south african project update

ACN 085 166 721 TAWANA RESOURCES NL South African Project Update June 27 2005 Highlights �� Drilling of selected Falcon® kimberlite targets in the Daniel Kimberlite project is progressing. �� Continued processing of Eastern Gravels has now recovered 219 diamonds weighing 31.95 carats. �� Statistical analysis of the diamonds recovered from the Eastern Gravels indicates that they are not derived from the Finsch Mine but from an as yet undiscovered proximal kimberlite. �� Commissioning of the DMS test plant for the Perdevlei and Kareevlei pipes has been completed and testing of the bulk samples from the pipes has begun and diamonds are being recovered. Daniel Kimberlite Project (BHP Billiton 70% /Tawana 30% and operator) A drilling program of Falcon® kimberlite targets within previously granted Prospecting Permits commenced in April 2005 and is nearing completion. Drilling on three of the Falcon® targets (A31, A64 and A65) intersected Banded Iron Stone country rocks. Basal sediments intersected above these rocks have been submitted to a laboratory in Perth to analyse for the presence of kimberlitic indicator minerals. Drilling on one of the targets (A29) intersected a non-kimberlitic volcanic pipe. Drilling on A86 intersected an ultra-mafic tuff which has also been sampled and submitted to the Perth laboratory for identification. Results of all samples are expected during July. Drilling is currently underway on anomaly MR1, which is immediately upstream of the Eastern Gravels. Drilling has reached a depth of 80m with the target depth being 100m. Tawana Alluvial Diamond Project (Tawana 100% and operator; BHP Billiton 2.5% gross royalty) Eastern Gravels To 20th June a total of approximately 3000 cubic meters of Eastern Gravels had been processed resulting in the recovery of 219 diamonds weighing a total of 31.95 carats. This includes the previously reported largest stone recovered of 4.66 carats. The average stone size for the Eastern Gravels is 0.15 carats per stone.
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TAWANA RESOURCES
A comparison based on the statistical analysis of the diamonds recovered from the Feeder Channel and those recovered from the Eastern Gravels has been undertaken. This has led management to the surprising conclusion that the Eastern Gravel diamonds are not derived from the Finsch kimberlite. The exciting implication of this analysis is that there must be another kimberlite in the vicinity of, or under, the Eastern Gravels. The Falcon® survey data over this area are being re-examined as a matter of urgency. Kareevlei Wes (Tawana 100%) Construction of the Dense Media Separation plant to test the 6500 tonnes of Bauer drilled bulk samples from the five kimberlites in the Kareevlei cluster has been completed and processing has commenced. The first sample being processed for final commissioning purposes is from a Bauer drill hole located in the north western section of pipe KV2. (See Diagram 1). 10 inch percussion drilling during 2003 in this section of KV2 recovered no diamonds. The current processing of the Bauer drill sample has already recovered 62 diamonds weighing 14.54 carats from the first 318 tonnes of kimberlite. The largest diamond recovered weighs 1.62 carats and the average stone size is 0.23cts. This is a very positive result and yet again shows the impact of the “nugget effect”. Small samples = smaller (or zero) diamonds; large samples = larger (and more) diamonds. *Note; The Company considers that any tonnage and grade estimates in this report 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 released as provided by paragraph 18 of the JORC Code of 2004 in relation to an exploration target or exploration potential. The diamonds were recovered from the minus 19mm plus 1.5mm fractions of gravels and kimberlite sampled by 2.5m diameter Bauer drill holes. The gravels were processed in one of the Company's Dense Media Separation plants with diamond recovery by a Flowsort x-ray plant and a grease table. W T Marx (BSc, BA, FAusIMM, CPGeo) MANAGING DIRECTOR For enquires contact: Wolf Marx Tel: +61 3 99097551 Mob: 0428 398446 Email:[email protected] The information in 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 mineralization and types of deposits under consideration, and to the activity undertaken, to qualify as a competent person as defined in the 2004 addition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” Suite 213, Level 2, 530 Little Collins St., Melbourne, VIC 3000 Telephone: (03) 99097551
www.tawana.com
TAWANA RESOURCES
Suite 213, Level 2, 530 Little Collins St., Melbourne, VIC 3000 Telephone: (03) 99097551
www.tawana.com
Diagram 1 4.66 carat diamond from the Eastern Gravels