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TAWANA RESOURCES NL - Drilling Recommencement on New Zaway Target

Release Date: 10/02/2015 09:00:00      Code(s): TAW       PDF(s):  
Drilling Recommencement on New Zaway Target

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”)

Drilling Recommencement on NEW Zaway Target

Tawana Resources NL (ASX: TAW) (“Tawana” or “the Company”) is pleased to
announce the planned recommencement of drilling at its 100%-owned Mofe Creek
project (“Mofe Creek” or “the Project”). This drill programme will focus on the
exciting new Zaway North-West exploration target as highlighted in Figure 1
overleaf.

The Zaway North-West target is the Company’s highest priority exploration target
within the Mofe Creek project area, and has the potential to add significant tonnes
to the current resource.

No drilling has previously been completed over this newly explored Zaway North-
West target, however access tracks and drill pads built over the 3.5km strike length
during the previous field season have exposed friable high-grade itabirite in road
cuttings over significant strike and width (refer ASX announcement 29 July 2014).

The drill programme has been designed to minimise costs and focus on the most
value accretive targets with significant scale potential, and pre-existing drill access.
An initial 19 hole-programme for 1,640m over the Zaway North-West and Zaway
main extension targets has been defined.

The Company will use one of the existing diamond drill rigs present on site to
mitigate mobilisation costs, and maximise value-accretive data, metallurgical
information and geophysical/geotechnical intelligence, from the diamond drill core.
“This is an exciting drill target that has the potential to add significant resource
tonnes to the Project and is geographically located within a 1-2km radius of the
current Zaway-Main deposit” said Executive Chairman, Mr Wayne Richards. “The
continuity and extension of the Zaway deposit, coupled with the potential low
operating cost of US$40.60/t FOB at a 2.5 Mtpa production rate1 as outlined in the
Scoping Study, provides a great opportunity for value appreciation within the
Company, he added.

1CAUTIONARY 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 is 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.

Additionally the Company has recently acquired high-resolution radar satellite
imagery over the planned mine sites, coastal port location and infrastructure
corridor areas, for detailed engineering purposes. This imagery has also provided
enhanced definition of the exploration targets, on both the Company’s 100%-owned
exploration tenements (MEL12029 and MEL 1223/14).

Drilling Programme

A total of 19 diamond core drill holes are planned for 1,640m of drilling over the
Zaway North-West and Zaway Main targets initially. Drilling is planned to test new
targets whilst maximizing the potential to add new resource tonnes as well as
provide valuable geotechnical and metallurgical diamond core for future test-work
(refer Figure 1). Drilling will be completed using a single Atlas Copco CS1000
track-mounted diamond drill rig in PQ and HQ core diameters. The drill rig is
currently stationed in the Sinje Camp and available for immediate deployment.

A total of 16 drill holes are planned over Zaway North-West to test width, depth and
strike potential of the high-grade friable itabirite exposed in road and drill pad
cuttings. Mineralisation is within 1km of the Zaway Main deposit and within 8km of
the Gofolo Main deposit and proposed mine/processing facility.

An additional 3 holes are also planned at the Zaway Main deposit, where previous
geotechnical and metallurgical drilling, not included within the Maiden Resource
Estimate (refer ASX release 31st March 20142), has confirmed mineralisation is
still open to the south.

New Topographic Data Acquisition

The Company has recently acquired detailed radar satellite topographic imagery
over the entire Project area including planned mine location(s); infrastructure
corridors between mining hubs and from the first mine to the proposed coastal port
location; and the port receival and dispatch site (including landside product storage
facility). The digital elevation model (‘DEM’), which represents a more accurate
survey of the earth’s surface without the masking effects of vegetation, provides
better topographic control over the Project area for PFS-level engineering studies.
The DEM has the added bonus of better defining topographic highs, which when
observed in conjunction with the aeromagnetics data complements future
exploration targets.

In addition to providing better quality elevation control for resource, mine, port and
infrastructure engineering purposes, exploration targets are better defined and
strike extents are more clearly visible, facilitating target definition for future drill
planning.

During, or on completion of the diamond drilling programme, the Company’s in-
house geological team will continue to assess the newly outlined exploration targets
through surface mapping, hand auger and hand-held XRF analysis as part of the
Company’s ongoing target assessment.

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
(“the Project”) is a new discovery in the heart of Liberia’s historic iron ore district,
located 20km from the coast and 85km 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 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 superior quality iron ore
product in the 64-68% Fe grade range, for which there is consistent global demand,
attracting significant price premiums.

For further information, contact:

Wayne Richards
Executive Chairman & Chief Executive Officer
Tel +61 8 9287 4344

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

Competent Persons Statement

The information in this report that relates to Exploration Results and Resources is
based on information compiled by Len Kolff, who is a member 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’. Len Kolff
consents to the inclusion of the matters in this report based on his information in
the form and context in which it appears.

The information in this Report relating to the Mofe Creek Resource Estimate and
Scoping Study are extracted from the 31 March 2014 Maiden Resource and 3 July
2014 Scoping Study announcements. The Company is not aware of any new
information or data that materially affects the information included in the original
market announcements. The Company confirms that the form and context in which
the Competent Person's findings are presented have not been materially modified
from the original market announcements.

Forward Looking Statement

This report may contain certain forward looking statements and projections
regarding estimated, resources and reserves; planned production and operating
costs profiles; planned capital requirements; and planned strategies and corporate
objectives. Such forward looking statements/projections are estimates for
discussion purposes only and should not be relied upon. They are not guarantees
of future performance and involve known and unknown risks, uncertainties and
other factors many of which are beyond the control of Tawana Resources NL. The
forward looking statements/projections are inherently uncertain and may therefore
differ materially from results ultimately achieved.

Tawana Resources NL does not make any representations and provides no
warranties concerning the accuracy of the projections, and disclaims any obligation
to update or revise any forward looking statements/projects based on new
information, future events or otherwise except to the extent required by applicable
laws. While the information contained in this report has been prepared in good
faith, neither TAW or any of its directors, officers, agents, employees or advisors
give any representation or warranty, express or implied, as to the fairness,
accuracy, completeness or correctness of the information, opinions and
conclusions contained in this presentation. Accordingly, to the maximum extent
permitted by law, none of TAW, its directors, employees or agents, advisers, nor
any other person accepts any liability whether direct or indirect, express or limited,
contractual, tortuous, statutory or otherwise, in respect of, the accuracy or
completeness of the information or for any of the opinions contained in this
presentation or for any errors, omissions or misstatements or for any loss,
howsoever arising, from the use of this presentation.

Notes

1       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 is 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.

2       For more information on the 61.9Mt Resource estimate, refer to ASX
        announcement dated 31 March 2014. Tawana Resources is not aware of
        any new information or data that materially effects the information included
        in the said announcement.


10 February 2015

Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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