| Fri 20 Apr 2007, 8:45 | | TAW - Tawana - Mining Right granted over Kareevlei |
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TAW
TAW
TAW - Tawana - Mining Right granted over Kareevlei Wes Diamond Project
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")
Kareevlei Wes Project
Northern Cape Province, South Africa
Key Points
Mining Right Granted
- Mining Right Granted over Kareevlei Wes diamond project
- Trial mining to commence this quarter.
- Tawana-owned Dense Media Separation plants being moved to site
- Kimberlites known to be diamondiferous
KAREEVLEI WES PROJECT, KIMBERLEY REGION, SOUTH AFRICA
(74% owned and operated by Tawana; 26% Seven Falls)
The Directors of Tawana are pleased to announce that a Mining Right has been
granted by the South African Department of Minerals and Energy over the
Kareevlei Wes diamond project, which is located 100km west of Kimberley.
The Kareevlei Wes Project comprises a cluster of 5 kimberlitic pipes (KV1-KV5),
which vary in surface area from 5.5 ha to less than 0.1 ha. Drilling to a depth
of 100 meters showed that KV3 is 13Mt and KV2 is 2Mt.
Background
As a result of processing percussion and Bauer drill bulk samples during
2004/2005 the grade of KV1 and KV2 was estimated to be 8.57 cpht. Subsequent
statistical analyses of the diamonds recovered from these two kimberlites
suggested that the grade could be expected to be 11cpht if larger parcels of
diamonds could be produced.
Diamonds from KV1 and KV2 were valued in 2005 at US$110/ct, with the valuer
predicting substantially higher values for larger parcels. This prediction was
supported by subsequent statistical analysis of a parcel from the KV1 and KV2
kimberlites, which suggested that US$164/ct was a reasonable value estimate for
diamonds from these kimberlites. Subsequently a parcel of 33.24ct of diamonds
from KV3 was valued by Mr Gregory Katz (a Johannesburg based valuer) at
US$170/ct.
At the estimated operating cost of open pit kimberlite mining and processing in
South Africa of US$7.53/t (2005 costs), the required breakeven grade at a
diamond value of US$170 /ct is 4.43 cpht
Program
A trial mining and treatment operation will commence during this quarter, aimed
at mining up to 20,000 tonnes from kimberlites KV1 and KV2. The Company`s two
dense media separation plants will be used to treat the material mined by
contractors. Key Tawana personnel are already in place to supervise this trial.
Commenting on the grant of the Mining Right, Wolf Marx, Managing Director of
Tawana said: "We have been looking forward to receiving approval for this
project for some time, and we are delighted that the Department of Minerals and
Energy now supports Tawana`s program. This is a significant milestone for Tawana
and we look forward to commencing the trial program as soon as tenders for the
mining are let. We are fortunate that we already own the processing plant needed
for this operation and that we have qualified and experienced staff on site. The
project will be administered by our General Manager South Africa, Craig Bailey,
who is based at the Company`s local South African office."
Mr. Marx concluded, "I am grateful to our BEE joint venture partners, Seven
Falls, for their assistance in securing the Mining Right approval. I look
forward to keeping shareholders advised of progress."
Note: The Company considers that any tonnage and grade estimates reflected do
not satisfy the definition of a Mineral Resource as set out in the JORC Code as
insufficient work has been conducted to be able to determine the grade and
tonnage of the deposit with greater accuracy. Further work may or may not
establish a Mineral Resource on the property. Accordingly, the estimate of
grade is made as provided by paragraph 18 of the JORC Code in relation to an
exploration target or exploration potential. The diamonds were recovered from
the minus 19mm plus 1.5mm fractions of kimberlite sampled by 2.5m diameter Bauer
drill holes. The kimberlite material was processed in the Company`s DMS plant
with diamond recovery by Flowsort x-ray plant and grease table.
Contact:
Wolf Marx
Tel: +61 (0)3 98635222
Mob: +61 (0)428 398446
Email:wolf.marx@tawana.com.au
This report is based on information compiled by Wolf Marx BSc, BA, FAusIMM,
CPGeo, Managing Director of Tawana Resources NL. He has sufficient experience
relevant to the style of mineralisation and types of deposits under
consideration, and to the activities undertaken, to qualify as a competent
person as defined in the 2004 edition of the "Australasian Code for the
Reporting of Mineral Resources and Ore Reserves"
All press releases and announcements may be inspected on the Company`s web site,
namely: www.tawana.com.au
20 April 2007
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 20/04/2007 08:45:04 Produced by the JSE SENS Department.
