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TAWANA RESOURCES NL - Premium Grade plus 68 Percent Fe Product Confirmed

Release Date: 15/05/2014 09:40:00      Code(s): TAW       PDF(s):  
Premium Grade plus 68 Percent Fe Product Confirmed

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”)

PLEASE NOTE: ALL GRAPHICS AS WELL AS APPENDIX 1, HAVE BEEN REMOVED FOR SENS
PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT

                     Premium Grade Plus 68 Percent Fe Product Confirmed

                                             HIGHLIGHTS

    -   Diamond core metallurgical testwork has confirmed a premium grade plus68% Fe product
        with plus43% mass yield is achievable at a 0.5mm crush sizing on transitional friable
        itabirite mineralisation

    -   Exceptionally low combined SiO2 and Al2O3 contaminant levels (smaller than 2.2% SiO2
        and smaller than 0.6% Al2O3) achieved in the final product

    -   Current +65% Fe concentrates attracting a $US$9-$10/tonne price premium to 62% Fe
        product (CFR into Tianjin). Results confirm the saleability of Tawana’s product into this pricing
        regime

    -   Testwork confirms a low Crushing Work Index averaging 3.5 kWh/t - confirming the soft,
        friable nature of mineralisation and low potential power demand for processing

    -   Preliminary Process Flowsheet for beneficiation now developed – confirming design simplicity
        and processing flexibility

    -   License Application for pilot mining and test-pit/pilot plant operation being fast-tracked, to
        commence early site development and metallurgical processing opportunity

    -   Representative HQ diamond core samples from the Gofolo and Zaway maiden resource
        drilling programme utilised in test work program

    -   Testwork was conducted by ALS Perth utilising wet tabling techniques to replicate a gravity /
        spirals processing plant circuit

Tawana Resources NL (ASX: TAW) (the Company or Tawana) is very pleased to announce the
results of full HQ diamond core metallurgical testwork from its 100% owned Mofe Creek Iron Ore
Project in Liberia, West Africa.

Managing Director, Len Kolff, said, “The testwork confirms the production possibility to generate
premium grade 65% to 68% Fe final product concentrates at 43% to 48% mass yields, with very low
contaminants”.

“These results are extremely encouraging given the exceptionally high grade Fe product produced
and the superior mass recoveries achieved. With no fine grinding and low work indices confirmed, the
potential exists for a very simplistic gravity beneficiation circuit capable of generating a premium
quality product at potentially very low capital intensity.”

“Full diamond core results reported here, along with previously announced RC metallurgical results
for the Koehnko prospect, confirm that all three drilled prospects on the Mofe Creek Iron Ore Project
can be simply and efficiently upgraded utilising simple gravity beneficiation processing.”

“The Mofe Creek Project is one of the closest located iron ore projects to an operating iron exporting
port in West Africa, with a demonstrated potential to generate a premium grade quality product,” Mr
Kolff said.

“With the Company’s recent funding success, and its intention to fast-track the development of the
pilot mining permit and Mineral Development Agreement, the project is now well funded and
strategically positioned to rapidly advance its development,” Executive Chairman, Wayne Richards
said.

Metallurgical Testwork Results

Metallurgical test results utilising full HQ diamond drill core from the maiden resource drilling
campaign has demonstrated the potential to generate a premium quality concentrate product grading
65% to 68% Fe with low SiO2 and Al2O3 levels. It also confirmed the expectations from earlier testing
using “RC chip” samples.

The final product concentrate grades, along with their corresponding main mass yields are presented,
at varying recoveries, in Tables 1 and 2 below.

Composites 3 and 9: Final Beneficiation results of the oxidised Transitional Friable Itabirite at -
0.50mm to plus.045mm size fraction


                Composite 3 (Gofolo Main)                      Composite 9 (Zaway)
        CUMULATIVE GRADE RETAINED                                      CUMULATIVE GRADE RETAINED
Yield     Fe%       SiO2    Al2O    P%       TiO2    LOI%      Yield    Fe%       SiO2    Al2O    P%       TiO2   LOI
%                   %       3%               %                 %                  %       3%               %      %
37.03     69.03     1.21    0.52    0.009    0.09    -1.52     31.82    67.96     2.70    0.67    0.022    0.06   -0.65
43.05     68.06     2.19    0.59    0.013    0.09    -1.21     40.53    67.06     3.74    0.75    0.025    0.06   -0.55
48.11     64.67     6.67    0.62    0.015    0.09    -0.96     47.69    64.95     6.15    0.87    0.031    0.06   -0.34

Table 1 | Product grades and mass yield % at a 0.5mm crush by composite ID

Composites 2 and 8: Final Beneficiation results of the oxidised, Friable Itabirite Mineralisation
at minus0.50mm to plus0.045mm size fraction

                Composite 2 (Gofolo Main)                      Composite 8 (Zaway)
        CUMULATIVE GRADE RETAINED                                      CUMULATIVE GRADE RETAINED
Yield     Fe%       SiO2    Al2O    P%       TiO2    LOI%      Yield    Fe%       SiO2    Al2O    P%       TiO2   LOI
%                   %       3%               %                 %                  %       3%               %      %
19.94     63.28     1.54    1.54    0.068    0.17    5.01      7.24     68.29     1.52    0.50    0.021    0.15   0.49
29.77     61.32     1.73    1.73    0.076    0.16    5.89      29.43    67.26     2.32    0.58    0.029    0.15   0.73
38.72     59.62     6.21    1.89    0.082    0.15    6.51      39.23    65.56     4.10    0.68    0.036    0.15   1.03

Table 2 | Product grades and mass yield % at a 0.5mm crush by composite ID

Approximately 3,000 kg of full HQ drill core was utilised for the program. Ten (10) representative
composites of the mineralisation lithologies from the Gofolo Main and Zaway Main prospects were
subjected to numerous tests, designed to provide technical and metallurgical information to progress
the Process Plant design, for the Project.

Composite identification, mineralisation type and in-situ head grades of the representative friable
oxidised and friable transitional itabirite material from the Gofolo and Zaway main deposits, are
presented in the following table:

Description                                                   In-situ Head Grades

Composite     Location/mineralisation                         Fe%          SiO2%         Al2O3%
Comp 3        Gofolo Mail – Transitional Friable Itabirite    37.36        44.4          0.70
Comp 9        Zaway – Transitional Friable Itabirite          38.57        43.3          1.09
Comp 2        Gofolo Mail – Oxidised Friable Itabirite        47.14        20.4          3.68
Comp 8        Zaway – Oxidised Friable Itabirite              38.26        41.1          1.66

Table 3 | Composite identification, mineralisation type and in-situ head grades

Testwork results confirmed the potential for the design and construction of a low capital intensity
processing plant with simple gravity beneficiation equipment. These results have demonstrated that
Zaway mineralisation is equally as amenable to beneficiation and upgrade as the Gofolo
mineralisation. Koehnko metallurgical results from RC drill chips announced previously (refer ASX
announcement 21 January 2014) also demonstrated that the Koehnko mineralisation generated an
excellent ‘premium grade’ product.

The generation of these excellent metallurgical final results for Gofolo and Koehnko were a significant
achievement for both the Company and the Mofe Creek Project as they demonstrated that a
‘Premium’ (plus68% Fe) grade quality product could be achieved at a 1 to 0.5mm comminution
(crush), utilising a simple gravity beneficiation process. The 0.5mm crush and screen testwork results
provide a high degree of confidence that a highly marketable final product with very low combined
SiO2 and Al2O3 at high mass yield (43% to 48%) can be produced.

These core samples likewise confirmed the soft, friable nature of the coarse-grained mineralisation
and the highly favourable low contaminant mineralogy, making it ideal for beneficiation, with the
added benefit of the mineralisation being located at or near to surface, and potentially “free-dig”.

The drill core composites were sequentially reduced to nominated top sizes of 35mm, 10mm, 6.3mm,
3.35mm, 2mm and 1mm. Each size fraction was subjected to full chemical assay characterisation
testing to assist in the selection of crushing and size reduction parameters, and comminution design
requirements. The comminution tests confirmed the soft and friable nature of the mineralisation with a
low Crushing Work Index averaging 3.5 kWh/t and a low Ball Mill Work Index averaging 15.9 kWh/t.

Several beneficiation options were examined at each of the size fractions. These included crushing
and screening, low and high intensity magnetic cobbing, jig stratification through the coarser fractions
to de-sliming and wet tabling on the 1 mm material after de-sliming at 45 m.

The testwork culminated in the development of the proposed process flowsheet for the Project. This
process and beneficiation process flowsheet is presented in Figure 2 overleaf.

Petrographic work demonstrated that the most effective liberation of the iron particles could be
achieved at a 0.5mm crush size. Accordingly, efficiency tests were conducted at a 0.5mm crush size
and wet tabling of all friable itabirite Composites 2, 3, 8 and 9, representing the friable itabirite
mineralisation at Gofolo Main and Zaway.

Significant improvements in Fe%, SiO2% and mass yield percentage were achieved, as compared
with a coarser crush size. The final results from these tests were very similar to the exceptional results
achieved utilising the RC samples at a 1mm crush (refer ASX announcement 21 January 2014).

Discussion of Results

An extensive metallurgical test work program was undertaken at the ALS Laboratories in Perth, over a
duration of approximately 10 weeks, from March to May 2014.The testwork flow sheets are further
highlighted in Appendix 1 of this report.
The testwork program was undertaken to support the design of the process flowsheet, develop the
mass flow parameters for the plant, provide physical and material’s handleability data for equipment
selection and future power draw demands, and to provide technical and metallurgical confidence in
the performance of the mineralisation under various operating scenarios.

The testwork program also provided invaluable data on the mineralisation, varying lithologies within
the deposit, and the individual performance of each such lithology, under varying processing
scenarios.

The results also assisted in the early-stage development of operating and/or blending strategies
required, to optimise the entire deposits, whilst producing the most cost-effective premium product (at
the optimal final product grade, composition and recovery).

The design flexibility and simplicity of the conceptual Process Flowsheet, will allow the operator to
tailor the operational blending strategy at either the ROM pad or final product stockpiles., This will
allow the operator to capitalise on the most effective grade and recovery – thereby adjusting the plant
output, to capitalise on the product sales market, i.e. recovery vs product grade trade-offs, depending
on sales price within the market. Presently the iron ore market pays a sales price premium for
plus65% Fe grade products – currently US$9-10/tonne premium above the benchmark 62% Fe
Index (CFR pricing into Tainjin).

The low working indices on the mineralisation, supports the simple requirement for front-end
equipment that has low power demand and acts more as a sizer, rather than a crusher. The proposed
MMD sizers in the first two stages of comminution, confirm the soft nature of the mineralisation.

The friable and soft physical nature of the mineralisation, also re-confirms the non-requirement for
“drill and blast” of the material in-situ. This will have a very positive financial upside in the mining
costs, as there will be potentially no operating or capital requirements for the utilization of drill and
blast equipment/operations. This will in effect also indirectly improve the inferred safety of the mining
activities, and will allow for the location of the future plant processing facilities closer to the mine i.e.
minimal material transport from mine to processing facility.

Material type/               Observations
Composition ID

CAP – Surface cap            -   Form as a ferruginous cap over the deposits
COMPS 1 and 7                -   Typically smaller than60% Fe, 6-10% combined Si-Al, 3-8% LOl and
                                 moderate 15-20% mass yield at 1mm crush
                             -   Not tested at 0.5mm crush at time of reporting

Weathered Friable            -   Friable mineralisation with strong weathering overprint.
mineralisation               -   Forms over “oxide” (Fe-Si) Itabirite or over “silicate” (Fe-Si-amphibole)
COMPS 2 and 8                    itabirite.
                             -   Typically -60-66% combined SiO2-Al2O3, 0-6% LOl and 39% mass
                                 yield at a 0.5mm crush
                             -   Variability dependent on “oxide” vs “silicate” parent itabirite with
                                 Silicate type itabirite lower Fe% and higher contaminants %, and
                                 oxide itabirite higher Fe% and lower contaminants
                             -   Typically 3-4:1 oxide silicate lithologies

Transitional Friable         -   Friable mineralisation less impacted by weathering and resultant
mineralisation                   lower Al% and LOl%
COMPS 3 and 9                -   Typically 65-69%Fe, 2-7 % combined SiO2-Al2O3 and 40-48% mass
                                 yield at a 0.5mm crush.
                             -   Very low Al-no/little day.

Hard mineralisation          -   “Hard” itabirite below base of oxidation; of either “silicate” or “oxide”
COMPS 4 and 1-10                 type
                             -    Typical 55-60 % Fe, 10-20 % Si and 25-40 % mass yield at 1mm
                                  crush
                             -    Not tested at 0.5mm crush at time of reporting

“Weathered                   -    Smaller than40% Fe and smaller than15% mass yield at 1 mm crush.
Metaseds and                 -    Not tested at 0.5mm crush at time of reporting
Mafics COMPS 5
and 6


Head Grades of the 10 composite samples from Gofolo Main and Zaway Diamond Core Samples are
presented below:

Sample ID      Fe(%)             SiO2(%)      Al2O3(%)        P(%)            TiO2(%)        LOl 1000(%)
                                                                                             
COMP 1         51.78             9.4          5.39            0.082           0.18           10.29
COMP 2         47.14             47.14        3.68            0.084           0.16           7.35
COMP 3         37.36             44.4         0.70            0.017           0.06           -0.07
COMP 4         35.85             44.6         0.50            0.045           0.04           -1.07
COMP 5         29.48             25.6         18.10           0.038           0.70           12.33
COMP 6         31.46             43.0         4.18            0.052           0.18           2.29
COMP 7         33.15             35.2         9.40            0.056           0.37           6.99
COMP 8         38.26             41.1         1.66            0.042           0.12           1.79
COMP 9         38.58             43.3         1.09            0.029           0.06           0.20
COMP 10        32.56             44.1         3.66            0.061           0.18           -0.57


Table 3 | Head grades for composites tested

About Tawana (ASX & JSE: TAW)

Tawana Resources NL (“Tawana” or “the Company”) is an iron ore focused ASX and JSE-listed
Company with its principal project in Liberia, West Africa. Tawana’s 100 % owned Mofe Creek Project
(“the Project”) is a new discovery in the heart of Liberia’s historic iron ore district, located 20 km from
the coast and 80 km from the country’s capital city and major port, Monrovia.

Tawana is committed to becoming a mid-tier iron ore producer through the development of the Mofe                              
Creek Project, which covers 285 km2 of highly prospective tenements in Grand Cape Mount County.
The Project hosts high-grade friable itabirite mineralisation which can be easily upgraded to a
premium quality iron ore product of plus62- 68 % Fe grade, via simple, low capital intensity
beneficiation.

The Company has concluded its maiden resource drilling program and rapidly nearing the completion
of its Scoping Study on the Mofe Creek Project. The Scoping Study will consider both an early start-
up, low capital cost project with a production rate of 1-2 million tonnes per annum (Mtpa), as well as a
longer-term project capable of producing 5-10 Mtpa of iron ore product.
For further information please contact:

Wayne Richards                                        Len Kolff
Executive Chairman                                    Managing Director
Tel +61 8 9287 4344                                   Tel: +61 7 3510 2115
                                                      Mob: +61 424 942 589

Detailed information on all aspects of Tawana’s projects can be found on the Company’s website
www.tawana.com.au.

15 May 2014
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Competent Persons Statement

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. Len Kolff 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 2012 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’. Len Kolff consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.


Forward Looking Statement

Statements regarding plans with respect to the Company’s mineral properties, including statements,
assumptions and targets relating to the Preliminary Assessment are forward looking statements.
There can be no assurance that the Company’s plans for development of its mineral properties will
proceed as currently expected, nor in accordance with the Preliminary Assessment. There can also
be no assurance that the Company will be able to confirm the presence of a mineral deposit, that any
mineralisation will prove to be economic or that a mine will successfully be developed on any of the
Company’s mineral properties, either in accordance with the Preliminary Assessment or otherwise.

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