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Tuesday 25 June 2002

Tawana begins Timber Creek kimberlite processing

Tawana Resources NL has begun processing of kimberlite at the Timber Creek diamond project. Earthmoving uncovered the targeted TC-01 kimberlite 1m below surface.

The objective of this program is to establish a diamond grade for the TC-01 kimberlite and secure an average per carat valuation for the diamonds.

Work previously undertaken by De Beers resulted in an estimated diamond grade in excess of 100 carats per hundred tonnes for the TC-01 kimberlite. The company says that, if this unusually high diamond grade is confirmed, it would see the TC-01 kimberlite rated second only to Argyle for diamond enrichment within Australia. Tawana holds 100% of the Timber Creek tenement (EL 10358).

Processing will continue until September 2002 with initial results due by late July.

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