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TAWANA RESOURCES NL - High-grade DSO discovery

Release Date: 08/07/2015 09:12:00      Code(s): TAW       PDF(s):  
High-grade DSO discovery

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

                          High-Grade DSO Discovery


Tawana Resources NL (‘Tawana’ or the ‘Company’) is excited to announce the
discovery of new high-grade Direct Shipping Ore (DSO) hematite mineralisation,
averaging 62.8% Fe and up to 66% Fe, located a short trucking distance to the
operating port of Freeport, Monrovia. Additionally the Company has discovered greater
than 2.2km strike of friable itabirite mineralisation in the Goehn prospect as part of its
ongoing low-cost exploration strategy over the Company’s recently acquired, 100%
owned MEL1223/14 Mofe Creek South licence.
The new zone of DSO hematite mineralisation occurs within the Goehn South East (SE)
prospect, within a broader >550m strike length of friable, coarse-grained itabirite, with
potential for additional strike extensions.

Itabirite mineralisation of greater than 2.2km combined strike length, ranging in grade
from 26.4% to 52.6% Fe, has also been delineated. This represents one of four
additional high-priority target areas defined within the Mofe Creek South licence area.
The itabirite mineralisation defined has similar geological characteristics to the 61.9Mt
at 33%1 Fe maiden resource estimate and is within 8km trucking distance thereof, and
is within close proximity of a bitumen highway.

Executive Chairman and Chief Executive Officer Mr Wayne Richards said “This target
represents the highest grade, continuous zone over multiple samples, of DSO hematite
mineralisation discovered within the project area to date. It represents a fantastic
result for the Company and an exciting potential low-cost, early development
opportunity within short trucking distance to the operational port of Monrovia.” Mr
Richards added “The combination of a new DSO hematite discovery within the Mofe
Creek project area and the recently announced port infrastructure MoU signed with
WISCO-CAD significantly enhances the potential for a low-capital intensity, early start-
up DSO trucking operation. This is a potential game-changer for both the project and
the Company.”

The results strengthen the exploration rationale for a potential Bomi Hills analogue,
which historically produced in excess of 50Mt of DSO within 35km of the project area.

Tawana continues its strategy of low-cost, value-add exploration work by its in-house
team while advancing core negotiations with the Government of Liberia for the Mineral
Development Agreement and progressing strategic Environmental and Social Impact
Assessment activities, including the Terms of Reference document and Scoping Report.

MEL1223/14 – DSO at Goehn Target

Low-cost mapping and rock-chip sampling over MEL 1223/14 has continued to define
and prioritise potential additional resource tonnage targets for the Mofe Creek Project.

Since announcing the new mineralisation discovered south of the Gofolo mining hub 2
and over the Zaway South target3, field teams have rapidly advanced and defined DSO
mineralisation over the Goehn South target.

Detailed mapping and rock chip sampling over the Goehn South target has defined a
significant area of high-grade hematite DSO mineralisation in addition to greater than
2.2km strike of itabirite mineralisation (refer Figures 2, 3 & 4 below).

A significant 120m x 100m area of hematite DSO mineralisation (solid pink area in
Figure 4 below) at average 62.8% Fe and up to 66% Fe in seven rock chip samples
analysed using hand-held XRF, has been discovered in the Goehn SE prospect.

High-grade hematite DSO mineralisation occurs within a broader greater than 550m
strike itabirite mineralized zone at average 52.7% Fe in 27 rock-chip samples. Potential
remains for additional DSO mineralisation within the broader itabirite envelope as well
as along strike within the Goehn target.

These results are highly encouraging and represent a potential Bomi Hills-type DSO
discovery with scope for depth and strike potential. This is significant as the DSO
mineralisation may continue at depth and extend well below depth of weathering;
similar to the hypogene magnetite DSO mineralisation mined at Bomi Hills. Bomi Hills
produced in excess of 50Mt of DSO during the 1950’s-70’s and is located 35km along
strike from the project area4.

In addition to the high-grade DSO mineralisation discovered, a combined strike length
of greater than 2.2km of itabirite mineralisation averaging between 26.4% Fe to 54.6%
Fe in 52 hand-held XRF rock-chip samples has been defined within the Goehn South

The itabirite mineralisation mapped is coarse grained with low contaminant levels and
occurs in outcrop along coincident magnetic and topographic highs, similar to the
known resource footprints directly north (refer Figure 3).

The target areas delineated have significant potential to add additional resource
tonnes to the project, including the potential for early start-up DSO material.
Mapping teams will continue to assess remaining exploration targets within the license
area with the aim of prioritising drill targets with the highest potential to increase the
current resource from 61.9Mt to 120Mt5.

Enhanced Low Capital Early Start-Up Scenario

The DSO mineralisation defined within the Goehn South prospect falls within 6km of
the bitumen road between the Project area and the operational port of Monrovia; only
75km away. This new discovery represents a strategic opportunity to structure an
early-start-up operation with minimal capital intensity, using the existing highway and
a working port within Monrovia. The mineralisation is readily accessible and presents
from surface.

Likewise, the Goehn deposit is geographically more closely located and aligned with
the proposed longer-term independent haul road and Greenfield port location, than
either the Gofolo Main or Zaway Main deposits; thus enhancing potential project value.
The deposit also supports the opportunity for an early start-up, low-capital intensity
mining and trucking operation within the initial years of production and project life
cycle. Due to the hematite DSO style mineralisation discovered, a beneficiation process
may not be required at start-up and will only be introduced as the mineralisation
transitions from DSO into friable itabirite mineralization. This mining methodology
ensures the delayed capital requirements of a processing facility and allows the wet
plant to be potentially funded from cashflow and/or strategic debt, once the Company
is operational and generating an income.

This potential development is further enhanced by the recently announced
infrastructure sharing MoU executed between the Company and WISCO-CAD; the
owner-operator of the Monrovia port iron ore handling facilities (refer ASX
announcement of 18 May 2015).

Field mapping teams are continuing work along remaining targets towards the east and
ongoing results will be reported as they become available.

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 85km from the country’s capital city and major port, Monrovia.
Tawana is committed to advance the development of its 100% owned Mofe Creek
project, which covers 475km2 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.

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

For further information, contact:
Wayne Richards
Executive Chairman
Ph: +61 8 9489 2600

8 July 2015

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

Forward Looking Statement
This announcement may contain or refer to previously reported 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 only and should not be unduly 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 or referred to in this announcement 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 or referred to in
this announcement. 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 or referred to in this announcement or for
any errors, omissions or misstatements or for any loss, howsoever arising, from this announcement.

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 Non-Executive Director 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.

1 For more information on the 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.

2 For more information on the Jaja (previously referred to as Gofolo South target) exploration results, refer ASX announcement dated 8th
  April 2015. Tawana Resources is not aware of any new information or data that materially effects the information included in the said

3 For more information on the Zaway South exploration results, refer ASX announcement 7th May 2015. Tawana Resources is not aware of
  any new information or data that materially effects the information included in the said announcement.

4 For more information on the Bomi Hills Mine deposit, refer ASX announcement 3rd December 2012. Tawana Resources is not aware of any
  new information or data that materially effects the information included in the said announcement.

5 The potential quantity and grade of an exploration target is conceptual in nature. There has been insufficient exploration to determine a
  mineral resource and there is no certainty that further exploration work will result in the determination of mineral resources. Refer ASX
  announcement of 18 March 2013 for further details.

  The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting of Mineral Resources: (CP:
  LK Len Kolff)

SECTION 1 SAMPLING TECHNIQUES AND DATA (Criteria in this section apply to all succeeding sections).
Criteria        JORC Code Explanation                                                           Commentary
Sampling        -   Nature and quality of sampling (eg cut channels, random chips, or specific     -    Rock chip samples were collected in the field from outcrop, sub-crop and boulder float      LK
techniques          specialised industry standard measurement tools appropriate to the                  material.
                    minerals under investigation, such as down hole gamma sondes, or ?                  Rock chip samples were analysed by handheld XRF.
                    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 used.
                -   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 information.
Drilling        -   Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,  -    No drilling results are reported as part of this submission.                                LK
techniques          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 assessing core and chip sample recoveries and          -    No drilling results are reported as part of this submission.                                LK
recovery            results assessed.
                -   Measures taken to maximise sample recovery and ensure representative
                    nature of the samples.
                -   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 have been geologically and geotechnically        -    Rock chip samples were geologically logged for lithology, hardness, grain size, fabric      LK
                    logged to a level of detail to support appropriate Mineral Resource                 and where possible dip/dip direction for structural interpretation.
                    estimation, mining studies and metallurgical studies.
                -   Whether logging is qualitative or quantitative in nature. Core (or costean,
                    channel, etc) photography.
                -   The total length and percentage of the relevant intersections logged.

Criteria           JORC Code Explanation                                                           Commentary
Sub-sampling    -   If core, whether cut or sawn and whether quarter, half or all core taken.      -    All rock chip samples were dried prior to analysis at room temperature                      LK
techniques and  -   If non-core, whether riffled, tube sampled, rotary split, etc and whether      -    Blanks and certified reference materials were inserted every 10th sample.
sample              sampled wet or dry.                                                            -    No sub sampling techniques were carried out on the original rock chip sample.
preparation     -   For all sample types, the nature, quality and appropriateness of the sample
                    preparation technique.
                -   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 sampling.
                -   Whether sample sizes are appropriate to the grain size of the material being

Quality of      -   The nature, quality and appropriateness of the assaying and laboratory         -    Assaying was by handheld XRF instrument Olympus Delta Premium GeoChem (Mining                LK
assay data and      procedures used and whether the technique is considered partial or total.           Plus) Analyzer using geochem mode.
laboratory      -   For geophysical tools, spectrometers, handheld XRF instruments, etc, the       -    Reading time was 1 second per reading with a total of 4 readings per sample.
tests               parameters used in determining the analysis including instrument make          -    The instrument automatically calculated an average grade from the readings per sample.
                    and model, reading times, calibrations factors applied and their               -    The instrument automatically calibrates on a daily basis.
                    derivation, etc.                                                               -    Blanks and certified reference material standards were inserted every 10 th sample and
                -   Nature of quality control procedures adopted (eg standards, blanks,                 acceptable levels of accuracy and precision have been established.
                    duplicates, external laboratory checks) and whether acceptable levels of    
                    accuracy (ie lack of bias) and precision have been established.

Verification of -   The verification of significant intersections by either independent or         -    It was noted that handheld XRF results reported were consistently lower when                 LK
sampling and        alternative company personnel.                                                      compared with laboratory analysis reported previously.
assaying        -   The use of twinned holes.                                                      -    No twinned holes are reported as part of this submission.
                -   Documentation of primary data, data entry procedures, data verification,       -    All mapping data is collected manually in the field and entered subsequently into excel
                    data storage (physical and electronic) protocols.                                   spreadsheet mapping and rock chip database.
                -   Discuss any adjustment to assay data.                                          -    All handheld XRF data is collected in the field office and downloaded from the
                                                                                                        instrument to excel spreadsheet.
                                                                                                   -    No adjustments have been made to the assay data.

Location of     -   Accuracy and quality of surveys used to locate drillholes (collar and          -    All sampling points have been surveyed using handheld GPS instrument on WGS 84 UTM           LK
data points         down-hole surveys), trenches, mine workings and other locations used in             zone 29N grid system.
                    Mineral Resource estimation.                                                   -    No topographic control is reported as part of this submission.
                -   Specification of the grid system used.
                -   Quality and adequacy of topographic control.
Criteria           JORC Code Explanation                                                          Commentary
Data spacing    -   Data spacing for reporting of Exploration Results.                             -    sampling is defined by the extent of outcrop available.                                      LK
and             -   Whether the data spacing and distribution is sufficient to establish the       -    Sampling distribution is considered sufficient for reporting of exploration results.
distribution        degree of geological and grade continuity appropriate for the Mineral          -    No sample compositing has been applied.
                    Resource and Ore Reserve estimation procedure(s) and classifications
                -   Whether sample compositing has been applied.
Orientation of  -   Whether the orientation of sampling achieves unbiased sampling of              -    Sampling orientation is dictated by presence of outcrop. Where possible, rock chip           LK
data in relation    possible structures and the extent to which this is known, considering the          sampling has been conducted perpendicular to regional strike.
to geological       deposit type.                                                                  -    No drilling results are reported as part of this submission.
structure       -   If the relationship between the 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 security -   The measures taken to ensure sample security.                                  -    All rock chips have been securely stored at the project field office.                        LK
Audits or       -   The results of any audits or reviews of sampling techniques and data.          -    Sampling techniques and data were regularly reviewed by internal company staff.              LK

Criteria        JORC Code Explanation                                                       Commentary
Mineral         -   Type, reference name/number, location and ownership including                  -   MEL 1223/14 is located within the Grand Cape Mount county of Liberia and                      LK
tenement and        agreements or material issues with third parties such as joint                     is 100% held by Tawana Liberia Inc, a wholly owned subsidiary of Tawana
land tenure         ventures, partnerships, overriding royalties, native title interests,              Resources NL.
status              historical sites, wilderness or national park and environmental                -   There are no known impediments or material issues related to security of
                    settings.                                                                          tenure at the time of reporting.
                -   The security of the tenure held at the time of reporting along with
                    any known impediments to obtaining a licence to operate in the
Exploration     -   Acknowledgment and appraisal of exploration by other parties.                  -   The Mofe Creek project is a grassroots discovery with no previous mineral                     LK
done by other                                                                                          exploration or other work completed.
Geology         -   Deposit type, geological setting and style of mineralisation.                  -   The Mofe Creek project is characterised by a series of itabirite hosted iron                  LK
                                                                                                       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 the understanding of                  -   No drill hole results are reported as part of this submission.                                LK
Information         the exploration results including a tabulation of the following
                    information for all Material drillholes:
                    - easting and northing of the drillhole collar
                    - elevation or RL (Reduced Level – elevation above sea level in

Criteria           JORC Code Explanation                                                     Commentary
                            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 case.
Data            -   In reporting Exploration Results, weighting averaging techniques,              -   Arithmetic averages of iron grade were calculated for all rock chip samples                    LK
aggregation         maximum and/or minimum grade truncations (eg cutting of high                       occurring within the interpreted iron formation target footprints.
methods             grades) and cut-off grades are usually Material and should be                  -   No weighted average grades have been reported.
                    stated.                                                                        -   No metal equivalent grades have been reported.
                -   Where aggregate intercepts incorporate short lengths of high
                    grade results and longer 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 particularly important in the reporting of             -   No drill hole results are reported as part of this submission.                                 LK
between             Exploration Results.                                                           -   True width of mineralisation is not known.
mineralisation  -   If the geometry of the mineralisation with respect to the drillhole
widths and          angle is known, its nature should be reported.
intercept       -   If it is not known and only the down hole lengths are reported,
lengths             there should be a clear statement to this effect (eg ‘down hole
                    length, true width not known’).
Diagrams        -   Appropriate maps and sections (with scales) and tabulations of                 -   All relevant plan maps have been included in the body of the                                   LK
                    intercepts should be included for any significant discovery being                  announcement.
                    reported These should include, but not be limited to a plan view
                    of drillhole collar locations and appropriate sectional views.
Balanced        -   Where comprehensive reporting of all Exploration Results is not                -   Where surface rock chip samples are reported, the total number of samples                      LK
reporting           practicable, representative reporting of both low and high grades                  collected, the average and a range of assay results have been reported.
                    and/or widths should be practiced to avoid misleading reporting
                    of Exploration Results.
Other           -   Other exploration data, if meaningful and material, should be                  -   All relevant regional and prospect scale geological observations and                           LK
substantive         reported including (but not limited to): geological observations;                  geophysical survey results are included in relevant announcements
exploration data    geophysical survey results; geochemical survey results; bulk                       accordingly.
                    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 further work (eg tests for lateral             -   Ongoing mapping and rock chip sampling along additional target footprints                      LK

Criteria   JORC Code Explanation                                                   Commentary
                    extensions or depth extensions or large-scale step-out drilling).                  will continue.
                 -  Diagrams clearly highlighting the areas of possible extensions,                -   Exploration drilling will be planned along defined exploration targets post
                    including the main geological interpretations and future drilling                  completion of access tracks and assessment of geology exposed in road
                    areas, provided this information is not commercially sensitive.                    cuttings resulting from this work.

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