Name of the Project
Bald Hill lithium plant.

Location
The 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
The mine has hauled its first spodumene concentrate, one month after first concentrate was produced.

Tawana Resources and AMAL have reported that an initial shipment of 3 250 t of spodumene will reach the berth at Esperance on May 2.

A second larger shipment of Bald Hill concentrate is expected later in May.

Meanwhile, Tawana has announced a merger with AMAL to create a midtier lithium producer with a market cap of A$446-million.

Under the terms of the merger agreement, Alliance will acquire all the issued shares of Tawana, comprising 1.10 Alliance shares for every Tawana share held.

Following the implementation of the scheme, Tawana will become a wholly owned subsidiary of Alliance, with Alliance shareholders holding a combined 51% interest in the merged group, while Tawana shareholders will retain a 49% interest.

Tawana told shareholders that the merger provided the potential for a simplified single-ownership structure for the Bald Hill project.

The merged entity will also have a strong balance sheet, with the capacity and flexibility to pursue additional exploration initiatives on the combined tenement package, and to pursue project expansion opportunities, as the market demands.

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.