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TAWANA RESOURCES NL - Strategic Acquisition of New Exploration Licence

Release 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
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
(“Tawana” or “the Company”)


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

Executive Chairman
Tel +61 8 9287 4344

Detailed information on all aspects of Tawana’s projects can be found on the Company’s website

Cautionary Statement

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.

       APPENDIX 1

       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
                        fine/coarse material.
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
                        field duplicate/second-half
                    -   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
                        topographic control.
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
                        classifications applied.
                    -   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
                                                                       Range mines.

                                                                  -    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
                                                                       unconformably overlies
                                                                       granite/gneiss basement.

                                                                   -   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
                                                                       weathering profile.

                                                                   -   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
                               drillhole collar
                         -     elevation or RL (Reduced
                               Level – elevation above
                               sea level in metres) of the
                               drillhole collar
                         -     dip and azimuth of the hole
                         -     down hole length and
                               interception depth
                         -     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
                         density, groundwater,
                         geotechnical and rock
                         characteristics; potential
                         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
                         commercially sensitive.                       

23 September 2014

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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