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TAWANA RESOURCES NL - Quarterly Activities Report 1 January - 31 March 2013

Release Date: 30/04/2013 10:15:00      Code(s): TAW       PDF(s):  
Quarterly Activities Report 1 January - 31 March 2013

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 January - 31 March 2013
Tawana Resources NL (ASX: TAW) is pleased to present the report on activities for the period
January to March 2013.

HIGHLIGHTS

Mofe Creek Iron Ore Project

    - Maiden 2,500m RC drill programme completed
    - Global exploration target of >500Mt* consisting of:
                     -   90-230Mt – 40-45% Fe (Friable Itabirite)
                     -   270-440Mt – 25-35% Fe (Friable mixed itabirite/amphibolite)
    - Surface friable material only to average 25-40m depth
    - Significant potential upside for blind, high grade DSO magnetite in similar settings to +50Mt
        DSO Bomi Hills mine ; not included in exploration target size potential
    - 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#
Sinoe Gold Project

    - 400 hole hand auger programme underway to test high priority soil anomalies and along
        strike from trench intersections

Corporate

   - David Frances appointed as Executive Chairman


Corporate
                                           
Mr David Frances joined Tawana on 29th January 2013 having been involved in the international
mining industry for over 20 years. He was, most recently, President and CEO of Mawson West Ltd,
where over the past seven years he led Mawson through the transition from a Western Australian
gold explorer to an international copper explorer, developer and producer in the Democratic Republic
of Congo. It is currently envisaged that Mr Frances will revert to a non-executive Chairman role once
the Managing Director has the appropriate executive team in place.

Concurrent to the appointment of Mr Frances to the Board is the resignation of Non-executive
Chairman, Mr Warwick Grigor. The Board and the Company would like to express its sincere
appreciation and gratitude for Mr Grigor’s contribution as both a director and Chairman during his
appointment. Under Mr Grigor’s Chairmanship, the Company has transitioned into an exciting West
African iron ore explorer. The entire Board thanks Mr Grigor for his leadership and wishes him all the
best in his future endeavours.

 Liberia
 A 2500m maiden RC drill programme was completed at the Mofe Creek Iron Project during the
 quarter and a Global Exploration Target Size Potential estimate* of 500Mt friable iron formation was
 announced during the quarter. This represents a significant milestone for the company and a new iron
 ore discovery in Liberia very close to the coast.

  A 400 hole hand auger programme was commenced at the Sinoe Gold Project to follow up trench
  intersections including 12m at 2.4g/t Au and high priority soil anomalies.
                                               2                           2
      [Map showing granted licenses (285km ) and JV licenses (1024km ) has been removed for SENS
      purposes]

  Mofe Creek Iron Project

  A total of 2,418m of a planned 2,500m programme was drilled with 834m for 7 holes at the Gofolo
  Main target and 1,584m for 15 holes at the Koehnko target during the quarter. Drilling was completed
  using a track mounted reverse circulation (RC) rig with 4 ½? RC drill rods and a face sampling
  hammer.

 The following significant mineralised intersections were reported:

Hole ID     From        To    Intersection   Lithology    Fe%     Sio2%    Al2O3%     P%     Lol%     TiO%     S%     Mn%
GMRC001             0   56              56   ITS           37.9     36.6         4    0.06   3.96
GMRC003             0   40              40   ITS             46       24         3    0.07   5.75
GMRC004             0   40              40   ITS/AMPH      30.3     30.7       11.3   0.02     10     0.28     0.28    0.8


GMRC004            70   127             57   ITH/AMPH      33.6     44.6        1.1   0.06   BD                       0.22
GMRC005             0   32              32   ITS/AMPH      34.4       25       12.5   0.03     11     0.46
GMRC005            46   70              24   ITH/AMPH      35.4     42.8       0.95   0.04   6.14
GMRC006             0   40              40   ITS           49.9     19.3        2.6   0.06   BD
GMRC006            12   26              14   ITS           57.5      6.7         2    0.09    8.8


KRC002              0   34              34   ITS/AMPH        38     36.3        5.8   0.04   3.16
KRC003              0   10              10   ITS/AMPH        43     28.8        6.2   0.03    3.5
KRC004              0   24              24   ITS/AMPH      35.7     32.8        10    0.04        5   0.24


KRC006              0   38              38   ITS/AMPH      33.6       41        5.9   0.03    3.5     0.14
KRC012              0   34              34   ITS/AMPH      42.8     27.8        6.3   0.04    3.6
KRC012             12   20               8   ITS           53.5     17.7        3.1   0.02    1.7


      [Image of Gofolo Main target drill hole locations and intersections on topography has been removed
      for SENS purposes.]

      [Image of Gofolo Main Section 1 has been removed for SENS purposes.]

      [Image of Gofolo Main Section 2 has been removed for SENS purposes.]
      [Image of Koehnko target drill hole locations and intersections on topography has been removed for
      SENS purposes.]

      [Image of Koehnko Section 1 has been removed for SENS purposes.]

      [Image of Koehnko Section 2 has been removed for SENS purposes.]

All holes were logged on 1m intervals and assayed at 2m intervals. Field duplicates and certified
                                   
standards were inserted every 50th sample. All samples were dried and matt rolled to 3.35mm with a
200g split retained for preliminary metallurgical test work and a second split sent for assay of major
and minor elements by XRF fusion. All batches passed internal and external QAQC procedures.

All drill holes intersected variable widths of friable itabirite or friable intermixed itabirite and
amphibolite from surface passing downwards into a mixed sequence of granodiorites and
amphibolites that are variably garnetiferous before passing into basement gneiss.

Higher grade mineralisation appears to be associated with a friable itabirite unit occurring within a
mixed sequence of itabirites and amphibolites. Where folded and at surface, mineralisation is
characterised by coarse grained, friable magnetite and quartz (hole GMRC006, 0-40m @ 50% Fe and
KRC012, 0-34m @ 42.8% Fe). At depth where the itabirite is not folded or weathered it is
characterised by extremely high magnetic susceptibility readings averaging 2,000 SI units and up to
7,000 SI units.

Lower grade mineralisation appears to be associated with a mixed sequence of itabirite and
amphibolite; where weathered at surface it is characterised by elevated Al2O3 (hole GMRC004, 0-40m
@ 30.3% Fe and GMRC005, 0-32m @ 34.3% Fe).

DSO and near DSO grades intersected in holes GMRC006 and KRC012 respectively are interpreted
to be associated with more massive crystalline magnetite occurring at fold closures within the upper
itabirite sequence. Similar structural and lithological settings are recorded at Bomi Hills where heat
from rising gneissic fronts is also considered to be a control. Target areas with the right lithological,
structural and potential heat sources below have been defined within the Mofe Creek project area.
The potential for blind DSO magnetite discovery in the project area is considered to be high.

Global Exploration Target Size Potential*

Results of the maiden 2,500m RC drill programme, detailed aeromagnetics survey, 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.

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 from surface only. The estimate does not include hard
itabirite, potential blind DSO or additional mineralisation associated with geophysical targets
(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 Potential            Lower Range         Upper Range         Avg. Grade
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 of 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 high
due to its position directly along strike from Bomi Hills, similar host rocks intersected in recent drilling
and the occurrence of isolated DSO in outcrop.

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.

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

Sinoe Gold Project
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 and similar structural settings
exist over the Sinoe Project area.

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. Best trench intersections received during the previous quarter are 12m at 2.3g/t including
4m at 6.25g/t Au and 24m at 0.4g/t including 8m at 0.87g/t Au

A 400 hole hand auger programme was designed during the quarter and field teams mobilised post
completion of the Mofe Creek maiden RC drill programme. Approximately ¾ of the 400 hole
programme has been completed to date.

[Image of the 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.]

Work Plan going forward

At the Mofe Creek iron project, hand auger drilling will continue through the following quarter to
assess additional exploration target areas. Pending results and funding, exploration drilling is planned
along the highest priority targets. Access will be extended at the Gofolo and Koehnko target areas for
a resource drilling programme to commence during Q2 2013 with a JORC compliant resource defined
and high level Desktop study by end 2013. Existing RC drill samples will be composited for
metallurgical test work with results expected during second half 2013.

The 400 hole hand auger programme currently underway will be completed at the Sinoe Gold project
and assay results received during the following quarter.

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:

Lennard Kolff van Oosterwijk
Work Phone: +61 424942589
30 April 2013

Sponsor
PricewaterhouseCoopers Corporate Finance ( Pty) Ltd


*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.

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

FAST FACTS
Issued Shares:            927m
Market Cap:              $7.4m
Cash (Q1 2013):          $1.25m
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
    -5km 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


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.

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