Name and Location
Mofe Creek iron-ore project, Liberia.

Client
Tawana Resources.

Project Description
A scoping study on the Mofe Creek project has delivered excellent technical and financial results, along with project design and development simplicity.

A scoping study has found that the project will have an initial mine life of 14 years.

The study has also identified an opportunity to fast-track the initial one-million-tonne-a-year to 2.5-million-tonne-a-year production scenario using existing infrastructure in Liberia, including a sealed road from the Gofolo mine to the Port of Monrovia and an existing deep-water port at Freeport-Monrovia. As the project expands, the Freeport capacity will be exceeded and alternative transshipment or shiploading facilities will be required.

The project development plan envisages a staged production ramp-up starting at one-million tonnes a year (Stage 1A) and then increasing production to 2.5-million tonnes a year (Stage 1B).

Net Present Value/Internal Rate of Return
The project has a net present value, at 8% discounted cash flow, after royalties at 4.5%, of $435-million. The pretax internal rate of return is estimated at 55.8%.

Value
The initial capital expenditure (capex) required for first production is estimated at $52.9-million, which is inclusive of a 20% contingency on capex.

The total capital cost required to achieve and sustain 2.5-million tonnes a year, including an independent haul road and a transshipment facility at the coast of Liberia, is estimated at $280-million.

This is inclusive of a 20% contingency on capex.

Duration
The timeline to initial production is 15 months from the approval of a mining licence.

Latest Developments
As the health, safety and corporate risks associated with the Ebola virus in Liberia diminish, Tawana is gearing up to resume full site-based activities at its $53-million Mofe Creek iron-ore project.

Tawana suspended all nonessential fieldwork at the project after a state of emergency was declared in Liberia in August last year.

The Liberia-based corporate office remained open during late 2014 and key local personnel were retained on staff payroll; however, all staff and personnel with outstanding leave were placed on mandatory leave or temporary redundancy during the suspension to minimise cash burn.

The West African country aims to be Ebola-free by the end of February, with plans in place to reopen schools on February 2.

Tawana, in response to this, produced a site-based restart and mobilisation plan, which will be implemented after a final review of the local community conditions within the project area has been completed, and adequate management and logistics procedures can be implemented for sustainable, safe operations.

The junior iron-ore developer plans to provide a full quarterly performance update, highlighting achievements of the project in due course.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Tawana Resources, tel +61 8 9287 4333 or fax +61 8 9389 3199.