Name of the Project
Bald Hill lithium plant.

Location
The Bald Hill project area is located 50 km south-east of Kambalda, in the Eastern Goldfields of Western Australia.

Client
Tawana Resources and Alliance Mineral Assets Limited (AMAL).

Project Description
The project comprises four mining leases, one mining lease application, 12 exploration licences, eight prospecting licences and one general purpose lease totalling 790 km.

A July 2017 prefeasibility study (PFS) confirmed the technical and financial viability of a low-capital-cost, 1.2-million-tonne-a-year lithium dense media separation (DMS) circuit, adjacent to the existing tantalum processing facility at Bald Hill.

The PFS estimates initial production of 155 000 t/y of spodumene concentrate from the DMS and 260 000 lb/y of tantalum pentoxide from the tantalum processing facility. Further feasibility work is being undertaken on a lithium fines circuit to treat stockpiled fines and middlings, which has the potential to add to production.

Potential Job Creation
About 200 people will be on site during the peak construction period.

Net Present Value/Internal Rate of Return
The project has an expected internal rate of return of 185%.

Value
A$42.20-million.

Duration
The first shipment of lithium concentrate is scheduled for March 2018.

Latest Developments
Tawana has reached its A$12.5-million milestone spend at the Bald Hill project, earning a 50% interest in the project, including all minerals from the tenements, as well as processing plant and infrastructure.

With the conditions of the February farm-in agreement now being satisfied, the Bald Hill joint venture agreement has come into effect.

Meanwhile, Tawana Resources has told shareholders that the company is fully funded to start production at the Bald Hill project in the first quarter of 2018, after securing A$25-million in funding.

The funding package comprises a A$20-million share placement to Germany’s Weier Antriebe und Energietechnik, a subsidiary of lithium specialist Jiangte Special Electric Motor, as well as a A$5-million loan.

Weier will be issued an initial 14.2-million shares, at 35c each, by October 25, and a further 42.8-million share, at the same issue price, by November 15, giving the company an 11.5% stake in Tawana.

The share placement will be conducted under Tawana’s existing placement capacity and will not require shareholder approval.

The A$5-million finance facility will have an 11% a year interest rate, payable quarterly in arrears, and a maturity date of December 2019.

Key Contracts and Suppliers
Primero Group (EPC).

On Budget and on Time?
The project is on track for commissioning to start in the first quarter of 2018.

Contact Details for Project Information
Tawana investor relations, tel +61 8 9489 2600 or email admin@tawana.com.au.