corporate

   -   Mofe Creek Mineral exploration license granted

Mofe Creek Iron Ore Project

   -   Mineralisation footprint extended to 5.2km long by 100-400m wide +42% Fe friable
       iron formation and open to the South
   -   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
    -    Five high priority, high tenor +50ppb up to 1g/t Au soil anomalies defined

Subsequent Events

       -    Mofe Creek 2500m 20 hole RC drill programme commenced testing Koehnko and
            Gofolo targets friable iron formation depth, blind DSO and grade potential

       -   Significant friable iron formation and potential DSO intersected in all drill holes
            at Koehnko to date; assays pending

Corporate
The Company was granted the Mofe Creek mineral exploration license by the Ministry of Lands Mines
and Energy after successful transfer from a reconnaissance permit. The Company and its joint venture

                                                                                                  1
partner received and paid for the license renewal notice for the Sinoe license from the Ministry of
Lands Mines and Energy during the quarter.

Liberia
Ongoing results of the Mofe Creek hand auger programme were announced in December 2012. Field
mapping, rock-chip sampling and hand auger drilling continued through the quarter with field work
stopping through the Christmas-New Year’s break. Southern Geoscience Consultants completed
detailed aeromagnetics interpretation of the 200m line spacing survey flown in July 2012.

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 2.3g/t including 4m at 6.25g/t Au. The
Company funded exploration during the first year and will exercise its right to purchase the licence
outright.


[Map showing granted licenses (285km2) and JV licenses (1024km2) has been removed for SENS
purposes]

Mofe Creek Iron Project
Detailed aeromagnetics interpretation of the 200m line spacing survey flown in July 2012 was
completed by Southern Geoscience Consultants (SGC) over the license area. Interpretation confirmed
the geological mapping to date and the five key target areas defined; Koehnko, Zaway, Gofolo,
Gofolo West and Gofolo North-West in addition to other target areas in the south.


[SGC aeromagnetics geology interpretation and structural interpretation over analytical signal
aeromagnetics image; both showing key target areas and rock chip Fe% assays have been removed for
SENS purposes]

Assay results for an additional 41 hand auger holes drilled on a 400 x 100m grid into the Koehnko
target were received. All holes terminated in mineralization with an average hole depth of 3m and up
to 5.5m deep. The friable iron formation intersected to date averages 42% Fe and up to 53% Fe with
low contaminants over an interpreted footprint of 5.2km strike and 100m to 400m width.
Mineralisation remains open to the south where hand auger drilling continues. Average end of hole
grades from the 50 holes received over the Koehnko target to date are detailed below.

      Depth(m)    Fe%        SiO2%      Al2O3%    P%     S%     LOI1000%   CR2O3%     TiO2%      V2O5%   MnO%
AvG   3           41.75      27.46      7.12      0.03   0.05   3.29       0.06       0.22       0.01    0.02
Max   5.5         52.97      53.54      17.09     0.07   0.13   9.94       0.30       1.09       0.07    0.05
Min 0.3         24.06     4.75      1.51     0.01 0.00 0.00                0.00       0.03       0.00    0.01
Average grades of Koehnko target hand auger drilling to date


[Koehnko target auger sampling results by Fe% to date. Background image analytical signal
aeromagnetics; hotter colors represent more magnetic lithologies has been removed for SENS
purposes.]

[DSO magnetite/hematite, andfriable magnetic iron formation from the Koehnko target images have
been removed for SENS purposes.]

[Images of Auger drill string and average 3m hole depth at Koehnko, and Hand auger drilling in field
have been removed for SENS purposes.]

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.

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 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).

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.

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.


[License area relative to historic Bomi Hills mine, coast, decommissioned rail alignment, roads and
port of Monrovia. And Aerial view of Monrovia port looking south-west images 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 one of the most
prospective gold mineralised structures 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.

Infill soil sampling 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 0.49g/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


Trench ID     UTM_E    UTM_N        From    To      Interval   Sample     Au      Intersection
                                    (m)     (m)     (m)        ID         ppm
PNTR001       524661     562671.3   257.7   261.7          4   STS1081     0.51   12m@2.3g/t
PNTR001       524661     562671.3   261.7   265.7          4   STS1082     6.25   incl.4m@6.25g/t
                                                                                  Au (0.1g/t Au cut-
                                                                                  off)
PNTR001       524661     562671.3   265.7   269.7          4   STS1083     0.15
PNTR001       524661    562257.25   673.2   674.3        1.1   STS1234     0.37
PNTR001       524661    562257.25   674.3   676.8        2.5   STS1235     0.34
PNTR001       524661    562257.25   676.8   677.9        1.1   STS1236     0.04
PNTR001       524661     562252.6   677.9   678.9          1   STS1237     0.51   22.1m@0.24g/t Au
PNTR001       524661    562251.55   678.9     680        1.1   STS1238     0.51   incl. 2.1m@0.49g/t
PNTR001       524661       562249     680     684          4   STS1093     0.14   Au (0.1g/t cut-off)
PNTR001       524661       562245     684     688          4   STS1094     0.21
PNTR001       524661       562241     688     692          4   STS1095     0.16
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.
PNTR002B      528860       565826      12      16          4   STS1325     0.35   8m@0.87g/t Au
PNTR002B      528860       565822      16      20          4   STS1326      0.1   0.1g/t 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
PNTR002B      528860       565650     188     192          4   STS1371     0.13   Au(0.1g/t cut-off)
PNTR002B      528860       565646     192     196          4   STS1372     0.22


Mineralised trench intersections

[Image of Trench locations and mineralised intervals relative to soil sampling and residual soil
anomalies has been removed for SENS purposes.]

[Images of Sample ID STS1082 (4m @ 6.25g/t) –pegmatitic dykes and quartz-goethite veining (field of
view approx. 2m); and Sample ID STS1323 (4m @ 0.95g/t) –biotite-garnet schists with little to no
quartz-goethite veining have been removed for SENS purposes.]
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.

Regional strike is east-west dipping gently at 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 an intrusion related gold (IRG) genetic model which alludes to significant 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. 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 and
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% passing
75µm 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.

Work Plan going forward
Approximately 2,500m of RC drilling is planned over the Koehnko and Gofolo targets as a
reconnaissance programme to test depth extent and continuity of mineralisation in addition to
favourable DSO structural settings within the targets. A total of 20 holes have been planned with hole
depths varying from 60 to 150m dependent on results encountered. Access has been completed on
the Koehnko target and the drill contractor is currently mobilizing the rig in country.

Approximately 1800m of RC drilling is planned at Koehnko in 14 holes. An additional 6 holes for 700m
of RC drilling is planned over the Gofolo target where outcropping coarse grained +45% Fe iron
formation has been mapped and sampled over a 3km strike length. Drilling is planned to commence
during January 2013 with depth extent known shortly after commencement of drilling and initial
assay results expected within 1 month of commencement of drilling.

Depth potential of the friable iron formation defined at Koehnko and Gofolo remains unknown until
drill tested; however a minimum depth of 5.5m has been confirmed in hand auger drilling and
analogies drawn with Bomi Hills suggests potential enrichment weathering depths of up to 25-30m
may be achieved. Greater depths and even blind friable iron formation targets may be encountered
due to structural preparation by the cross-cutting Todi Shear zone. The potential for blind DSO
magnetite mineralization along the footwall contact at depth or other favourable structural settings
is a possibility as seen at Bomi Hills.


[Image of Stylised cross-section showing surface enriched and deeper structural enriched iron
formation targets and blind DSO lump targets has been removed for SENS purposes.]

Hand auger drilling and mapping will continue through the following quarter at other key target areas
in Mofe Creek.

Hand auger drilling along strike from reported trench intersections and high priority soil anomalies is
planned during Q1 2013 at the Sinoe project pending completion of the Mofe Creek drilling
programme; allowing for dry road conditions and lower river crossing water levels.

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.

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.

30 January 2012

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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