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TAWANA RESOURCES NL - Tawana commences early works at the Bald Hill Lithium Mine

Release Date: 18/05/2017 09:05:00      Code(s): TAW       PDF(s):  
Tawana commences early works at the Bald Hill Lithium Mine

Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
Share code on the Australian Securities Exchange Limited: TAW
(“the Company” or “Tawana”)

    Tawana Commences Early Works at the Bald Hill Lithium

Near-term lithium producer Tawana Resources NL (ASX: TAW “Tawana” or ‘the Company”)
is pleased to announce it has commenced early works, including the ordering of long lead
capital items, for the development of the Bald Hill Lithium and Tantalum Mine in Western
Australia, which will consist of a 1.2 million tonne per annum front-end spodumene
concentrator utilising dense medium separation (DMS).
This is a significant milestone for the company as it advances towards first shipment, which
is expected in the first quarter of 2018.

-      Early works expected to commence in June 2017 including site establishment;
       mobilisation of personnel; road upgrades; and site clearing on existing disturbed areas.
-      The Company has engaged experienced lithium plant engineering group Primero to
       order long lead capital items including parts of the DMS plant and tails thickener.
       These items represent key components in the process flowsheet for the spodumene
-      Primero has also been engaged to complete the detailed design on the DMS circuit.
       Primero has recently completed and commissioned a DMS lithium plant in Western
       Australia and are currently involved in several significant lithium projects within
       Australia and overseas.
-      Engineering, Procurement, and Construction (EPC) contract is being finalised and is
       expected to be awarded following the Feasibility Study which is due to be released by
       the end of May 2017.
-      150 room camp has been secured for construction manning at the nearby Lanfranchi

Tawana’s Managing Director Mark Calderwood stated: “The rapid progress the Company is
making gives us great confidence that the Bald Hill Mine should become the next lithium
producer in Australia. Our straightforward metallurgy and excellent existing infrastructure
has allowed us to commence early works and order long lead items.”

Early Works

In order to meet the January 2018 commissioning timetable, the Company has been working
on a number of critical path items to ensure that appropriate infrastructure, permits, access
and logistics support are in place.
In June 2017, the Company is expected to commence site clearing on existing disturbed
areas ready for construction and early operations, including mobilisation of key construction
personnel to site.

Detailed Design

Tawana has engaged experienced lithium plant engineering group, Primero to complete the
detailed design and engineering of the flowsheet which will consist of a 1.2Mtpa spodumene
concentrator circuit utilising a DMS circuit.
Order of Long Lead Items
The Company has also engaged Primero to place orders for critical mechanical and electrical
long-lead items for the DMS circuit including stackers, screens, cyclones, pumps and a tails
thickener. These items represent the key components of the Bald Hill DMS circuit that is
proposed for the Bald Hill Lithium and Tantalum Mine.
The ordering of these items should support the Company’s targeted schedule of achieving
its first shipment in the first quarter of 2018.


The Company has secured the use of the 150 room Lanfranchi camp from Panoramic Resources
Limited under a six month rental agreement to 1 December 2017 with a further six month
option, to house the construction team during commissioning.

The camp is located approximately 40km from the Bald Hill Lithium and Tantalum Mine and
significantly reduces the Company’s upfront capital costs. The Company will assess the merits
of expanding the current 40 room camp at Bald Hill after production has commenced.

Bald Hill Project (AMA 100%, TAW Earning 50%)

The Bald Hill project (Project) area is located 50km south east of Kambalda in the Eastern
Goldfields of Western Australia. It is located approximately 75km south east of the Mt
Marion Lithium project and is adjacent to Tawana’s Cowan Lithium project. The Project,
owned by Alliance Mineral Assets Limited (AMA), includes a permitted tantalum (pegmatite)
mine, processing facility and associated infrastructure.

Through Tawana’s 100% owned subsidiary Lithco No. 2 Pty Ltd (Lithco), Tawana entered
into a Farm-In Agreement on 23 February 2017 with Alliance Mineral Assets Limited with
respect to AMA’s Bald Hill project in Western Australia for the purpose of joint exploration
and exploitation of lithium and other minerals.
The commercial terms require Tawana:

   1. to spend, by 31 December 2017 (or such later date as may be agreed between the
      parties), a minimum of $7.5 million on exploration, evaluation and feasibility
      (“Expenditure Commitment”); and at its election

   2. to spend, $12.5 million in capital expenditure required for upgrading and converting
      the plant for processing ore derived from the Project, infrastructure costs, pre-
      stripping activities and other expenditures including operating costs (“Capital
      Expenditure”) by 31 December 2019.

Upon completion of the Expenditure Commitment, Tawana shall be entitled to 50% of all
rights to lithium minerals from the tenements comprising the Project (“Tenements”). AMA
and Lithco had on 10 April 2017 entered into a lithium rights joint venture agreement.
Upon completion of the Expenditure Commitment and Capital Expenditure, Tawana will be
entitled to a 50% interest in the Project (being all minerals from the tenements and the
processing plant and infrastructure at Bald Hill). The portfolio of mineral tenements,
comprising mining leases, exploration licences, prospecting licences, miscellaneous
licences, a general-purpose lease, and a retention lease are in good standing. AMA and
Lithco had on 18 April 2017 entered into a Bald Hill Joint Venture Agreement.

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 as representation or warranty, express or implied, of Tawana Resources NL. 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, Tawana Resources or any of their 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 Tawana Resources NL, their 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 announcement or for any errors, omissions or misstatements or for any loss, howsoever
arising, from the use of this announcement.

18 May 2017

PricewaterhouseCoopers Corporate Finance (Pty) Ltd

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