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TAWANA RESOURCES NL - >500 Mt Global Exploration Target Size Potential Mofe Creek Iron Ore Project, Liberia, West Africa

Release Date: 18/03/2013 09:10:00      Code(s): TAW       PDF(s):  
>500 Mt Global Exploration Target Size Potential Mofe Creek Iron Ore Project, Liberia, West Africa

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”)

FAST FACTS
Issued Shares:927m
Market Cap:$15m
Cash (Q4 2012):$1.6m

ASX CODE: TAW


COMPANY HIGHLIGHTS
- New Iron ore Discovery - Liberia, West Africa. >500Mt Exploration target*
- Experienced Board and Management

Mofe Creek Iron Ore Project, Liberia
- High grade +40 to +60% Fe; 65 km prospective strike
- 20km to coast, adjacent to rail alignment 65km to port
- 25km along strike from +50 Mt historic Bomi Hills DSO mine
Sinoe Gold Project, Liberia
- Highly prospective Birimian gold structures on Dugbe shear
- Along strike from 3.8Moz Dugbe gold project
Rakana JV (6.7%), South Africa
- Meletse Iron Ore and Avontuur Manganese JV managed by Aquila Resources


>500 Mt Global Exploration Target Size Potential Mofe Creek Iron Ore Project,
Liberia, West Africa

   -   100% owned Mofe Creek Iron Ore Project

   -   Exploration target: (friable material only)

       -   90-230Mt – 40-45%Fe (Friable Itabirite)

       -   70-440Mt – 25-35%Fe (Friable Itabirite/Amphibolite)

       -   Global - >500Mt*

   -   Includes 40-75Mt Gofolo Main and 70-110Mt Koehnko Exploration Target Size
       Potential*
   -   Average 25-40m vertical thickness from surface*

   -   Target size estimates for friable surficial mineralization only; does not
       include hard itabirite or blind DSO

   -   Significant potential upside for blind, high-grade DSO magnetite in similar
       settings to +50Mt DSO Bomi Hills mine

   -   Low infrastructure cost – only 20km from Liberian coast

   -   Potential low mining and processing cost – soft friable ore likely upgradable
       to +60% sinter feed as per Bomi Hills#

Tawana Resources NL (ASX: TAW) is pleased to announce the exploration target
size potential at the Company’s 100% owned Mofe Creek project in Liberia, West
Africa.

‘On the basis of recent drill observations and field work to date, we can report a
global exploration target size potential of >500Mt for the Mofe Creek Project’ said
Managing Director Len Kolff, ‘Mofe Creek represents a new iron ore discovery in
Liberia with maiden drill intersections of 40m at 50% Fe and low contaminants
from surface, that is only 20km from the coast’ he added.

Exploration Target Types -Rationale
Results of the maiden 2,500m RC drill programme announced last week, in
conjunction with the detailed aeromagnetics survey flown last year, field mapping,
rock chip, and hand auger sampling has allowed for a detailed assessment of the
exploration target size potential of the Mofe Creek Iron Ore Project in Liberia,
West Africa.

Two broad styles of mineralisation have been intersected to date from surface;
friable itabirite and mixed friable itabirite and amphibolite. Both styles of
mineralisation likely result from surface weathering and softening of the parent
rock type; ‘protore’. Where intersected to date, the friable itabirite is
characterised by higher iron grades (35-60% Fe) and low contaminants (avg. 31%
SiO2, 5% Al2O3, 0.05% P, 4% LOI) whereas the intermixed friable itabirite and
amphibolite is characterised by lower Fe grades (25-35% Fe) and elevated Al-LOI-Ti
(avg. 40% SiO2, 11% Al2O3, 0.04% P, 7% LOI, 0.2% TiO2). The latter is considered to
be associated with clays derived from tropical weathering of the amphibolite.
Folding and faulting of the protores appears to result in higher Fe grades within
the mineralised intervals.

The itabirite unit is interpreted to sit stratigraphically above the mixed
itabirite/amphibolite unit. Both mineralisation types have coincident magnetic
anomalies, however, the itabirite hosted mineralisation is associated with steeper
topographic highs and better outcrop whereas the intermixed itabirite/amphibolite
hosted mineralisation is associated with more subdued rounded hills and poor
outcrop. These key differentiators have been used to classify target areas along
the 65km strike length of prospective iron formation.
No metallurgical test work has been completed to date; however, beneficiation of
the friable itabirite mineralisation is thought to be a similar process as utilised at
Bomi Hills where friable iron formation was beneficiated using spirals and magnetic
separation to produce sinter feed concentrates averaging 64% Fe, 6% SiO2 and 0.04-
0.05% P (Gruss, 1973).

Global Exploration Target Size Potential*
A global exploration target size potential of between 360Mt to 670Mt of friable
mineralisation has been estimated for the Mofe Creek project area. This estimate
includes both friable itabirite and friable intermixed itabirite/amphibolite
mineralisation. The estimate does not include hard itabirite, potential blind DSO or
additional mineralisation associated with the target footprints highlighted in
yellow which have not had sufficient field work to date to justify inclusion.

Targets highlighted in blue are considered to have a greater probability that the
full stratigraphy is preserved; whereas intermixed itabirite/amphibolite only
targets are highlighted orange as described in the targeting rationale above. The
split between itabirite and mixed itabirite/amphibolite mineralisation within the
‘blue’ footprints is determined on an average 50:50 split based on sectional
interpretation from drilling to date.

Table 1: Mofe Creek Total Exploration Target Size Potential*
Total Exploration Target Size
                                       Lower Range Upper Range Avg. Grade
Potential
Friable Itabirite                      90 Mt           230 Mt  40-45% Fe
Mixed Friable Itabirite/Amphibolite    270 Mt          440 Mt  25-35% Fe
TOTALS                                 360 Mt          670 Mt

Image depicting exploration targets at Mofe Creek Project; Blue footprints = fully
preserved stratigraphy with high potential for itabirite and intermixed
itabirite/amphibolite friable mineralisation, Orange footprints = intermixed
itabirite/amphibolite dominant targets, Yellow footprints defined but not included
in tonnage estimation and existing drill collars in red; has been removed for SENS
purposes.

Although the potential for blind, massive crystalline magnetite DSO similar to the
50Mt @ >65% Fe mined historically at Bomi Hills 20km to the east of the project
area has not been overlooked; at this early stage it is not considered possible to
provide meaningful estimates of size potential and so is not included in the figures
below. However, the potential for blind DSO at Mofe Creek is considered a high
possibility due to its position directly along strike from Bomi Hills and the similar
host rocks intersected in recent drilling.

No exploration target size potential estimates for hard itabirite have been defined
at this stage as the Company sees significantly greater value in friable itabirite due
to reduced mining and processing costs and lower capex associated with mining
soft material. All estimates are for friable mineralisation from surface only.
Gofolo Main and Koehnko Exploration Target Size Potential*
The exploration target size potential for the Gofolo Main and Koehnko targets is
highlighted in Table 2 below. An average 50:50 split between itabirite and mixed
itabirite/amphibolite friable mineralisation has been used in determining the size
potential for each mineralisation type. This has been determined on the basis of
the recent drilling results and the interpreted spatial distribution of friable
itabirite vs. intermixed friable itabirite/amphibolite on the cross-sections to date.
The size potential for Koehnko does not include Koehnko South.


Table 2: Gofolo Main and Koehnko Exploration Target Size Potential*

Target                               Gofolo Main Koehnko          Avg. Grade
Friable Itabirite                    20 – 35 Mt  35 – 50 Mt       40-45% Fe
Mixed friable
                                     20 – 40 Mt    35 – 60 Mt     25-35% Fe
itabirite/amphibolite
TOTALS                               40 – 75 Mt    70 – 110 Mt

Image of selected Gofolo Section showing approx. 50:50 split between friable
itabirite (blue dashed polygon) and friable intermixed itabirite/amphibolite
(orange dashed polygon); has been removed for SENS purposes.

Image of selected Koehnko Section showing approx. 50:50 split between friable
itabirite (blue dashed polygon) and friable intermixed itabirite/amphibolite
(orange dashed polygon; has been removed for SENS purposes).

Highly Prospective District Geology

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

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
mine (>50Mt DSO @ 65% Fe plus SF), 80km along strike from the historic Bong Mine
(>275Mt @ 38% Fe), 45km from the Mano River mine (100Mt @ 52% Fe) and 20km
from the Bea Mountain resource (>100Mt @ 45% Fe).

Infrastructure and Access
The Project is approximately 20km from the coast and the most likely development
scenario would see construction of a haul-road for trucking of product to the coast
and transhipment via barge or conveyor to deeper water for on shipment. Other
possible infrastructure solutions exist; road or rail to the deep water port of
Monrovia; a 100km long sealed road exists from the central licence area to the city
of Monrovia. In addition to this a decommissioned standard-gauge 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.
Image of license area relative to historic Bomi mine, coast, rail corridor, roads and
port of Monrovia, has been removed for SENS purposes.

Ongoing Work Plan
Hand auger drilling has re-commenced to prioritise exploration targets for drilling
in areas of poor outcrop. Existing drill samples will be defined and composited for
DTR and other metallurgical test work with results expected during second half
2013.



A 10,000m RC and diamond resource programme is being planned for Gofolo and
Koehnko. An additional 5,000m RC exploration programme is being planned for
other regional targets. Drilling is expected to commence during Q2 2013 with a
JORC compliant resource defined and high-level Desktop PFS by end 2013.



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

CORPORATE DIRECTORY

David J Frances                            Len Kolff
Executive Chairman                         Managing Director

Julian Babarczy                            Matthew Bowles
Non-Executive Director                     Non-Executive Director

Winton Willesee /Aaron Finlay
Joint Company Secretary


CONTACT DETAILS
Freemason’s House                          Email:      admin@tawana.com.au
181 Roberts Road                           Website:    www.tawana.com.au
Subiaco WA 6008                            Phone:      +61 8 9389 3140
                                           Facsimile: +61 8 9287 4334



18 March 2013

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd


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).

*Note: Exploration Target Size Potential is based on geological observation and
interpretation from limited drilling, mapping, rock chip sampling and
aeromagnetics. The tonnage potentials defined are not JORC compliant and are
speculative at this stage.
#
 Note: Results of metallurgical test work are pending and any reference to
processing is purely speculative at this stage.
+
 Footnote: the railway alignment falls under the Western Cluster project currently
joint ventured with Sesa Goa; India’s largest producer and exporter of iron ore in
the private sector.




The information in this report that relates to 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.

Date: 18/03/2013 09:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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