| Tue 16 Aug 2011, 10:14 | | TAW - Tawana Resources NL - Acquisition of the Sinoe Gold Project in Liberia |
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TAW
TAW
TAW - Tawana Resources NL - Acquisition of the Sinoe Gold Project in Liberia
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")
Acquisition of the Sinoe Gold Project in Liberia
HIGHLIGHTS
* Due diligence successfully completed
* Rights to the Sinoe Gold Project in SE Liberia now fully secured
* 400 Km2 of highly prospective Birimian geology along the Dugbe Shear;
arguably the most prospective gold mineralised structure being explored
in Liberia today
* 20 Km along strike from Hummingbird`s (AIM: HUM) Dugbe Resource (0.8
Moz) and 40 Km along strike from Equator Resources (ASX: EQU) Bukon
Jedeh project
* The area has seen no previous modern day exploration
* Extensive artisanal mining activity throughout the licence area
* Aggressive field exploration programme underway
The Directors of Tawana Resources NL (ASX: TAW, the `Company`) are pleased to
announce the acquisition of a highly prospective land package in Sinoe
County, south-eastern Liberia referred to as the Sinoe Project. This
represents an exciting opportunity to explore highly prospective Birimian
geology in Liberia along strike to an emerging gold province and a further
extension of the Company`s commitment to rapid growth in West Africa.
The mineral exploration licence covers 400 km2 of Birimian aged rocks along
arguably the most prospective gold mineralised structure being explored in
Liberia today; the Dugbe Shear.
(Maps removed)
The project area is 25 km along strike from Hummingbird`s (AIM: HUM) 0.8 Moz
Dugbe Project and 40 km along strike from Equator Resources (ASX: EQU) Bukon
Jedeh Project. Both projects are hosted along secondary and tertiary order
structures adjacent to the main Dugbe Shear. Similar structural targets have
been defined in the government regional aeromagnetics data over the Sinoe
Project area.
The area is characterised by numerous artisanal gold workings observed in the
field during recent site due diligence activities. The area is also
characterised by numerous gold, quartzite, graphite and manganese occurrences
on the USGS Geological map of Liberia; all favourable indications for gold
prospectivity.
(Artisanal workings observed within the project area pictures removed)
An aggressive field sampling and mapping programme has commenced. Field teams
are on site carrying out soil sampling traverses over high priority target
areas. Blanket, wide spaced soil traverses within the license area and closer
spaced soil traverses over high priority targets including hard-rock
artisanal workings are being planned. It is expected that this initial soil
sampling data will delineate high priority targets for drilling in 1QCY12.
Assessment of artisanal workings in the area, access and geological mapping
will also be undertaken. A community`s consultation programme has been
successfully completed to ensure a social license to operate.
(Sinoe Project area on regional total aeromagnetic imagery showing
approximate locations of advanced projects along strike to the east pictures
removed).
Access is via paved and laterite road from Monrovia to Greenville and access
track from Greenville to the project area. Under the terms of the agreement,
the Company has secured the services of the vendor`s expatriate site manager
to build access tracks, additional camp facilities and maintain a logistics
network to facilitate exploration activities.
Sinoe Agreement
The Company and Global Mineral Investments LLC (`GMI`), a private Liberian
company signed a binding Heads of Agreement for an option to purchase
outright the mineral exploration licence over the Sinoe Project held by GMI.
Under the terms of the agreement the Company has the option to purchase
outright the mineral exploration licence after meeting the following terms
and conditions:
1 US$10,000 Option payment to secure exclusivity - PAID
2 US$40,000 Execution payment on successful due diligence - PAID
3 US$50,000 Execution payment within 6 months of the commencement of
exploration or announcing to market a significant exploration
target
The Company is to fund exploration during the first year after which it has
the right to purchase the licence outright or walk away unencumbered. Should
the Company choose to purchase the licence outright it does so at the
following terms:
1 US$350,000 payment and 6 million shares in the Company
2 US$1 million payment at announcement of 1 Moz JORC compliant
resource
3 Additional US$1 million payments for each additional 500 Koz JORC
compliant resource announced to market up to a maximum JORC
compliant resource of 2.5 Moz
4 US$5 million payment at pouring first gold from a mining operation
within the licence area.
Nimba and Lofa Licence Update
The Company is pleased to provide an update on the Nimba and Lofa exploration
programmes. Regional stream sediment sampling and targeted soil sampling
traverses were completed late July 2011. Mapping along soil traverses cut on
the Nimba prospect has identified younger hematite dusted porphyritic
alkaline feldspar-quartz-mica composition granites cross cutting the gneiss
basement further highlighting the prospectivity of this area.
Laboratory and quality assurance/quality control delays have resulted in
slower than expected assay turnaround. We are in regular contact with the
laboratories and results will be announced to the market as soon as they are
received.
About Liberia
Liberia is a democratic country run by Her Excellency President Ellen Johnson-
Sirleaf; Africa`s first elected female head of state in 2005. The country is
hugely prospective and hosts several world class iron ore deposits but yet is
completely underexplored for gold and non-ferrous metals. Liberia has a
modern and transparent mining code and the government is supportive of
foreign investment especially in the exploration and mining industry to help
unlock the value of its potential mineral wealth. Tawana is one of the first
ASX listed junior companies into Liberia following in the footsteps of mining
majors BHPBilliton, Arcelor-Mittal and Severstal.
Liberia is located in West Africa dominantly within the Archean aged Kenema
Man Domain and lesser Birimian sediments to the east. There are a large
number of world class mineral deposits located in the Archean and Birimian
rock types throughout West Africa including Obuasi (+40 Moz) and Tasiast (+18
Moz). West Africa is one of the fastest growing mineral provinces in the
world and Liberia currently hosts several world class iron ore deposits and
is underexplored for gold.
For further information, please contact:
Lennard Kolff van Oosterwijk
Chief Executive Officer
Competent Persons Statements
The information in this report in so far that it relates to Liberian Project
Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Lennard Kolff van Oosterwijk, who is a Member of the
Australian Institute of Geoscientists included in a list promulgated by the
ASX from time to time. Lennard Kolff van Oosterwijk 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
2004 Edition of the `Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves`. Lennard Kolff van Oosterwijk consents to
the inclusion in the report of the matters based on his information in the
form and context in which it appears.
16 August 2011
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 16/08/2011 10:14:01 Produced by the JSE SENS Department.
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