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EMETALS LIMITED Interim / Quarterly Report 2012
64850_rns_2013-01-29_9066e52a-55b1-4021-9eca-238424ea1c15.pdf
Interim / Quarterly Report
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WEST PEAK IRON
ASX announcement
30 January 2013
ACN: 142 411 390
T: 08 6489 1600
F: 08 6489 1601
Suite 9, 330 Churchill Avenue,
Subiaco WA 6008
PO Box 866,
Subiaco WA 6904
www.westpeakiron.com.au
Directors & Management
Gary Lyons: Chairman
Graham Marshall: Director
Mathew Walker: Director
Jimmy Lee: Director
Shane Tomlinson: Exploration Manager
Sonu Cheema: Company Secretary
Issued Capital
80,500,000 ordinary shares
13,105,465 unlisted options exercisable at 20 cents each on or before 30 June 2013
500,000 unlisted options exercisable at 30 cents each on or before 30 June 2013
2,000,000 unlisted options exercisable at 15 cents each on or before 30 June 2014
ASX Code: WPI
WEST PEAK IRON LTD
DECEMBER 2012
QUARTERLY ACTIVITIES REPORT
Key Points:
- Stage one of the maiden drill program Bomi South Project, Liberia, was completed with a total of 689 metres drilled.
- Assay results confirm the continued presence of friable hematite / goethite bearing iron formations at widths of up to 40 metres true width near the surface with the presence of magnetite increasing with depth.
- Following the successful completion of the Stage 1 drilling program at Bomi Hills South in Liberia, Stage 2 was expanded from the previously announced 3000m to a total drill program of approximately 8000m, and is planned to be completed within the current dry season (June Q 2013).
- The expanded program will focus on prospects previously identified on the eastern portion of the tenement directly along strike from the Bong Iron Project (China Union).
- The Company Exploration Manager, Mr Shane Tomlinson, is currently on site in Liberia supervising earthworks and drilling preparations and expects to commence drilling within three to four weeks.
- A placement to raise up to $1,120,000 before costs via the issue of 16,000,000 shares at $0.07 was completed during the quarter.
- Mr Gary Lyons appointed Chairman and Mr Jimmy Lee was appointed as a Non-Executive Director of the Company.
- Cash at bank at the end of the quarter was circa $2,369,000
The Board of West Peak Iron Ltd ('West Peak' or the 'Company') are pleased to present the December 2012 quarterly activities report.
Exploration Update - Liberia
INITIAL DRILL PROGRAM (STAGE 1) COMPLETED
During the quarter West Peak completed stage one of a maiden drill program at its 100% owned Bomi South Project, Liberia. The drilling completed to date has identified friable hematite / goethite bearing iron formations at varying widths near the surface with the presence of magnetite increasing with depth. All assays from the maiden drill program were received during the quarter and are reported in Table 2. The assay
WEST PEAK IRON
December 2012 Quarterly Activities Report
results intersected iron enrichment in the hematite / goethite capping and the underlying iron formations. The initial program consisted of 689 metres of RC drilling, focusing on four prospects within a total of 20 modelled prospects identified in Area 1 (Refer Figure 1). All samples were analysed by SGS Liberia Inc., in Monrovia, Liberia.
Figure 1. Area 1 collar plan of all completed holes
Drilling targeted iron formations identified from field work, which involved rock chip sampling from trenching, and was also based on the identified magnetic anomalies (due to limited to no outcrop available because of the dense vegetation and cover material). In Area 1 a total of 20 modelled targets were identified from previous West Peak exploration, and this drill program tested a total of 4 of the 20 modelled targets.
From the drilling completed to date, friable hematite / goethite bearing iron formations at widths up to 40 metres have been intersected near the surface. The programs for this area moving forward will focus on the friable iron formation which West Peak believes may be amenable to beneficiation to a saleable product.
A summary of significant assay results are referred to in Table 1.
SUBSEQUENT DRILL PROGRAM (STAGE 2) EXPANDED
Following the initial program (Stage 1), West Peak announced an expanded subsequent exploration program (Stage 2) at its wholly owned Bomi Hills South project in Liberia. This Stage 2 program has been expanded to comprehensively test the geological model and will focus on the eastern side of the tenement which is understood to be further advanced in respect of infrastructure development.
The planned Stage 2 program will include up to an additional $7,500\mathrm{m}$ of RC and diamond drilling to the 689m already completed as part of Stage 1. Stage 2 will focus on prospect Areas 4, 5 and 6 on
WEST PEAK IRON
December 2012 Quarterly Activities Report
the eastern portion of the Bomi South license. The drill program has been designed to test iron targets directly along strike from the historical Bong Mines Iron Project that have been identified from previous field work and the aeromagnetic survey, targeting both direct shipping and beneficiated iron formations.
The Company Exploration Manager, Mr Shane Tomlinson, is currently on site in Liberia supervising earthworks and drilling preparations and expects to commence drilling within three to four weeks.
Figure 6: Satellite image of Bomi South license and target drill areas
Table 1. Significant assay results received from all holes.
| Hole ID | Depth From | Depth To | Interval (m) | Fe % | Al2O3% | SiO2% | P % | S % | LOI1000 % |
|---|---|---|---|---|---|---|---|---|---|
| BSRC001 | 14 | 26 | 12 | 26.63 | 2.98 | 54.99 | 0.015 | 0.026 | 3.24 |
| BSRC002 | 0 | 36 | 36 | 30.12 | 3.16 | 50.11 | 0.024 | 0.019 | 2.86 |
| including | 2 | 16 | 14 | 41.96 | 2.09 | 34.41 | 0.035 | 0.017 | 3.03 |
| and | 28 | 34 | 6 | 37.16 | 1.38 | 42.26 | 0.019 | 0.004 | 1.66 |
| BSRC002 | 40 | 48 | 8 | 27.02 | 2.14 | 55.53 | 0.033 | 0.225 | 1.05 |
| BSRC002 | 70 | 88 | 18 | 25.49 | 2.32 | 55.16 | 0.043 | 0.178 | -0.66 |
| BSRC003 | 0 | 6 | 6 | 22.54 | 16.82 | 36.61 | 0.029 | 0.096 | 10.97 |
| BSRC003 | 24 | 30 | 6 | 23.31 | 4.20 | 57.65 | 0.022 | 0.035 | 3.94 |
| BSRC003 | 42 | 72 | 30 | 25.33 | 1.26 | 58.53 | 0.034 | 0.235 | -0.07 |
RC drill samples were collected at 2m intervals by riffle splitter. All samples were analysed by X-Ray Fluorescence Spectrometry (XRF). Losses on Ignition (LOI) values were determined using Thermo-Gravimetric Analyses at $1000^{\circ}\mathrm{C}$ . All samples reported were dry. Intervals have been calculated using a bottom cut off iron grade of $15\%$ Fe with an internal dilution width of 2m. Minimum interval width used for reporting is 6m.
WEST PEAK IRON
December 2012 Quarterly Activities Report
Figure 2. Area 1 drill hole cross section 300,540 E
Figure 3. Area 1 drill hole cross section 300,700 E
WEST PEAK IRON
December 2012 Quarterly Activities Report
Figure 4. BSRC002, goethite / hematite rich iron formation interval of $14\mathrm{m}$ @ $41.96\%$ Fe from 2 to $16\mathrm{m}$
Figure 5. BSRC003, magnetite bearing iron formation (part of intercept $30\mathrm{m}$ at $25\%$ Fe)
Table 2: Drill-Hole details, Bomi South Project, projection WGS 84 Zone 29 North
| Hole ID | East | North | RL | Depth (m) | Dip | Azimuth (mag) | Prospect |
|---|---|---|---|---|---|---|---|
| BSRC001 | 300535 | 754723 | 120 | 72 | -50 | 0 | Area_1 |
| BSRC002 | 300549 | 754688 | 118 | 114 | -50 | 0 | Area_1 |
| BSRC003 | 300689 | 754694 | 103 | 78 | -50 | 0 | Area_1 |
| BSRC004 | 300817 | 754725 | 86 | 30 | -50 | 0 | Area_1 |
| BSRC005 | 300831 | 754661 | 91 | 48 | -50 | 0 | Area_1 |
| BSRC006 | 300394 | 754988 | 78 | 66 | -50 | 0 | Area_1 |
| BSRC007 | 300415 | 755016 | 74 | 23 | -50 | 0 | Area_1 |
| BSRC008 | 300825 | 755029 | 87 | 48 | -50 | 0 | Area_1 |
| BSRC009 | 300828 | 754977 | 89 | 84 | -60 | 0 | Area_1 |
| BSRC010 | 300794 | 755063 | 86 | 36 | -50 | 320 | Area_1 |
| BSRC011 | 300897 | 754695 | 80 | 90 | -50 | 305 | Area_1 |
Co-ordinates were collected by a hand held GPS with an observed error of $+ / _ - 3\mathrm{m}$
WEST PEAK IRON
December 2012 Quarterly Activities Report
Table 3. Assay results received from all holes
| Hole ID | Depth From | Depth To | Interval (m) | Fe % | Al2O3% | SiO2% | P % | S % | LOI1000% |
|---|---|---|---|---|---|---|---|---|---|
| BSRC001 | 14 | 26 | 12 | 26.63 | 2.98 | 54.99 | 0.015 | 0.026 | 3.24 |
| BSRC002 | 0 | 36 | 36 | 30.12 | 3.16 | 50.11 | 0.024 | 0.019 | 2.86 |
| including | 2 | 16 | 14 | 41.96 | 2.09 | 34.41 | 0.035 | 0.017 | 3.03 |
| and | 28 | 34 | 6 | 37.16 | 1.38 | 42.26 | 0.019 | 0.004 | 1.66 |
| BSRC002 | 40 | 48 | 8 | 27.02 | 2.14 | 55.53 | 0.033 | 0.225 | 1.05 |
| BSRC002 | 70 | 88 | 18 | 25.49 | 2.32 | 55.16 | 0.043 | 0.178 | -0.66 |
| BSRC003 | 0 | 6 | 6 | 22.54 | 16.82 | 36.61 | 0.029 | 0.096 | 10.97 |
| BSRC003 | 24 | 30 | 6 | 23.31 | 4.20 | 57.65 | 0.022 | 0.035 | 3.94 |
| BSRC003 | 42 | 72 | 30 | 25.33 | 1.26 | 58.53 | 0.034 | 0.235 | -0.07 |
| BSRC004 | 0 | 10 | 10 | 21.88 | 18.14 | 37.87 | 0.034 | 0.085 | 11.61 |
| BSRC005 | 0 | 10 | 10 | 19.23 | 19.22 | 38.44 | 0.032 | 0.050 | 12.66 |
| BSRC005 | 28 | 34 | 6 | 20.07 | 8.16 | 55.24 | 0.080 | 0.061 | 7.60 |
| BSRC006 | 8 | 16 | 8 | 16.74 | 14.91 | 51.97 | 0.026 | 0.045 | 8.40 |
| BSRC007 | No significant results | ||||||||
| BSRC008 | 0 | 6 | 6 | 19.58 | 19.84 | 39.08 | 0.030 | 0.060 | 11.17 |
| BSRC009 | No significant results | ||||||||
| BSRC010 | 0 | 8 | 8 | 23.00 | 16.24 | 39.10 | 0.038 | 0.099 | 9.04 |
| BSRC011 | No significant results |
RC drill samples were collected at 2m intervals by riffle splitter. All samples were analysed by X-Ray Fluorescence Spectrometry (XRF). Losses on Ignition (LOI) values were determined using Thermo-Gravimetric Analyses at 1000°C. All samples reported were dry. Intervals have been calculated using a bottom cut off iron grade of 15 % Fe with an internal dilution width of 2m. Minimum interval width used for reporting is 6m.
Exploration Update - Western Australia
WARRIEDAR AND HIGHWAY PROSPECTS
During the quarter flora, fauna and heritage surveys were completed and analysed to support a program of works application for a drill program at the 100% owned Warriedar and Highway prospects in the Mid West of WA targeting DSO mineralisation. An exploration program for these prospects is currently being considered by the Company.
SANTY WELL
The Santy Well Project is located 60 km north of Mullewa and consists of approximately 40 km of the northerly limb of the Tallering Greenstone Belt. During the quarter a heritage survey was analysed to complement the DMP approved Program of Works application for a possible reconnaissance drilling program.
WEST PEAK IRON
December 2012 Quarterly Activities Report
Corporate and Placement
During the quarter the Company and its directors welcomed Mr Gary Lyons to the board as Chairman and Mr Jimmy Lee as Non-Executive Director of the Company, while Mr Graham Marshall assumed the position of non-executive director.
Mr John Royle resigned from his position of non-executive director. Mr David Parker resigned from his position as Company Secretary, however continues to work with the company as a Project Manager.
As announced on 21 December 2012, West Peak raised $1,120,000, via the issue of 16,000,000 shares at $0.07 pursuant to ASX Listing Rules 7.1 (9,675,000 shares) and 7.1A (6,325,000 shares). Alto Capital Pty Limited acted as the Lead Manager to the Placement.
During the quarter 12,000,000 shares were issued at $0.05 to raise $600,000 as part of the Entitlement Issue shortfall.
2,000,000 Company options were issued during the quarter as per AGM Resolutions 7 and 8 which was passed by shareholders on 30 November 2012. No options were exercised during the quarter.
At the end of the quarter the Company had 80,500,000 fully paid ordinary shares and 15,605,465 Company Options on issue (13,105,465 unlisted Company Options exercisable at $0.20 on or before 30 June 2013; 500,000 unlisted Company Options exercisable at $0.30 on or before 30 June 2013; and 2,000,000 unlisted Company Options exercisable at $0.15 on or before 30 June 2014).
Cash and cash equivalents held by the Company at the end of the quarter was approximately $2,369,000.
For further information contact:
Mathew Walker; Executive Director, West Peak Iron Ltd.
Telephone: +61 8 6489 1600
Email: [email protected]
COMPETENT PERSONS' STATEMENTS
Scientific or technical information in this news release has been prepared under the supervision of Mr Shane Tomlinson, an employee of the Company and a Member of the Australian Institute of Geoscientists (MAIG). Mr Tomlinson has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Mr Tomlinson consents to the inclusion in this report of the information in the form and context in which it appears.
FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS
Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "intends", "potential", "prospective", and "seek", "proposed" and similar expressions.
WEST PEAK IRON
December 2012 Quarterly Activities Report
ABOUT WEST PEAK
West Peak Iron Ltd (West Peak) is an exploration company with a focus on iron ore exploration.
West Peak has focused on increasing its licence holdings through direct tenement applications both in Western Australia and Liberia since floating on the ASX in 2010. West Peak's strategy is to actively explore its land holding to identify and focus on those projects which are believed to have the greatest potential for economic iron mineralisation through staged exploration programs. The Company's activities are dependent on the maintenance of appropriate licences, permits and regulatory consents which may be withheld, withdrawn or made subject to limitations.
| ASX code - WPI | Market Cap @ 7 cps - $5,635,000 (undiluted) |
|---|---|
| Issued shares - 80.5m | Cash - $2.369m |
| Unlisted Options - 15.61m options |
LIBERIA
West Peak has 972 km² of granted tenure prospective for iron ore in Liberia through a combination of reconnaissance and exploration licences for iron ore in the Grand Bassa, Bomi, Bong and River Cess counties. All licences contain identified iron-bearing formations and are located close to port, rail and road infrastructure (both existing and currently being upgraded to meet iron ore industry requirements).
WESTERN AUSTRALIA
West Peak has built up a land holding in the emerging Mid-West and Yilgarn Iron Provinces. High grade rock chip results have been received from the Warriedar and Highway prospects and indicate the potential for DSO style mineralisation. A magnetite target has been identified at the Dandaraga tenement from mapping and rock chip sampling of an outcropping BIF.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
WEST PEAK IRON LTD
ABN
71 142 411 390
Quarter ended ("current quarter")
31 December 2012
Consolidated statement of cash flows
| Cash flows related to operating activities | Current quarter $A'000 | Year to date (6 months) $A'000 | |
|---|---|---|---|
| 1.1 | Receipts from product sales and related debtors | ||
| 1.2 | Payments for (a) exploration and evaluation (b) development (c) production (d) administration | (475) | (607) |
| - | - | ||
| - | - | ||
| (110) | (248) | ||
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature received | 12 | 16 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | (15) | (11) |
| 1.7 | Other | - | - |
| Net Operating Cash Flows | (588) | (850) | |
| Cash flows related to investing activities | - | - | |
| 1.8 | Payment for purchases or renewal of: (a) prospects (Tenement Sale Agreement and Tenement Applications) (b) equity investments (c) other fixed assets | - | - |
| 1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets | - | - |
| 1.10 | Loans to other entities | - | - |
| 1.11 | Loans repaid by other entities | - | - |
| 1.12 | Other (provide details if material) | - | - |
| Net investing cash flows | - | - | |
| 1.13 | Total operating and investing cash flows (carried forward) | (588) | (850) |
Appendix 5B
Mining exploration entity quarterly report
| 1.13 | Total operating and investing cash flows (brought forward) | (588) | (850) |
|---|---|---|---|
| Cash flows related to financing activities | |||
| 1.14 | Proceeds from issues of shares, options, etc. | 1,720 | 2,937 |
| 1.15 | Proceeds from sale of forfeited shares | - | - |
| 1.16 | Proceeds from borrowings | - | - |
| 1.17 | Repayment of borrowings | - | - |
| 1.18 | Dividends paid | - | - |
| 1.19 | Other (Placement and capital raising fees) | (111) | (238) |
| Net financing cash flows | 1,609 | 2,699 | |
| Net increase (decrease) in cash held | 1,021 | 1,849 | |
| 1.20 | Cash at beginning of quarter/year to date | 1,348 | 519 |
| 1.21 | Exchange rate adjustments to item 1.20/rounding | - | 1 |
| 1.22 | Cash at end of quarter | 2,369 | 2,369 |
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
| Current quarter $A'000 | ||
|---|---|---|
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 60 |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
1.25 Explanation necessary for an understanding of the transactions
Payments of Director remuneration/fees, superannuation and provision of administration/consulting services.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
- See chapter 19 for defined terms.
30/9/2001
Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
| | | Amount available
$A'000 | Amount used
$A'000 |
| --- | --- | --- | --- |
| 3.1 | Loan facilities | - | - |
| 3.2 | Credit standby arrangements | 10 | - |
Estimated cash outflows for next quarter
| 4.1 | Exploration and evaluation | $A'000 |
|---|---|---|
| 4.2 | Development | 665 |
| 4.3 | Production | - |
| 4.4 | Administration | 180 |
| Total | 845 |
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | | Current quarter
$A'000 | Previous quarter
$A'000 |
| --- | --- | --- | --- |
| 5.1 | Cash on hand and at bank | 2,109 | 1,088 |
| 5.2 | Deposits at call | 260 | 260 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | - |
| Total: cash at end of quarter (item 1.22) | | 2,369 | 1,348 |
Changes in interests in mining tenements
| Tenement reference | Nature of interest (note (2)) | Interest at beginning of quarter | Interest at end of quarter | ||
|---|---|---|---|---|---|
| 6.1 | Interests in mining tenements relinquished, reduced or lapsed | ||||
| 6.2 | Interests in mining tenements acquired or increased | - | - | - | - |
- See chapter 19 for defined terms.
Appendix 5B Page 3
30/9/2001
Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter*
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issue price per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | ||
|---|---|---|---|---|---|
| 7.1 | Preference *securities (description) | - | - | - | - |
| 7.2 | Changes during quarter | - | - | - | - |
| 7.3 | *Ordinary securities | 80,500,000 | 80,500,000 | - | - |
| 7.4 | Changes during quarter, increases through | 12,000,000 | 12,000,000 | 5 cents | Fully paid |
| Fully paid | |||||
| Fully paid | |||||
| 16,000,000 | 16,000,000 | 7 cents | |||
| - | 3,550,000 | Release from Escrow | |||
| 7.5 | *Convertible debt securities (description) | - | - | - | - |
| 7.6 | Changes during quarter | - | - | - | - |
| 7.7 | Options (description and conversion factor) | 13,105,465 | Nil | Ex price 20 cents | Expiry date 30/06/13 |
| 500,000 | Nil | Ex price 30 cents | Expiry date 30/06/13 | ||
| 2,000,000 | Nil | Ex price 15 cents | Expiry date 30/06/14 | ||
| 7.8 | Issued during quarter | 2,000,000 | Nil | Ex price 15 cents | Expiry date 30/06/14 |
| 7.9 | Exercised during quarter | - | - | - | - |
| 7.10 | Expired during quarter | - | - | - | - |
| 7.11 | Debentures (totals only) | - | - | ||
| 7.12 | Unsecured notes (totals only) | - | - |
- See chapter 19 for defined terms.
30/9/2001
Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
Compliance Statement
- This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
- This statement does give a true and fair view of the matters disclosed.
Sign here: (Director)
Date: 30 January 2013
Print name: Mathew Walker
Notes
- The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
- The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
- Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
- The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
-
Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
-
See chapter 19 for defined terms.
Appendix 5B Page 5
30/9/2001