- Resource independently estimated by CSA Global Pty Ltd.
- Maiden Indicated and Inferred lithium Mineral Resource of:
- High grade of 12.8 million tonnes at 1.18% Li2O and 158ppm Ta205 at a 0.5% Li20 cut-off.
- High grade tantalum Resources have increased 250% to 8.9 million tonnes at 304ppm Ta2O5 containing 6 million pounds of tantalum pentoxide, including 5.7 million tonnes at 311ppm Ta2O5 not included in the +0.5% Li2O lithium resource.
- Approximately 80% of the lithium and tantalum resources above 0.5% Li20 occurs in a 100m deep interval commencing from about 30m below the lowest surface level.
- Maiden Resource covers only 20% of the known southern swarm of lithium pegmatites. Ongoing drilling continues to expand the resource footprint.
- The Resource satisfies the condition precedent to the second offtake prepayment with Burwill Holdings Ltd, due on 15 July 2017.
- The substantial Resource complements the excellent recoveries from metallurgical test work.
- Feasibility Study completion is imminent.
- First lithium shipment targeted for Q1 2018.
Tawana Resources Managing Director Mark Calderwood stated:
“The 18.5Mt of combined high-grade lithium and tantalum resources is an excellent start from initial drilling at Bald Hill which has only tested 20% of the initial mineralised target area. Exploration drilling is continuing at Bald Hill with the intention of providing resource upgrades over the next six months. We are also pleased to have met the Resource condition precedent of the off-take early.”
Bald Hill Mineral Resource Estimate
CSA Global Pty Ltd was commissioned by Tawana to compile the maiden lithium mineral resource estimate for the Bald Hill Project and update the tantalum resource.
The Bald Hill pegmatite mineral resource comprises one large, main, sub horizontal pegmatite body, striking north-south, with a strike length of 1,070 metres, and a width at its widest point of 775 metres. This main body is surrounded by several smaller discrete pegmatite bodies, sub-parallel to the main, which result in a total strike length for the whole resource of 1,245 metres, and a total width of 990 metres. The mineral resource has a total vertical depth of 195 metres, beginning 20 metres below the natural surface and plunging gently to the south along its entire strike length.
The Mineral Resource has been classified as Indicated and Inferred in accordance with the JORC Code, 2012 Edition on a qualitative basis; taking into consideration numerous factors including drillholes spacing, estimation quality statistics (kriging slope of regression), number of informing samples, average distance to informing samples in comparison to the semivariogram model ranges, and overall coherence and continuity of the modelled mineralisation wireframes. All factors that have been considered have been included in Section 1 and Section 3 of Appendix 1.
Off Take Condition Precedent
The CSA global mineral resource estimate at a 0.5% Li2O cut-off (refer Table 1 & 4) satisfies the tonnage and grade condition precedent to the second and third prepayment due to AMA and Tawana on 15 July 2017 from Burwill Holdings Ltd.
Burwill has agreed to advance Tawana and AMA a combined amount of A$25,000,000 in total (“Advance Payment Amount”) in the amounts, and on the dates set below:
- A$3,750,000 (to each Tawana and AMAL) was received on signing the Agreement;
- On 15 July 2017, A$4,375,000 to each of Tawana and AMA; and
- On 15 September 2017, A$4,375,000 to each of Tawana and AMA.
The advance payments shall be used for the development and operational costs of the Bald Hill Project.
Tawana and AMAL has committed all 2018 and 2019 lithium ore concentrate that comes from the planned Bald Hill Lithium and Tantalum Project for a fix price of US$880/t (FOB Esperance) for 6% Li2O with price adjustment increment/decrement of US$/15t based on grade variation of 0.1%. The minimum accepted grade is 5.5%.
The current resource estimate supersedes the prior resource as reported in the August 2016 independent qualified person’s report for AMA, on the Bald Hill Tantalum Project. This prior estimate was not completed by CSA Global.
The completion of the Resource estimate will enable proposed mine scheduling to be completed. Mining scheduling was the last remaining component of the study which is in the process of being compiled.