Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

FOCUS MINERALS LTD Interim / Quarterly Report 2014

Jan 29, 2015

64932_rns_2015-01-29_1031da00-6b6f-4cdf-bcbe-4e6aa926e076.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

Quarterly Activities Report To 31 December, 2014

==> picture [77 x 53] intentionally omitted <==

ASX ANNOUNCEMENT

30 January 2015

Focus Minerals Ltd (ASX:FML) Quarterly Activities Report for October – December 2014

Corporate Activity During The Quarter

Financial Position Remains Strong

Focus remains in a strong financial position with $84.9M in cash and equivalents at 31 December 2014 (30 September $88.3m).

Focus’ corporate activities are closely aligned with the Company’s strategy to build a sustainable quantity of high margin ounces to enable a restart of mining operations while using our strong cash position to build shareholder value through high value acquisitions.

CashatBankandDeposits $65.8M
Cash held on bond $19.1M
Total Cash and Equivalents **$84.9M **

Unmarketable Parcel Sale Facility

The unmarketable parcel sale was successfully completed, further lowering the Company’s administrative overheads.

Exploration Activity During the Quarter

The Company’s exploration program continued to develop in line with the strategic plan outlined in 2013. As discussed in previous announcements, this places the emphasis on finding higher-value ounces with a view to recommencing production at Coolgardie and Laverton, while simultaneously reviewing and divesting less prospective tenement holdings.

During the quarter the Company drilled 65 RC holes for 11,247m across Coolgardie and Laverton, as well as 79 AC holes for 6,805m and 147 RAB holes for 2446m at Coolgardie. Significant results were first released to the ASX on the 21[st] of January and 30[th] of January 2015.

Coolgardie Gold Project

During the quarter 245 holes were drilled, consisting of 3,926m from 19 RC drill holes, 6805m from 79 AC drill hole and 2446m from RAB drill holes.

Bonnie Vale

Nine holes were drilled at Bonnie Vale for 1,865m. The program was designed to test extensions of high-grade mineralised reefs defined from previous drilling in 2014 (release to ASX on 30 July and 9 October 2014). The drilling successfully extends high grade gold mineralisation along strike. The mineralisation remains open to southeast and at depth.

Highlight intersections, released to the ASX on the 21[st] of January 2015, include:

  • 4.0m @ 18.84 g/t Au from 123m and 1.0m @ 8.11 g/t Au from 141m and

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

  • 10.0m @ 9.14 g/t Au from 146m in BONC054

  • 7.0m @ 22.06 g/t Au from 136m in BONC055

  • o 3.0m @ 8.82 g/t Au from 118m in BONC056 o 5.0m @21.54 g/t Au from 165m in BONC058 o 4.0m @ 5.47 g/t Au from 216m in BONC059

  • 4.0m @ 3.30 g/t Au from 146m and 2.0m @ 16.26 g/t Au from 153m in BONC060

  • o 3.0m @ 8.81 g/t Au from 36m and

  • 7.0m @ 4.30 g/t Au from 147m in BONC061

Bonnie Vale is one of the largest and highest grade historic mines in the Coolgardie field, however it has received little effective exploration in the modern era due to holes either being too shallow or poorly targeted. The majority of previous drilling in the area is shallow RAB, which is ineffective in testing reef structures dipping at between 45 and 60 degrees.

Focus will continue to explore at Bonnie Vale in the first half of 2015 to test the extensions and continuity.

Brilliant North

At the Brilliant North two RC holes were drilled for 314m. The purpose of the drilling was to test mineralisation to the north beneath the State Battery area. Due to approval delays, only two of nine planned RC holes were drilled. No significant mineralisation was intercepted. Further drilling to the north is planned for 2015 drilling program.

Melanie Anne

An eight-hole RC drilling program for 1,747m was conducted at the Melanie Anne prospect. The program was designed to test three zones of mineralisation at depth. An interpreted NNE trending structure was also targeted to determine what role it plays in gold distribution in the area.

Analysis of the results have shown that seven of the eight targets were reached. Zones 1 and 3 were disappointing, but the deep hole drilled under zone 2 produced some encouraging results and will be followed up in 2015. The goal of this future work will be to better understand the structural and geological controls on mineralisation.

RAB/AC Drilling Program at Coolgardie

In addition to the RC drilling program, Focus completed an initial RAB/AC drilling program at other exploration targets around Coolgardie. The program drilled 226 holes for 9,251m over Barbican, Lord Bob, Stinger-Matador and Bonnie Vale West four project areas. The results have successfully identified and verified high grade gold mineralisation at Barbican and Lord Bob.

Highlight intersections from Lord Bob and Barbican (released to the ASX on the 21[st] of January, 2015) include:

  • 3.0m @ 10.78 g/t Au from 8m and Including 1m @ 18.35m g/t Au from 9m in FCRB00110 at Barbican

  • 7.0m @ 34.71 g/t Au from 27m in FCAC00038 at Lord Bob

  • o 4.0m @ 4.85 g/t Au from 29m in FCAC00039 at Lord Bob

These results from Barbican and Lord Bob, especially when coupled with the Bonnie Vale results, further confirm Focus’ belief in the potential of the Coolgardie Gold Project. Focus is now planning follow-up drilling to further define and test the size and the grade of the gold mineralisation at these two locations.

==> picture [421 x 51] intentionally omitted <==

2

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

Nepean Nickel Mine

During the quarter the Company has finished a 2D2R seismic survey for 6 km. The purpose of the work is to test the depth and continuity of cross-cutting pegmatites which intrude the mine sequence. The data processing and interpretations are pending.

Planned Work

In 2015 Focus will continue to follow-up drilling at Bonnie Vale, Lord Bob and Barbican.

If Nepean seismic survey shows the host contact between the komatiite and basalt to be open at depth beneath the known pegmatites, deep drilling is expected to be planned in 2015.

==> picture [324 x 443] intentionally omitted <==

Figure 1: Map of Coolgardie Gold Project and Priority Targets

3

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

Laverton Gold Project

At Laverton the exploration strategy continues to develop, with a longer-term emphasis on larger, long-life targets sufficient to justify the recommencement of mining operations. During the quarter 45holes were drilled for 7321m.

Karridale and Boomerang

Eight holes for 1,674 metres of RC and two holes for 192 metres of RC were drilled into the Karridale and Boomerang prospects, respectively. The purpose of this drilling was to extend known mineralisation at Karridale and confirm mineralisation away from historic workings at Boomerang. The best intercepts from the program (released to the ASX 30 January 2015) include:

  • 6.0m @ 5.20 g/t Au from 168m and 1.0m @ 38.96 g/t Au from 190m in KARC140

  • 5.0m @ 4.55 g/t Au from 41m in KARC152

  • 2.0m @ 17.37 g/t Au from 5m in KARC153

The programme was successful in confirming the orientation of the mineralisation at Karridale, suggesting also a shallow northwest plunge. The drilling also extended the known mineralisation down plunge. Access issues restricted the Boomerang test to the mine’s northeast strike extensions. However the limited drilling confirmed the presence of gold mineralisation.

Sickle Mirror

Four holes for 670 metres of RC were drilled into the Sickle Mirror project. The project is considered an analogue of the Sickle mine some 600m to the west. Both projects are interpreted to sit on either side of an open antiform with mineralisation trends matching the axial plane orientation. The drilling targeted modelled conductive plates identified in the airborne EM survey conducted in January 2014. The drilling successfully confirmed the conductors are silica sulphide veined carbonaceous shales associated with gold mineralisation. The best intercepts (released to the ASX 30 January 2015) included:

  • 8.0m @ 4.26g/t Au from 144m in SKRC428

Admiral Hill

Seven holes for 1,340 metres of RC infilled known copper and gold mineralisation to the east of the Admiral Hill pit in the vicinity of modelled plate conductors identified in the airborne EM survey earlier in the year. Modest copper and gold anomalism was intersected and the information used to target a diamond drill hole. The hole extended to 378.5m and tested the felsic / mafic footwall contact beneath the Admiral Hill pit. The hole was completed before the end of the quarter. However logging and sampling took place in January 2015 and will be reported separately.

Gladiator

Three holes for 319m RC were used to test positions on the historic underground Gladiator mine as well as along strike of the closed Gladiator open cut. Early indications suggest mineralisation is associated with banded iron units and shearing within mafic volcanics, further information will be released to the market when assays have been processed.

4

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

Ida H

Eleven holes for 1,795m were drilled at Ida H. Drilling difficulties meant not all holes reached their full target depth. Nevertheless, a number of the holes recorded anomalous gold. The holes primarily targeted the southern strike extensions of the historic underground Ida H mine, the second largest mine by production of its time in Laverton (early 1900’s). Mineralisation was associated with shearing and veining in a sedimentary package including carbonaceous shales.

Other Areas

The remaining ten RC holes (together 1,322m) were drilled in other locations at Laverton, such as She’s Right, Scotland Yet, Grouse and Tempest. No significant mineralisation has been intercepted in these holes.

Planned Work

Single diamond holes at Admiral Hill (completed in 2014) and Karridale (completed in 2015) are still to be processed. Additional follow-up drilling at a number of prospects are planned at Laverton to extend known mineralisation and test for repetitions.

==> picture [308 x 403] intentionally omitted <==

Figure 2: Map of Laverton Gold Project

5

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

Tenement list held at 31 December 2014

Laverton Gold Project
Tenement Description Tenement
Numbers
Percentage Interest
BARRICK E38/1642 100%
BARRICK E38/1652 100%
BARRICK E38/1725 100%
BARRICK E38/2028 0% (Sold to CARE)
BARRICK E38/2032 100%
BARRICK L38/0092 100%
BARRICK L38/0101 100%
BARRICK M38/0037 100%
BARRICK M38/0038 100%
BARRICK M38/0049 100%
BARRICK M38/0101 100%
BARRICK M38/0159 100%
BARRICK M38/0342 100%
BARRICK M38/0363 100%
BARRICK M38/0364 100%
BARRICK M38/0535 100%
BARRICK M38/0693 100%
BARRICK M38/0954 0% (Sold to CARE)
BARRICK P38/3500 100%
BARRICK P38/3501 100%
BARRICK P38/3656 0% (Sold to CARE)
BARRICK P38/3657 0% (Sold to CARE)
BARRICK P38/3667 100%
BARRICK P38/3671 100%
BLACK SWAN JV E38/1869 64%
BLACK SWAN JV P38/3608 64%
BURTVILLE G38/0033 100%
CENTRAL LAVERTON E38/1349 100%
CENTRAL LAVERTON E38/1861 100%
CENTRAL LAVERTON E38/1864 100%
CENTRAL LAVERTON E38/1865 0% (Sold to CARE)
CENTRAL LAVERTON E38/1866 0% (Au, Fe rights only)
CENTRAL LAVERTON E38/2143 100%
CENTRAL LAVERTON G38/0020 100%
CENTRAL LAVERTON M38/0264 100%
CENTRAL LAVERTON M38/0318 100%
CENTRAL LAVERTON M38/0376 100%
CENTRAL LAVERTON M38/0377 100%
CENTRAL LAVERTON M38/0387 100%
CENTRAL LAVERTON M38/0401 100%
CENTRAL LAVERTON M38/0425 0% (Au, Fe rights only)
CENTRAL LAVERTON M38/0505 0% (Au,Ferights only)
CENTRAL LAVERTON M38/0507 100%
CENTRAL LAVERTON M38/1032 100%
CENTRAL LAVERTON M38/1042 100%
CENTRAL LAVERTON P38/3691 100%
CENTRAL LAVERTON P38/3692 100%
EAST LAVERTON E38/1860 0% (Sold to CARE)

6

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

EAST LAVERTON E38/1867 0% (Sold to CARE)
EAST LAVERTON M38/0008 100%
EAST LAVERTON M38/0261 100%
EAST LAVERTON P38/3611 100%
EAST LAVERTON P38/3612 100%
EAST LAVERTON P38/3693 0% (Sold to CARE)
INFRASTRUCTURE G38/0024 100%
INFRASTRUCTURE G38/0025 100%
INFRASTRUCTURE L38/0034 100%
INFRASTRUCTURE L38/0052 100%
INFRASTRUCTURE L38/0053 100%
INFRASTRUCTURE L38/0054 100%
INFRASTRUCTURE L38/0055 100%
INFRASTRUCTURE L38/0056 100%
INFRASTRUCTURE L38/0057 100%
INFRASTRUCTURE L38/0063 100%
INFRASTRUCTURE L38/0075 100%
INFRASTRUCTURE L38/0076 100%
INFRASTRUCTURE L38/0078 100%
INFRASTRUCTURE L38/0108 100%
INFRASTRUCTURE L38/0120 100%
INFRASTRUCTURE L38/0152 100%
INFRASTRUCTURE L38/0153 100%
INFRASTRUCTURE L38/0160 100%
INFRASTRUCTURE L38/0163 100%
INFRASTRUCTURE L38/0164 100%
INFRASTRUCTURE L38/0165 100%
INFRASTRUCTURE L38/0166 100%
INFRASTRUCTURE L38/0173 100%
INFRASTRUCTURE L38/0177 100%
INFRASTRUCTURE L38/0179 100%
INFRASTRUCTURE L38/0183 100%
INFRASTRUCTURE L39/0124 100%
INFRASTRUCTURE L39/0214 100%
JASPER HILLS M39/0138 100%
JASPER HILLS M39/0139 100%
JASPER HILLS M39/0185 100%
JASPER HILLS M39/0262 100%
LAVERTON L38/0231 100%
LAVERTON P38/4091 100%
LAVERTON P38/4099 100%
LAVERTON P38/4100 100%
LAVERTON P38/4102 100%
LAVERTON P38/4161 0% (Under Application)
LAVERTON P38/4163 0% (Under Application)
LAVERTON-MONEY M38/0547 100%
LAVERTON-MONEY P38/3504 100%
LAVERTON-MONEY P38/3505 100%
LAVERTON-MONEY P38/3506 100%
MEROLIAJV M38/0073 56%
MEROLIA JV M38/0089 56%
MT WELD E38/2862 100%
MT WELD E38/2872 100%
MT WELD E38/2873 0% (Underapplication)
WATER GWL154255 100%

7

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

WATER GWL154359 100%
WATER GWL160209 100%
WATER GWL160210 100%
WATER GWL160679 100%
WATER GWL160682 100%
WATER GWL160684 100%
WATER GWL160685 100%
WATER GWL160686 100%
WATER GWL67391 100%
WEST LAVERTON M38/0143 100%
WEST LAVERTON M38/0236 100%
WEST LAVERTON M38/0270 100%
Coolgardie Gold Project
Tenement Description Tenement Numbers Percentage Interest
BAYLEYS G15/0007 100%
BAYLEYS M15/0630 100%
BAYLEYS M15/1433 100%
BAYLEYS M15/1788 100%
BAYLEYS P15/4912 100%
BAYLEYS P15/5717 100%
BONNIE VALE M15/0277 100%
BONNIE VALE M15/0365 100%
BONNIE VALE M15/0595 100%
BONNIE VALE M15/0662 100%
BONNIE VALE M15/0711 100%
BONNIE VALE M15/0770 100%
BONNIE VALE M15/0852 100%
BONNIE VALE M15/0857 100%
BONNIE VALE M15/0877 100%
BONNIE VALE M15/0981 100%
BONNIE VALE M15/1384 100%
BONNIE VALE M15/1444 100%
BONNIE VALE M15/1760 100%
BONNIE VALE P15/5155 100%
BONNIE VALE P15/5156 100%
BONNIE VALE P15/5158 100%
BONNIE VALE P15/5159 100%
BONNIE VALE P15/5190 100%
BONNIE VALE P15/5238 100%
BONNIE VALE P15/5253 100%
BONNIE VALE P15/5254 100%
BONNIE VALE P15/5255 100%
BONNIE VALE P15/5704 0% (Under application)
BONNIE VALE P15/5713 100%
BONNIE VALE P15/5714 100%
BURBANKS P15/5939 0% (Under application)
COOLGARDIE P15/5946 0% (Underapplication)
COOLGARDIE P15/5949 0% (Under application)
GUNGA M15/1341 100%
GUNGA M15/1357 100%
GUNGA M15/1358 100%
GUNGA M15/1359 100%

8

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

GUNGA P15/5256 100%
GUNGA P15/5702 0% (Under application)
GUNGA P15/5703 0% (Underapplication)
LAKE COWAN E15/0986 100%
LAKECOWAN E15/1224 100%
LORD BOB M15/0385 100%
LORD BOB M15/0664 100%
LORD BOB M15/1789 100%
LORD BOB P15/4829 100%
LORD BOB P15/4916 100%
LORD BOB P15/4917 100%
LORD BOB P15/4950 100%
LORD BOB P15/4951 100%
LORD BOB P15/4952 100%
LORD BOB P15/4953 100%
LORD BOB P15/4956 100%
LORD BOB P15/5550 100%
LORD BOB P15/5712 0% (Under application)
LORD BOB P15/5731 100%
LORD BOB P15/5733 100%
LORD BOB P15/5735 100%
ML-BAYLEYS L15/0034 100%
ML-BAYLEYS L15/0122 100%
ML-BAYLEYS L15/0161 100%
ML-BAYLEYS L15/0164 100%
ML - BAYLEYS L15/0186 100%
ML-BONNIEVALE L15/0126 100%
ML-BONNIEVALE L15/0127 100%
ML-BONNIEVALE L15/0130 100%
ML-BONNIEVALE L15/0200 100%
ML-BONNIEVALE L15/0211 100%
ML-GUNGA L15/0088 100%
ML -GUNGA L15/0090 100%
ML-GUNGA L15/0095 100%
ML-GUNGA L15/0096 100%
ML -GUNGA L15/0114 100%
ML-GUNGA L15/0116 100%
ML -GUNGA L15/0119 100%
ML-GUNGA L15/0283 100%
ML - LORD BOB L15/0051 100%
ML-LORD BOB L15/0059 100%
ML-LORD BOB L15/0063 100%
ML-LORD BOB L15/0077 100%
ML-LORD BOB L15/0078 100%
ML - MOUNT L15/0325 0% (Sold toLukah)
ML-MOUNT L15/0338 0% (Sold to Lukah)
ML - MOUNT L15/0343 0% (Underapplication -Sold toLukah)
ML-NEPEAN L15/0027 100%
ML-NEPEAN L15/0028 100%
ML - NEPEAN L15/0179 100%
ML-NEPEAN L15/0193 100%
ML - NEPEAN L15/0194 100%
ML-NEPEAN L15/0294 100%
ML - NORRIS L15/0071 100%
ML - NORRIS L15/0168 100%

9

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

ML-NORRIS L15/0169 100%
ML-NORRIS L15/0170 100%
ML - NORRIS L15/0171 100%
ML-NORRIS L15/0172 100%
ML - NORRIS L15/0173 100%
ML-NORRIS L15/0174 100%
ML - NORRIS L15/0175 100%
ML-THREE MILE HILL L15/0042 100%
ML-THREE MILE HILL L15/0123 100%
ML - THREE MILE HILL L15/0177 100%
MOUNT M15/0030 0% (Sold to Lukah)
MOUNT M15/1423 0% (Sold toLukah)
MOUNT M15/1431 0% (Sold to Lukah)
MOUNT P15/4906 0% (Sold toLukah)
MOUNT P15/4907 0% (Sold to Lukah)
MOUNT P15/5495 0% (Sold to Lukah)
MOUNT P15/5500 0% (Sold toLukah)
MOUNT P15/5501 0% (Sold to Lukah)
MOUNT P15/5716 0% (Sold toLukah)
NEPEAN M15/0709 100%
NEPEAN M15/1809 100%
NEPEAN P15/5519 100%
NEPEAN P15/5574 100%
NEPEAN P15/5575 100%
NEPEAN P15/5576 100%
NEPEAN P15/5625 100%
NEPEAN P15/5626 100%
NEPEAN P15/5629 100%
NEPEAN P15/5738 100%
NEPEAN P15/5739 100%
NEPEAN P15/5740 100%
NEPEAN P15/5741 100%
NEPEAN P15/5742 100%
NEPEAN P15/5743 100%
NEPEAN P15/5749 100%
NEPEAN P15/5750 100%
NORRIS M15/0384 100%
NORRIS M15/0391 100%
NORRIS M15/0515 100%
NORRIS M15/0761 100%
NORRIS M15/0791 100%
NORRIS M15/0871 100%
NORRIS M15/1153 100%
NORRIS M15/1422 100%
NORRIS M15/1793 100%
NORRIS P15/5241 100%
NORRIS P15/5522 100%
NORRIS P15/5527 100%
NORRIS P15/5528 100%
NORRIS P15/5729 100%
NORRIS P15/5730 100%
NORRIS P15/5732 100%
NORRIS P15/5734 100%
NORRIS P15/5736 100%
NORRIS P15/5756 100%

10

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

NORRIS P15/5807 100%
THREE MILE HILL M15/0150 100%
THREE MILE HILL M15/0154 100%
THREE MILE HILL M15/0636 100%
THREE MILE HILL M15/0645 100%
THREE MILE HILL M15/0781 100%
THREE MILE HILL M15/0827 100%
THREE MILE HILL M15/1432 100%
THREE MILE HILL M15/1434 100%
THREE MILE HILL P15/4913 100%
THREE MILE HILL P15/4926 100%
TINDALS M15/0023 100%
TINDALS M15/0237 100%
TINDALS M15/0410 100%
TINDALS M15/0411 100%
TINDALS M15/0412 100%
TINDALS M15/0646 100%
TINDALS M15/0660 100%
TINDALS M15/0675 100%
TINDALS M15/0958 100%
TINDALS M15/0966 100%
TINDALS M15/1114 100%
TINDALS M15/1262 100%
TINDALS M15/1293 100%
TINDALS M15/1294 100%
TINDALS M15/1461 100%
TINDALS P15/4810 100%
TINDALS P15/4933 100%
TINDALS P15/4934 100%
TINDALS P15/4935 100%
TINDALS P15/4941 100%
TINDALS P15/4943 100%
TINDALS P15/4945 100%
TINDALS P15/4947 100%
TINDALS P15/5046 100%
TINDALS P15/5048 100%
TINDALS P15/5464 100%
BAYLEYS G15/0007 100%

11

Quarterly Activities Report To 31 December, 2014

==> picture [76 x 53] intentionally omitted <==

For further information please contact:

Dane Etheridge

Company Secretary and GM Business Development Focus Minerals Ltd Phone: +61 8 9215 7888

Focus Minerals Limited - Focus owns two large gold projects in Western Australia’s Eastern Goldfields. The company is the largest landholder in the Coolgardie Gold Belt, where it owns the 1.2Mtpa processing plant at Three Mile Hill. 250km to the northeast Focus has the Laverton Gold Project which comprises a significant portfolio of highly prospective tenure. Focus also owns the 1.45Mtpa Barnicoat mill in Laverton which has been on care and maintenance since 2009.

Forward Looking Statements

This release contains certain “forward looking statements”. Forward-looking statements can be identified by the use of ‘forward-looking’ terminology, including, without limitation, the terms ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘predicts’, ‘intends’, ‘plans’, ‘propose’, ‘goals’, ‘targets’, ‘aims’, ‘outlook’, ‘guidance’, ‘forecasts’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future, assumptions which may or may not prove correct, and may be beyond Focus’ ability to control or predict which may cause the actual results or performance of Focus to be materially different from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions and contingencies and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Similarly, no representation is given that the assumptions upon which forward-looking statements may be based are reasonable. Forward-looking statements speak only as at the date of this document and Focus disclaims any obligations or undertakings to release any update of, or revisions to, any forward-looking statements in this document.

Competent Person’s Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Michael Guo (P Geo) who is a member of the Association of Professional Geoscientists of Ontario, Canada, which is a Recognised Professional Organisation (RPO). Mr Guo is employed by Focus Minerals Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Guo consents to the inclusion in this announcement of the matters based on the information compiled by him in the form and context in which it appears.

END QUARTERLY ACTIVITY STATEMENT

12

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

Name of entity
Focus Minerals Ltd
ABN
56005470799
Quarter ended (“current quarter”)
56005470799 31 December 2014

Consolidated statement of cash flows

Cash flows related to operating activities
1.1
Receipts from product sales and related debtors
1.2
Payments for (a)exploration & evaluation
(b) development
(c) production
(d) administration
(e) royalties
(f) Mine Rehabilitation Fund
1.3
Dividends received
1.4
Interest and other items of a similar nature
received
1.5
Interest and other costs of finance paid
1.6
Income taxes paid
1.7
Other (provide details if material)
(a) shutdown Cost
Net Operating Cash Flows
Current
quarter
$A’000
Year to date (Twelve
months)
$A’000
221
(2,314)
-
-
(1,845)
(400)
-
-
998
(31)
-
-
806
(7,956)
-
-
(9,214)
(620)
(614)
-
3040
(352)
-
(156)
(3,450) (15,066)
Cash flows related to investing activities
1.8
Payment for purchases of: (a) prospects
(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)
(a) bond
Net investing cash flows
1.13
Total operating and investing cash flows (carried
forward)
-
-
(78)
-
-
150
-
-
-
-
-
(996)
-
267
1,239
-
-
-
72 510
(3,378) (14,556)
1.13
Total operating and investing cash flows (brought
forward)
(3,378) (14,556)

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Cash flows related to financing activities
1.14
Proceeds from issues of shares, options, etc.
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 (provide details if material)
Net financing cash flows
-
-
-
-
-
-
-
-
-
-
-
-
- -
Net increase (decrease) in cash held
1.20
Cash at beginning of quarter/year to date
1.21
Exchange rate adjustments to item 1.20
1.22
Cash at end of quarter
(3,378)
88,290
(14,556)
99,468
84,912 84,912

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23
1.24
Aggregate amount of payments to the parties included in item 1.2
Aggregate amount of loans to the parties included in item 1.10
Current quarter
$A'000
1.25 Explanation necessaryfor an understandingof the transactions
Director fees including superannuation expenses and board meetings

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 Nil

  • 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

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1
Loan facilities
3.2
Credit standby arrangements
Amount available
$A’000
Amount used
$A’000
19,000 17,250

14

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Estimated cash outflows for next quarter

$A’000 3,300 - - 1,250

  • 4.1 Exploration and evaluation

  • 4.2 Development

  • 4.3 Production

  • 4.4 Administration

1,250 4,550 Total

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
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (Environmental Bonds)
65,788 71,040
- -
- -
19,124 17,250
Total: cash at end of quarter(item 1.22) 84,912 88,290

Changes in interests in mining tenements and petroleum tenements

6.1
Interests in mining
tenements and
petroleum tenements
relinquished, reduced
or lapsed
6.2
Interests in mining
tenements and
petroleum tenements
acquired or increased
Tenement
reference and
location
Nature of interest
(note (2))
Interest at
beginning
ofquarter
Interest at
end of
quarter
L15/213
P15/5227
Surrendered
Surrendered
100%
100%
0%
0%
P15/5949
P38/4161
P38/4163
Tenement Application
Tenement Application
Tenement Application
0%
0%
0%
0%
0%
0%

15

Appendix 5B Mining exploration entity and oil and gas 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
note3) (cents)
Amount paid up
per security (see
note3) (cents)
7.1
Preference
+securities
(description)
7.2
Changes
during
quarter
(a) Increases
through
issues
(b)
Decreases
through
returns of
capital, buy-
backs,
redemptions
N/A
N/A
7.3
+Ordinary
securities
7.4
Changes
during
quarter
(a) Increases
through
issues
(b)
Decreases
through
returns of
capital, buy-
backs
9,137,375,877 9,137,375,877
-
7.5
+Convertible
debt
securities
(description)
7.6
Changes
during
quarter
(a) Increases
through
issues
(b)
Decreases
through
securities
matured,
converted
N/A
-
7.7
Options
(description
and
conversion
factor)
17,500,000 Exercise price
5 cents
Expiry date
28 Feb 2016

16

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.8
Issued during
quarter
7.9
Exercised
during
quarter
7.10
Expired
during
quarter
7.11
Debentures
(totals only)
7.12
Unsecured
notes(totals
only)

Compliance statement

  • 1 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 5).

  • 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 30 January 2015 (Company secretary)

Print name: Dane Etheridge

Notes

  • 1 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.

  • 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum 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 or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

  • 3 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 .

  • 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

  • 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

17