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RAND MINING LIMITED Interim / Quarterly Report 2014
65721_rns_2014-01-27_a469463c-bc89-4174-beb7-7afd958d4173.pdf
Interim / Quarterly Report
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January 28, 2014
The Listing Manager Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000
Quarterly Report for December 2013
Highlights
- During the quarter, 111,044 tonnes of EKJV ore were processed at the Kanowna Plant.
- 19,164.749 oz of gold and 5,000.874 oz of silver were credited to Rand and Tribune Bullion Accounts. (Rand's share is 25%)
- At the end of the quarter
approximately 10,600 tonnes of Raleigh ore at an estimated grade of 14.4 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand's entitlement is 12.5%)
approximately 9,400 tonnes of Rubicon ore at an estimated grade of 11.3 g/t remain as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine (Rand's entitlement is 12.25%)
approximately 9,400 tonnes of Rubicon ore at an estimated grade of 7.2 g/t remain as a Bed Blend Stockpile on the ROM pad at the Kanowna Belle Plant.
(Rand's entitlement is 12.25%)
GEOLOGY AND MINING
EAST KUNDANA JOINT VENTURE
Raleigh Underground Mine Production
Stope production from the 5812, 5795, 5778, 5761, 5744, 5722, 5705, 5688, 5671, 5654, 5631 and 5614 levels continued during the quarter.
Contained gold in stope development and stope ore mined during the quarter, estimated by grade control face chip sampling, is tabulated below:
| RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES | ||||
|---|---|---|---|---|
| Month | Tonnes | Grade | Ounces | |
| t | g/t | troy oz | ||
| October | 11,530 | 18.43 | 6,832 | |
| November | 9,542 | 17.01 | 5,218 | |
| December | 11,805 | 14.46 | 5,488 | |
| December 13 Q | 32,877 | 16.6 | 17,738 | |
| September 13 Q | 33,784 | 15.9 | 17,272 |
Rand's Entitlements (12.5%)
| December 13 Q | 4,110 | 16.6 | 2,192 |
|---|---|---|---|
| September 13 Q | 4,223 | 15.9 | 2,159 |
Approximately 10,600 tonnes remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine and will be hauled in early January.
Raleigh Underground Mine Development
At the end of the quarter, the bottom of the Raleigh Decline is at 5618 m RL, 727 m from the surface.
Development has finished.
| RALEIGH UNDERGROUND DEVELOPMENT | |||||
|---|---|---|---|---|---|
| Month | CapitalOperating | ||||
| Decline | SecondaryWaste | Ore | Paste Fill | ||
| (m) | (m) | (m) | (m) | (m) | |
| October | 0.0 | 0.0 | 0.0 | 0.0 | 30.0 |
| November | 0.0 | 0.0 | 0.0 | 0.0 | 24.0 |
| December | 0.0 | 0.0 | 0.0 | 0.0 | 36.0 |
| December 13 Q | 0.0 | 0.0 | 0.0 | 0.0 | 90.0 |
| September 13 Q | 0.0 | 0.0 | 0.0 | 0.0 | 90.0 |
The diagrams below show the status of the mine at the end of each month of the quarter.
November 13 Green indicates new development at Raleigh
December 13 Green indicates new development at Raleigh
Mine operating costs incurred during the December 2013 Quarter were $221 per tonne mined or $415 per ounce mined compared with the September 2013 Quarter costs of $211 and $413 respectively.
Rubicon Underground Mine Production
During the quarter, there was no development of the Rubicon ore body. Development of the Hornet ore body progressed on the 5985 and 5965 levels. Stope production from the Rubicon 6095 and 6075 levels and Hornet 6225, 6205, 6185, 6165, 6145, 6125, 6105, 6085, 6065, 6045, 6025, 6005 and 5985 levels continued during the quarter.
Contained gold in stope development mined during the quarter, estimated by grade control face chip sampling, is tabulated below:
| RUBICON UNDERGROUND GRADE CONTROL ESTIMATES | ||||
|---|---|---|---|---|
| Month | TonnesGrade | Ounces | ||
| t | g/t | troy oz | ||
| October | 26,039 | 9.94 | 8,324 | |
| November | 19,620 | 8.65 | 5,455 | |
| December | 22,032 | 9.12 | 6,549 | |
| December 13 Q | 67,691 | 9.3 | 20,239 | |
| September 13 Q | 72,484 | 9.1 | 21,331 |
Rand's Entitlements (12.25%)
| December 13 Q | 8,292 | 9.3 | 2,479 |
|---|---|---|---|
| September 13 Q | 8,879 | 9.1 | 2,613 |
Approximately 9,400 tonnes remain as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine and will be hauled in early January.
Rubicon Underground Mine Development
At the end of the quarter, the bottom of the Rubicon Decline is at 6059 m RL, 284 m from the surface, the bottom of the Hornet Decline is at 5946 m RL, 397 m from the surface and the top of the Hornet Incline is at 6244 m RL, 99 m from the surface.
| RUBICON UNDERGROUND DEVELOPMENT | ||||||
|---|---|---|---|---|---|---|
| Month | Capital | Operating | ||||
| Decline | Secondary | WasteOrePaste Fill | ||||
| (m) | (m) | (m) | (m) | (m) | ||
| October | 16.3 | 9.8 | 0.0 | 111.9 | 30.0 | |
| November | 43.8 | 31.3 | 0.0 | 50.9 | 45.0 | |
| December | 37.2 | 60.4 | 0.0 | 19.0 | 36.0 | |
| December 13 Q | 97.3 | 101.5 | 0.0 | 181.8 | 111.0 | |
| September 13 Q | 25.7 | 71.2 | 23.6 | 455.8 | 85.5 |
The diagrams below show the status of the mine at the end of each month of the quarter.
November 13 Green indicates new development at Rubicon and Hornet
Mine operating costs incurred during the December 2013 Quarter were $149 per tonne mined or $499 per ounce mined compared with the September 2013 Quarter costs of $130 and $443 respectively.
Toll Processing
During the quarter, no EKJV ore was hauled to or processed at the Greenfields Plant. No EKJV ore remains on the ROM pad at the Greenfields Plant.
| Bullion accredited to RAND and TRIBUNE | |||||
|---|---|---|---|---|---|
| QuarterGold (oz)Silver (oz)Rand's share gold | |||||
| December 13 | 0.000 | 0.000 | 0.000 | ||
| September 13 | 0.000 | 0.000 | 0.000 |
During the quarter, 34,000 tonnes (wet) of Raleigh ore and 72,700 tonnes (wet) of Rubicon ore were hauled to the Kanowna Belle Plant. During the quarter, 111,044 tonnes of EKJV ore were processed.
| Bullion accredited to RAND and TRIBUNE from Kanowna Belle | |||||
|---|---|---|---|---|---|
| QuarterGold (oz)Silver (oz)Rand's share gold | |||||
| December 13 | 4,791.187 | ||||
| 19,164.7495,000.874September 1317,654.6983,670.8704,413.674 |
EKJV Exploration
The Quarterly Report of the EKJV exploration activities is expected shortly and will be released to the ASX when received.
OTHER EXPLORATION
Wongan Hills (Rand's Interest 100%)
A drilling programme to test previously reported anomalies has been planned and will start when a drill rig is available.
Seven Mile Hill Joint Venture (Rand's Interest 50%)
Discussions to farm out the Seven Mile Hill tenements are continuing.
Tapeta Iron Ore Project, Liberia, West Africa
Drilling is continuing.
Results will be announced when assays become available.
CORPORATE
Barrick Gold Corporation's Sale of the East Kundana Joint Venture
On the 23rd January, Rand Mining Ltd was notified that Barrick Gold Corporation had reached an agreement to divest its interest in Gilt-Edged Mining NL (the company that owns 51% of the East Kundana Joint Venture) to Northern Star Resources Ltd (ASX:NST). Rand Mining Ltd's share of the East Kundana Joint Venture is 12.25%.
The transaction is expected to be completed in March 2014.
INTERESTS IN MINING TENEMENTS
| Project/Tenements | Location | Held at end of | Acquired | Disposed during the |
|---|---|---|---|---|
| quarter | during the | quarter | ||
| quarter | ||||
| Kundana | WA, Australia | |||
| M15/1413 | 47.50% | |||
| M15/993 | 12.25% | |||
| M16/181 | 12.25% | |||
| M16/182 | 12.25% | |||
| M16/308 | 12.25% | |||
| M16/309 | 12.25% | |||
| M16/325 | 12.25% | |||
| M16/326 | 12.25% | |||
| M16/421 | 47.50% | |||
| M16/428 | 12.25% | |||
| M24/924 | 12.25% | |||
| Kalguddering | WA, Australia | |||
| E70/3646 | 100% | |||
| Kalgoorlie | WA, Australia | |||
| P26/3646 | 80% | |||
| Seven Mile Hill | WA, Australia | |||
| P26/3617 | 50% | |||
| P15/4495 | 50% | |||
| P15/5182 | 50% | |||
| P15/5183 | 50% | |||
| P15/5184 | 50% | |||
| Tapeta Iron Ore Project | Liberia, West Africa | 100% (under | ||
| (currently under option to | option) | |||
| acquire issued capital of | ||||
| Iron Resources Ltd, the | ||||
| owner of the project) | ||||
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, 01/06/10.
Name of entity
| Rand Mining Ltd | ||
|---|---|---|
| -- | ----------------- | -- |
ABN Quarter ended ("current quarter")
41 004 669 658 31 December 2013
Consolidated statement of cash flows
| Current quarter | Year to date | ||
|---|---|---|---|
| Cash flows related to operating activities | $A'000 | (6 months) | |
| $A'000 | |||
| 1.1 | Receipts from product sales and related debtors | 9,523 | 15,202 |
| 1.2 | Payments for(a) exploration & evaluation | (1,272) | (1,862) |
| (b) development | (255) | (465) | |
| (c) production | (3,312) | (6,696) | |
| (d) administration | (346) | (601) | |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature | ||
| received | 10 | 24 | |
| 1.5 | Interest and other costs of finance paid | (46) | (46) |
| 1.6 | Income taxes paid | (1,991) | (2,489) |
| 1.7 | Other (provide details if material) | - | - |
| Net Operating Cash Flows | 2,311 | 3,067 | |
| Cash flows related to investing activities | |||
| 1.8 | Payment for purchases of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | (37) | (37) | |
| 1.9 | Proceeds from sale of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | - | 8 | |
| 1.10 | Loans to other entities | - | - |
| 1.11 | Loans repaid to other entities | - | - |
| 1.12 | Loans from other entities | - | - |
| Net investing cash flows | (37) | (29) | |
| 1.13 | Total operating and investing cash flows (carried | ||
| forward) | 2,274 | 3,038 |
+ See chapter 19 for defined terms.
| 1.13 | Total operating and investing cash flows (brought | ||
|---|---|---|---|
| forward) | 2,274 | 3,038 | |
| 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 | (875) | (1,750) |
| 1.18 | Dividends paid | - | - |
| 1.19 | Other (provide details if material) | - | - |
| Net financing cash flows | (875) | (1,750) | |
| Net increase (decrease) in cash held | 1,399 | 1,288 | |
| 1.20 | Cash at beginning of quarter/year to date | 1,945 | 2,056 |
| 1.21 | Exchange rate adjustments to item 1.20 | - | - |
| 1.22 | Cash at end of quarter | 3,344 | 3,344 |
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 | (736) |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
1.25 Explanation necessary for an understanding of the transactions
Drill rig hire (included in exploration & evaluation 1.2(a)) (700) Directors fees and superannuation (included in administration 1.2(d)) (32) Royalty payment (included in production 1.2(c)) (4)
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
Not applicable
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
Not applicable
+ See chapter 19 for defined terms.
Financing facilities available
Add notes as necessary for an understanding of the position.
| Amount available | Amount used | ||
|---|---|---|---|
| $A'000 | $A'000 | ||
| 3.1 | Loan facilities | - | 5,000 |
| 3.2 | Credit standby arrangements | - | - |
Estimated cash outflows for next quarter
| Total | 2,100 | |
|---|---|---|
| 4.4 | Administration | 500 |
| 4.3 | Production | 500 |
| 4.2 | Development | 600 |
| 4.1 | Exploration and evaluation | 500 |
| $A'000 |
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows. | Current quarter$A'000 | Previous quarter$A'000 | |
|---|---|---|---|
| 5.1 | Cash on hand and at bank | 3,159 | 1,760 |
| 5.2 | Deposits at call | 185 | 185 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | - |
| Total: cash at end of quarter (item 1.22) | 3,344 | 1,945 |
Changes in interests in mining tenements
| Tenementreference | Nature of interest(note (2)) | Interest atbeginningof quarter | Interest atend ofquarter | ||
|---|---|---|---|---|---|
| 6.1 | Interests in miningtenements relinquished,reduced or lapsed |
+ See chapter 19 for defined terms.
6.2 Interests in mining tenements acquired or increased
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 persecurity (see note3) (cents) | Amount paid up persecurity (see note 3)(cents) | ||
|---|---|---|---|---|---|
| 7.1 | Preference | ||||
| +securities | |||||
| (description) | |||||
| 7.2 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs, | |||||
| redemptions | |||||
| 7.3 | +Ordinary | 60,841,209 | 60,841,209 | ||
| securities | |||||
| 7.4 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs | |||||
| 7.5 | +Convertible | ||||
| debt securities | |||||
| (description) | |||||
| 7.6 | Changes during | ||||
| quarter(a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through | |||||
| securities | |||||
| matured, | |||||
| converted | |||||
| 7.7 | Options | ||||
| (description and | |||||
| conversion | |||||
| factor) | |||||
| 7.8 | Issued during | ||||
| quarter | |||||
| 7.9 | Exercised during | ||||
| quarter |
+ See chapter 19 for defined terms.
| 7.10 | Expired duringquarter | ||
|---|---|---|---|
| 7.11 | Debentures(totals only) | ||
| 7.12 | Unsecurednotes (totalsonly) |
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 4).
- 2 This statement does give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 28 January 2014 (Director/Company secretary)
Print name: Anthony Billis
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 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.
- 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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
- 5 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.