TAWANA RESOURCES NL - Drilling Results Confirm High Grade DSO MineralisationRelease Date: 18/02/2016 11:02:00 Code(s): TAW PDF(s):
Drilling Results Confirm High Grade DSO Mineralisation
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”)
DRILLING RESULTS CONFIRM HIGH GRADE DSO MINERALISATION
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER
TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT
- Results received from the diamond drill program, consisting of a six holes for
376.5m, have confirmed the presence of high grade Direct Shipping Ore (DSO)
style mineralisation and high grade friable iron formation from the newly
discovered Goehn Prospect.
- Excellent results from XRF analysis included:
o GSEDD04; 14m @ 61.1% Fe from 28m
o GSEDD01; 11m @ 60.2% Fe from 1m
o GSED03; 28m @ 51.5% Fe from 1m
including 4m @ 63.3% Fe from 1m
o GSED05; 22m @ 54.5% Fe from surface
including 12m @ 62.1% Fe from 3m
- Drilling results and rock chip samples have identified a DSO zone over 500m of
strike, a width of 100m and an average thickness of 15m.
- Striking similarities between lithologies and mineralisation styles intersected at
Goehn and typical Bomi Hills cross sections.
- These results in conjunction with the MOU port services agreement with
Wisco/CAD1 (refer ASX Announcement on 18 May 2015) support the potential
for a low cost DSO mining operation.
- The Company is considering a range of potential options to unlock value for
shareholders, including joint venture or outright sale options.
Tawana Resources NL (“Tawana” or the “Company”) is pleased to announce that
diamond drilling has confirmed the presence of high grade DSO hematite
mineralisation, with iron grades up to 66% Fe, located a short trucking distance to
the operating port of Freeport, Monrovia.
Six diamond drill holes (376.5m) were drilled over the north east section of the
Goehn Prospect where there was a concentration of high grade
Magnetite/Hematite mineralisation mapped and samples reported an average
grade of 66% Fe (Refer to ASX Announcement of 8 July 2015)2.
Six diamond holes were drilled across two lines 200m apart on nominal 50m drill
spacing. The program was designed to test at depth the identified DSO and high
grade friable iron formation from previous field work. The program was successful
as all the holes intersected either DSO or high grade friable iron formation or a
combination of both, see Figure 3.
The core was processed on site with assays taken every meter by a hand held XRF
machine with appropriate QAQC procedures followed. Table 2 lists all significant
assay results from the six drilled holes.
Hole ID Hole Type East North RL Dip Azimuth Hole depth
GSEDD01 NQ core 269,303 755,744 107 ?50 330 40
GSEDD02 NQ core 269,337 755,694 96 ?50 330 66
GSEDD03 NQ core 269,431 755,856 93 ?50 305 53.4
GSEDD03A NQ core 269,431 755,847 92 ?60 305 77.4
GSEDD04 NQ core 269,397 755,879 110 ?50 305 68.4
GSEDD05 NQ core 269,361 755,910 112 ?50 125 71.3
Co-ordinate system: UTM WGS84 Zone 29N
Table 2. Significant assay results
Hole ID Depth Depth Intersection Fe % Si % Al % P% S%
From To (m)
GSEDD001 1 12 11 60.2 1.8 6.3 0.03 BDL
20 36 16 45.0 4.4 5.7 0.03 BDL
GSEDD002 3 14 11 50.9 2.1 4.7 0.01 BDL
27 45 18 44.9 5.2 5.2 0.02 0.08
51 66 15 44.5 3.2 1.6 0.02 BDL
GSEDD003 1 29 28 51.5 1.1 1.4 BDL BDL
including 1 5 4 63.3 0.6 0.8 BDL BDL
GSEDD003A Surface 11 11 52.9 1.7 2.2 BDL BDL
including 1 5 4 60.9 1.4 1.7 BDL BDL
GSEDD004 2 20 18 51.2 1.3 1.9 BDL BDL
including 4 9 5 59.0 0.8 1.3 BDL BDL
28 42 14 61.1 0.9 1.3 BDL BDL
49 62 13 51.7 1.0 0.7 BDL BDL
GSEDD005 Surface 22 22 54.5 1.6 2.0 BDL BDL
including 3 15 12 62.1 1.4 1.8 BDL BDL
26 35 9 52.1 1.9 3.1 BDL BDL
including 31 34 3 62.1 1.8 3.2 BDL BDL
41 48 7 55.0 2.0 2.3 BDL BDL
including 45 48 3 63.6 1.8 2.1 BDL BDL
50 66 16 49.8 1.2 1.4 BDL BDL
Note: All results reported using a handheld XRF machine and are considered semi -
quantative in nature.
BDL = Below detection limit.
Bomi Hills Analogue and Significance of Drilling Program
Initial geological observations from drilling at the Goehn Prospect highlights the
similarities in lithology and mineralisation setting as reported at the Bomi Hills
The Goehn Prospect is along strike from the abandoned Bomi Hills iron ore mine
which was in production from 1951 to 1977. Historic production at Bomi Hills is
poorly documented; however estimated historic production by the Government of
Liberia is 50Mt of high-grade DSO lump magnetite in addition to high-grade
beneficiated sinter feed concentrate. DSO magnetite averaged 64.5% Fe, 4.5% SiO 2,
1.5% Al2O3 and 0.13% P, of which 53% formed lump material (average 11-37mm)
and 47% formed fines (<11mm). Friable iron formation was beneficiated through
Humphrey Spirals and a magnetic separator to produce sinter feed concentrate
averaging 64% Fe, 6% SiO 2 and 0.04-0.05% P (Gruss, 1973).
The genesis of the Bomi Hills magnetite deposit is not clearly understood,
however, general consensus is that it is hypogene and represents an itabirite that
has come into direct contact with rising gneissic fronts causing enrichment to
coarse massive magnetite by metamorphic differentiation (Gruss, 1973). Magnetite
mineralisation is in direct contact with gneissic basement and is partially blind.
The Bomi Hills cross section at figure 4 has striking similarities between the
lithologies intersected at Goehn (Refer Figure 3).
Drilling at Goehn has intersected a similar package of friable iron formation
transitioning into hard iron formation from surface, through mafic schist and into
footwall gneiss basement. DSO has been intersected within and directly below the
mafic schists over variable widths and to a current average of 15m.
Potential DSO Start Up
The DSO mineralisation defined within the Goehn Prospect falls within 6km of the
bitumen road between the Mofe Creek Project area and the operational port of
Monrovia; only 85km away (Refer Figure 5). 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.
The Goehn Prospect also supports the opportunity for a potential early start-up,
lowcapital 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
This potential development is further enhanced by the 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
About Tawana (ASX & JSE: TAW)
Tawana Resources NL is an ASX and JSE-listed Company with its principal project in
Liberia, West Africa. Tawana’s 100% owned Mofe Creek Iron ore Project lies 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 realising value from the Mofe Creek project, which covers
475km2 of highly prospective tenements in Grand Cape Mount County, with all
options open to consideration including potential joint venture or royalty positions
with third parties. The Project hosts DSO and high-grade friable itabirite
mineralisation which can be upgraded to a superior quality iron ore product in the
64-68% Fe grade range.
Tel +61 8 9489 2600
Detailed information on all aspects of Tawana’s projects can be found on the
Company’s website www.tawana.com.au
18 February 2016
Sponsor: PricewaterhouseCoopers Corporate Finance (Pty) Ltd
ASX RELEASE: 18/02/2016
Competent Persons Statement
The information in this report that relates to Exploration Results and Resources is based on information
compiled by Shane Tomlinson, who is a member of the Australian Institute of Geoscientists. Shane Tomlinson
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, M ineral Resources and Ore
Reserves’. Shane Tomlinson consents to the inclusion of the matters in this r eport based on his information in
the form and context in which it appears.
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 performan ce 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 representatio n 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, emplo yees 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.
(i) the M OU represents a non binding intention of the parties to negotiate a formal cooperation
agreement in good faith. The parties a re yet to agree on any definitive operational, commercial
and/or legal terms (including tonnage capacity or delivery schedules) for the cooperation
(ii) he obligation to negotiate in good faith comes to an end on the earlier of execution of a
definitive cooperation agreement or 31 December 2015; and
(iii) there is no certainty or assurance that parties will reach a final agreement on the terms of the
(iv) Refer to ASX announcement on 18 M ay 2015 for further information.
2:Tawana is not aware of any new information or data that materially affects the information included in the
JORC 2012 Table 1 assessment
SECTION 1 SAMPLING TECHNIQUES AND DATA
Criteria JORC Code Explanation Commentary
Sampling - Nature and quality of sampling (eg cut - Diamond drill (DD)
techniques channels,random chips, or specific core was sampled at
specialised industry standard one metre intervals.
measurement tools appropriate to the - Drill core samples
minerals under investigation, such as were analysed by
down hole gamma sondes, or handheld handheld XRF using
XRF instruments, etc). These examples continuous reading
should not be taken as limiting the broad mode over the entire
meaning of sampling. length of sample.
- Include reference to measures taken to The average is than
ensure sample representivity and the recorded for the
appropriate calibration of any sample length. This is
measurement tools or systems used. carried out four times
- Aspects of the determination of with the average of
mineralisation that are Material to the the runs recorded as
Public Report. the final average.
- 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, - NQ core was
techniques open-hole hammer, rotary air blast, collected from a
auger, Bangka, sonic, etc) and details (eg portable diamond
core diameter, triple or standard tube, drill machine.
depth of diamond tails, face-sampling bit
or other type, whether core is oriented
and if so, by what method, etc).
Drill - Method of recording and assessing core - The sample recovery
sample and chip sample recoveries and results and physical state
recovery assessed. were recorded.
- Measures taken to maximise sample Sample recovery of
recovery and ensure representative the diamond core is
nature of the samples. recorded on core
- Whether a relationship exists between blocks after each run
sample recovery and grade and whether and recorded in the
sample bias may have occurred due to logging.
preferential loss/gain of fine/coarse - Sample recovery
material. varied from poor to
100% due to the
weathered nature of
the material. Across
the entire six holes
Logging - Whether core and chip samples have been - All diamond core
geologically and geotechnically logged to were geologically
a level of detail to support appropriate logged in the field by
Mineral Resource estimation, mining qualified geologists.
studies and metallurgical studies. Lithological and
- Whether logging is qualitative or mineralogical data is
quantitative in nature. Core (or costean, recorded for all drill
channel, etc) photography. holes using a coding
- The total length and percentage of the system developed
relevant intersections logged. specifically for the
Sub- - If core, whether cut or sawn and whether - All samples were
sampling quarter, half or all core taken. dried prior to analysis
techniques - If non-core, whether riffled, tube at room temperature
and sample sampled, rotary split, etc and whether - Blanks and certified
preparation sampled wet or dry. reference materials
- For all sample types, the nature, quality were inserted every
and appropriateness of the sample 10th sample.
preparation technique. - No sub sampling
- Quality control procedures adopted for all techniques were
subsampling stages to maximise carried out on the
representivity of samples. original core sample.
- 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
Quality of - The nature, quality and appropriateness - Assaying was by
assay data of the assaying and laboratory procedures handheld XRF
and used and whether the technique is instrument Olympus
laboratory considered partial or total. Delta Premium
tests - For geophysical tools, spectrometers, GeoChem (Mining
handheld XRF instruments, etc, the Plus) Analyzer using
parameters used in determining the geochem mode.
analysis including instrument make and - Continous reading
model, reading times, calibrations factors mode was used over
applied and their derivation, etc. the sample length
- Nature of quality control procedures with a total of
adopted (eg standards, blanks, duplicates, 4readings per
external laboratory checks) and whether sample.
acceptable levels of accuracy (ie lack of - The instrument
bias) and precision have been established. automatically
calculated an average
grade from the
readings per sample.
- The instrument
calibrates on a daily
- Blanks and certified
inserted every 10th
acceptable levels of
precision have been
Verification - The verification of significant - Comparison studies of
of intersections by either independent or handheld XRF results
sampling alternative company personnel. reported were
and - The use of twinned holes. consistently lower
assaying - Documentation of primary data, data when compared with
entry procedures, data verification, data laboratory analysis
storage (physical and electronic) reported previously.
protocols. - No twinned holes are
- Discuss any adjustment to assay data. reported as part of
- All mapping data is
collected manually in
the field and entered
mapping and rock
- All handheld XRF data
is collected in the
field office and
downloaded from the
instrument to excel
- No adjustments have
been made to the
Location of - Accuracy and quality of surveys used to - All collar points have
data points locate drillholes (collar and down-hole been surveyed using
surveys), trenches, mine workings and handheld GPS
other locations used in Mineral Resource instrument on WGS
estimation. 84 UTM zone 29N grid
- Specification of the grid system used. system.
- Quality and adequacy of topographic - No topographic
control. control is reported as
part of this
Data - Data spacing for reporting of Exploration - Drill spacing was
spacing Results. based on two lines
and - Whether the data spacing and distribution 200m apart with a
distribution is sufficient to establish the degree of nominal spacing of
geological and grade continuity 50m.
appropriate for the Mineral Resource and - Collar locations were
Ore Reserve estimation procedure(s) and generally selected
classifications applied. based upon outcrop
- Whether sample compositing has been available and
applied. maintaining the
- Sampling distribution
- Sample compositing
to 1m has been
Orientation - Whether the orientation of sampling - Sampling orientation
of achieves unbiased sampling of possible is dictated by
data in structures and the extent to which this is presence of outcrop.
relation to known, considering the deposit type. Where possible, rock
geological - If the relationship between the drilling chip sampling has
structure orientation and the orientation of key been conducted
mineralised structures is considered to perpendicular to
have introduced a sampling bias, this regional strike.
should be assessed and reported if - No drilling results are
material. reported as part of
Sample - The measures taken to ensure sample - All core have been
security security. securely stored at the
project field office.
Audits or The results of any audits or reviews of - Sampling techniques
reviews sampling techniques and data. and data were
regularly reviewed by
SECTION 2 REPORTING OF EXPLORATION RESULTS (CRITERIA LISTED IN THE
SECTION ALSO APPLY TO THIS SECTION).
Criteria JORC Code Explanation Commentary
Mineral - Type, reference name/number, - MEL 1223/14 is located
tenement location and ownership including within the Grand Cape
and land agreements or material issues with Mount county of Liberia
tenure third parties such as joint ventures, and is 100% held by
status partnerships, overriding royalties, Tawana Liberia Inc, a
native title interests, historical sites, wholly owned subsidiary
wilderness or national park and of Tawana Resources NL.
environmental settings. - There are no known
- The security of the tenure held at the impediments or material
time of reporting along with any issues related to security
known impediments to obtaining a of tenure at the time of
licence to operate in the area. reporting.
Exploration - Acknowledgment and appraisal of - The Mofe Creek project is
done by exploration by other parties. a grassroots discovery
other with no previous mineral
parties exploration or other work
Geology - Deposit type, geological setting and - The Mofe Creek project is
style of mineralisation. characterised by a series
of itabirite hosted iron
ore deposits of likely
Palaeproterozoic age as
continuations of the
historic Bomi Hills and
Bong Range mines.
- Mineralisation is hosted
within banded iron
formations (BIFs) that
have undergone regional
itabirite and likely
recrystallization to coarse
grained, coarsely banded
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
garnet overprinted), Fe
rich mafics and
the iron units and
metasediments can be
considered a ‘greenstone’
belt that unconformably
- The sequence has been
folded and faulted
through at least two
major phases of
in average grain size and
potential enrichment of
the itabirite units.
- The sequence has then
been subject to intense
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
resource; they will be
resource modelling when
further infill drilling has
Drillhole - A summary of all information material - Reported in body of
Information to the understanding of the announcement
exploration results including a
tabulation of the following information
for all Material drillholes:
- easting and northing of the
- 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
- 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, - Length weighted
aggregation weighting averaging techniques, arithmetic averages of
methods maximum and/or minimum grade iron grade were
truncations (eg cutting of high grades) calculated for all core
and cut-off grades are usually Material samples occurring within
and should be stated. the interpreted iron
Where aggregate intercepts mineralised envelopes.
incorporate short lengths of high grade - No metal equivalent
results and longer lengths of low grade grades have been
results, the procedure used for such reported.
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 - DSO mineralised envelope
between important in the reporting of is interpreted to have a
mineralisati Exploration Results. strike length of 500m,
on widths - If the geometry of the mineralisation width of 100m and a
and with respect to the drillhole angle is thickness of 15m based
intercept known, its nature should be reported. on the drilling and
lengths - If it is not known and only the down surface data (mapping
hole lengths are reported, there and rock chip sampling)
should be a clear statement to this and using the
effect (eg ‘down hole length, true aeromagnetic image.
width not known’). - Friable iron
interpreted to have a
strike length of 500m,
width of 100m and an
aggregated thickness of
30m based on the drilling
and surface data
(mapping and rock chip
sampling) and using the
Diagrams - Appropriate maps and sections (with - All relevant plan maps
scales) and tabulations of intercepts have been included in the
should be included for any significant body of the
discovery being reported These should announcement.
include, but not be limited to a plan
view of drillhole collar locations and
appropriate sectional views.
Balanced - Where comprehensive reporting of all - Where samples are
reporting Exploration Results is not practicable, reported, all material
representative reporting of both low have been reported.
and high grades and/or widths should
be practiced to avoid misleading
reporting of Exploration Results.
Other - Other exploration data, if meaningful - All relevant regional and
substantive and material, should be reported prospect scale geological
exploration including (but not limited to): observations and
data geological observations; geophysical geophysical survey results
survey results; geochemical survey are included in relevant
results; bulk samples – size and announcements
method of treatment; metallurgical accordingly.
test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious
or contaminating substances.
Further - The nature and scale of planned - Submit selected samples
work further work (eg tests for lateral to a recognised
extensions or depth extensions or laboratory for verification
large-scale step-out drilling). of results.
- Diagrams clearly highlighting the areas - Ongoing mapping and
of possible extensions, including the rock chip sampling along
main geological interpretations and additional target
future drilling areas, provided this footprints will continue.
information is not commercially - Exploration drilling will
sensitive. be planned along defined
exploration targets post
completion of access
tracks and assessment of
geology exposed in road
cuttings resulting from
Date: 18/02/2016 11:02:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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