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LAKE RESOURCES N.L. Interim / Quarterly Report 2004
65240_rns_2004-10-26_6d29c272-b80e-4ae0-9259-ee4af2d8d0dd.pdf
Interim / Quarterly Report
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Lake Resources NL
QUARTERLY REPORT for JULY - SEPTEMBER 2004
SUMMARY
Exploration
Pakistan: Lake Resources is exploring for porphyry copper-gold and epithermal gold deposits in the Chagai District of Balochistan which hosts the Saindak porphyry copper gold mine and the Reko Dig copper-gold project of Tethyan Copper Company-BHP Billiton (see Investments below).
In September, following the hot summer season, field work resumed on the Koh-i-Sultan, Dasht-i-Gauran and Amalaf tenements.
Argentina: Field work in northern Argentina commenced during August, targeting porphyry coppergold and epithermal gold-silver deposits in a highly prospective environment.
Sweden: Efforts to seek farm-in partners for the Company's Sweden tenements continued.
'Seed Capital' Investments
Lake Resources has significant 'seed capital' investments in a number of established and emerging resources sector companies. It is intended to utilise profits from these investments to fund future exploration and further 'seed capital' investment opportunities.
Mincor Resources N L is an ASX-listed nickel producer in which Lake Resources owns 1 million shares. On 26th October, the last sale of Mincor shares on ASX was at \$0.62.
Tethyan Copper Company Limited (TCC) is an ASX-listed company in which Lake Resources owns 296,736 shares. TCC has an alliance with BHP Billiton for exploration and mine development at the Reko Diq Copper Project in the Chagai District in Pakistan, where Lake is also exploring for copper and gold. On 26th October, the last sale of TCC shares on ASX was at \$0.45.
DiamonEx Limited is an ASX-listed Australian company that is exploring for diamonds in Botswana. During the quarter. Lake Resources sold 333.738 shares from its 5.465 million share-holding in Diamonex at an average price of \$0.32. Subsequent to the end of the quarter, Lake Resources sold a further 3,782,400 shares in DiamonEx @A\$0.28/share, adding \$1.051 million to cash reserves. On 26th October, the last sale of DiamonEx shares on ASX was at \$0.28.
Oroplata Limited is an unlisted Australian company in which Lake Resources held 3 million shares. On 28th June, ASX-listed Andean Resources Limited (formerly Kanowna Consolidated Gold Mines Ltd) announced that it had acquired 100% of the shares in Oroplata. As a result, Lake Resources received 6,334,500 shares in Andean, but the shares are subject to a 12-month escrow period. On 26th October, the last sale of Andean shares on the ASX was at \$0.090.
SWEDEN
Norrbotten Project
Broken Hill-type (BHT) silver-lead-zinc deposits are the target of exploration at Lake Resources' Moskosel project in northern Sweden. Prospective biotite and quartzgahnite lithologies with sphalerite +/-galena occur in outcrop at the Kvänberget Prospect, where previous drilling intersected a zinc-anomalous psammopelitic sequence, up to 150 m thick, that can be traced in the airborne magnetics and by rock float for more than 12 km.
A farm-in partner is being sought for the Moskosel project
Bergslagen Project
In the Bergslagen District in southern Sweden, iron oxiderelated copper-gold (IOCG) deposits are the target at Lake Resources' Simas project (see Fig. 1). A joint venture partner is being sought to fund further exploration.
Sweden Tenements
| Tenement | Number | Area (sq km) Lake Interest Grant Date | Expiry Date | ||
|---|---|---|---|---|---|
| Moskosel Nr 1 | nr 71/2002 | 42 | 100% | 31/07/2002 | 30/07/2005 |
| Simas Nr 2 | nr 31/2002 - | 81 | 100% * | 28/03/2002 | 27/03/2005 |
PAKISTAN
Chagai Project
Lake Resources is exploring for epithermal gold and porphyry copper-gold deposits in the Chagai region in northwest Balochistan. Cretaceous island-arc basement rocks together with Tertiary sediments, volcanics and intrusives of Andean-type affinities host important mineral deposits including the Saindak copper-gold mine, and the TCC-BHP Billiton Reko Dig Copper Project (see Investments section).
Pakistan - Chagai Tenements
| Tenement | Number | Area (sɑ km) | Lake Interest | Grant Date | Expiry Date |
|---|---|---|---|---|---|
| Amalaf | EL (1)/1059-69 | 63 | 100% | 20/03/2000 | 19/03/2006 |
| Dasht-í-Gauran | EL (3)/1048-58 | 59 | 100% | 20/03/2000 | 19/03/2006 |
| Koh-i-Sultan | EL (4)/1037-47 | 121 | 100% | 20/03/2000 | 19/03/2006 |
Following the hot summer season, field work resumed in September on the Koh-i-Sultan, Dasht-i-Gauran and Amalaf tenements. Geological reconnaissance, rock geochemical sampling and ground magnetic surveys are scheduled for the next quarter. Interpretation of ASTER satellite images focusing on alteration zoning associated with potential mineralised systems is also planned.
ARGENTINA
Lake Resources has initiated regional exploration in northern Argentina, a region considered highly prospective for porphyry copper-gold and epithermal gold-silver deposits. Significant mineral deposits in the region include Bajo de la Alumbrera, and the new US\$450 million Veladero gold-silver mine being developed by Barrick.
More than 100 targets have been identified by Lake Resources in a specialist interpretation of 1:100,000 scale ETM satellite images (RGB false colour and clay prediction images) over twelve 1:100,000 scale half-degree sheet areas covering an area of more than 30,000 square kilometres.
Field work commenced during August with preliminary reconnaissance successfully 'groundtruthing' several targets including a known porphyry copper-gold system. Intensive field investigation of priority targets for the 2004-2005 field season is scheduled to commence in October.
INVESTMENTS
'Seed Capital' investments in emerging resources sector companies is an important component of Lake Resources' business strategy. The aim of these investments is to provide exposure to additional exploration opportunities and gain leverage from 'discounted' early 'seed capital' share prices. Profits from these investments will be applied to future exploration and investment in further 'seed capital' opportunities. Details of the Company's current investments are summarised below.
Mincor Resources N.L.
The Company owns 1 million shares in ASX-listed nickel producer Mincor Resources N L. Mincor operates the Mitel and Wannaway Mines and is developing the Redross and the Mariner Mines in the Kambalda District of Western Australia.
Highlights for the quarter included the commencement of ore production from the Redross nickel mine. an upgrade in total ore reserves. Mincor's fourth consecutive annual profit and the second annual dividend payment. On 26th October, the last sale of Mincor shares on ASX was at \$0.62.
For further information, refer to the Mincor Resources NL website at http://www.mincor.com.au
Tethyan Copper Company Ltd
Tethvan Copper Company Limited (TCC) is an ASX-listed company in which Lake Resources owns 296.736 shares. TCC has an alliance with BHP Billiton for exploration and mine development at the Reko Dig Copper Project in the Chagai District in Pakistan, where Lake is also exploring for copper and gold.
During the quarter. TCC reported continuing regional exploration success and additional resources at the H4 deposit.
On 26th October, the last sale of Mincor shares on ASX was at \$0.73; the last sale of TCC shares on ASX was at \$0.45.
For further information, refer to the TCC website at http://www.tethyan.com
Lake Resources N L. Quarterly Report. July - September 2004
Diamonex Limited
DiamonEx Limited, an ASX-listed Australian company is exploring for diamonds in Botswana. At the Company's Molopo Project, previous exploration has identified more than 50 kimberlitic intrusives. DiamonEx's Martin's Drift project is centred on a number of diamondiferous kimberlite pipes, including a resource estimated at 13 million tonnes at a grade of 22 carats/hundred tonnes (at 1 mm cutoff).
Highlights for the quarter included dual listing of the company's securities on the Botswana Stock Exchange and the completion of large diameter drilling (18 holes) at Martin's Drift
During the quarter. Lake Resources sold 333,738 shares from its 5.465 million share-holding in Diamonex at an average price of \$0.32. Subsequent to the end of the quarter. Lake Resources sold a further 3,782,400 shares in DiamonEx @A\$0.28/share adding \$1.051 million to cash reserves. On 26th October, the last sale of DiamonEx shares on ASX was at \$0.28.
For further information on DiamonEx, refer to the DiamonEx website at http://www.diamonex.com.au.
Oroplata Limited
Oroplata Limited is an unlisted Australian company in which Lake Resources held 3 million shares. On 28th June, ASX-listed Andean Resources Limited (formerly Kanowna Consolidated Gold Mines Ltd) announced that it had acquired 100% of the shares in Oroplata. As a result, Lake Resources received 6,334,500 shares in Andean, but the shares are subject to a 12-month escrow period.
During the guarter. Andean announced wide ore-grade gold intersections from an 11-hole drilling program on the Vein Zone Prospect at its Cerro Negro Project in southern Argentina.
On 26th October, the last sale of Andean shares on the ASX was at \$0,090.
27 October 2004
'Gillece
J.G. Clavarino M AusIMM, MMICA Exploration Director
Contact Information
| • Office Address | Level 2, 183 North Quay, Brisbane, Queensland, Australia, 4000 | |
|---|---|---|
| • Postal Address | GPO Box 1239, Brisbane, Queensland, Australia, 4001 | |
| • Telephone | Peter Gilchrist (61) (7) 3221 5950 Jim Clavarino (61) (7) 3220 0282 |
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| $\bullet$ Fax | $(61)$ $(7)$ 3221 9338 | |
| [email protected] [email protected] [email protected] |
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| • Web site | www.lakeresources.com.au |