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IRON BEAR RESOURCES LTD — Capital/Financing Update 2011
Dec 22, 2011
65091_rns_2011-12-22_39e6aab0-33fe-4b8a-81e5-e0e18fe1f66e.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT
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23 December 2011
Manager of Company Announcements ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001
By E‐Lodgement
Glory Resources Completes Sapes Gold Project Acquisition and Commences Trading
Glory Resources Limited (ASX: GLY) ( Glory or the Company ) is pleased to confirm that it has completed settlement with Cape Lambert Resources Limited ( Cape Lambert ) to finalise the purchase of 100% of the high grade Sapes Gold Project located in northeastern Greece. The Company advises that trading in the listed securities on the ASX will re‐commence on Friday 23[rd] December 2011.
Glory received strong support during the fund raising to complete the acquisition of the Sapes Gold Project and has developed a very strong international shareholder register including Vancouver based Eldorado Gold Corporation ( Eldorado ), M & G Investments, Macquarie Bank – Metals and Energy Division, Gold 2000 fund, Resource Capital Fund and Cape Lambert. Glory’s lead corporate advisor to the transaction was Grange Consulting and legal advisor was Gilbert + Tobin in Perth , Western Australia.
The Company will have a cash balance of approximately A$11 M and is well positioned to pursue its strategy of advancing the Sapes environmental approval process and re‐ commencing exploration drilling at the highly prospective and under‐explored landholding licence area. The Company intends to focus on areas which have yielded high grade drill intersections in the past but have not been further explored in the last 10 years.
Greece Update
BOARD
Jason Bontempo Jeremy King Bernard Aylward
COMPANY SECRETARY Emma Wates
CORPORATE INFORMATION Shares on issue 224.1m Options on issue 26.5m Cash $11m
REGISTERED OFFICE
945 Wellington Street West Perth WA 6005
POSTAL ADDRESS PO Box 1263 West Perth WA 6872
CONTACT DETAILS
Tel: +61 8 9322 7600 Fax: +61 8 9322 7602
SHARE REGISTRY
Security Transfer Registrars 770 Canning Highway Applecross WA 6153 Tel: +61 8 9315 2333
ASX CODE GLY
The Greek gold industry is in a development stage with TSX listed European Goldfields Limited receiving environmental approval for its projects in July 2011. This approval signalled the commencement of a new phase of mineral development in Greece and highlighted the opportunities for the high‐grade Sapes Gold Project.
In November 2011 the Qatar Sovereign Wealth fund announced an investment of over US$700m into European Goldfields and the development of a new gold project, an investment that was supported by the Greek Government.
In December 2011 Eldorado announced a C$2.5billion offer for European Goldfields signalling its intention to becoming the dominant gold miner in the Aegean region. Eldorado has a proven track record of mine development and successful operations. Eldorado participated in the recent capital raising for Glory to acquire the Sapes Gold Project and holds a 19.9% interest in the Company. The high grade Sapes Gold Project is located only 15km from Eldorado’s 100% owned 1.9Moz Perama Hill gold project.
Glory Resources Limited ABN 38 142 870 102 945 Wellington Street, West Perth WA 6005 Telephone: +61 8 9322 7600 www.gloryresources.com.au | [email protected]
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The Preliminary Environmental Impact Study ( PEIS ) for the Sapes Gold Project has been submitted to the Greek Government authorities and is under review. Glory expects this process to be finalised in the first half of 2012.
Sapes Gold Project ‐‐ Overview
The Sapes Gold Project is a typical high‐sulphidation epithermal gold deposit. It has a JORC Measured and Indicated Resource of 830koz @ 9.8g/t Au (Measured 647koz @ 8.9g/t Au and Indicated 183koz @ 14.9g/t Au) with identified JORC Proved and Probable Ore Reserve of 637koz @ 15.1g/t Au (Proved 23koz @3.5g/t Au and Probable 614koz @ 17.2g/t Au).
In accordance with the Sapes Gold Project Feasibility Study (last updated in 2010), the Company is targeting initial life of mine gold production of 510,000oz Au with total estimated capital expenditure of US$100m and estimated operating costs of US$297/oz over a seven year mine life.
Initially, the Company intends to drill along strike of the existing ore body as this area is considered to be highly prospective. The Company also intends to follow up on previously identified drill targets within the licence area.
The PEIS for Sapes has been lodged with the Greek authorities marking the first key step in permitting for gold production. The Feasibility Study envisions that the Sapes mine will produce gold via both gravity separation and by the production of a sulphide concentrate. Overall metallurgical recoveries of above 80% are expected. The current processing plant design does not use cyanide in the processing of ore and extraction of gold and is expected to have a low environmental impact.
For and on behalf of the Board
Jason Bontempo Executive Director
For further information please contact:
Investors
Jason Bontempo Jeremy King Bernard Aylward Director Director Director Tel: +61 (8) 9322 7600 Tel: +61 (8) 9322 7600 Tel: +61 (8) 9322 7600
Media
David Tasker Professional Public Relations Tel: +61 (8) 9388 0944 Em: [email protected]
Glory Resources Limited ABN 38 142 870 102 945 Wellington Street, West Perth WA 6005 Telephone: +61 8 9322 7600 www.gloryresources.com.au | [email protected]
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Competent person statement
The information in this release that relates to exploration results is based on information compiled by Mr Bernard Aylward. Mr Aylward is director of and a consulting geologist to Glory Resources Limited. Mr Aylward is a member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Aylward consents to the inclusion in the report of the matters based on information in the form and context in which it appears. Information pertaining to the Sapes Ore Reserves and Minerals Resources has been supplied by Cape Lambert Resources Limited and previously published in the ASX announcement dated 18 August 2011.
Glory Resources Limited ABN 38 142 870 102 945 Wellington Street, West Perth WA 6005 Telephone: +61 8 9322 7600 www.gloryresources.com.au | [email protected]