TAWANA RESOURCES NL - Strategic Acquisition of New Exploration LicenceRelease Date: 23/09/2014 10:31:00 Code(s): TAW PDF(s):
Strategic Acquisition of New Exploration Licence
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
Share code on the Australian Stock Exchange Limited: TAW
(“Tawana” or “the Company”)
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE
REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Strategic Acquisition of New Exploration Licence
Tawana Resources NL (ASX: TAW) (‘the Company’ or ‘Tawana’) is very pleased to announce the
granting of an additional tenement immediately adjacent to the Company’s existing 100% owned Mofe
Creek Project (‘the Project’) licence.
The new licence (MEL 1223/14) is 100% owned by the Company and was granted to the Company by
the Ministry of Lands, Mines and Energy.
The new licence is highly prospective for friable itabirite mineralisation, identical to that discovered
and drilled to date at the Project.
Previous aeromagnetic surveys have highlighted the potential for prospective itabirite deposits within
the new licence area and along strike from the Company’s existing deposits.
The Joint Venture (JV) between Konblo Bumi Inc. and Tawana Liberia Inc. over this area has now
been terminated, and Tawana has full ownership and mineral rights to this new tenement.
The decision to proceed with the acquisition follows a comprehensive review of the geological
prospectivity of the area and the obvious synergies of extended mineralisation potential for the
Project. The extension of the tenement will also provide a high probability of a significant increase in
the resource quantum for the Project (as highlighted by the potential mineralisation targets already
identified on the new licence area – Refer Figures 1 and 2).
Managing Director Len Kolff, said “Through the acquisition of this 100%-owned tenement adjoining
our existing 100%-owned tenement (MEL 12029), the Company has the potential to expand and
extend its current exploration targets. The anomalies have the potential to host identical coarse-
grained, friable itabirite mineralisation to that at the Gofolo and Zaway deposits.”
“The potential to add significant additional mineralisation within a 3km to 8km trucking distance from
the currently defined Maiden Resource footprint is of significant value to the ongoing development of
the Project”, Mr Kolff said.
The new licence area contains coincident magnetic anomalies, topographic highs and itabirite
outcrops with exploration target areas defined within 3km to 8km of the main mineralisation hubs.
Rock chip sampling of itabirite outcrops within the new licence area have returned Fe values between
20% and up to 64% Fe, over five prospective areas (refer Figure 2 overleaf).
Studies of aeromagnetic data, together with the initial field-sampling results (Figure 2), have outlined
several areas of potential itabirite enrichment, providing attractive targets for initial exploration.
The new tenement is strategically traversed by the existing bitumen highway running from Monrovia
to Sierra Leone, thereby providing ideal accessibility to these new iron ore targets.
About Tawana (ASX & JSE: TAW)
Tawana Resources NL 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 is a new discovery in the heart of
Liberia’s historic iron ore district, located 20km from the coast and 80km 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 a total of 471km2 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 +64- 68 % Fe grade, via simple, low capital intensity beneficiation.
The Company has recently concluded its successful and financially robust Scoping Study on the
Project. The Scoping Study considered an early start-up, low capital cost project with a production
rate of up to 2.5 million tonnes per annum (Mtpa).
For further information please contact: Wayne Richards
Tel +61 8 9287 4344
Detailed information on all aspects of Tawana’s projects can be found on the Company’s website
Full details of the Scoping Study referred to in this announcement were initially released to the ASX in
an announcement dated 3 July 2014, and should be read in conjunction with this announcement. All
material assumptions underpinning the Scoping Study, production targets and forecast financial
information derived from the production targets as well as any cautionary statements and disclosures
as required under the ASX Listing Rules and 2012 JORC Code are set out in the announcement
dated 3 July 2014 and continue to apply and have not materially changed.
The Scoping Study referred to in this announcement is preliminary in nature as its conclusions are
drawn on inferred (74%) and indicated mineral resources (26%). The Scoping Study is based on
lower-level technical and economic assessments, and are insufficient to support estimation of Ore
Reserves or to provide assurance of an economic development case at this stage, or to provide
certainty that the conclusions of the Scoping Study will be realised.
There is a low level of geological confidence associated with inferred mineral resources and there is
no certainty that further exploration work will result in the determination of indicated mineral resources
or that the production target itself will be realised. There is also no certainty that the forecast financial
information derived from the production targets will be realised.
Competent Persons Statement
The information in this report that relates to Mineral Resources or Ore Reserves is based on
information compiled by Len Kolff and Iain Macfarlane, who are members of the Australian Institute of
Geoscientists. 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’. Iain
Macfarlane is a full-time employee of Coffey Mining Pty Ltd 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 and Iain
Macfarlane consent 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
This announcement contains certain forward looking statements. These forward-looking statements
are not historical facts but rather are based on the Company’s current expectations, estimates and
projections about the industry in which Tawana Resources NL operates, and beliefs and assumptions
regarding the Company’s future performance. Words such as “anticipates”, “expects”, “intends”,
“plans”, “believes”, “seeks”, “estimates” “potential” and similar expressions are intended to identify
forward-looking statements. These statements are not guarantees of future performance and are
subject to known and unknown risks, uncertainties and other factors, some of which are beyond the
control of the Company, are difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. Tawana Resources NL cautions
shareholders and prospective shareholders not to place undue reliance on these forward-looking
statements, which reflect the view of Tawana Resources NL only as of the date of this presentation.
The forward-looking statements made in this release relate only to events as of the date on which the
statements are made. Tawana Resources NL will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events, circumstances or
unanticipated events occurring after the date of this presentation except as required by law or by any
appropriate regulatory authority.
The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code
requirements for the reporting of Mineral Resources: (CPs: LK Len Kolff; IM Iain Macfarlane)
SECTION 1 SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding
Criteria JORC Code Explanation Commentary Competent
Sampling - Nature and quality of sampling - Rock chip samples were collected LK
techniques (eg cut channels, random chips, in the field from outcrop, sub-crop
or specific specialised industry and boulder float material.
standard measurement tools Rock chip samples were analysed
appropriate to the minerals by handheld XRF.
under investigation, such as
down hole gamma sondes, or
handheld XRF instruments, etc).
These examples should not be
taken as limiting the broad
meaning of sampling.
- Include reference to measures
taken to ensure sample
representivity and the
appropriate calibration of any
measurement tools or systems
- Aspects of the determination of
mineralisation that are Material
to the Public Report.
- In cases where ‘industry
standard’ work has been done
this would be relatively simple
(eg ‘reverse circulation drilling
was used to obtain 1m samples
from which 3kg was pulverised
to produce a 30g charge for fire
assay’). In other cases more
explanation may be required,
such as where there is coarse
gold that has inherent sampling
problems. Unusual commodities
or mineralisation types (eg
submarine nodules) may
warrant disclosure of detailed
Drilling Drill type (eg core, reverse - No drilling results are reported as LK
techniques circulation, open-hole hammer, part of this submission.
rotary air blast, auger, Bangka,
sonic, etc) and details (eg core
diameter, triple or standard tube,
depth of diamond tails, face-
sampling bit or other type,
whether core is oriented and if
so, by what method, etc).
Drill sample - Method of recording and - No drilling results are reported as LK
recovery assessing core and chip sample part of this submission.
recoveries and results
- Measures taken to maximise
sample recovery and ensure
representative nature of the
- Whether a relationship exists
between sample recovery and
grade and whether sample bias
may have occurred due to
preferential loss/gain of
Logging - Whether core and chip samples - All rock chip samples were geologically LK
have been geologically and logged for lithology, hardness, grain size,
geotechnically logged to a level fabric and where possible dip/dip direction
of detail to support appropriate for structural interpretation.
Mineral Resource estimation,
mining studies and metallurgical
- Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc)
- The total length and percentage
of the relevant intersections
Sub- - If core, whether cut or sawn and - All rock chip samples were dried LK
sampling whether quarter, half or all core prior to analysis at room
techniques taken. temperature
and sample - If non-core, whether riffled, tube - Blanks and certified reference
preparation sampled, rotary split, etc and materials were inserted every 10th
whether sampled wet or dry. sample.
- For all sample types, the nature, - No sub sampling techniques were
quality and appropriateness of carried out on the original rock chip
the sample preparation sample.
- Quality control procedures
adopted for all sub-sampling
stages to maximise
representivity of samples.
- Measures taken to ensure that
the sampling is representative of
the in situ material collected,
including for instance results for
- Whether sample sizes are
appropriate to the grain size of
the material being sampled.
Quality of - The nature, quality and - Assaying was by handheld XRF LK
assay data appropriateness of the assaying instrument Olympus Delta Premium
and and laboratory procedures used GeoChem (Mining Plus) Analyzer
laboratory and whether the technique is using geochem mode.
tests considered partial or total. - Reading time was 1 second per
- For geophysical tools, reading with a total of 4 readings
spectrometers, handheld XRF per sample.
instruments, etc, the parameters - The instrument automatically
used in determining the analysis calculated an average grade from
including instrument make and the readings per sample.
model, reading times, - The instrument automatically
calibrations factors applied and calibrates on a daily basis.
their derivation, etc. - Blanks and certified reference
- Nature of quality control material standards were inserted
procedures adopted (eg every 10th sample and acceptable
standards, blanks, duplicates, levels of accuracy and precision
external laboratory checks) and have been established.
whether acceptable levels of
accuracy (ie lack of bias) and
precision have been
Verification - The verification of significant - It was noted that handheld XRF LK
of sampling intersections by either results reported were consistently
and assaying independent or alternative lower when compared with
company personnel. laboratory analysis reported
- The use of twinned holes. previously.
- Documentation of primary data, - No twinned holes are reported as
data entry procedures, data part of this submission.
verification, data storage - All mapping data is collected
(physical and electronic) manually in the field and entered
protocols. subsequently into excel
- Discuss any adjustment to spreadsheet mapping and rock chip
assay data. database.
- All handheld XRF data is collected
in the field office and downloaded
from the instrument to excel
- No adjustments have been made to
the assay data.
Location of - Accuracy and quality of surveys - All sampling points have been LK
data points used to locate drillholes (collar surveyed using handheld GPS
and down-hole surveys), instrument on WGS 84 UTM zone
trenches, mine workings and 29N grid system.
other locations used in Mineral - No topographic control is reported
Resource estimation. as part of this submission.
- Specification of the grid system
- Quality and adequacy of
Data spacing - Data spacing for reporting of - sampling is defined by the extent of LK
and Exploration Results. outcrop available.
distribution - Whether the data spacing and - Sampling distribution is considered
distribution is sufficient to sufficient for reporting of
establish the degree of exploration results.
geological and grade continuity - No sample compositing has been
appropriate for the Mineral applied.
Resource and Ore Reserve
estimation procedure(s) and
- Whether sample compositing
has been applied.
Orientation of - Whether the orientation of - Sampling orientation is dictated by LK
data in sampling achieves unbiased presence of outcrop. Where
relation to sampling of possible structures possible, rock chip sampling has
geological and the extent to which this is been conducted perpendicular to
structure known, considering the deposit regional strike.
type. - No drilling results are reported as
- If the relationship between the part of this submission.
drilling orientation and the
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and
reported if material.
Sample - The measures taken to ensure - All generated pulps have been LK
security sample security. securely stored at the project field
Audits or - The results of any audits or - Sampling techniques and data LK
reviews reviews of sampling techniques were regularly reviewed by internal
and data. company staff.
Mineral - Type, reference name/ - MEL 1223/14 is located within the LK
tenement number, location and ownership Grand Cape Mount county of
and land including agreements or material issues Liberia and is 100% held by
tenure status with third parties such as joint ventures, Tawana Liberia Inc, a wholly owned
partnerships, overriding royalties, native subsidiary of Tawana Resources
title interests, historical sites, wilderness NL.
or national park and environmental
settings. - There are no known impediments
or material issues related to
- The security of the tenure held security of tenure at the time of
at the time of reporting along reporting.
with any known
Exploration - Acknowledgment and appraisal - The Mofe Creek project is a LK
done by of exploration by other parties. grassroots discovery with no
other parties previous mineral exploration or
other work completed.
Geology - Deposit type, geological setting - The Mofe Creek project is LK
and style of mineralisation. characterised by a series of itabirite
hosted iron ore deposits of likely
Archean or Palaeproterozoic age
as possible strike continuations of
the historic Bomi Hills and Bong
- Mineralisation is hosted within
banded iron formations (BIFs) that
have undergone regional
metamorphism and recrystallization
to itabirite and likely additional
recrystallization to coarse grained,
coarsely banded magnetite-
hematite itabirite as seen today. A
minimum of one and up to three
major itabirite bands are
recognised stratigraphically of both
silicate and oxide iron formation
facies and interbedded with
metasediments (variably garnet
overprinted), Fe rich mafics and
quartzites. Collectively the iron
units and interbedded
metasediments can be considered
a ‘greenstone’ belt that
- The sequence has been folded and
faulted through at least two major
phases of deformation causing
recrystallization, increase in
average grain size and potential
enrichment of the itabirite units.
- The sequence has then been
subject to intense tropical
weathering causing oxidation of
magnetite to hematite, and variable
hydration to goethite and limonite
within the upper 30-60m thick
- Some minor faults are recognised
in the Gofolo Main prospect but are
not considered to have a major
influence on the currently
established resource; they will be
incorporated into resource
modelling when further infill drilling
has become available.
Drillhole - A summary of all information material to - No drill hole results are reported as LK
Information the understanding of the exploration part of this submission.
results including a tabulation of the
following information for all Material
- easting and northing of the
- elevation or RL (Reduced
Level – elevation above
sea level in metres) of the
- dip and azimuth of the hole
- down hole length and
- hole length
- If the exclusion of this
information is justified on the
basis that the information is not
Material and this exclusion
does not detract from the
understanding of the report, the
Competent Person should
clearly explain why this is the
Data - In reporting Exploration LK
aggregation Results, weighting averaging - Arithmetic averages of iron grade
methods techniques, maximum and/or were calculated for all rock chip
minimum grade truncations (eg samples occurring within the
cutting of high grades) and cut- interpreted iron formation target
off grades are usually Material footprints.
and should be stated. - No weighted average grades have
- Where aggregate intercepts been reported.
incorporate short lengths of - No metal equivalent grades have
high grade results and longer been reported.
lengths of low grade results, the
procedure used for such
aggregation should be stated
and some typical examples of
such aggregations should be
shown in detail.
- The assumptions used for any
reporting of metal equivalent
values should be clearly stated.
Relationship - These relationships are LK
between particularly important in the - No drill hole results are reported as
mineralisatio reporting of Exploration Results. part of this submission.
n widths and - If the geometry of the - True width of mineralisation is not
intercept mineralisation with respect to known.
lengths the drillhole angle is known, its
nature should be reported.
- If it is not known and only the
down hole lengths are reported,
there should be a clear
statement to this effect (eg
‘down hole length, true width not
Diagrams - Appropriate maps and sections - All relevant plan maps have been LK
(with scales) and tabulations of included in the body of the
intercepts should be included for announcement.
any significant discovery being
reported These should include,
but not be limited to a plan view
of drillhole collar locations and
appropriate sectional views.
Balanced - Where comprehensive reporting - Where surface rock chip samples LK
reporting of all Exploration Results is not are reported, the total number of
practicable, representative samples collected, the average and
reporting of both low and high a range of assay results have been
grades and/or widths should be reported.
practiced to avoid misleading
reporting of Exploration Results.
Other - Other exploration data, if - All relevant regional and prospect LK
substantive meaningful and material, should scale geological observations and
exploration be reported including (but not geophysical survey results are
data limited to): geological included in relevant
observations; geophysical announcements accordingly.
survey results; geochemical
survey results; bulk samples –
size and method of treatment;
metallurgical test results; bulk
geotechnical and rock
deleterious or contaminating
Further work - The nature and scale of planned - Ongoing mapping and rock chip LK
further work (eg tests for lateral sampling along additional target
extensions or depth extensions footprints will continue.
or large-scale step-out drilling). Exploration drilling will planned along
- extensions, including the main defined exploration targets post completion
geological interpretations and of accesstracks and assessment of geology
future drilling areas, provided exposed in road cuttings resulting
this information is not
23 September 2014
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
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