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DGR GLOBAL LIMITED Interim / Quarterly Report 2013

Jul 15, 2013

64771_rns_2013-07-15_0c0dba67-a9c6-4d01-a4a7-1fd75c3196bc.pdf

Interim / Quarterly Report

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D G R G L O B A L L I M I T E D A C T I V I T I E S R E P O R T | J U N E 2 0 1 3
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Quarterly Report

Quarter Highlights

DGR Global Ltd | ASX: DGR

  • London based new opportunities group targeting bulk commodities in Africa and the Middle East.

  • Advancement of new development projects in Australia, Africa and the Americas with focus on Gas and Oil, Iron Ore, Gold, Copper, Nickel and Tin.

  • Completed Share Purchase Plan and current fully underwritten rights issue to raise approx $1.9 M before costs.

Armour Energy Ltd| ASX:AJQ—DGR 25%

  • Egilabria 2 Well (1st of 3) spudded 12 May to test resource charge and flow rates from the prognosed recoverable resource of 22TCF in the Lawn 4 shale within the South Nicholson/Isa super basin, NW Queensland.

  • Numerous strong gas shows above and through the Lawn Shale formation which at 150 metres is 20% thicker than expected[1] . At 10 July the well was being cemented and plugged above the Lawn Shale in preparation for lateral drilling within the Lawn Formation.

  • Heads of Agreement with APA Group for ultimate transportation of up to 330 PJ of gas per annum to markets in Mt Isa, Queensland and Sydney.[2]

  • Selection of 31 drill sites in NT, and preparation for minimum 3 wells in 2013.

  • Commercial discussions for sale of up to 30PJ gas per annum in the Northern Territory.

  • Appointment of former Shell International Executive and Arrow Energy COO Robbert de Weijer as Armour CEO.

Orbis Gold Ltd | ASX: OBS – DGR 18%

  • Continuing high grade drill assay results confirm a ‘company making’ gold discovery at the Natougou prospect in the Boungou Project Area in east Burkina Faso. Drilling to date covers 1.07sqkms with average drill intersection of 4.4m @ 4.81 g/t Au and average intersection depth of 59 m.[3]

  • New gold mineralised structures discovered at Tankoro and Bantou prospects in the Dynikongolo Project Area in South West Burkina Faso.[4]

  • Bantou (Main Lode and Hanging Wall structures) has now returned high grade assay results from over 700m strike and 160 m depth (open in both directions).[5]

  • Orbis sells minority interest in Leichardt Project in NW Queensland for $1 million cash.

SolGold plc | LSE: SOLG – DGR 10%

  • Focus on potential high grade copper gold porphyry system at Cascabel in Ecuador. Further mineralised channel samples from the Alpala area demonstrate continuity of extensive high grade porphyry Cu-Au mineralisation, with the area of outcropping mineralisation now >400 m x >200 m[6] . Cascabel is close to the capital and ports, low elevation, has adequate water supplies and access to power.

  • Appointment of Alan Martin as SolGold Chief Executive Officer.

  • Completed raising of AUD3.0 million to fund ongoing exploration and drilling at Cascabel.

  • 2,500 m drilling program ready to commence pending receipt of final permit.

Navaho Gold Ltd | ASX:NVG—DGR 28%

  • Independent third party DeGolyer and MacNaughton estimates 4.2 TCF of Gross Mean Prospective Resources in the Tindelpina shale held by energy subsidiary Navgas Pty Ltd .[7]

  • Successfully lodged additional petroleum exploration licence application contiguous to the existing 5 PELA’s, taking the Navgas project area in South Australia to over 13 million acres.

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D G R G lo ba l L im i te d Ac t i v it ie s Re port for Jun e 2 01 3 Qu ar t er | P a ge 1

Quarter Highlights

AusNiCo Ltd | ASX:ANW—DGR 14%

  • Initial metallurgical testing delivers encouraging copper and silver recoveries for the Taronga Tin project.[8]

  • Credits of associated copper and silver (based on extensive drill assay data) indicate potential for significantly enhanced economics for total project.

  • Preliminary Feasibility Study to be commissioned following capital raising.

IronRidge Resources Ltd (58% DGR owned)

  • Second field program completed in Gabon at Belinga Sud, immediately south of the Belinga iron ore deposits (CMEC/Gabonese Government).

  • Early assay results highlight Indombo Central prospect presents an exploration target 600-800 Mt

  • Initial field program undertaken at the Tchibanga permit area (close to Mayumba Port).

Archer Resources Ltd (67% DGR owned)

  • Encouraging results continue from field work at Mt. Abbott and Calgoa Project areas.

  • Archer Directors considering several options for future advancement of company projects.

Footnotes:

  • 1 AJQ ASX Releases 1/7/13, 2/7/13, 4/7/13 and 5/7/13 2 AJQ ASX Release 26/2/13

  • 3 OBS ASX Releases 17/6/13 and 5/7/13 | 4 OBS ASX Release 6/5/13 5 OBS ASX Release 23/5/13 and 8/7/13

  • 6 SOLG AIM:LSE Release 13/6/13 |7 NVG ASX Release 17/6/13 8 ANW ASX Release 20/5/13 | 9 Refer Note Page 5

DGR Global Creates Resource Companies D’Aguilar Gold holds

35.2 million shares

During the quarter DGR Global continued to advance its representing 15.6% objective to become a diversified global resource project of Solomon Gold plc. generator and investment company.

DGR Global generates its own large scale resource exploration projects directly through the skills and experience of its accomplished team of explorationists. Most resource investment companies purchase their investment stakes at a high cost with restricted scope and

low diversity and it is this important difference that gives DGR Global its strong competitive edge.

Many exploration companies tend to prematurely focus on the definition of a restricted resource and/or development without the scope for world class discoveries. In contrast, DGR Global’s philosophy is to secure provincial tenure positions, prospective for commodities with a high demand growth profile, which attract globally diverse capital funds. The company adopts a lateral and creative approach in the identification of both the commodity and exploration target.

DGR Global

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Fig. 1: DGR Global
Corporate Structure.
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exploration projects tend to be very large, targeting new provinces with the potential to make world-class discoveries. The exploration concepts are often novel. While increased metal prices and advances in technology can turn former sub economic deposits into viable projects DGR Global Projects frequently emerge from detailed reassessment and reinterpretation of large databases with a new perspective.

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DGR Global Creates Resource Companies

In the past, DGR Global Directors and Managers have applied new exploration models to extensive tenement areas which have contributed to the identification of new mineral provinces and the discovery of nationally significant resources.

DGR Global’s strategy to independently finance, manage and list its key assets on recognised stock exchanges is designed to deliver negotiability for its key assets, provide less dilutive funding of forward exploration programs and deliver expanded and focussed Project Management Teams independent of DGR Global.

DGR Global holds key equity positions in its subsidiary companies after listing. As shown in the DGR Global Group Corporate Structure (see Fig. 1) at 10 July 2013 DGR Global holds 25% ASX listed Armour Energy Ltd (ASX : AJQ) 10% AIM listed SolGold Plc (LSE: SOLG), 18% ASX listed Orbis Gold Ltd (ASX: OBS), 14% AusNiCo Ltd (ASX: ANW) and 28% Navaho Gold Ltd (ASX: NVG).

Table 1 and the following Fig. 2 demonstrate how DGR Global continues to build value for shareholders.

Investment Listed Code Number of
Shares
Number of
Options /
Warrants
Market Value# Closing
Share Price
Exchange
Lions Gate Metals Inc. TSX-V:LGM 300,000 11,520
0.04

0.96
SolGold plc D’Agui
LSE:AIM: SOLG
lar Gold holds
54,517,440
-
3,647,871

0.0408

1.64
Orbis Gold Ltd 35.2 m
ASX: OBS
illion shares
39,000,000
-
7,800,000

0.2
Navaho Gold Ltd1 repres
~~f l~~
ASX: NVG
enting 15.6%
~~ld l~~
57,787,578
17,428,667
982,389

0.02
AusNiCo Ltd2 ~~o Soo~~
ASX: ANW
~~mon Go pc.~~
59,776,500
20,000,000
358,659

0.006
Armour Energy Ltd3 ASX: AJQ 75,050,000 18,837,500
20,925,813

0.26
Total market value of DGR Global assets (excl cash)
33,726,251
Total DGR Global shares on issue
331,059,886
0.025
Value attributable to each DGR share
0.10

Table 1: Current Portfolio and Market Valuation of Listed Assets held by DGR Global.

# Market value represents the market quoted price for listed investments at 10 July 2013.

  1. Navaho Gold Ltd (“NVG”) options allow the Company to take up one ordinary share in NVG at an exercise price of $0.20. Options are fully vested and expire on 31 Dec ‘13.

  2. AusNiCo Ltd (“ANW”) options allow the Company to take up one ordinary share in ANW at an exercise price of $0.30. Options are fully vested and expire 19 Nov ‘13.

  3. The Armour Energy Ltd (“Armour”) options allow the Company to take up one ordinary share in Armour at an exercise price of $0.50. Options are fully vested and expire on 31 Aug 2014. On 10 July 2013, Armour options (ASX:AJQO) closed at $0.075.

Fig. 2: DGR Global building Value for Shareholders through Created Assets.

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70
Total value of
shareholding in listed
assets
60
DGR Market Cap
50
40
30
20
10
-
17/01/2012 17/04/2012 17/07/2012 17/10/2012 17/01/2013 17/04/2013 17/07/2013
ure 5
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Value AUD (m)
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Iron, Titanium and Bauxite

IronRidge Resources Ltd (IRR), has been granted two Autorisation de Prospection (ATP) in Gabon: Belinga Sud and Tchibanga, providing IronRidge with an exciting new strategic direction in iron ore exploration.

Belinga Project (CMEC/Gabonese Govt) —860Mt @ 63%Fe[10 ]

Whilst global iron ore markets are experiencing volatility, Australia’s largest producers continue to invest in exploration and development on the expectation of prices stabilising at sustainable levels of approximately USD120 per tonne which is based on the global cost curve and supply demand balance.

The location of the two tenements and proximity to known Iron Ore deposits is shown in Fig. 3.

Gabon is located on the central west coast of Africa, a region becoming increasingly recognised for iron ore prospectivity and host to numerous projects including Mbalam/Nabeba

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Fig 3: IronRidge Project Locations in Gabon
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Fig 4: Magnetic image (analytic signal) over the Belinga Sud ATP area showing high responses of potential iron formations and

(Sundance ASX: SDL), Mayoko Moussondji (Equatorial Resources ASX: EQX) and Kango North (Apollo Minerals ASX: AON). Belinga Sud is located in eastern Gabon and Tchibanga is located in the south west.

The 3,027km² Belinga Sud ATP is strategically located immediately south of the concession hosting the Belinga Iron Ore Deposits, which contain an estimated combined 860Mt @ 63% Fe[10] .

The Belinga Sud ATP contains a large tract of the greenstone belt that hosts the rich iron deposits less than 20km to the north. Within this area there are mapped iron formations and several documented iron occurrences. Geophysical data highlights strong magnetic anomalies in the area and in particular a significant southern extension where an outlying greenstone belt is considered to be highly prospective for additional iron formations over a strike length in excess of 35km. The Belinga Sud ATP is within 85km of the existing Trans-Gabonese rail route, currently used for bulk haulage from the southern town of Franceville to the Port at Owendo, 15km south of the capital, Libreville.

The second field program at Belinga Sud has been completed. The major objectives were to engage key stakeholders, evaluate access to target areas and continue mapping and sampling to confirm the extent of iron rich material. As shown in Fig. 4 the magnetic image (analytic signal) over the Belinga Sud exploration tenement shows high responses of possible iron formations and extension of prospective geology to the south of Belinga and has presented several target areas .

10Mining Journal, ’BHP looks set to bag Belinga Iron Project’ (Feb 10,2012) Page 10.

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During the time available in the field limited sampling was undertaken at Massaha and Indombo with the Indombo Central area delivering very encouraging initial assays to 67% Fe. As shown in Fig. 4 Indombo Central presents a high grade target with a strike potential of 6 kms, and Indombo South a further 5 kms. Based on an observed width of 3-400 m and an assumed depth of 50 m (not drilled) the Indombo target has potential for 600-800Mt grading 41-67%Fe with significant DSO[11] .

The 2,937km² Tchibanga ATP is situated within the western limb of the Neoproterozoic Nyanga syncline, and incorporates both a significant magnetic anomaly and two iron occurrences. Outside of the ‘traditional’ greenstone iron formations, this target is founded on a different exploration concept—that of iron-ore development in younger iron formations underlain by carbonates. Proof of concept is demonstrated by a number of iron occurrences at a similar stratigraphic level along the western limb of the syncline. The tenure is less than 10km from the coastline and the port of Mayumba, and as such even a modest resource would represent a project of significant value to IronRidge.

An initial reconnaissance program of the eastern section of the Tchibanga tenement was undertaken during Q3.

IronRidge continues to service its Queensland tenements (see Fig. 5 ) and has been reviewing earlier work on the Quaggy Prospect west of Mundubbera. Quaggy presents a strong magnetic feature that can be traced under the overlying laterite and alluvial cover. Soil cover (derived from the underlying gabbro) to the east is strongly anomalous in copper, nickel and cobalt with associated platinum group metals. As shown in Fig. 6 these sit over SAM conductors which are stronger to the west at the limit of the survey. The combination of geology, soil geochemistry and underlying conductors demonstrates a potential for a new nickel district similar to that recently discovered

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Fig 5: IronRidge Exploration Tenements in Queensland
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by Sirius Resources NL (Nova Prospect) in West Australia. The IronRidge Glencoe Prospect (under application) to the north of Quaggy presents a stronger magnetic layered gabbro feature with known Cu, Ni and PGMs than at Quaggy.

Fig 6: Peak SAM conductors and soil geochemistry at Quaggy shown over magnetic image.

11. This Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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The deepest historic drill hole CP10 stopped in mineralisation at 96m, later assaying 14m of 3.86 g/t Au from 82 metres. During the quarter Archer completed a small RC drilling Porphyry Copper-Gold-Silver-Molybdenum program at Caloola of 4 holes to 140 metres. The assay

results confirmed the historical drilling grades and thickArcher is focussed on the discovery and development of nesses, and revealed a folded structure likely to indicate porphyry copper gold silver molybdenum deposits in additional tonnages. The structural information obtained Eastern Australia. The company has 6 key project areas in will greatly assist in planning follow up drilling programs. eastern Qld – Mt Abbot, Gayndah and Calgoa (which already host encouraging drill intersections) and Drummond North, Pinnacles and Three Sisters (see Fig 7).

Little field work was undertaken during the quarter to contain expenditure.

The Mount Abbott Project area (west of Bowen, Qld) lies 30 km northeast along the strike trend of the recent high sulphidation Cu Au Ag discovery at Mount Carlton (Evolution). There are three porphyry copper moly gold centres known and all are believed to offer improving grades at depth.

D’Aguilar Gold holds As shown in Figure 8, the largest porphyry target is at 35.2 million shares Stockyard Creek where copper and moly is exposed only representing 15.6% in the lowest topography, nestled between extensive hills of silica clay altered breccias. Two other porphyries occur of Solomon Gold plc. nearby at The Springs and Euri Creek . These are exposed at a slightly deeper level than at Stockyard and have stronger surface exposures.

At the Three Sisters Prospect on EPM 19379 (north of Calgoa) Archer has re-examined a high level argillic altered system of mineralised breccia pipes. Rock and soil sampling at Three Sisters has also revealed a second Mo Cu Au target area that was never previously recognised.

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Fig 7: Map Showing location of Archer Resources Tenements

Marodian is probably the lrgest untested copper molybdenum gold porphyry system in the south west Pacific. Within the 30 – 40 km² Cu Mo and Au zone (see Figure 9–use Fig 8 from Sep report) there are widespread areas of breccia vein stockworks and disseminations of generally low grade but with locally richer patches that have supported small underground mines in the past. Historical surface geochemistry is incomplete, covering less than half the system, and rarely tested for gold. Porphyry copper deposits are normally tested with holes of 300m or deeper (due to the scale of the deposits) but no holes at Marodian are deeper than 100m and almost all are less than 60m. The deepest previous drilling (by the Queensland Government) tested the underground workings around the former Lug I Noor mine at the western extremity of the Marodian system. These holes gave variable results but verified the existence of high grade structures within widespread sub economic grades. DGR Global has also transferred an EL in the Central Lachlan Fold Belt near Bathurst, NSW to Archer Resources. This EL contains an exciting gold-silver Project at Caloola which already has an historic (non-JORC) gold occurrence of 235,000 tonnes @ 2.5g/t Au.

The Calgoa EPM 18451 covers two large porphyry copper systems, Marodian and Mt. Suthers-Bullock Creek. Additionally, the EPM covers two large areas of gold only mineralisation associated with diorite porphyries – historically the Yorkeys and Colo goldfields.

Fig 8: Location of the main prospects within the Mt Abbot Project area

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Figure 5

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The deepest historic drill hole CP10 stopped in mineralisation at 96m, later assaying 14m of 3.86 g/t Au from 82 metres.

During the quarter Archer completed a small RC drilling Porphyry Copper-Gold-Silver-Molybdenum program at Caloola of 4 holes to 140 metres. The assay

Exploration Projects in Development

results confirmed the historical drilling grades and thick-

nesses, and revealed a folded structure likely to indicate Marodian is probably the largest untested copper additional tonnages. The structural information obtained molybdenum gold porphyry system in the south west will greatly assist in planning follow up drilling programs. Pacific. Within the 30 – 40 km² Cu Mo and Au zone (Fig 9) there are widespread areas of breccia vein stockworks and

As highlighted earlier on Page 2, DGR Global is continually evaluating new exploration projects. These are not announced until such time as an exploration concept has been internally tested and exploration tenements secured to

protect the company’s intellectual property.

D’Aguilar Gold holds 35.2 million shares representing 15.6% of Solomon Gold plc.

Fig 9: Marodian Cu Mo Au system targets

disseminations of generally low grade but with locally richer patches that have supported small underground mines in the past. Historical surface geochemistry is incomplete, covering less than half the system, and rarely tested for gold. Porphyry copper deposits are normally tested Marodian with holes of 300m or deeper (due to the scale of is probably the lrgest untested copper molybdenum gold porphyry system in the south west Pacific. Within the 30 – the deposits) but no holes at Marodian are deeper 40 km² Cu Mo and Au zone (see Figure 9–use Fig 8 from Sep re-than 100m and almost all are less than 60m. The port) there are widespread areas of breccia vein stockworks and deepest previous drilling (by the Qld Government) disseminations of generally low grade but with locally richer tested the underground workings around the patches that have supported small underground mines in the former Lug I Noor mine at the western extremity of past. Historical surface geochemistry is incomplete, covering less the Marodian system. These holes gave variable than half the system, and rarely tested for gold. results but verified the existence of high grade Porphyry copper deposits are normally tested with holes of 300m structures within widespread sub economic grades. or deeper (due to the scale of the deposits) but no holes at Ma-DGR Global has also transferred an EL in the rodian are deeper than 100m and almost all are less than 60m. Central Lachlan Fold Belt near Bathurst, NSW to The deepest previous drilling (by the Queensland Government) Archer Resources. This EL contains an exciting goldtested the underground workings around the former Lug I Noor silver Project at Caloola .

mine at the western extremity of the Marodian system. These The deepest historic drill hole CP10 stopped in holes gave variable results but verified the existence of high mineralisation at 96m, later assaying 14m of 3.86 grade structures within widespread sub economic grades. g/t Au from 82 metres.

DGR Global has also transferred an EL in the Central Lachlan Fold The Drummond North Exploration Permit was Belt near Bathurst, NSW to Archer Resources. This EL contains an granted in April. exciting gold-silver Project at Caloola which already has an his-

DGR Global wholly owned subsidiary Hartz Rare Earths Pty Ltd has recently been granted EL 14/2012 in Northern Tasmania. As shown in Fig 10, the area hosts several historic occurrences of graphite, including small mines, and is located relatively close to supporting infrastructure at Devonport and Ulverstone. Following grant Hartz is now able to plan an initial field visit to examine the historic workings, map structures and take rock chip samples for assay.

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toric (non-JORC) gold occurrence of 235,000 tonnes @ 2.5g/t Au. Fig 10: Hartz Rare Earths EL 14/2012 in Northern Tasmania Figure 5

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D G R G L O B A L L I M I T E D A C T I V I T I E S R E P O R T | J U N E 2 0 1 3

QUARTERLY REPORT

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Corporate Information

DIRECTORS

William Stubbs (Chairman) Nicholas Mather (Managing Director) Brian Moller Vincent Mascolo

COMPANY SECRETARY

ISSUED CAPITAL

At 30 June 2013, DGR Global Ltd had the following securities on issue:

  • 331,059,886 ordinary shares

  • 16 million (unlisted) 28 cent options expiring 29/11/13

Karl Schlobohm

EXPLORATION MANAGER

Neil Wilkins

GENERAL MANAGER D’Aguilar Gold holds 35.2 million shares Greg Runge REGISTERED OFFICE AND HEAD OFFICE representing 15.6% DGR Global Limited of Solomon Gold plc. Level 27, 111 Eagle Street Brisbane QLD 4000 Phone:+ 61 (0)7 3303 0680 Fax:+ 61 (0)7 3303 0681 Website: www.dgrglobal.com.au

AUSTRALIAN STOCK EXCHANGE (“ASX”) ASX Code: DGR (Ordinary shares)

AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837

INTERNET ADDRESS

All Company announcements, reports and presentations are posted on our website www.dgrglobal.com.au If you would like to receive news releases by email, please send email to [email protected] with the subject “email alerts” or register your details on our website by clicking “Contact Us” and entering your details.

  • 11.250 million (unlisted) 28 cent options expiring 28/02/14

  • 300,000 (unlisted) 28 cents options expiring 28/02/15

  • 5 million (unlisted) 28 cent options expiring 24/04/15

SHAREHOLDING ENQUIRIES

Link Market Services Limited manages DGR Global Ltd’s share registry.

If you would like to monitor your shareholding online, you can do so by visiting Link Market Services website: www.linkmarketservices.com.au and follow the instructions.

For issuer-sponsored shareholders, if you change address, or if you have any other queries regarding the details of your shareholding, please contact the Company’s share registry directly:

Link Market Services Limited Locked Bag A14 SYDNEY Phone: 1300 554 474

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Competent Persons Statement

The information in this report that relates to Exploration Results is based on information complied by Nicholas Mather B.Sc (Hons) Geol., who is a Member of the Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Holdings Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of DGR Global Ltd and a Director of its subsidiaries and associates. Mr Mather has sufficient experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2005 Edition of the ‘Australian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). Mr Mather has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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