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 2021

Apr 28, 2021

64932_rns_2021-04-28_0f2e8506-52a9-4377-96c1-ee94de5136b2.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

==> picture [140 x 99] intentionally omitted <==

Market Announcement

29 April 2021

Quarterly Activities Report for March 2021 Quarter

Highlights:

  • Positive results from a progressive PFS for Stage 1 of Laverton Gold Project development

  • Significant drilling intersections at Beasley Creek and Beasley Creek South, part of Laverton

  • Significant drilling intersections at CNX, at the Coolgardie Gold Project, support the recently announced resource model with extensive feasibility, permitting and resource development activities now underway

  • Significant results at several other Coolgardie deposits ahead of Mineral Resource review/updates

  • Skull Creek discovery on E38/1864 at Laverton and location of the Lancefield Thrust on E38/3186

  • Total exploration expenditure for the quarter: $2.87m

  • Cash (unrestricted) at 31 March 2021: $15.73m

West Australian gold explorer Focus Minerals ( ASX: FML ) ( Focus or the Company ) is pleased to provide its Quarterly Activities Report for the three-month period ended 31 March 2021.

During the quarter, Focus completed 69 reverse circulation (RC) holes for 9,009m and eight diamond (DD) holes for 1,731m drilling at the Laverton Gold Project ( Laverton ). Focus also completed eight RC holes for 1,572m and five DD holes for 1,139.1m at the Coolgardie Gold Project ( Coolgardie ). The drilling was completed for:

  • Feasibility/permitting purposes including: geotech, hydrogeology and metallurgical data/sampling

  • Resource development activities

  • Exploration and tenement management

Other activities during the quarter included ongoing resource reviews at Coolgardie and final works to enable reporting on the Stage 1 Laverton Pre-feasibility Study (PFS).

Laverton Gold Project

Laverton’s total Measured, Indicated and Inferred Resources, including the Burtville Mineral Resource Update (refer ASX announcement dated 21 October 2020), comprises:

Classification Tonnage (Mt) Au Grade(g/t) Au Moz
Total Measured 0.9 1.99 0.06
Total Indicated 42.4 1.56 2.12
Total Inferred 17.9 2.52 1.45
Total Mineral Resource 61.3 1.85 3.64

==> picture [452 x 497] intentionally omitted <==

Figure 1: Key Laverton deposits under review and Stage 1 PFS results.

Stage 1 Laverton Progressive PFS Summary

Highlights:

  • Laverton Stage 1 scenario delivers JORC 2012 Probable Ore Reserves of 12.6Mt @ 1.34g/t for 546koz gold (refer ASX announcement dated 16 April 2021)

  • Stage 1 scenario based on JORC 2012 Mineral Resource of 16.4Mt @ 1.47g/t for 770koz, just 21% of Laverton’s Total Mineral Resource of 61.3Mt @ 1.85g/t for 3.64Moz

  • Stage 1 scenario using refurbished Barnicoat Mill delivered undiscounted free cash of $223M (using Australian dollar gold price of $2,207/oz) with Pre-Tax NPV of $132M[1] and Pre-Tax IRR of 17.2%

  • Stage 1 PFS produces 513koz of gold at average AISC of $1,497/oz

  • Results increase Board confidence in larger-scale Laverton Gold Project

  • Next-phase PFS work is underway, using much greater resource footprint

Open Pit* Recovered
Gold (koz)
Diluted
Grade (g/t)

Average AISC
($/ounce)

Pre-tax Free
Cash ($M)
Karridale 183 1.12 1,666 41
Burtville 92 0.93 1,481 40
Beasley Creek 124 2.27 1,353 76
Beasley Creek South 76 2.47 1,300 51
Wedge 38 1.58 1,533 14
Total/Average PFS Schedule 513 1.37 1,497 223

Laverton Drilling Summary

During the quarter, 69 RC holes for 9,009m and eight DD holes for 1,731m were completed. Strong results from drilling (calculated using 0.5 g/t cut off, up to 3m internal dilution and 0.0 g/t applied to core loss) included:

  • Beasley Creek DD intersections from feasibility drilling o 21BSDD002 – 16m @ 3.62g/t from 210m (GxM 57.9)

  • 21BSDD003 – 11m @ 2.27g/t from 234m (GxM 25)

  • 21BSRC019 – 9m @ 2.57g/t from 83m (GxM 23.1)

  • Beasley Creek RC intersections from resource development drilling

  • 21BSRC019 – 9m @ 2.57g/t from 83m (GxM 23.1)

  • 21BSRC013 – 7m @ 2.3g/t from 70m (GxM 16.1)

  • 21BSRC012 – 5m @ 2.91g/t from 61m (GxM 14.6)

  • 21BSRC014 – 8m @ 1.7g/t from 113m (GxM 13.6)

  • Beasley Creek South intersection from feasibility drilling

  • 21BSDD006 – 9m @ 2.32g/t from 88m (GxM 20.9)

  • 21BSDD005 – 7m @ 2.84g/t from 114m (GxM 19.9)

  • 21BSDD005 – 4m @ 4.88g/t from 125m (GxM 19.5)

  • Mineralisation in reconnaissance drilling of the Barnicoat East Fault zone at Skull Creek (calculated using 0.5 g/t cut off, up to 3m internal dilution)

  • 21GRER010 – 16m @ 0.86g/t from 4m (13.7 GXM)

  • 21GRER010 – 12m @ 1.01g/t from 28m (12.2 GXM)

  • Lancefield Shear located on E38/3186 (calculated using 0.5 g/t cut off, up to 3m internal dilution)

  • 21LNRC003 – 6m @ 3.08g/t from 60m (GxM 18.5)

  • 21LNRC005 – 6m @ 2.1g/t from 76m (GxM 12.6)

1 5% Discount Rate

Coolgardie Gold Project

Coolgardie’s total Measured, Indicated and Inferred Resources including CNX (refer ASX announcement dated 17 December 2020) comprises:

Classification Tonnage (Mt) Au Grade(g/t) Au Moz Increase
Total Measured 1.4 2.27 0.10 0%
Total Indicated 18.1 2.35 1.37 -3%
Total Inferred 14.9 2.13 1.02 13%
Total Mineral
Resource
34.4 2.25 2.49 3%

==> picture [410 x 514] intentionally omitted <==

Figure 2: Coolgardie location map highlighting deposits included in the 2020 PFS, Mineral Resources currently under review and the updated CNX open pit Mineral Resource.

Coolgardie Drilling Summary

Eight RC holes for 1,572m and five DD holes for 1,139m were completed at CNX, with results due in the June 2021 Quarter. The diamond drilling was designed for feasibility purposes including:

  • geotech – preliminary wall angle for feasibility pit design

  • metallurgical sampling to determine hardness/abrasive index

  • testing the Mineral Resource ahead of resource update

The geotech component of the drilling will not be sampled until completion of geotech logging in June.

Strong results from drilling at other Coolgardie deposits and prospects (calculated using 0.5 g/t cut off, up to 3m internal dilution) included:

Alicia o 20ALRC042[1] – 29m @ 2.76g/t from 41m (80.0 GxM) o 20ALRC032[1] – 22m @ 3.76g/t from 76m (82.7 GxM) o 20ALRC002[1] – 23m @ 2.75g/t from 55m (63.2 GxM) CNX o 20CNRC001[1] – 37m @ 3.49g/t from 59m (129.1 GxM) Undaunted o 20UNRC001[1] – 15m @ 2.13g/t from 19m (31.9 GxM) o 20UNRC001[1] – 12m @ 2.22g/t from 43m (26.6 GxM) Jackpot South o 20JPRC003[1] – 15m @ 1.48g/t from 70m (22.2 GxM) o 20JPRC002[1] – 4m @ 3.17g/t from 9m (12.7 GxM) Brilliant o 20BLRC012[1] – 19m @ 2.87g/t from 215m (54.5 GxM) o 20BLRC013[1] – 10m @ 2.38g/t from 164m (23.8 GxM)

Mineral Resource reviews are in progress for Alicia, Big Blow, Happy Jack to bring the resources to JORC 2012 reporting compliance. A Mineral Resource review underway for Brilliant to incorporate moderate dipping mineralisation. Continued exploration success paves the way for a stronger resource position to underpin a resumption of gold production at Coolgardie.

Corporate

In accordance with Listing Rule 5.3.1, Focus reports that it has spent approximately $2.87m on exploration during the quarter, covering drilling and assay costs and payments to consultants and exploration personnel.

On 14 January 2021, Lingquan Kong was appointed as Director. On 31 March 2021, Focus published its Annual Report for the year ended 31 December 2020.

Per ASX Listing Rule 5.3.5, Focus paid $233,000 to related parties of the Company and their associates, which included Executive Directors’ salaries, non-Executive Directors’ fees, superannuation and rent for the CEO.

As at 31 March 2021, the Company’s cash position is as follows:

Cash at Bank and Deposits
Cash held on bond
Total Cash and Equivalents
$15.726m
$13.535m
$29.261m

Tenement Movements during the Quarter

Coolgardie Gold Project

Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
M15/0150 Bayleys 100% 100%
M15/0630 Bayleys 100% 100%
M15/1434 Bayleys 100% 100%
M15/1788 Bayleys 100% 100%
P15/5717 Bayleys 100% 100%
P15/5995 Bayleys 100% 100%
P15/6254 Bayleys 100% 100%
P15/6256 Bayleys 100% 100%
M15/0277 Bonnie Vale 100% 100%
M15/0365 Bonnie Vale 100% 100%
M15/0595 Bonnie Vale 100% 100%
M15/0662 Bonnie Vale 100% 100%
M15/0711 Bonnie Vale 100% 100%
M15/0770 Bonnie Vale 100% 100%
M15/0852 Bonnie Vale 100% 100%
M15/0857 Bonnie Vale 100% 100%
M15/0877 Bonnie Vale 100% 100%
M15/0981 Bonnie Vale 100% 100%
M15/1384 Bonnie Vale 100% 100%
M15/1444 Bonnie Vale 100% 100%
M15/1760 Bonnie Vale 100% 100%
M15/1853 Bonnie Vale 0% 0% Under application
P15/5159 Bonnie Vale 100% 100%
P15/5702 Bonnie Vale 100% 100%
P15/5703 Bonnie Vale 100% 100%
P15/5704 Bonnie Vale 100% 100%
P15/5713 Bonnie Vale 100% 0% Surrendered
P15/5714 Bonnie Vale 100% 0% Surrendered
P15/6598 Bonnie Vale 0% 0% Under application
G15/0007 Infrastructure 100% 100%
G15/0046 Infrastructure 0% 0% Under application
L15/0027 Infrastructure 100% 100%
L15/0028 Infrastructure 100% 100%
L15/0034 Infrastructure 100% 100%
L15/0042 Infrastructure 100% 100%
L15/0051 Infrastructure 100% 100%
L15/0059 Infrastructure 100% 100%
L15/0063 Infrastructure 100% 100%
L15/0077 Infrastructure 100% 100%
L15/0078 Infrastructure 100% 100%
L15/0088 Infrastructure 100% 100%
L15/0090 Infrastructure 100% 100%
L15/0095 Infrastructure 100% 100%
Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
L15/0096 Infrastructure 100% 100%
L15/0114 Infrastructure 100% 100%
L15/0116 Infrastructure 100% 100%
L15/0119 Infrastructure 100% 100%
L15/0122 Infrastructure 100% 100%
L15/0123 Infrastructure 100% 100%
L15/0126 Infrastructure 100% 100%
L15/0127 Infrastructure 100% 100%
L15/0130 Infrastructure 100% 100%
L15/0161 Infrastructure 100% 100%
L15/0164 Infrastructure 100% 100%
L15/0168 Infrastructure 100% 100%
L15/0169 Infrastructure 100% 100%
L15/0171 Infrastructure 100% 100%
L15/0172 Infrastructure 100% 100%
L15/0173 Infrastructure 100% 100%
L15/0174 Infrastructure 100% 100%
L15/0175 Infrastructure 100% 100%
L15/0177 Infrastructure 100% 100%
L15/0179 Infrastructure 100% 100%
L15/0186 Infrastructure 100% 100%
L15/0193 Infrastructure 100% 100%
L15/0194 Infrastructure 100% 100%
L15/0200 Infrastructure 100% 100%
L15/0211 Infrastructure 100% 100%
L15/0283 Infrastructure 100% 100%
L15/0294 Infrastructure 100% 100%
L15/0371 Infrastructure 100% 100%
L15/0403 Infrastructure 0% 0% Under application
L15/0405 Infrastructure 0% 0% Under application
L15/0421 Infrastructure 0% 0% Under application
E15/0986 Lake Cowan 100% 100%
G15/0043 Lake Cowan 0% 0% Under application
L15/0408 Lake Cowan 0% 0% Under application
M15/1882 Lake Cowan 0% 0% Under application
P15/5732 Londonderry 100% 0% Surrendered
P15/5964 Londonderry 100% 100%
P15/5966 Londonderry 100% 100%
P15/5967 Londonderry 100% 100%
P15/5968 Londonderry 100% 100%
P15/5969 Londonderry 100% 100%
P15/5970 Londonderry 100% 100%
P15/5971 Londonderry 100% 100%
P15/5972 Londonderry 100% 100%
P15/6118 Londonderry 100% 100%
P15/6119 Londonderry 100% 100%
P15/6120 Londonderry 100% 100%
P15/6121 Londonderry 100% 100%
P15/6122 Londonderry 100% 100%
P15/6123 Londonderry 100% 100%
Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
P15/6176 Londonderry 100% 100%
P15/6177 Londonderry 100% 100%
P15/6178 Londonderry 100% 100%
M15/0385 Lord Bob 100% 100%
M15/1789 Lord Bob 100% 100%
P15/5712 Lord Bob 100% 100%
P15/5731 Lord Bob 100% 0% Surrendered
P15/5733 Lord Bob 100% 0% Surrendered
P15/5735 Lord Bob 100% 0% Surrendered
P15/5939 Lord Bob 0% 0% Under application
P15/6102 Lord Bob 100% 100%
M15/0384 Norris 100% 100%
M15/0515 Norris 100% 100%
M15/0761 Norris 100% 100%
M15/0791 Norris 100% 100%
M15/0871 Norris 100% 100%
M15/1153 Norris 100% 100%
M15/1422 Norris 100% 100%
M15/1793 Norris 100% 100%
P15/5730 Norris 100% 0% Surrendered
P15/5734 Norris 100% 0% Expired
P15/5736 Norris 100% 0% Expired
P15/5756 Norris 100% 0% Surrendered
P15/5807 Norris 100% 100%
P15/6002 Norris 100% 100%
P15/6033 Norris 100% 100%
P15/6605 Norris 0% 0% Under application
M15/0154 Three Mile Hill 100% 100%
M15/0636 Three Mile Hill 100% 100%
M15/0645 Three Mile Hill 100% 100%
M15/0781 Three Mile Hill 100% 100%
M15/0827 Three Mile Hill 100% 100%
M15/1341 Three Mile Hill 100% 100%
M15/1357 Three Mile Hill 100% 100%
M15/1358 Three Mile Hill 100% 100%
M15/1359 Three Mile Hill 100% 100%
M15/1432 Three Mile Hill 100% 100%
M15/0023 Tindals 100% 100%
M15/0237 Tindals 100% 100%
M15/0410 Tindals 100% 100%
M15/0411 Tindals 100% 100%
M15/0412 Tindals 100% 100%
M15/0646 Tindals 100% 100%
M15/0660 Tindals 100% 100%
M15/0675 Tindals 100% 100%
M15/0958 Tindals 100% 100%
M15/0966 Tindals 100% 100%
M15/1114 Tindals 100% 100%
M15/1262 Tindals 100% 100%
M15/1293 Tindals 100% 100%
Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
M15/1294 Tindals 100% 100%
M15/1433 Tindals 100% 100%
M15/1461 Tindals 100% 100%
P15/5949 Tindals 100% 100%
P15/5987 Tindals 100% 100%
P15/6251 Tindals 100% 100%
P15/6252 Tindals 100% 100%
P15/6253 Tindals 100% 100%
P15/6257 Tindals 100% 100%
P15/6333 Tindals 0% 0% Under application
M15/1874* Lepidolite Hill 0% 0% RoyaltyInterest
P15/5574* Lepidolite Hill 0% 0% RoyaltyInterest
P15/5575* Lepidolite Hill 0% 0% RoyaltyInterest
P15/5739* Lepidolite Hill 0% 0% Royalty Interest
  • Agreement to transfer title as per deed of settlement announcement 18 September 2020. Transfer not yet registered.

Laverton Gold Project

Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
E38/1864 Admiral Hill - Barnicoat 100% 100%
E38/3232 Admiral Hill - Barnicoat 100% 100%
E38/3238 Admiral Hill - Barnicoat 100% 100%
E38/3565 Admiral Hill - Barnicoat 0% 0% Under application
M38/0264 Admiral Hill - Barnicoat 100% 100%
M38/0318 Admiral Hill - Barnicoat 100% 100%
M38/0376 Admiral Hill - Barnicoat 100% 100%
M38/0377 Admiral Hill - Barnicoat 100% 100%
M38/0387 Admiral Hill - Barnicoat 100% 100%
M38/0401 Admiral Hill - Barnicoat 100% 100%
M38/0507 Admiral Hill - Barnicoat 100% 100%
M38/1032 Admiral Hill - Barnicoat 100% 100%
M38/1042 Admiral Hill - Barnicoat 100% 100%
P38/4519 Admiral Hill - Barnicoat 0% 0% Under application
E38/1642 Burtville 100% 100%
E38/2032 Burtville 100% 100%
E38/3050 Burtville 100% 100%
E38/3051 Burtville 100% 100%
E38/3088 Burtville 100% 100%
E38/3217 Burtville 100% 100%
M38/0008 Burtville 100% 100%
M38/0073 Burtville 91% 91%
M38/0089 Burtville 91% 91%
M38/0261 Burtville 100% 100%
M38/1281 Burtville 100% 100%
E38/3424 Central Laverton 100% 100%
M38/0143 Central Laverton 100% 100%
Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
M38/0236 Central Laverton 100% 100%
M38/0270 Central Laverton 100% 100%
M38/0342 Central Laverton 100% 100%
M38/0345 Central Laverton 100% 100%
M38/0363 Central Laverton 100% 100%
M38/0364 Central Laverton 100% 100%
M38/1187 Central Laverton 100% 100%
P38/4163 Central Laverton 100% 100%
M38/0049 Chatterbox 100% 100%
M38/0101 Chatterbox 100% 100%
M38/0535 Chatterbox 100% 100%
M38/0693 Chatterbox 100% 100%
G38/0020 Infrastructure 100% 100%
G38/0024 Infrastructure 100% 100%
G38/0025 Infrastructure 100% 100%
G38/0033 Infrastructure 100% 100%
L38/0034 Infrastructure 100% 100%
L38/0052 Infrastructure 100% 100%
L38/0053 Infrastructure 100% 100%
L38/0054 Infrastructure 100% 100%
L38/0055 Infrastructure 100% 100%
L38/0056 Infrastructure 100% 100%
L38/0057 Infrastructure 100% 100%
L38/0063 Infrastructure 100% 100%
L38/0075 Infrastructure 100% 100%
L38/0076 Infrastructure 100% 100%
L38/0078 Infrastructure 100% 100%
L38/0092 Infrastructure 100% 100%
L38/0101 Infrastructure 100% 100%
L38/0108 Infrastructure 100% 100%
L38/0152 Infrastructure 100% 100%
L38/0153 Infrastructure 100% 100%
L38/0160 Infrastructure 100% 100%
L38/0165 Infrastructure 100% 100%
L38/0166 Infrastructure 100% 100%
L38/0173 Infrastructure 100% 100%
L38/0177 Infrastructure 100% 100%
L38/0179 Infrastructure 100% 100%
L38/0183 Infrastructure 100% 100%
L38/0231 Infrastructure 100% 100%
L38/0335 Infrastructure 0% 0% Under application
L38/0336 Infrastructure 0% 100% Granted
L38/0337 Infrastructure 0% 100% Granted
L38/0338 Infrastructure 0% 100% Granted
L38/0339 Infrastructure 0% 0% Under application
E38/2873 Lake Carey 100% 100%
E38/3604 Lake Carey 0% 0% New application
P38/4099 Lake Carey 100% 100%
P38/4100 Lake Carey 100% 100%
P38/4102 Lake Carey 100% 100%
Tenement Location Percentage as at
01 January 2021
Percentage as at
31 March 2021
Note
E38/3186 Lancefield 100% 100%
M38/0037 Lancefield 100% 100%
M38/0038 Lancefield 100% 100%
M38/0159 Lancefield 100% 100%
M38/0547 Lancefield 100% 100%
M38/1272 Lancefield 100% 100%
P38/4347 Lancefield 100% 100%
P38/4348 Lancefield 100% 100%
P38/4349 Lancefield 100% 100%
E38/1725 Prendergast 100% 100%
E38/1869 Prendergast 100% 100%
E38/2862 Prendergast 100% 100%
P38/4091 Prendergast 100% 100%
M38/0425 Murrin Murrin 0% 0% Au rights
M38/0505 Murrin Murrin 0% 0% Au rights

The release of this ASX announcement was authorised by Mr Zhaoya Wang, CEO of Focus Minerals Ltd.

For further information For media and investor enquiries please contact: please contact:

Nicholas Ong Peter Klinger Company Secretary Director, Investor Relations Focus Minerals Ltd. Cannings Purple Phone: +61 8 9215 7888 Phone: +61 411 251 540 Email: [email protected] Email: [email protected]

About Focus Minerals Limited (ASX: FML)

Focus Minerals is a Perth-based, ASX-listed gold exploration company focused on delivering shareholder value from its 100%-owned Laverton Gold Project and Coolgardie Gold Project, in Western Australia’s Goldfields.

The flagship Laverton Gold Project covers 386km[2] area of highly prospective ground that includes the historic Lancefield and Chatterbox Trend mines. Focus’ priority target is to confirm sufficient gold mineralisation at the Beasley Shear Zone, Lancefield-Wedge Thrust, Karridale and Burtville to support a Stage 1 production restart at Laverton. In parallel, Focus is working to advance key Laverton resource growth targets including Sickle, Ida-H and Burtville South. Focus has delivered first results from a progressive Pre-Feasibility Study (Pre-Tax NPV5.0% A $132M) and is advancing study work utilising Laverton’s expanded Mineral Resource position.

Focus is also committed to delivering shareholder value from the Coolgardie Gold Project, a 175km[2] tenement holding that includes the 1.4Mtpa processing plant at Three Mile Hill (on care and maintenance), by continuing exploration and value-enhancing activities. An updated PFS in September 2020 highlighted the potential for a low capital cost, fast-tracked return to mining at Coolgardie and delivered an NPV7.5% of $183 million. The Company’s efforts are now focused on increasing production ready Mineral Resources at Coolgardie.

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Alex Aaltonen, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Aaltonen is an employee of Focus Minerals Limited. Mr Aaltonen 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.

Page 12 of 12